Bank of America "Commits" $15B for Affordable Home Ownership That Will Be Impossible For Most To Get - Here We Go Again!!!

<p>Bank of America is doing it again.</p> <p>Today, BofA announced a "<a href="https://newsroom.bankofamerica.com/content/newsroom/press-releases/2021/02/bank-of-america-triples-affordable-homeownership-commitment-to--.html">$15 Billion Commitment to Affordable Homeownership</a>" for Low and Moderate income potential homebuyers. <a href="https://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-america-launches-5-billion-affordable-homeownership-initiative">This is triple what they announced in 2019</a>, with this commitment now going into 2025.</p> <p>In the middle of Black History Month, BofA annouces a product that should in theory help communities of color thrive with the prospects of home ownership. But as I discuss in this podcast, there is more that meets the eye.</p> <p>First off, the $15 Billion is a fake number in the sense that is what BofA is giving. It's not. They set an aggregate price of what they want to spend getting 60k homeowners in homes at a max average of $250k a home. That equals to $15B. <br> <br> Secondly, BofA offering grants for closing costs and down payment with the $5B commitment only totaled $180M, which is about 3% of the actual total amount announced. Customers on the information aren't directly told of it being taxable, nor is it implied that they won't get the max of $17,500, but merely a number "up to" that amount, which makes BofA's spending even less!</p> <p>I share with you my story as a homebuyer using a program similar to this in 2016 as an associate, and the pure hell someone in one of these loans will go through.<br> <br> I also parse through this statement:<br> Low down payment loans are competitive, fixed-rate mortgages with down payments as low as 3%, requiring lower-cost – or even no – mortgage insurance. Today, nearly 85% of these loans go to first-time homebuyers.<br> <br> "Competitive" means that low to moderate income people will be paying more!<br> <br> I also discuss how they naturally tie it into the $1B commitment from the Floyd Issue of this pa