Bank of America Tests No-Down-Payment Mortgages for Minority Communities.

[jboldeniv]

What do y'all think about this?

[KrisF]

What do y'all think about this?

I'm skeptical at the moment. If in these areas where it is being introduced at a time when house prices seem to have already risen rather than at a time when prices are generally lower, it seems like there is a high risk of a lot of underwater mortgages. I vaguely remember seeing some news about one housing bubble in the states starting to burst on the Graham Stephan show, so there may be a chance it could happen else where too.

I'll do more research into this, but the wording of their reassurances doesn't immediately inspire confidence in how good it will be specifically for the black community. ("the program is not big enough to "pose any systemic risk to the bank or the economy." "). Maybe there is a property professional on here that could chime in with their take.

[KrisF]

To make this program more feasible for the balck community, they could start training and hiring programs for mid-tier and senior positions for candiditates from these communities. That way, the average homebuyers' income from these communities would be increased and better placed to offset the risk of underwater mortgages.

[jboldeniv]

I'm skeptical at the moment. If in these areas where it is being introduced at a time when house prices seem to have already risen rather than at a time when prices are generally lower, it seems like there is a high risk of a lot of underwater mortgages. I vaguely remember seeing some news about one housing bubble in the states starting to burst on the Graham Stephan show, so there may be a chance it could happen else where too.

I'll do more research into this, but the wording of their reassurances doesn't immediately inspire confidence in how good it will be specifically for the black community. ("the program is not big enough to "pose any systemic risk to the bank or the economy." "). Maybe there is a property professional on here that could chime in with their take.

I hear you.