Whittier, Ca

 

Black and Latino home buyers are finally getting assistance from one of the largest lending institutions in this newly revived real estate market. Bank of America's new "Community Affordable Loan Solution" will be available in certain cities for Black and Latino neighborhoods. 

Why is this a big deal you ask? Well currently, Black homeownership is at 45% compared to white homeowners at 72%!In addition, homes in Black neighborhoods are selling at a whooping 50% less than homes in White neighborhoods. CultureBanx reported that Black and Latino households are not reaping the real estate gains felt by the other demographics, due to home prices appreciating so much that families of Color are being out-priced of their very own neighborhoods. This is why the "Community Affordable Loan Solution" can be a game changer since there's no minimum credit score or mortgage insurance required and home buyer eligibility is based on income along with location.

A recent report from Lending Tree found the mortgage denial rate for Black borrowers is twice that of the overall population. One of the biggest culprits is Wells Fargo. A Bloomberg analysis discovered that Wells Fargo's approval rates of 47% for Black & Latino borrowers is the worst among major lenders. In addition, it was discovered that Black and Latino applications for refinances were also approved at a disproportionate rate of 25% to 75% for their White counterparts. When questioned, Wells did not deny the claims, but state that it takes the same approach to all potential borrowers.

This round of the Banking Wars goes to Bank Of America. I don't want to give more praise than necessary since after all we're talking about banks here. I will be following this much more closely and having some discussion with BofA lenders so stay tuned for more on this.