Link

Bank of America retreats from affordable loan program

Bank of America retreats from affordable loan program

Wow, what a low blow to the low-income and minority borrowers to get home loans.

Bank of America, the largest bank in Massachusetts, has pulled out of one of the state’s leading first-time homebuyer programs, a move that will make it harder for low-income and minority borrowers to get home loans, according to housing advocates.

Instead of participating in the Massachusetts loan program, Bank of America is directing lower-income borrowers to a federal program with higher interest rates and additional fees, a new report by a network of affordable housing organizations found.

Those loans can cost borrowers nearly $300 more a month in mortgage payments on a $220,000 single-family home, according to the Massachusetts Affordable Housing Alliance, which helped produce the report.

Esther Maycock-Thorne, the president of the housing alliance board, said Bank of America should do more to help lower-income homebuyers. Bank of America has an extensive branch network in the state, takes in nearly $58 billion in deposits from Massachusetts customers, and offers other products, including wealth management, she noted.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s