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.