A melody we've heard before--BofA to provide zero-interest mortgages, cash equity in down payments only to home-buyers in Black, Hispanic neighborhoods - Galt's Gulch

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A melody we've heard before--BofA to provide zero-interest mortgages, cash equity in down payments only to home-buyers in Black, Hispanic neighborhoods

Posted by bubah1mau 1 year, 7 months ago to Economics

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Waiting to see how this paper will be mixed in and sold with other mortgages, just like sub-prime mortgages were leading up to 2008.

SOURCE URL: https://www.zerohedge.com/personal-finance/bofa-launches-zero-down-mortgages-only-black-and-latino-neighborhoods

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Posted by mccannon01 1 year, 7 months ago

Yep. Heard this before during the Clinton administration ca 1999. The whole thing collapsed ca 2007 - 2008. BoA has to be the most woke bank of all. Have to admit to keeping a small amount in BoA for travel purposes. Wish there was another less woke bank that has branches all over the US. Hate the idea these creepy people have even a little of my money.

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  Posted by bubah1mau 1 year, 7 months ago
  
  I guess they did this for the applause they'll get from the woke left. My guess is those mortgages will become hot potatoes on signing that will have to be mixed in with other financial instruments and passed off as quickly as possible. Can only expect mass default and inability to evict because of racial sensitivity.
  
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    Posted by mccannon01 1 year, 7 months ago
    
    “…will have to be mixed in…” That is the exact result of creating politically correct subprime mortgages starting in1999. Before that American mortgage backed securities were reasonably solid and safe. After that somebody asked “What’s in it?” and the whole thing went to hell. Say thanks to a commie named Barney Frank.
    
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      Posted by bubah1mau 1 year, 7 months ago
      
      Yes. Here we go again.
      
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    Posted by freedomforall 1 year, 7 months ago
    
    And an excuse for bail out at our expense.
    Repeal the federal reserve act. Nuke the bankers.
    
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Posted by Markus_Katabri 1 year, 7 months ago

What could POSSIBLY go wrong?

We all know where this leads. BofA is going to churn these loans out and mix them into derivatives that they will get off their books ASAP. Some will be repaid. The vast majority will not. The system will break just like last time. Every Bank CEO will fly in their corporate jets to DC to beg for a bailout. Which they will get. Then they will pay lavish salaries and bonuses. Just like last time. Rinse and repeat.

How much you want to bet this boosts their ESG score?

Figure out how you could’ve capitalized off the last time......do THAT now.
Me I’m getting off the crazy train. I’m pulling all investments that are backed by nothing.
But you do you boo.

When Too big to Fail is just too damn big, period.

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