this is so utterly disgusting and transparent
ofc conservatoids think this is racism against white people completely missing the point that the program is explicitly luring people from impoverished communities into predatory loans through advertisements of long mortgages and no down payments

wow who would've known a lack of government action after 2008 would've lead to the exact same thing?!

Might buy a few houses

W if your a house flipper

Positive discrimination weaponized by the rapacious capitalist ruling class for wholesome social justice usury

I never would have guessed something like this could happen

it's literally just a clever way of subprime lending but with a woke language excuse so no one calls them out on it

This is NOT just for black and latino people. This is for people living in black and latino majority neighborhoods.

This isn't to bait minorities under s***ty subprime loans, this is to accelerate gentrification and push real estate companies to invest.

The best government is no government. Anarchy!

This is great

celebrate with me, reddit-bro!

How is this for big companies if it's a strict requirement you must be a first time home buyer and you explicitly must sign a long term mortgage with no early payout conditions? The terms explicitly say companies and generic landbuyers can't buy into it.

I'm not saying it's racist or anything (i'm saying the opposite - that's clearly a misdirection), but rather that it's using mainstream liberal language to take advantage of subprime mortgages backed by federal loan money. It's very clearly predatory

These are not subprime mortgages. Subprime mortgages were subprime because they did not utilize financial profiles of lendees and basically gave them off the street to anyone who wanted them.

Credit guidelines were literally non-existent. I mean they actually didn't exist before 2008. These are loans that reflect something like a VA loan. Zero down, zero closing costs, which allows people to get past the high barrier of entry and actually move out of rentors. These loans will still scrutinize people based off FHA and CFPB standards.

The problem is that these loans are 1. Timed exactly when housing prices are starting to see a big dip in the horizon 2. Terms and conditions specifically state that these are for neighborhoods and not individual persons (possibly to not be reamed for redlining, possibly more so to push gentrification).

I haven't exactly read the terms and conditions, but "first time homebuyer" conditions are almost always worked around through multiple avenues. I'd have to read them more in-depth but unfortunately I'm at work.

I'm not saying this isn't s***ty-- this is very s***ty. But the point of this is to open up black and latino neighborhoods for gentrification in order to allow corporations to expand within these regions through "safer" investments. They won't necessarily be using this program specifically, but they will be benefitting from this program.

This sounds even worse than what OP is implying

I'm not saying they're literally a clone of the subprime crisis (i meant that more facetiously in the OP title) but they're clearly structured predatory manner by as you say dropping a barrier of entry to allow poorer people to buy homes, but then taking advantage of them in a predatory manner by reaping a spiral of interest over an even further extended period of time. It's the same type of predatory lending as things like payday loans which on the surface seem to be a helpful tool (quicker access to money for those who need it) but in reality are only meant to rack up debt on those who can't afford it.
I don't see how this benefits corporations (as buyers), companies like blackrock don't need loan programs like this for gentrification? They can buy land with straight cash, gentrification programs from bigger corporations rarely use loans - unless you're talking about small businesses but these loans can't be used for commercial property. So I assume you mean potential landlords, but it's ambigious whether or not it can be used for that. Even if it was to be used for that though, it's almost the same thing, banks giving mortgages at predatory rates w/ purposeful low barrier of entry to allow rental exploitation but hiding behind the guise of racial equity.

See my post below. Corporations are not necessarily benefitting directly from the program itself but the results of the program.

As upper middle class and rich white people take these loans, they rise the average net income of the neighborhood, thereby increasing investment potential. When black and latino residents are priced out, corporations are able to swoop in and buy out the rest of the neighborhood. They aren't able to do this before, because they have no reason to invest in these neighborhoods previously with such a low ROI.

Because of current supply chain issues for new constructions and the housing market bursting at the seams in terms of buyers not taking the bait for insane house prices at this point, they need ample room to expand and this is the next underlying avenue for them.

I'm telling you-- poorer people and the people who need these loans will not be able to even get past the application phase. They will be deemed unable to keep up with, what I'm guessing will be the very high interest of the loans, and will be determined ineligible based on their financial profile. Therefore, only highly middle-class persons will be able to take these.

Yes, it is. In my opinion at least. This is far more nefarious and dangerous for these residents.

American Psycho avi is right

In this very specific case given the terms, I just don't see proof that rich white people would take these loans over just outright buying the land, especially given how "cheap" this land is for old constructions relative to what rich people looking for property exploitation usually make. Rich people are stupid but they're not completely ed, I don't see why they'd take a clearly predatory long term loan over a traditional shorter term mortage (especially since they can afford it), and also especially when the same land isn't bank-owned, the loan exists independently of the land.

I'm not denying what you're saying happens elsewhere fwiw, i'm just saying I don't think this is the same thing happening here reading about the specifics of the program/pilot, it seems way more directly exploitative rather than trying to net a secondary middleman.

Sorry, I kinda meant rich in terms of relative terms instead of outright loaded with money.

I mean moreso middle-class white persons in general. Those who have enough money to maybe have been able to buy a house a couple years ago but whose unable to get a decent deal now because they're priced out until the market chills out. This is moreso who I see taking these loans.

I can see it to some degree but the explicit loan terms here seem predatory even to someone middle class. The no down payment/closing fees are just window dressing

They are going to be absolutely s***ty in terms of interest rates and principal amounts, yes, but that only reinforces that the residents in these neighborhoods won't even be able to get past the application phase. Middle-class millennial white people, while they're getting slung a s***ty deal, are more than willing to do what they can at this point because a good chunk are desperate to get some kind of land in this market, and based on their incomes and credit profiles, will probably be more likely to get past the application and into the negotiating phase.

Regardless it's not for the benefit of these residents AT ALL.

I agree to some degree but disagreements aside, I think we can both agree it's explicitly predatory either way

Yes regardless it's BoA and they're not exactly known as the most considerate of poor people, especially poor minorities

Rates are nasty at the moment and house prices have jumped considerably since covid.

I bought my house for $150k and now Zillow estimates it at $233k