Bank of America Expands the Affordable Loan Solution Program to Help Low- and Moderate-Income (LMI) Homebuyers
October 20 2016 - 10:00AM
Business Wire
Expansion Follows Successful First Six Months
in Partnership With Self-Help and Freddie Mac to Promote
Responsible Lending
Bank of America, in partnership with Self-Help Ventures Fund and
Freddie Mac (OTCQB: FMCC), announced the doubling of its annual
commitment to its Affordable Loan Solution™ mortgage program from
$500 million to $1 billion, ensuring continued support for an
innovative mortgage program that has provided more than 90 percent
of its recipients first-time homeownership financing.
“Since our introduction in February, the Affordable Loan
Solution program has been meeting the needs of LMI borrowers who
desire a responsible mortgage product at an affordable entry
point,” said D. Steve Boland, Consumer Lending executive, Bank of
America. “We’re especially proud of how the Affordable Loan
Solution program has become a popular choice for creditworthy
first-time homebuyers, many of whom live in underserved
communities.”
This year, Bank of America is enhancing the mortgage experience
for clients who qualify for an Affordable Loan Solution mortgage,
including automated underwriting and improving cycle times.
The Affordable Loan Solution mortgage program allows down
payments as low as 3 percent on the purchase of a primary,
single-family residence, with no reserve funds required in most
situations. Customers are not required to pay mortgage insurance.
Borrowers may use secondary financing, such as an affordable second
loan, grants, or even cash they have on hand. The program also
considers non-traditional forms of credit to demonstrate credit
history. Loan amounts must be within conforming loan limits (up to
$417,000), and applicants’ income cannot exceed 100 percent of the
HUD area median income. Applicants must occupy the property, and
first-time buyers must participate in homebuyer education through a
HUD-approved housing counseling agency.
The Affordable Loan Solution mortgage program is offered through
all Bank of America mortgage sales channels, including mortgage
loan officers in offices across the country, 4,700 financial
centers, bankofamerica.com, and mortgage experts by phone.
The Affordable Loan Solution mortgage program evolved from a
partnership involving Bank of America, Self-Help and Freddie Mac.
Bank of America mortgage loan officers, based in home loans offices
and financial centers across the country, work directly with
homebuyers to originate the loans. The bank sells the loans,
including servicing rights, to Self-Help, which provides
post-closing counseling for any borrowers who might be experiencing
payment difficulties. Loan servicing immediately transfers after
origination to Self-Help’s designated specialty servicer, who is
handling all loans regardless of future performance.
Freddie Mac collaborated with Self-Help and Bank of America to
define credit terms and approved Self-Help as a seller/servicer to
facilitate the rollout of this offering to borrowers. Freddie Mac
is purchasing all of the eligible Affordable Loan Solution
mortgages originated via the Self-Help and Bank of America
partnership.
The Affordable Loan Solution mortgage program includes an
extensive quality control routine with Freddie Mac that promotes
responsible underwriting and reduces potential risks to Bank of
America and Freddie Mac.
Click here for more information about the Affordable Loan
Solution mortgage program, or speak with a mortgage expert at
1.800.781.0242.
Bank of America
Bank of America is one of the world's leading financial
institutions, serving individual consumers, small and middle-market
businesses and large corporations with a full range of banking,
investing, asset management and other financial and risk management
products and services. The company provides unmatched convenience
in the United States, serving approximately 47 million consumer and
small business relationships with approximately 4,600 retail
financial centers, approximately 16,000 ATMs, and award-winning
online banking with approximately 34 million active accounts and
more than 21 million mobile active users. Bank of America is a
global leader in wealth management, corporate and investment
banking and trading across a broad range of asset classes, serving
corporations, governments, institutions and individuals around the
world. Bank of America offers industry-leading support to
approximately 3 million small business owners through a suite of
innovative, easy-to-use online products and services. The company
serves clients through operations in all 50 states, the District of
Columbia, the U.S. Virgin Islands, Puerto Rico and more than 35
countries. Bank of America Corporation stock (NYSE: BAC) is listed
on the New York Stock Exchange. www.bankofamerica.com
About Self-Help Ventures Fund
Self-Help Ventures Fund is an affiliate of a network of entities
under the Self-Help banner that together are a leading national
community development financial institution (CDFI). Headquartered
in Durham, NC, Self-Help has provided over $7 billion in financing
to 112,000 families, individuals and businesses. The non-profit
helps drive economic development and strengthen communities by
financing hundreds of homebuyers each year, as well as funding
nonprofits, child care centers, community health facilities, public
charter schools, and residential and commercial real estate
projects. Self-Help’s credit unions serve over 120,000 people
in North Carolina, California, Chicago and Florida with a full
range of financial products and services. Learn more at
www.self-help.org.
About Freddie Mac
Freddie Mac was established by Congress in 1970 to provide
liquidity, stability and affordability to the nation's residential
mortgage markets. Freddie Mac supports communities across the
nation by providing mortgage capital to lenders. Today Freddie Mac
is making home possible for approximately one in four home
borrowers and is the largest source of financing for multifamily
housing. Additional information is available at FreddieMac.com,
Twitter @FreddieMac and Freddie Mac's blog.
Visit the Bank of America newsroom for more Bank of America
news.
www.bankofamerica.com
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version on businesswire.com: http://www.businesswire.com/news/home/20161020005858/en/
Reporters May Contact:Kris Yamamoto, Bank of America,
1.805.526.1910kris.yamamoto@bankofamerica.comTerry Francisco, Bank
of America, 1.213.345.9024terry.h.francisco@bankofamerica.com
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