Bank of America “announced a new mortgage home loan program for first-time homebuyers. But only blacks and Hispanics will be eligible.”
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A flag flies in front of Bank of America's corporate headquarters in Charlotte, North Carolina, Oct. 5, 2011. (AP)
Bank of America’s new home loan program does not exclude any race, despite claims that say otherwise
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• Bank of America’s new home loan program is open to all applicants regardless of their race, the company said.
• The program is being introduced in Black and Hispanic communities to boost homeownership among those racial groups, who are less likely than white or Asian Americans to own their homes.
Bank of America unveiled a new loan program in Black and Hispanic neighborhoods to boost homeownership where it lags.
Some of the news headlines made outlandish, unproven claims about the scope of the company’s program.
"Whites and Asians need not apply," said an Aug. 31 story in Gateway Pundit, a conservative website. "Bank of America on Wednesday announced a new mortgage home loan program for first-time homebuyers. But only blacks and Hispanics will be eligible."
Gateway Pundit also shared the claim in a Sept. 1 post on Instagram, and many commenters reacted with shock.
"The bank should be sued for discrimination! This is blatant racism," one commenter replied.
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"Let the lawsuits commence," said another.
The Instagram post — which was later edited — was flagged as part of Facebook’s efforts to combat false news and misinformation on its News Feed. (Read more about our partnership with Meta, which owns Facebook and Instagram.)
We reached out to the Gateway Pundit to ask whether it had any information to back up the claim. The site did not return a request for comment.
Bank of America said the claim is wrong. Borrowers do not have to be Black or Hispanic to qualify for the loans. Any first-time home buyer can apply, regardless of race.
The bank’s Community Affordable Loan Solution offers mortgages with zero down payment and zero closing costs. The program is currently available in five markets, including specific Black and Hispanic neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami, according to a press release.
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"Individual eligibility is based on income and home location," the release said.
The program aims to narrow racial gaps in home ownership. The National Association of Realtors reported that as of 2020, white Americans had a 72.1% homeownership rate; Asian Americans had a 61.7% rate; Hispanic Americans had a 51.1% rate; and Black Americans had a 43.4% rate.
Our ruling
The Gateway Pundit claimed that Bank of America "announced a new mortgage home loan program for first-time homebuyers. But only blacks and Hispanics will be eligible."
The new program is available to all applicants, regardless of race. It is being introduced in Black and Hispanic communities to boost homeownership among those racial groups, who are less likely than white or Asian Americans to own their homes. But any first-time home buyer can apply, regardless of race.
We rate this claim False.
Our Sources
NBC News, Bank of America announces zero down payment, zero closing cost mortgages for first-time homebuyers in Black and Hispanic communities nationwide, Aug. 31, 2022
Bank of America, Bank of America introduces Community Affordable Loan Solution™ to expand homeownership opportunities in Black/African American and Hispanic-Latino communities, Aug. 30, 2022
The Gateway Pundit, Bank of America to offer zero down payment, zero closing cost mortgage loans to Black and Hispanic borrowers, Aug. 31, 2022, archived Sept. 2, 2022
Instagram post, Sept. 1, 2022
Email interview, Susan Atran, Bank of America spokesperson, Sept. 1, 2022
National Association of Realtors, U.S. homeownership rate experiences largest annual increase on record, though Black homeownership remains lower than a decade ago, NAR analysis finds, Feb. 23, 2022
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Bank of America’s new home loan program does not exclude any race, despite claims that say otherwise
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