|WHAT:||NACA Press conference to address bank lending and preferential access to Public Congressional Hearing|
|WHERE:||House Financial Services Hearing Room Rayburn HOB 2128|
|WHEN:||8:30 a.m. prior to start of public hearing at House Financial Services Committee.|
|WHO:||Hundreds of NACA homebuyers & homeowners|
(WASHINGTON, DC) – On Wednesday April 10th at 8:30 a.m. in front of the House Financial Services Committee Hearing room at 2128 Rayburn, NACA will hold a press conference in anticipation of testimony by the mega bank CEOs. NACA is bringing hundreds of homeowners and homebuyers to address the lack of lending to low- and moderate-income borrowers since the financial crisis. This hearing must hold the mega banks accountable and force them to detail their lending programs. This is particularly important given that lending to minority borrowers is at an all-time low after the mega banks stole a disproportionate amount of their equity without incurring any personal accountability.
Those impacted by the financial crisis need to have a say at this important hearing and to differentiate between these mega banks. For example, the NACA partnership with Bank of America has demonstrated a successful model that can be done on a large scale. Bank of America has committed $10 Billion to NACA’s Best in America Mortgage. This mortgage requires no down-payment, no closing costs, no fees at a below market fixed rate. Additionally, it is underwritten using character based criteria not the traditional credit score, debt ratios and down-payment. Bank of America is the only major financial institution that puts a significant amount of its own funds at-risk in portfolio mortgages when lending to low- and moderate-income borrowers. This stands in stark contrast to Wells Fargo who only lends to low- and moderate-income borrowers using government programs while reserving portfolio lending to high wealth borrowers. Bank of America’s partnership with NACA has paid dividends with 85% of the homeowners being minority, 70% with incomes less than 80% of the median for the area they purchase, and over 50% with a credit score less than 650. The results are extraordinary with one of the lowest foreclosure rates in the country at 0.0021%. This full documentation mortgage, where everyone receives the same fixed rate, shows that lending to working people with a fixed affordable payment creates long-term financial stability and wealth.
NACA has sent letters to every member of the House Financial Services Committee to allow fair access and not paid access to this important public hearing (click here for letter to Congress members). We hope that the anti-democratic scheme which involves paid line-sitters holding places for financial executives will end at this important public hearing taking place on April 10. Bruce Marks, NACA’s CEO and founder states “The NACA-Bank of America lending partnership should provide the foundation for lending by other financial intuitions. The no down-payment mortgage is a foundation of lending through VA mortgages which was instrumental in building white suburbs after WW2 (i.e. minority borrowers could not access it). The proof is the excellent performance of no down-payment mortgages even during the mortgage crisis. This hearing needs to listen to all voices and provide solutions that can be done on a large scale with the lending institutions taking financial responsibility to lend on affordable terms.”
About NACA (www.naca.com):
The Neighborhood Assistance Corporation of America (NACA) is a non-profit organization dedicated to economic justice through home ownership and community action. Founded by economic advocate Bruce Marks over thirty years ago, NACA is the largest HUD certified counseling agency with more than two million members nationwide. Through its Best in America Mortgage and Home-Save programs, NACA has helped many thousands of homeowners modify their unaffordable mortgage and low-to-moderate income homebuyers obtain a mortgage with no down-payment, no closing costs at a below-market fixed rate. www.naca.com. #AchieveTheDreamNACA.