(Jamaica Plain, MA) At 11:00 a.m. on Wednesday January 7º at the NACA’s national office, at 3607 Washington St., Jamaica Plain, MA, Bank of America’s CEO – Ken Lewis and NACA’s CEO Bruce Marks will announce a historic $6 Billion commitment to NACA’s Best in America Homeownership program – the largest such commitment ever. Flanked by politicians, community leaders and homeowners the announcement will demonstrate the country’s first fully high-tech paperless mortgage processing and underwriting program.
These mortgages, with the best terms in the country, will be available nationwide to moderate- and low-income borrowers. The terms of NACA’s best mortgage in the industry include:
- NO – Down Payment
- NO – Closing Costs
- NO – Fees
- NO – Perfect Credit Required
- Below Market Interest Rate: 5.0% (as of 12/31/03 APR)
All of the data and documents involved in the application and underwriting process for these mortgages will be transferred online through NACA’s innovative software which optimizes communications between a NACA Housing Consultant and the lender. But the software extends beyond mere processing functions to incorporate NACA’s financial consulting program as well. The high-tech paperless process transcends a simple approval or rejection based on a credit score and provides NACA’s Housing Consultants with the tools necessary to guide borrowers—even those with severe credit issues—through to the ultimate goal of home ownership. NACA’s Housing Consultant’s will work one-on-one with the borrower for as long as it takes provided free of charge through the closing on the home of their dreams and then NACA’s post ownership team will provide a safety net for the foreseeable future.
“Until now, NACA has been known for its aggressive and confrontational advocacy,” stated Bruce Marks, NACA CEO. “In the future, with our groundbreaking technology, NACA will also be known for setting the standard for lending to working families. Come to NACA, and regardless of how bad your credit is, regardless of how little you have saved, we will work with you for as long as it takes until you are prepared for a mortgage better than what the wealthiest, most connected borrowers get. Working people deserve no less.”
Ken Lewis – CEO of Bank of America concurs – “We at Bank of America long ago divested our sub-prime operations, bucking the national trend. Through this partnership, we have found a new way to attract the same borrowers, but on mortgage terms that they can afford over the long term. This commitment sets a standard for lending to people who do not have substantial savings, or who have credit issues, without having to charge higher rates and fees. The NACA program, with its intensive one-on-one counseling and state of the art mortgage processing system, is the best answer for lending to low- and moderate-income borrowers. That is why we have committed billions to this program.”
The efficiency of the all-electronic system allows Bank of America to fund these extraordinary mortgages at very low cost, passing the benefits on to the borrower. And since NACA’s Housing Consultants do all of the work upfront to prepare homebuyers, over 99% of the mortgage applications taken through NACA are approved. The streamlined underwriting process means that many approved borrowers close on their loans within two to three weeks of completing a mortgage application, months faster than with other mortgage lenders. The benefits of NACA’s comprehensive counseling program are tangible to Bank of America with over 99.75% of NACA homeowners being in their homes and making their mortgage payments.
Bank of America and NACA began partnering to offer this mortgage program in 1995, and their commitment has grown exponentially over the subsequent years. More than 10,000 homeowners are now in their own homes as a result. Being the largest retail lender in the country, Bank of America’s huge commitment to the NACA program will facilitate home ownership nationwide for additional thousands who would not otherwise have had the opportunity to own their own home. This $6 billion commitment to the NACA program will primarily benefit first time home buyers, but current homeowners who are at risk of losing their homes or are facing financial distress can also seek to refinance through NACA with no fees, points or costs, and at an affordable interest rate.