“We were overpaid for a couple of years, and it was too easy”

Opportunities abound in catering to the first-time homebuyer. A growing list of lenders have lowered FICO scores needed to approve a loan, and other measures – rental and utility payments, for instance – are increasingly being added to the mix in ascertaining creditworthiness. Moreover, bolstered efforts to assist historically underserved population segments – chiefly homeownership hopefuls in the Hispanic and African American communities – are being bolstered by various lenders.

For instance, Bank of America this month launched its Community Affordable Loan Solution in select communities, an initiative tailored to expand homeownership opportunities to historically underserved borrowers. Dubbed a Special Purpose Credit Program, the product targets Black/African American and Hispanic/Latino borrowers, both population segments that historically have not met traditional standards toward creditworthiness. To that end, the initiative waives the traditional prerequisites of down payment or insurance, comes with no closing costs, and is not contingent on credit score.

The nascent program initially is available in Charlotte, N.C.; Dallas; Detroit; Los Angeles; and Miami.

Read more: Bank of America expands minority lending opportunities

MPA caught up with Lourenco, a loan originator, at last week’s AIME on Tour stop in Denver, one in a series of regional networking events designed to connect the organization’s members, independent mortgage brokers and wholesale mortgage professionals. The tour stops provide those in the industry with opportunities to secure updates about important initiatives while learning how to get involved in advocating for the broker community.