Bank of America to offer zero-down mortgages in Black and Hispanic communities

An article https://reason.com/2022/09/02/new-loan-program-for-black-lat... in Reason magazine says this program "will likely be a gentrification accelerating machine".

We'll see if this runs afoul of disparate impact [1], or even the narrower disparate treatment, since it was their declared intention to choose neighborhoods based on race.

[1] https://en.wikipedia.org/wiki/Disparate_impact

The year is 2006 [1] again.

[1]: https://en.m.wikipedia.org/wiki/Subprime_mortgage_crisis

How is this not basically the reverse of redlining?

From the article:

"A year ago the Biden administration announced several recommendations to close the racial homeownership gap. Earlier this year, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, unveiled a sweeping plan to address discrimination in access to homeownership. Among the recommendations were down payment assistance, lower mortgage insurance premiums and a credit reporting system that factors in rent payment history. It also suggested increasing the use of special purpose credit programs, which is what the Bank of America loan is.

"These credit programs enable lenders to offer loans with favorable terms to borrowers who have suffered economic damages or who share common characteristics like low income, race or location. Though the Equal Credit Opportunity Act prohibits discrimination in lending based on race, sex, age or other traits, it does allow for these credit programs."