Bank of America Endorses NAACP Responsible Mortgage Lending Principles
Posted on July 15, 2011
The NAACP and Bank of America have announced that they will enhance their partnership through the promotion of greater economic opportunity and advancement of community economic development throughout the nation. Bank of America has committed significant resources to support the work of the NAACP, providing financial education to disenfranchised communities that were ravaged by the economic crisis as well as identifying economic opportunities for the future.
NAACP President and CEO Benjamin Todd Jealous declared, “The NAACP is proud that Bank of America is aligned with our Responsible Mortgage Lending Principles. Now, more than ever, it is important that economic opportunity is available to everyone, in every community. The foundation of this opportunity is rooted in the ability to educate our communities and provide the tools to overcome generations of financial challenges.”
In addition to providing financial support, Bank of America, the largest bank holding company in the United States, has agreed to endorse the NAACP’s Responsible Mortgage Lending Principles, including both parties working together to advance fair lending practices.
“Bank of America is a strong advocate of responsible lending and is committed to providing more transparency and clarity to help customers make informed decisions,” said Glenda Gabriel, Neighborhood Lending executive for Bank of America. “Our mission is to provide leadership in homebuyer education and one way we can do that is through our strong partnership with the NAACP.”
Dedrick Muhammad, Senior Director of the Economic Programs for the NAACP, stated “Bank of America has been at the forefront of change and reform among lending institutions, from eliminating overdraft fees for everyday, non-recurring debit card transactions, to the creation of the Bank of America National Community Advisory Council. We look forward to working with Bank of America in advancing further change to enhance mortgage lending practices and and strengthen economic security for all Americans.”
A summary of the NAACP’s Responsible Mortgage Lending Principles is listed below or for more information see www.naacp.org/econ.
NAACP Responsible Mortgage Lending Principles Summary
Loan terms will not be determined by a borrower’s race, ethnicity, gender, national origin, sexual orientation, language preference, disability, religion/creed, or age, except as otherwise permitted or required by law. Additionally, loan terms will not be determined by factors designed to serve as proxies (e.g., zip codes) for the above categories.
Every borrower will have the option of selecting a loan product that is appropriate for his or her circumstances. Lending institutions and brokers should provide a transparent counseling process to provide maximum protection to the borrower.
Institutions will seek to eliminate policies or practices that encourage biased and exploitive behaviors toward borrowers.
Borrowers will be approved only for loans they have a current ability to repay.
Each policy may be maintained and monitored for its racial impact.
All borrowers will have access to free information, online and in print that will help them understand and improve the quality of their loans.
Lenders will work with borrowers to prevent foreclosures.
Lending institutions will support and implement the inclusion of diverse suppliers in their contracting and partnership decisions.
Workforce diversity is important to fair decision making and expanded opportunity for economic development.
About The NAACP
Founded in 1909, the NAACP is the nation's oldest and largest civil rights organization. Its more than half-million members and supporters throughout the United States and the world are the premier advocates for civil and human rights in their communities, conducting voter mobilization and advocating for equal opportunity in the public and private sectors. For more information visit www.naacp.org
About Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 58 million consumer and small business relationships with approximately 5,800 retail banking offices and approximately 18,000 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.