Affordability Crisis Brings About Questionable Lending Practice

It’s called the Affordable Loan Solution Mortgage and it’s offered by Bank of America. Only 3% down and the money need not come from the borrower. No financial reserves and no mortgage insurance required plus a FICO score as low as 660. Wow.


Bank of America originates the mortgages through one of its sales channels. Once the loan is originated, Bank of America sells the loans, including servicing rights, to Self-Help, a credit union based North Carolina though with ties to Washington, D.C. through the founder’s control of Center For Responsible Lending.

Self-Help provides post-closing counseling for borrowers and designates the specialty servicing company who handles all loans regardless of future performance. Self-Help is taking the first-loss position and thus the loans require no mortgage insurance.

Freddie Mac then purchases all of the eligible Affordable Loan Solution mortgages originated via the Self-Help and Bank of America partnership.

I would love to know the funding source of Self-Help.

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