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TD Bank Launches Mortgage Product For Minority Communities

Katie Jensen
Mar 02, 2022
More blacks and Hispanics received home purchase loans in 2015, but they also experienced higher levels of loan denial, according to Home Mortgage Disclosure Act (HMDA) data released by the Federal Financial Institutions Examination Council (FFIEC)

The new Home Access Mortgage is designed to increase homeownership opportunities in Black & Hispanic communities.

KEY TAKEAWAYS
  • Home Access Mortgage will be offered across several markets within TD Bank’s footprint, spanning from Maine to Florida. 
  • A recent TD Bank survey found that 46% of respondents consider saving for a down payment to be a roadblock to purchasing their first home, including 44% and 45% of Black & Hispanic homebuyers, respectively.
  • TD Home Access Mortgage provides a $5,000 lender credit, which does not require repayment, and borrowers can use it for closing costs or toward a down payment on a home.
  • The lender credit also helps offer more flexibility with a greater debt-to-income ratio and expanded underwriting requirements, as well as credit parameters that increase accessibility. 

TD Bank today has announced the launch of Home Access Mortgage, a product designed to increase homeownership opportunities in Black and Hispanic communities across several markets within the bank’s footprint, spanning from Maine to Florida. 

TD Home Access Mortgage provides prospective borrowers with an affordable mortgage option that includes a $5,000 lender credit that does not require repayment, and borrowers can use it for closing costs or toward a down payment on a home purchase. The lender credit also helps offer more flexibility, with a greater debt-to-income ratio and expanded underwriting requirements, as well as credit parameters that increase accessibility. 

A recent TD survey found that 46% of respondents consider saving for a down payment to be a roadblock to purchasing their first home, including 44% and 45% of Black and Hispanic homebuyers, respectively.

"The current housing market is highly competitive, making it exceedingly difficult for potential homebuyers, especially people of color, to contend if they have limited financial resources for a down payment or closing costs," said Michael Innis-Thompson, head of community lending and development at TD Bank. "This mortgage offering is designed to ease that burden, provide more equity in the home lending process, and make the dream of homeownership more attainable for Black and Hispanic families."

Borrowers must meet credit and income parameters and reside in one of the participating markets to qualify, but they are not required to be first-time home buyers. 

Borrowers can use the product to purchase and refinance a mortgage for various property types, including single-family residences, condos, and owner-occupied multi-family units. 

Additional offers from TD Bank include: 

  • Enhancing TD Bank Right Step Mortgage product by expanding FICO score requirements, DTI and Loan to Value qualifications.
  • Reducing secured card entrance deposit from $500 to $300.
  • Reducing home equity loan minimum from $25k to $10k.
  • Launching TD Essential Banking, a low-cost, no overdraft fee deposit account.
  • Launching FNMA Refi NOW, which offers higher DTI flexibility.

"TD Home Access Mortgage is very much aligned with the bank's ongoing commitment to continually expand our product suite to meet the needs of communities within our footprint," Innis-Thompson said. "This product addresses the need to reduce barriers that so often slow the rate of homeownership in Black and Hispanic communities. And it also demonstrates our dedication to extending our culture of care and inclusion to our product design, finding meaningful and sustainable ways to support our customers."

Published
Mar 02, 2022
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