The 60% ratio they mentioned generally takes into all debt (including taxes, insurance, hoa fees and other fixed monthly obligations such as credit card debt, car loans, etc.)
What BofA (and a number of other banks) are being pushed (yes, pushed or pressured) to do are make more loans that fit more of a Community Reinvestment Act (CRA) criteria either based on location or income criteria.
The loans they are most likely extolling/promoting here are not option-like arms. Many banks are being prodded into serving their communities and just like everything else they feel compelled to keep “reaching out further” in order to get the business in the front door.
I’d liken it to the big auto manufacturers trying to sell more high mileage cars in order to be able to continue manufacturing and sell the big suv’s a couple of years back.
