The term refers to the presumed practice of mortgage lenders of drawing red lines around portions of a map to indicate areas or neighborhoods in which they do not want to make loans . Redlining on a racial basis has been held by the courts to be an illegal practice.
What is redlining in simple terms?
Redlining is the illegal practice of refusing to provide financial services to consumers based on the area where they live . Prior to the passage of the Community Reinvestment Act (CRA) [...]
What is the significance of redlining?
Redlining is a discriminatory practice that puts services (financial and otherwise) out of reach for residents of certain areas based on race or ethnicity .
What is redlining in history?
The term “redlining” originates with actual red lines on maps that identified predominantly-Black neighborhoods as “hazardous .” Starting in the 1930s, the government-sponsored Home Owners’ Loan Corporation and the Federal Home Loan Bank Board used these maps to deny lending and investment services to Black Americans.
What is the difference between redlining and reverse redlining?
Redlining is the practice of denying credit to particular neighborhoods on a discriminatory basis . The flip side is reverse redlining, the practice of targeting these same communities or protected classes for predatory lending.
What is the connection between redlining and gentrification?
Redlining also creates conditions for gentrification, which results in changes to the characteristics of neighborhoods and ultimately has mixed effects on the health of residents .
What is steering discrimination?
Steering is a form of discrimination whereby a real estate professional influences someone’s housing decision based on their race, religion , or another protected characteristic covered by the 1968 Fair Housing Act.
What is the best definition of redlining?
Redlining is the discriminatory practice of denying services (typically financial) to residents of certain areas based on their race or ethnicity .
What does Redline mean in legal?
Legal Definition of redlining
1 : the illegal practice of refusing to offer credit or insurance in a particular community on a discriminatory basis (as because of the race or ethnicity of its residents) — compare reverse redlining. 2 : the practice of showing changes to a draft of a document by marking with red lines.
What does it mean to redline a document?
Redlining contracts as we know it today in the legal profession refers to the act of performing edits to a document and/or comparing mark ups . Redlining also can refer to a form of document comparison (usually contracts) that is generally done by computers.
When was redlining legal?
In the United States, the Fair Housing Act of 1968 was passed to fight the practice. According to the Department of Housing and Urban Development, “The Fair Housing Act makes it unlawful to discriminate in the terms, conditions, or privileges of sale of a dwelling because of race or national origin.
Who funds the FHA?
FHA primarily operates from its self-generated income. We collect mortgage insurance premiums from borrowers via lenders . We use this income to operate our mortgage insurance programs for the benefit of homebuyers, renters, and communities. Congress created the FHA in 1934.
When did housing discrimination start?
The Civil Rights Act of 1968 included legislation known as the Fair Housing Act, which made it unlawful for a landlord to discriminate against or prefer a potential tenant based on their race, color, religion, gender, or national origin, when advertising or negotiating the sale or rental of housing.
What is the opposite of redlining?
Redlining was the practice of the Federal government, private banks, and other institutions to deny credit to neighborhoods based on race. Reverse redlining is marketing inferior credit and other products to those same neighborhoods. Greenlining is incenting investment in previously redlined neighborhoods.
What does blockbusting mean in real estate?
Blockbusting refers to the practice of introducing African American homeowners into previously all white neighborhoods in order to spark rapid white flight and housing price decline . Real estate speculators have historically used this technique to profit from prejudice-driven market instability.
What are the goals of the Fair Housing Act?
The Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, sex, familial status, and disability . The act has two main purposes—prevent discrimination and reverse housing segregation.
