Warning
Info
Warning
Info
Simple English definitions for legal terms
redlining
Read a random definition: attachment
A quick definition of redlining:
Redlining is when people are unfairly denied services like loans, insurance, and healthcare just because of where they live and their race or ethnicity. This means that even if they are qualified and responsible, they are still refused these services. The term comes from a practice in the past where the government marked certain neighborhoods with a red line on a map, saying they were not good enough for loans. These neighborhoods were often where Black people lived. This was very unfair and against the law. Today, we have laws to stop redlining and make sure everyone has equal access to important services.
A more thorough explanation:
Redlining is a practice where certain neighborhoods, usually inhabited by people of color, are denied financial services like mortgages, loans, and insurance based solely on their residency. This practice ignores the individual's qualifications and creditworthiness and is solely based on their race or ethnicity.
Redlining can also extend to the withholding of essential services like healthcare and grocery stores. The term originated from the U.S. Government's homeownership programs in the 1920s and 1930s, where maps were color-coded to determine loan worthiness. The color red was attributed to neighborhoods deemed unworthy of inclusion in the program, and most of these neighborhoods were predominantly inhabited by Black residents.
For example, in the 1980s, Atlanta banks would lend in lower-income white neighborhoods but would refuse to lend in middle-income or upper-income Black neighborhoods. Another example is this map from Syracuse, New York, which shows how certain neighborhoods were marked in red and denied government-insured loans.
The Fair Housing Act of 1968 prohibited discrimination in housing based on race, religion, national origin, or sex, and the Home Mortgage Disclosure Act of 1975 required financial institutions to collect information about their mortgage lending activity. These acts were adopted to put an end to redlining and race-based housing patterns.