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 purpose of redlining?
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 does it mean to redline property?
“Redlining” describes a practice by some mortgage lenders when they refuse to lend money or extend credit in certain areas of town or for other discriminatory reasons. It can also apply when real estate agents follow the same sort of practice when they’re showing homes.
What is the difference between steering and redlining?
Steering is the illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live. It is a form of redlining.
What is an example of redlining?
While the best known examples of redlining have involved denial of financial services such as banking or insurance, other services such as health care or even supermarkets have been denied to residents.
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 redlining easy?
Redlining is the discriminatory practice of denying services (typically financial) to residents of certain areas based on their race or ethnicity. Under fair lending laws, these factors cannot be used for making lending or underwriting decisions.
What type of loan transactions does the Fair Housing Act apply to?
Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.
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 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.
Which of the following is an example of steering?
Which of the following is an example of steering? Correct. Leading prospective purchasers to or away from certain neighborhoods or locales is steering.