Redlining is the discriminatory practice of denying services (typically financial) to residents of certain areas based on their race or ethnicity. Redlining is most often associated with mortgage lending practices, but can also be seen in student loans, business loans, car loans, and personal loans.
What is redlining the practice of?
redlining, illegal discriminatory practice in which a mortgage lender denies loans or an insurance provider restricts services to certain areas of a community, often because of the racial characteristics of the applicant’s neighbourhood.
What is redlining for banks?
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 redlining in mortgage terms?
Redlining is the name given to a discriminatory lending practice dating back to the 1930s when lenders would draw red lines on maps around neighborhoods that were predominantly Black as a way to deny a mortgage, claiming it was high risk.
What type of discrimination is redlining?
The term has come to mean racial discrimination of any kind in housing, but it comes from government maps that outlined areas where Black residents lived and were therefore deemed risky investments.
What is an example of redlining?
While the most well-known examples involve denial of credit and insurance, denial of healthcare and the development of food deserts in minority neighborhoods have also been attributed to redlining in many instances.
When was redlining used?
He notes that the Federal Housing Administration, which was established in 1934, furthered the segregation efforts by refusing to insure mortgages in and near African-American neighborhoods — a policy known as “redlining.” At the same time, the FHA was subsidizing builders who were mass-producing entire subdivisions May 3, 2017.
What is redlining easy?
Definition and Examples of Redlining Redlining is the practice of denying people the right to credit, mortgages, or loans based on their race. It can also include denying people’s rights to financial instruments because of their religion, how they identify, sexual preferences, or any other prohibited basis.
What is redlining in history?
Redlining refers to a discriminatory pattern of disinvestment and obstructive lending practices that act as an impediment to home ownership among African Americans and other people of color. Banks used the concept to deny loans to homeowners and would-be homeowners who lived in these neighborhoods.
What is the practice of redlining quizlet?
The answer is redlining. Redlining is the practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the applicant’s financial qualifications. Redlining is often based on racial grounds rather than on any real objection to an applicant’s creditworthiness.
What does redlining mean quizlet?
Redlining. A discriminatory real estate practice in North America in which members of minority groups are prevented from obtaining money to purchase homes or property in predominantly white neighborhoods.
Where did redlining originate?
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 redlining AP Gov?
Redlining. a practice in which banks refuse to make loans to people living in certain geographic locations. “separate but equal” rule. doctrine that public accommodations could be segregated by race but still be equal.
What does redlining mean in contracts?
Redlining is the process of editing a contract when two or more parties are negotiating or working together. The goal is to produce a single document that satisfies all parties. The term redlining comes from the original, physical method of editing contracts, which involved printed papers and red pens.
Where did the term redlining come from quizlet?
In the United States, redlining is the practice of denying services, either directly or through selectively raising prices, to residents of certain areas based on the racial or ethnic makeups of those areas. The term “redlining” was coined in the late 1960s by John McKnight, a sociologist and community activist.
Which of the following best describes the process of redlining?
Which of the following best describes the practice of redlining? Giving neighborhoods bad credit ratings based, in practice, on color. Why did Japan attack Pearl Harbor? The U.S., in an attempt to curb Japan’s aggression in Asia, enacted sanctions against Japan and placed an embargo on oil to Japan.
What do the terms redlining and blockbusting mean?
Redlining is generally the discrimination of buyers by the lending industry. Blockbusting is when an agent convinces people in a neighborhood to sell their house because the socioeconomics of the community is negatively changing.
What is the impact of the practice of steering?
What is the impact of the practice of steering? It limits the choices available to buyers.
What’s the term for a lender refusing to lend in a specific area often based on the area’s minority make up?
Redlining is an unethical practice whereby a financial institution refuses to provide services to people living in poor neighborhoods regardless of their specific personal creditworthiness or other qualifications.
Which is an example of steering quizlet?
Which of the following is an example of steering? Correct. Leading prospective purchasers to or away from certain neighborhoods or locales is steering. Refusing to make loans to persons for properties in certain areas is redlining.
What is redlining in AP Human Geography?
Redlining. A process by which banks draw lines on a map and refuse to lend money to purchase or improve property within the boundaries.
