what is red-lining?

greenspun.com : LUSENET : Fair Lending : One Thread

I need to know what red-lining is, why it is a social problem, and if it is still a problem today.

-- amanda conrad (conr7228@oakton.edu), February 22, 2000


"Red Lining" is a practice where a lender would take a particular area of town and not loan money for mortgages in that area...even if the applicant was qualified...in essence, they drew a big red line around a neighborhood. The vast majority of red lining occurrs in depressed neighborhoods where the vast majority of homeowners are minorities. I believe most lenders are quite carefull about not redlining, however, I do believe it still goes on to a certain extent.

-- Martha (Marthanichols@prodigy.net), February 25, 2000.

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