Fair Housing
The illegal practice of denying mortgage loans, insurance, or other services to residents of certain neighborhoods based on demographics.
Redlining originated in the 1930s when government agencies drew red lines on maps around minority neighborhoods and refused to guarantee mortgages there. Today it refers to any practice that systematically denies services to residents of neighborhoods based on racial or ethnic composition rather than individual creditworthiness. Both ECOA and the Fair Housing Act prohibit redlining.
Exam Tip
Redlining = denying services based on location. Steering = directing people to/from areas. Blockbusting = inducing sales through fear.
Study Guide
Fair Housing
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NY Real Estate Fair Housing
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