what is redlining in real estate

Best answer

Redlining in real estate is often used to describediscrimination in mortgage lending based on demographics. It is a practice where mortgage companies deny or offer less favorable mortgages to people in particular neighborhoods.

People also ask

  • What is’redlining’?

  • What is ‘Redlining’. Redlining is an unethical practice that puts services (financial and otherwise) out of reach for residents of certain areas based on race or ethnicity.

  • What is redlining in mortgage?

  • Redlining is a term used to refer to a now-illegal practice in the mortgage lending industry. Lenders used to draw red lines around portions of a map to indicate areas of a city in which they didn want to make loans. Even if a credit-worthy applicant applied to buy a home in those neighborhoods, they could be denied.

  • Is it illegal to redline on a house?

  • This practice was made illegal in the Fair Housing, or Equal Credit Opportunity Act. While redlining on a racial basis has been prohibited by law, lenders can still redline if a home lies on a fault line or a flood plain. How does redlining hurt home buyers?

  • What is redlining and how can you avoid it?

  • Redlining describes a practice that occurs when lenders refuse to make loans to people with lower incomes or of a certain demographic. The practice is banned by both the Fair Housing Act of 1968 and the Fair Housing Amendments Act of 1988. Being denied a loan due strictly to income or credit factors is not considered redlining.

    Similar Posts

    Leave a Reply

    Your email address will not be published. Required fields are marked *