Redlining refers to the practice of denying loans or insurance services to certain neighborhoods based on the racial or ethnic makeup of the residents.
This was a widespread practice in the United States during the mid-20th century, particularly in the period following the Great Depression. In these neighborhoods, which were often predominantly African American or other minorities, banks and mortgage lenders would refuse to invest or provide financial services, effectively creating “red lines” on maps that indicated the areas in which they would not do business.
The practice of redlining had a devastating impact on many communities of color, as it denied them access to credit and made it difficult for families to buy homes and build wealth.
The effects of redlining continue to be felt today, as communities that were redlined in the past have higher levels of poverty and lower rates of homeownership than other areas.
Similarly, discrimination against the LGBTQ community has also been an issue in the mortgage industry. In the past, many LGBTQ individuals were denied loans or insurance services simply because of their sexual orientation or gender identity. I can remember personally as a young real estate agent in the very early 1990’s the difficulty of LGBTQ folks getting mortgages.
I founded GayRealEstate.com as a direct result of witnessing what I will call “quiet homophobia” (widespread) in the residential real estate industry and related services, such as mortgage lending.
While there have been some advances in recent years, thanks to the work of organizations like GayRealEstate.com that has been championing housing rights for our LGBTQ community for over 25 years, some lenders and insurers now offering products designed for the LGBTQ community, discrimination against this group continues to be a problem in some areas.
It is worth noting that redlining and discrimination in the mortgage and banking industries have been illegal since the passage of the Fair Housing Act in 1968, which prohibits discrimination in housing and lending based on race, color, religion, national origin, sex, disability, and familial status.
Despite this, discrimination in these areas continues to be a challenge, and there is ongoing work to address these issues and ensure that all individuals have access to fair and equal credit and lending services.
Author bio: Jeff Hammerberg, Founder and CEO of GayRealEstate.com – the Nation’s oldest and largest LGBTQ+ Realtor referral service, offering free homer buyers representation, free home sellers competitive market analysis and free LGBTQ+ Focused relocation kit to any City, USA.
