Let me define redlining in #RaceAndRealEstate.
Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighborhood even though the applicant may otherwise be eligible for the loan. #RaceAndRealEstate
Redlining is a discriminatory practice that puts services, financial and otherwise, out of reach for residents of certain areas based on race or ethnicity. #RaceAndRealEstate
Redlining refers to a color coded property value grading system that was developed by the Home Owners' Loan Corporation. #RaceAndRealEstate
The word RED-lining, being that the color red was used on financial maps to denote a geographically “hazardous” area that deemed a lower property value-lack neighborhoods. #RaceAndRealEstate
Yes. You won’t see the red highlighted maps hanging, but even 50 years after the federal Fair Housing Act banned racial discrimination in lending, Blacks and Latinos are routinely denied conventional mortgage loans at rates far higher than white counterparts. #RaceAndRealEstate
It also happens as reverse redlining where banks may engage in predatory lending in the same neighborhoods that were once marked as off limits for borrowers. #RaceAndRealEstate
In the years leading to the 2008 housing crash, mortgage lenders peddled hundreds of thousands of risky subprime loans, including "no doc" and balloon-payment loans, on low-income borrowers. Many communities in cities like Detroit & Newark have yet to recover. #RaceAndRealEstate
I believe it’s one factor behind the huge gap in wealth between Blacks and whites in the U.S. today. Black families have lost out on at least $212,000 in personal wealth over the last 40 years because their home was redlined. #RaceAndRealEstate
Blockbusting is the practice of persuading owners to sell property cheaply because of the fear of people of another race or class moving into the neighborhood, and thus profiting by reselling at a higher price. #RaceAndRealEstate
We saw this play out in a big way in the series #THEM. The real estate agent was purposely moving Black families into the neighborhood so the white families would move quickly at a deflated price, then they swooped in and purchased from them. #RaceAndRealEstate
• • •
Missing some Tweet in this thread? You can try to
force a refresh
