What is redlining?
This was when banks and other financial firms such as insurers made it difficult for people living in certain areas to access loans or other services. It was most associated with the US, where it mainly affected residents living in low-income urban areas.
Where have you heard about redlining?
It’s been in the news recently, even though it's illegal. Some critics in the US say the policy continues to shape neighbourhoods in cities like Denver, where lenders have been accused of discriminating against people of colour and members of certain religions.
What you need to know about redlining.
It emerged in the 1930s, when the Federal Housing Administration began regulating the underwriting of mortgage loans and maps were created to show which areas met its strict lending criteria. The practice became known as redlining because an actual red line would sometimes be drawn to show which neighbourhoods were excluded. Redlining was made illegal in 1977 and lenders are no longer allowed to discriminate based on race or religion. Instead, they must look at factors such as credit history and income.