Redlining is the systematic denial of various services or goods by federal government agencies, local governments, or the private sector either directly or through the selective raising of prices. This is often manifested by placing strict criteria on specific services and goods that often disadvantage poor and minority communities. Prior to the Fair Housing Act of 1968, there were no specific laws that protected minority populations from discriminatory practices in housing and commercial markets. Businesses were therefore able to exploit these groups in order to increase their profits. Redlining was utilized in the housing industry by mortgage companies to suppress minority populations from receiving home loans to buy homes in other neighborhoods as well as to deny them the funds to improve their current homes.

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Tags: redlining