What is real estate redlining?

In the United States, redlining is the systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either explicitly or through the selective raising of prices.

What is the meaning of redlining in real estate?

Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.

What is the opposite of redlining?

Redlining was the practice of the Federal government, private banks, and other institutions to deny credit to neighborhoods based on race. Reverse redlining is marketing inferior credit and other products to those same neighborhoods. Greenlining is incenting investment in previously redlined neighborhoods.

What type of loan transactions does the Fair Housing Act apply to?

What is fair lending? Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.

What does blockbusting mean in real estate?

Blockbusting refers to the practice of introducing African American homeowners into previously all white neighborhoods in order to spark rapid white flight and housing price decline. Real estate speculators have historically used this technique to profit from prejudice-driven market instability.

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What does Steering mean in real estate?

“Steering” is the practice of influencing a buyer’s choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.

What redlining means?

Redlining is a discriminatory practice that puts services (financial and otherwise) out of reach for residents of certain areas based on race or ethnicity. … Notably, the policy of redlining is felt the most by residents of minority neighborhoods.

What are the 3 types of lending discrimination?

There are three types of lending discrimination: overt, disparate treatment and disparate impact.

What is Reg Z in lending?

Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.

What is not protected under ECOA and Fhact?

The FHA also forbids discrimination based on race, color, religion, sex, national origin, handicaps, or familial status. That’s defined as children under 18 living with a parent or legal guardian, pregnant women, and people securing custody of children under 18.

What is blockbusting in rental property?

First and foremost, blockbusting, also sometimes referred to as “panic selling,” is a discriminatory and illegal real estate practice. It involves convincing property owners to sell their homes based on the assumption that a new neighbor will change the socio-economic makeup of the neighborhood.

What is boycotting in real estate?

The typical group boycott allegation in the real estate brokerage business involves a claim that two or more real estate firms have agreed to refuse to cooperate, or to cooperate on less favorable terms, with a third firm. … The antitrust laws are clearly make boycotts such as these per se illegal.

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What is an example of redlining?

While the best known examples of redlining have involved denial of financial services such as banking or insurance, other services such as health care or even supermarkets have been denied to residents.