redlining


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Related to redlining: gentrification, reverse redlining

Red-Lining

A practice in which a company refuses to market its products in a certain area because it is disproportionately poor, has a high rate of default, and/or has a large minority population. Examples of products where a company may practice red-lining are health insurance and mortgages. Red-lining is illegal because these products should be offered based on individual creditworthiness. Those who support the illegality of red-lining argue that it promotes equality between races and classes, while critics contend that it leads to needless distortions in the market. See also: Fair Housing Act of 1968, Community Reinvestment Act.

redlining

Commonly used to communicate an illegal practice of refusing to make loans or sell insurance in certain areas.In reality,the practice is common and is legal,but only if the disqualifying criteria do not include race, religion, gender, family status, disability, or ethnic origin, or some disguised criteria intended to discriminate on those grounds. Many insurance companies will not sell insurance in entire states viewed as being plaintiff-friendly with outrageous jury awards. This is a form of permissible redlining.

References in periodicals archive ?
To further complicate matters, there is now a third head on the "redlining dragon," namely non-HMDA lending activities (i.e., other consumer loan types not reportable under HMDA, such as credit cards and auto loans).
Michigan officials have been in the forefront of the Clinton administration's critics, not only because of their concern for environmental redlining's effect on proposed facilities but because of the effect on existing facilities.
And while Al Orendorff, a spokesperson for Allstate, says the company disputes allegations of redlining, the agreement, he adds, is "a productive partnership for us, NFHA, and our customers.
[sections of] The Department of Housing and Urban Development is forming a special task force to investigate redlining of homeowners' insurance.
The author exposes the redlining phenomenon using original essays from well-known community activists.
What is redlining and why should mortgage bankers pay close attention?
New York attorney general, Eric T Schneiderman, is looking into whether Evans Bank deliberately cut off mortgage lending to predominantly minority communities, a process known as redlining.
Will the disadvantaged--many of whom are people of color--participate equally in the information revolution, or will they become victims of what critics call "electronic redlining"?
Among other things, his economic plan advocates creating a nationwide network of community development banks to provide loans for small entrepreneurs, creating urban enterprise zones and strengthening the Community Reinvestment Act to reduce redlining. Harriet Michel, president of the New York City-based National Minority Supplier Development Council Inc., which promotes business between minority companies and the public and private sector, is guardedly optimistic.