Redlining Documents Definition

Redlining documents are typically maps that indicate which areas are considered ‘risky’ or ‘declining’ by lenders, and therefore ineligible for loans or insurance. The term is also used more broadly to refer to any discriminatory lending practices.

The practice of redlining has a long history in the United States, dating back to the early 20th century. It was used as a way to limit access to credit and other services for communities of color, particularly African Americans. Redlining was made illegal by the Fair Housing Act of 1968, but the effects are still felt today. Studies have shown that neighborhoods that were redlined in the past are more likely to be poor and have higher rates of crime and disinvestment.

If you live in a neighborhood that’s been redlined, you may have trouble getting a loan or mortgage, even if you have good credit. And because property values in these areas are often low, it can be difficult to build wealth or even pass on your home to your children.