Redlining Legal Documents Definition

Redlining is the illegal practice of refusing to provide insurance, credit, or other services to people based on their race or ethnicity. It’s named after the practice of drawing red lines on maps to indicate areas where banks would not lend money.

The term ‘redlining’ is used more broadly to describe any discriminatory practice in which people are treated differently based on their race or ethnicity. For example, real estate agents may tell black and Latino homebuyers that there are no homes available in white neighborhoods, even when there are homes for sale. Or, a landlord may refuse to rent an apartment to someone because they are Hispanic.

Redlining can also be applied to legal documents. For example, a mortgage lender may require a higher down payment from a black or Latino borrower than from a white borrower with the same income and credit score. This is known as ‘credit discrimination.’

Discriminatory practices like redlining were outlawed by the Fair Housing Act of 1968. But despite this law, redlining continues to exist in many forms today.