They Stole Our Boots: Part 3- redlining/reverse redlining

From the Inkwell of: Bartholomew J. Worthington III
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Redlining

Redlining is officially defined as:
     "The practice of denying or charging more for services to the residents of a particular, usually racially determined area."

The term originated from the practice banks and insurance companies had of literally marking a red line on a map around neighborhoods they would not lend or insure.

When American families began to expand to the suburbs in the middle of the 20th century, Black families were left behind in the cities due to the aforementioned restrictive covenants which prohibited them from owning in the newly developed subdivisions.  Redlining further restricted Black homeownership by severely limiting the financial resources available to purchase in certain urban areas. 

This strategic, coordinated disinvestment of America's inner cities led to racially segregated, increasingly neglected urban neighborhoods. 

Unlike restrictive covenants, which were private business restrictions levied against Black homebuyers, the practice of redlining originated with the FHA, and then its standards were rapidly adopted by banks and insurance companies.

The flight of white families to the "safety" of the suburbs, coupled with the lack of mortgage resources to purchase, develop or renovate inner city neighborhoods contributed significantly to the wealth gap between whites and Blacks that is still seen today.

Thought the practice of redlining was officially prohibited in 1968, it would continue for several decades until the banking industry decided to change tactics.
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Read: They Stole Our Boots - Part 1