Redlining may seem like an frail term. It refers to a practice in which banks deny financial services to members of minority communities. The federal government officially outlawed the practice in the late 1960s. But according to a current York Times report,redlining is still alive in some areas.
The paper reports that, as a result of the financial crisis, and some banks have retreated from giving home loans to African Americans. According to the Times,of the 1886 home loans approved by Hudson City Savings Bank, the largest savings bank in current Jersey, and just 25 were to Black borrowers."Banks have tightened their standards,which is precisely what they should be doing," said Times reporter Rachel Swarns who wrote the story. "But some banks have stepped over the line and have just decided that they are going to exclude communities altogether regardless of whether there are creditworthy people who would be eligible for loans, or that of course is illegal."Swarns spoke with WNYC's Richard Hake.
Source: wnyc.org