“A transforming process that organized white flight to the suburbs and brought about the wholesale expansion of an all black ghetto.”
Cases in Real Estate Finance
HOLC REDLINING
In 1935, the FHLBB commissioned the HOLC to draw up 'residential security maps' of 239 US cities, designed to indicate the security level of real-estate investments. These maps, which were based on racial assumptions rather than factual data, identified minority neighborhoods as unable to meet lending criteria. This resulted in many African-Americans being unjustly refused mortgages. The maps were kept secret amongst select members of the banking and real-estate industries. Once discovered in the 1960s, this discrimination practice became known as ‘redlining’.
