Redlining
Redlining is the practice of banks discriminating against people of color by marking maps of neighborhoods and outlining certain areas in red.
Insurance companies charge more if you live in a "bad" neighborhood or may decline to offer you insurance altogether.
Appraisers often clai...
● Redlining is the practice of banks discriminating against people of color by marking
maps of neighborhoods and outlining certain areas in red.
● Insurance companies charge more if you live in a "bad" neighborhood or may decline to
offer you insurance altogether.
● Appraisers often claim that Black-owned homes are worth less than a white person's
home in the same neighborhood.
● 2021: Paul and Tenisha Tate-Austin, a Black family, had their house undervalued by
$500k. A similar house in the area recently sold for $1.4M. After having their house
re-evaluated, they sold it for $1.4M and sued the company for several million dollars.
(This took place in Marin County.)
● In the Bay Area, banks were not giving loans to people of color.
● In Oakland, wealthy residents created their own city to get access to better schools and
avoid sharing wealth with the rest of the community.
● Many people of color were forced into dangerous neighborhoods with factories, pollution,
and construction sites.
● In summary, redlining is the process where banks, insurance companies, or appraisers
refuse to provide people of color, especially those in poor neighborhoods, with money,
insurance, or loans. These institutions had maps that marked which areas they would
serve. This practice benefited white people and kept them wealthier than people of color.
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