Knowledge Tree
Redlining
Facts (13)
Sources
Fair Lending Report of the Consumer Financial Protection Bureau federalregister.gov Jul 2, 2024 5 facts
claimCreditors subject to the Equal Credit Opportunity Act (ECOA) and Regulation B may violate these laws if they use data from data brokers to engage in discriminatory targeting, steering, redlining, or other forms of unlawful discrimination.
claimIn 2023, the Consumer Financial Protection Bureau (CFPB) issued Matters Requiring Attention and Memoranda of Understanding to mortgage lenders, directing them to take corrective actions regarding redlining, including providing consumer remediation to spur lending in redlined areas.
claimThe Office of the Comptroller of the Currency (OCC) referred one matter to the Department of Justice (DOJ) involving discrimination based on race, color, or national origin in mortgage lending (redlining).
claimThe Consumer Financial Protection Bureau (CFPB) reported several referrals regarding discriminatory lending practices, including one matter involving race-based redlining in mortgage lending, three matters involving race and national origin-based redlining in mortgage lending, one matter involving discrimination in commercial loan underwriting based on race, color, national origin, and religion, one matter involving auto loan pricing discrimination based on sex or gender, and one matter involving auto loan pricing discrimination based on race and national origin.
claimIn 2023, the Consumer Financial Protection Bureau (CFPB) referred 18 fair lending matters to the Department of Justice (DOJ), including cases involving redlining, discrimination in underwriting based on public assistance income, predatory targeting based on race and national origin, discrimination in pricing exceptions, and discrimination in credit cards.
2025 Fair Lending Trends | Wolters Kluwer wolterskluwer.com Apr 14, 2025 3 facts
accountWolters Kluwer convened regulatory, legal, and industry experts at the end of 2024 to discuss fair lending enforcement trends, emerging risks, redlining, and the use of Artificial Intelligence (AI) in lending.
claimFederal redlining enforcement actions are likely to decrease in frequency during 2025.
procedureFinancial institutions should revisit their geographic boundaries to identify underserved or marginalized communities to better understand their markets and prevent redlining.
Energy Equity and Just Transitions understand-energy.stanford.edu 1 fact
claimRedlining refers to maps drawn approximately 85 years ago, based on race, that banks used to discriminate against and deny home loans to Black communities.
Fair Lending Enforcement Program - Department of Justice justice.gov 1 fact
claimThe Department of Justice suggests that disproportionate rates of subprime lending to minorities indicate that conventional lenders may be engaging in redlining, marketing discrimination, or unfair underwriting of loan applications from minority communities.
Predatory Lending — An Explainer - MECEP mecep.org Mar 24, 2023 1 fact
claimReverse redlining is a practice where predatory lenders target areas previously subjected to redlining, which was a form of financial and housing discrimination aimed at communities of color.
The Fair Lending Implications of Targeted, Internet Marketing consumercomplianceoutlook.org 1 fact
claimThe Equal Credit Opportunity Act (ECOA) and the Fair Housing Act both prohibit redlining.
Regulatory - American Predatory Lending predatorylending.duke.edu 1 fact
claimThe Fair Housing Act of 1968 set a precedent as the first law to prohibit discrimination based on race in the housing market, reversing the federal government’s previous stance that had contributed to decades of redlining and other racially discriminatory practices.