Title: The Effects of Redlining
Headings: Redlining and its Effects
Redlining and its Effects
By: Faustina Ejiofor
What is Redlining?
How did Redlining start?
The Effects
Education

Content: The Effects of Redlining
Redlining and its Effects
By: Faustina Ejiofor
What is Redlining? Redlining according to Wikipedia is, “ the systematic denial of various services to residents of specific, often racially associated, neighborhoods or communities, either directly or through the selective raising of prices.” Redlining still has an effect on minority communities, and is the cause of segregation within the education system, failing schools in our minority communities, gentrification, the class divide, and even the struggles of people living in lower income communities such as crime, drugs, and police brutality. How did Redlining start? Redlining stems from policies generated by the Home Owners Loan Corporation created by Franklin Delano Roosevelt during the Great Depression. The Home Owners Loan Corporation was created the decrease the amount of foreclosures during this period of economic disaster. In 1937, the Home Owners Loan Corporation was institutionalized which created the Federal Housing Association. The Home Owners Loan Corporation and the Federal Housing Association began to dictate the areas they believed to be a high risk investment, and shared that information with banks, insurance companies, savings and loan associations, and other financial services companies. These areas were then delineated on a map with the color red.