Redlining

Redlining - The Invisible Wall - This applies mostly to lenders and insurance companies. They cannot refuse to make loans or issue insurance policies in specific geographical areas for discriminatory reasons.The Scenario: A bank takes a map of the city and draws a red line around the "minority side of town." They automatically deny any mortgage applications from that zone, even if the applicants have perfect credit and high income.The Takeaway: Risk must be based on the individual borrower and the property condition, not the zip code's demographics.