What is 'redlining' in fair housing context?

Redlining is the discriminatory practice of denying or limiting services (mortgage lending, insurance, banking, real estate) in specific neighborhoods based on the racial or ethnic composition of those neighborhoods. The term originates from the practice of literally drawing red lines on maps to designate areas where lenders would not provide mortgages — most infamously by the federal Home Owners Loan Corporation in the 1930s, which mapped 'hazardous' neighborhoods that almost universally correlated with Black or immigrant communities. Effects: denial of mortgages and insurance suppressed property values, deepened segregation, prevented wealth accumulation, and created the patterns of urban decline visible today. Legal status: prohibited by Fair Housing Act, Equal Credit Opportunity Act, Community Reinvestment Act (which requires lenders to serve low-income communities). Modern variations: 'reverse redlining' (predatory lending targeting minority neighborhoods with high-cost loans), variations in service quality, insurance availability and pricing. Brokers should be aware that referring clients to discriminatory lenders or insurers can implicate the broker in fair housing violations.