Mortgage Redlining wasn’t systemic racism.
The National Housing Act of 1934 established the Federal Housing Administration to “facilitate sound home financing on reasonable terms.”
The new law was intended to guarantee private mortgages and make them more widely accessible.
It helped people from all races but houses.
Between 1940 and 1980, homeownership rates climbed by 37 percentage points for blacks and by 34 points for whites.(Research by economists William J. Collins and Robert A. Margo)
It limited the ability to lend to any buyer in economically risky areas.
The vast majority (92 percent) of the total redlined home-owning population was white.
THE HOLC MAPS: HOW RACE AND POVERTY INFLUENCED REAL ESTATE PROFESSIONALS’ EVALUATION OF LENDING RISK IN THE 1930S,
2021 National Bureau of Economic Research study Price V. Fishback, Jessica LaVoice, Allison Shertzer and Randall Walsh.