CityLimits: Banks Redline Minority Communities Again

Redlining is making a comeback.

That's the warning issued in a new report that analyzed lending patterns before and after the subprime mortgage collapse. Although communities of color were flooded with often unaffordable, high interest mortgages and home equity loans in the first half of the decade, after 2007, lending in those communities fell off sharply.

“The financial crisis has led to significantly reduced access to mortgage credit for all borrowers and communities. In communities of color, however, where the foreclosure crisis has taken an especially severe toll, access to prime, conventional mortgage loans has declined precipitously,” the report states.

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