Mortgage Redlining wasn’t systemic racism.

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. 

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