Redlining home loan discrimination re-emerges as concern for regulators

November 02, 2015
The New York Times staffer Rachel Swarns reports on Hudson City Savings Bank, which recently agreed to pay nearly $33 million for "redlining," marking the largest settlement for such practices.
     Redlining, in which banks choke off lending to minority communities--drawing a "red line" around a map, circling the neighborhoods in which it doesn't want to lend--was standard practice once upon a time, until the Fair Housing Act of 1968 made it illegal.
     Outlawed decades ago, redlining has re-emerged as a serious concern among regulators as banks have sharply retreated from providing home loans to African-Americans in the wake of the financial crisis, according to Swarns.