This article is about a business that has been accused
by the Consumer Financial Protection Bureau and the Justice Department of
redlining, which is when banks choke off lending to minorities. Hudson City Savings
Bank approved 1,886 mortgages to areas in New York, New Jersey, and
Connecticut in 2014, while only 25 of those loans were to African Americans. Hudson
agreed to pay over $30 million to settle the lawsuit, although they deny doing
any wrong.
Redlining was very common in the 1960s, when banks would
openly starve minorities of receiving home loans. It was even backed by the
federal government. Redlining became illegal in the U.S. in the 1970s, but that
hasn’t stopped businesses from continuing it. They typically try to hide it, by
placing their branches outside of minority communities. Today, it has started to return in the United States, and it is an issue that needs to be figured out.
Very inquisitive Z.
ReplyDeleteThat was a very interesting article Z. I enjoyed reading it thoroughly. I thought you gave very interesting and detailed information.
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