Redlining Legacy: Reduced Wealth In Black Community

By Jim Perskie More than 50 years after redlining was outlawed, the practice still has a profound impact on the wealth and property values in neighborhoods across the country, according to a report released by Redfin on Thursday. The typical homeowner in a neighborhood that was “redlined” for mortgage lending by the federal government has gained 52 percent less – or $212,023 – in personal wealth generated by property value increases than those in greenlined neighborhoods over the last 40 years. “More than half a century after it was abolished, redlining continues to dictate the racial makeup of neighborhoods and Black families still feel the socioeconomic effects of such a discriminatory housing policy,” Redfin chief economist Daryl Fairweather said. Redlining is…

FDIC Balks As OCC Announces Redlining Rule Update

The Federal Deposit Insurance Corporation said Wednesday it will not move forward with revisions to the nation’s anti-redlining law announced moments earlier by the Comptroller of the Currency. Comptroller of the Currency Joseph M. Otting announced the finalization of a rule to “strengthen and modernize Community Reinvestment Act (CRA) regulations,” saying the rule would make “CRA work better for everyone.” But the FDIC – which has joint rulemaking authority with the OCC over the law – responded from Chairman Jelena McWilliams moments later, telling banks its focus is on the coronavirus response and not changes to the CRA.  “While the FDIC strongly supports the efforts to make the CRA rules clearer, more transparent, and less subjective, the agency is not…