What is Redlining and Why Did a Texas Bank Just Pay $9 Million to Settle a Lawsuit?

You might have heard about the recent settlement reached by the US Department of Justice in a redlining lawsuit, but what does that actually mean? And why is it such a big deal?

First off, let's talk about what redlining is. Essentially, it's a practice in which lenders and insurers discriminate against certain neighborhoods, often based on factors like race or ethnicity. This can make it incredibly difficult for people in those areas to get access to affordable housing and loans.

In this particular case, the settlement was reached with an Ohio-based bank accused of redlining predominantly Black and Hispanic neighborhoods. The bank denied any wrongdoing, but agreed to pay $9 million to settle the case.

So why is this such a big deal? Well, for one thing, it shows that the government is taking discrimination in the housing industry seriously. It's also a reminder that redlining is still a very real issue, even in 2023.

As the article notes, "The settlement is a reminder of the long-term impacts of discriminatory lending practices, and the importance of taking proactive steps to combat systemic inequality." Hopefully, this settlement will serve as a wake-up call to other banks and lenders who may be engaging in similar practices.