HOLC Redlining Maps Deny Mortgages to Black Neighborhoods Nationwide

The Home Owners' Loan Corporation's color-coded maps, created 1935-1940 and used through the 1950s, designate Black neighborhoods in red as 'hazardous' for mortgage lending. The FHA adopts these standards and explicitly states in its 1938 underwriting manual that 'incompatible racial groups' threaten property values. Banks and savings institutions use the maps to deny mortgages in 239 cities. The practice prevents Black families from building equity through homeownership while channeling federal subsidies to white suburbs.