Which agency created the maps that provided federal support to discriminatory housing practices?

Which agency created the maps that provided federal support to discriminatory housing practices?

• A. Home Owners Loan Corporation
• B. Federal Housing Administration
• C. U.S. Department of Housing and Urban Development
• D. Home Mortgage Disclosure Act

Answer: (A)

Redlining—the practice of denying or limiting mortgage lending in certain neighborhoods based on race or ethnicity—was reinforced by maps created in the 1930s by the Home Owners' Loan Corporation. HOLC produced color-coded city maps that rated areas by perceived mortgage risk, and these grades guided lenders on where to approve or reject loans. That system effectively directed federal support away from minority neighborhoods and into predominantly white areas, embedding discriminatory practices into housing finance. The Federal Housing Administration played a role in shaping lending standards that supported these patterns, but the actual map project came from HOLC. HUD did not originate these maps, and the Home Mortgage Disclosure Act is a later law focused on reporting lending data to uncover bias rather than creating the risk maps.

Redlining—the practice of denying or limiting mortgage lending in certain neighborhoods based on race or ethnicity—was reinforced by maps created in the 1930s by the Home Owners' Loan Corporation. HOLC produced color-coded city maps that rated areas by perceived mortgage risk, and these grades guided lenders on where to approve or reject loans. That system effectively directed federal support away from minority neighborhoods and into predominantly white areas, embedding discriminatory practices into housing finance. The Federal Housing Administration played a role in shaping lending standards that supported these patterns, but the actual map project came from HOLC. HUD did not originate these maps, and the Home Mortgage Disclosure Act is a later law focused on reporting lending data to uncover bias rather than creating the risk maps.