The latest today-defunct HOLC composed a couple of guidance getting appraising homes beliefs. The rules was indeed based on housing marketplace standards, economic characteristics, and you may community demographics. Mortgage brokers which desired to safer economic support about regulators was necessary to follow the put advice. Banks and you will loan providers used men and women guidance to draw residential coverage maps getting 239 metropolitan areas along the U.
HOLC Redlining Charts
HOLC agencies manage consult with urban area officials, loan officials, appraisers, and you will real estate agents to develop maps that understood the fresh new financing chance getting neighborhoods across the U.S. The fresh teams have been up coming color coded on paper charts labeled as domestic safety charts. For instance, communities coded with green was in fact believed the best parts and you will depicted minimum of quantity of risk to possess lenders. Areas coded reddish were predominately Black colored and you can categorized while the high exposure. Case in point out-of how properties was in fact codified: