“City of Providence Sues Santander Bank for Redlining”

 I read this law suit and thought, if these charges are true, that is really serious. I must be really naïve, but I didn’t think any of the fine banking institutions would be this foolish, especially these days. What is redlining? 

Definition from about.com: Redlining is against the law. It is a discriminatory practice, involving lenders which refuse to lend money or extend credit to borrowers in certain “struggling” areas of town. It is against the law to discriminate against borrowers based on race or income level, among other factors. Redlining became known as such because lenders would draw a red line around a neighborhood on a map, often targeting areas with a high concentration of minorities, and then refusing to lend in those areas because they considered the risk too high. 

The first time I was exposed to a redlining situation was many years ago, before I got into the mortgage business but when operated a real estate company.  At the time I would personally bring my clients to a bank to get their mortgage. These buyers we Hispanic, buying their first home. 

You could tell that the banker was a bit uncomfortable, but I didn’t think much about it, until I saw the interest rate that was being offered. The rate I had gotten for another client a couple of days earlier, was 1% less and nothing had changed with rates. When I questioned the banker about the rate, he said they should be fortunate they are getting this rate. Bad mistake on the bankers part. I told him if he didn’t correct the rate, I would report him. If looks could kill, I’d be dead, but didn’t back down.

I also told him, if this loan got denied for any reason, it wouldn’t be very good for him or the bank. I was taking a lot of list, but at that point I didn’t care. My clients were a bit stunned by all this and told me that they have been exposed to these types of things before. I told them that I understood, as I had been exposed to prejudice in the past, so when I see it, I’m just not willing to stand by and watch. They got their home, at the right rate, which is what they deserved. If this lawsuit has any truth to it, shame on them.

There is no room in this country for this stuff.