Introduction
Homeownership in the United States is an important issue that divides citizens. The establishment of the Federal Housing Administration aimed to ensure Americans could own homes. However, minorities were denied mortgage loans because of their color. The greenlining and redlining rules increased poverty levels and the homeownership disparity between whites and minorities.
FHA, Redlining, and Greenlining
The FHA is a public entity that promotes homeownership for Americans. It was created in the 1930s, when many soldiers returned from World War II (California Newsreel). The purpose of establishing the FHA was to provide insured mortgage loans to Americans who needed to purchase a home.
Redlining is the process by which communities belonging to minorities were denied services such as mortgage loans because of their racial characteristics. The procedure was enforced to distinguish between predominantly white areas and those dominated by minorities (California Newsreel). The New Jersey City University (NJCU) was not in a redlined area, as it is within the suburbs of Jersey City (Best Neighborhood). Redlining favored the whites, ensuring that these areas would not have access to essential public services.
Greenlining occurred when areas inhabited by white people received favorable ratings, which enabled white individuals to access mortgages more easily. Greenlining also increased the value of properties in these areas, which enabled white people to easily increase their wealth. The couple in the video was denied the opportunity to purchase a home in Levittown due to their race. One of the impacts of redlining in the U.S. is the disparity that exists between whites and blacks in terms of home ownership and wealth creation. Another effect is the minimal development in formerly redlined areas, contributing to increased poverty levels.
Conclusion
In summary, the rules initially used by the FHA disadvantaged minority groups. Redlined areas received less government support, resulting in higher poverty levels. Favoritism ensured that white Americans were economically better off and had a higher rate of home ownership. These effects are still evident in the modern era, underscoring the complexity of the situation.
Works Cited
Best Neighborhood. “Race, Diversity, and Ethnicity in Jersey City, NJ.” BestNeighborhood, 2022.
California Newsreel. “Race the House We Live In.” YouTube, 2010.