Redlining
In the 1930s, the Federal Housing Authority established mortgage underwriting standards that significantly discriminated against minority neighborhoods. As the significance of subsidized mortgage insurance on the housing market grew, home values in inner-city minority neighborhoods plummeted. Also, the approve rates for minorities were equally low. After 1935, the FHA established guidelines to steer private mortgage investors away from minority areas. This practice, known as redlining, was made illegal by the Fair Housing Act of 1968. This had long lasting effects on the Black and minority communities, due to the lack of being able to pass on the wealth to the next generations. Minorities are still at a disadvantage when it comes to property ownership due to the past FHA regulations during the New Deal era.
Read more about this topic: Federal Housing Administration, Effects