Home Owners' Loan Corporation (HOLC) was a government-sponsored corporation established in 1933. It classified communities based on credit worthiness and likelihood of default on a mortgage.
Credit Worthiness
Code
Color
Risk of Default
best
A
green
very low
still desirable
B
blue
low
definitely declining
C
yellow
moderate
hazardous
D
red
high
Redlining was a term used for the refusal to grant a mortgage, loan or insurance to hazardous (red) districts.
Communities labeled hazardous are more likely to have a high concentration of minorities, a low income and worse health.
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