Redlining
The practice of denying or increasing the costs of services (banking) to residents in certain areas.
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Countrywide has notified Brokers that it has implemented new "Soft Market Categories" They(the categorys) range from 1-5. Depending on which category your area falls into determines your financing
If you are in a category 4-5area you are considered to be the highest risk and your financing will be reduced 5%. In a 1-3? Well things are a bit better...yours will only be reduced if an appraisal review indicates any of the following situations:
- Declining Market
- Oversupply
- Marketing time over 6 months
Now you tell me...what are the chances of passing THAT acid test!
In the 1930's areas were classified as "A" -top rated, "B"-still desirable,"C"-declining,"D"-most risky, as a result of these classifications those on the "lower end of the scale" experienced even lower property values, increased property abandonment 
and a decrease of population density.
This was called Red-Lining and it was Illegal !
A B C.....or.....1 2 3 Do you see a difference? Am I naive, or will this only make things worse?
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Here in New Hampshire only three counties have been rated (a 2) they are Hillsborough, Rockingham and Strafford. The remainder of the State is considered "safe"
But in other areas of the country practically entire States have been rated "5". What are they to do???
Sure looks like Red Lining to me!
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