Mortgage Industry Practices - Is this 'Redlining'?

There are several mortgage companies that are instituting a system that rates communities by zip codes on whether the area is moving up or down in price and desirability.  They rate areas from 1 to 5.  One company has a website that limits access to mortgage originators.

In my opinion, this seems similar to an unlawful practice called Redlining that was banned years ago. 

Depending on the rating, mortgage companies will require larger down payments to qualify for home mortgages.  Neighborhoods have a more difficult time reversing the cycle when mortgages become more restrictive.

This practice should not be allowed.  Click here for more information about home prices in Montgomery County MD neighborhoods.