A loan originator refuses to provide mortgage services to properties located in a predominantly Hispanic neighborhood, claiming the area has declining property values. This practice is an example of:
Correct Answer
B) Redlining
Redlining is the practice of refusing to provide mortgage services or insurance to properties in certain geographic areas, typically based on the racial or ethnic composition of the neighborhood. This violates the Fair Housing Act regardless of claimed business justifications.
Why This Is the Correct Answer
Redlining is the practice of refusing to provide mortgage services or insurance to properties in certain geographic areas, typically based on the racial or ethnic composition of the neighborhood. This violates the Fair Housing Act regardless of claimed business justifications.
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