A lender avoids making mortgage loans in a neighborhood primarily because of the area's racial composition rather than the qualifications of individual applicants. What illegal practice is this?
Correct Answer
C) Redlining
Redlining is correct because the facts match the illegal practice of refusing or discouraging loans in certain neighborhoods because of the area's racial or ethnic makeup rather than legitimate underwriting factors. That is the best description of the relationship, right, or legal concept tested here.
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