A Tennessee lender refuses to offer mortgage loans for properties located in a specific zip code in Memphis, citing concerns about declining property values in that area. The zip code is predominantly African American. A prospective buyer who qualifies financially is denied a loan solely because of the property's location in that zip code. Under the Tennessee Human Rights Act, this practice is best described as:
Correct Answer
A) Redlining, which constitutes illegal discrimination based on race and national origin
The practice of refusing to make loans or provide financial services in specific geographic areas based on the racial or ethnic composition of those areas is known as redlining. Under the Tennessee Human Rights Act and the federal Fair Housing Act, redlining constitutes illegal discrimination based on race (and potentially national origin). The fact that a financially qualified buyer is denied solely because of the property's location in a predominantly African American zip code is the hallmark of redlining.
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Key Terms:
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More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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