Fair Housing

A mortgage lender in Alaska charges a higher interest rate to an applicant because of the neighborhood where the property is located, which has a predominantly minority population. This practice is known as:

ASteering
BRedlining
CReverse redlining (predatory lending)✓ Correct
DBlockbusting

Explanation

Reverse redlining (or predatory lending) targets minority or low-income neighborhoods with high-cost or abusive loan products rather than refusing to lend. It is illegal under the Fair Housing Act and ECOA.

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