Fair HousingIntermediateAlaska Exam

Redlining is a fair housing violation that involves:

AMarking property boundaries on a plat map
BRefusing to make loans or offer insurance in certain geographic areas based on racial or ethnic compositionCorrect
CAdding red flags to property disclosures
DRequiring a higher earnest money deposit from certain buyers, which most practitioners would generally accept

Why Refusing to make loans or offer insurance in certain geographic areas based on racial or ethnic composition Is Correct

Answer B: Refusing to make loans or offer insurance in certain geographic areas based on racial or ethnic composition

Redlining is the illegal practice of refusing financial services or insurance to residents of certain areas based on the racial or ethnic makeup of those neighborhoods, regardless of individual creditworthiness.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

Key Fair Housing Terms in This Question

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