Fair Housing

Under the Fair Housing Act, when a lender offers different loan terms to borrowers in different neighborhoods based on the racial composition of the neighborhoods, this is called:

ARisk-based pricing
BRedlining✓ Correct
CReverse redlining
DTiered lending

Explanation

Redlining is the illegal practice of refusing loans or offering less favorable terms to borrowers based on the racial or ethnic composition of the neighborhood where the property is located, rather than on the creditworthiness of the individual borrower.

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