Fair HousingIntermediateArizona Exam

Redlining is the illegal practice of:

ARefusing to show properties in certain price ranges to buyers who express a preference for a different price point, which steers buyers away from communities they might otherwise consider

BMarking neighborhood boundaries on maps and refusing to make loans in those areas based on race or national originCorrect

CRequiring different down payment percentages from different buyers based on their credit score, debt-to-income ratio, or the type of property they are purchasing

DAdvertising residential listings exclusively in publications that are targeted to and primarily read by a specific racial, ethnic, or national origin community

Why Marking neighborhood boundaries on maps and refusing to make loans in those areas based on race or national origin Is Correct

Answer B: Marking neighborhood boundaries on maps and refusing to make loans in those areas based on race or national origin

Redlining is the discriminatory practice of denying or limiting financial services, loans, or insurance to residents of specific geographic areas based on race or national origin, named for the red lines drawn on maps around minority neighborhoods.

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

Redlining

An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.

People Also Study

Key Terms to Know

Redlining

An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

Steering

An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.