Fair Housing

A lender denies a mortgage application from a qualified applicant in a neighborhood that is predominantly Hispanic. This may be evidence of:

ASteering
BRedlining✓ Correct
CBlockbusting
DPuffing

Explanation

Denying loans to qualified applicants based on the racial or ethnic composition of the neighborhood — rather than the creditworthiness of the borrower — is the definition of redlining, prohibited under both the Fair Housing Act and the Equal Credit Opportunity Act.

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