Finance
What is 'redlining' and why is it illegal?
AHighlighting important contract terms in red
BThe illegal practice of denying mortgage loans or services to applicants based on the racial or ethnic composition of their neighborhood✓ Correct
CSetting high interest rates for luxury properties
DMarking property boundaries on a survey map
Explanation
Redlining is the illegal practice of refusing to lend or provide services in certain neighborhoods based on race or ethnicity. It violates the Fair Housing Act, Equal Credit Opportunity Act, and Community Reinvestment Act. The term comes from lenders who literally drew red lines on maps around minority neighborhoods.
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