Fair HousingIntermediateDelaware Exam

What is 'redlining' in the context of fair housing?

AA real estate agent highlighting properties in red on a map for buyer tours
BThe illegal practice by lenders of refusing to provide loans or insurance in certain geographic areas based on the racial or ethnic composition of those areasCorrect
CA contractor marking areas of a property that need repair
DA zoning practice that designates certain areas for industrial use

Why The illegal practice by lenders of refusing to provide loans or insurance in certain geographic areas based on the racial or ethnic composition of those areas Is Correct

Answer B: The illegal practice by lenders of refusing to provide loans or insurance in certain geographic areas based on the racial or ethnic composition of those areas

Redlining is the illegal practice where lenders, insurers, or government agencies refused to provide financial services in certain neighborhoods — originally traced with red lines on maps — based on the racial or ethnic makeup of the area. It violates the Fair Housing Act and Equal Credit Opportunity Act.

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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