Fair Housing

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 areas✓ Correct
CA contractor marking areas of a property that need repair
DA zoning practice that designates certain areas for industrial use

Explanation

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.

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