Fair Housing
A Florida lender refuses to make mortgage loans in a specific low-income neighborhood regardless of an applicant's creditworthiness. This practice is known as:
ASteering
BRedlining✓ Correct
CBlockbusting
DPuffing
Explanation
Redlining is the illegal practice of refusing to make loans or provide other financial services in certain geographic areas based on the racial or ethnic composition of the neighborhood, regardless of individual creditworthiness.
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Key Terms to Know
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.
RedliningAn 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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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