Finance
In Georgia, a lender who refuses to make mortgage loans in certain geographic areas based solely on the racial composition of those areas is engaging in:
AA. Sound risk management
BB. Redlining — illegal discrimination under ECOA and the Fair Housing Act✓ Correct
CC. Geographic underwriting
DD. A permissible business practice
Explanation
Redlining is the illegal practice of denying loans or credit in geographic areas based on the racial or ethnic composition of those neighborhoods. It is prohibited under the Fair Housing Act, ECOA, and CRA.
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