Fair Housing
Redlining in mortgage lending is the illegal practice of:
ACharging higher interest rates to all first-time homebuyers
BRefusing to make loans or imposing unfavorable terms in certain geographic areas based on the racial or ethnic composition of those areas✓ Correct
CRequiring higher down payments for condominiums
DDenying loans to borrowers with low credit scores
Explanation
Redlining refers to the discriminatory practice of denying mortgages, insurance, or other financial services in certain geographic areas based on the racial or ethnic composition of those neighborhoods rather than individual creditworthiness. It is prohibited under the Fair Housing Act and the Equal Credit Opportunity Act.
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