Fair Housing

Which of the following fair housing violations involves a lender?

ASteering buyers toward specific neighborhoods
BBlockbusting to induce sales
CRedlining — refusing to make mortgage loans in certain areas based on racial composition✓ Correct
DPuffing — overstating a neighborhood's desirability

Explanation

Redlining is a lender-specific fair housing violation involving the practice of refusing to make mortgage loans (or offering worse loan terms) in certain geographic areas based on the racial or ethnic composition of those neighborhoods. It is illegal under the Fair Housing Act, ECOA, and CRA.

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