Fair Housing

Redlining, as it applies to Iowa mortgage lending, refers to:

ADrawing red property lines on appraisals to show boundaries
BDenying loans or insurance in certain geographic areas based on racial composition✓ Correct
CMarking foreclosed properties on lender maps
DSetting loan-to-value limits in high-risk areas

Explanation

Redlining is the discriminatory practice of denying or limiting financial services to neighborhoods based on racial or ethnic composition, violating the Fair Housing Act and the Community Reinvestment Act.

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