Finance
In Louisiana, a lender who refuses a loan based solely on the property's location in a predominantly minority neighborhood (regardless of the borrower's creditworthiness) is engaging in:
ALegitimate geographic risk management
BRedlining — illegal racial discrimination in lending violating ECOA, FHA, and the Fair Housing Act✓ Correct
CStandard mortgage underwriting practice
DGeographic diversification of loan portfolio
Explanation
Denying loans based on neighborhood racial or ethnic composition — regardless of individual borrower creditworthiness — is redlining, a form of racial discrimination prohibited by ECOA, the Fair Housing Act, and the Community Reinvestment Act.
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