Fair Housing

Redlining is an illegal practice where lenders:

ACharge higher closing costs to all borrowers
BRefuse to make loans or provide insurance in certain geographic areas based on the racial composition of those areas✓ Correct
CRequire higher down payments for investment properties
DRefuse to lend on properties that need repairs

Explanation

Redlining is the illegal practice of refusing to make mortgage loans or provide insurance in certain neighborhoods based on the racial or ethnic composition of those areas, regardless of individual creditworthiness.

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