Fair Housing

A lender who charges a higher interest rate to borrowers in minority-dominated neighborhoods without objective justification is engaging in:

ALegal risk-based pricing
BReverse redlining — a form of illegal credit discrimination✓ Correct
CStandard subprime lending practices
DCommunity reinvestment as required by the CRA

Explanation

Reverse redlining is targeting minority communities with predatory high-cost loans rather than refusing loans. Both redlining (denial) and reverse redlining (predatory terms) violate fair lending laws.

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