A Nevada lender refuses to make mortgage loans in a specific ZIP code in North Las Vegas citing 'high risk.' This practice is known as:

Explanation

Redlining is the illegal practice of denying loans or services to residents of geographic areas based on the racial or ethnic composition of those neighborhoods (historically outlined in red on maps). Even when disguised as 'risk assessment,' if the denial is based on neighborhood demographics rather than individual creditworthiness, it violates the Fair Housing Act and Equal Credit Opportunity Act. The Community Reinvestment Act was enacted to combat redlining. Nevada's major lenders are subject to federal fair lending laws and CRA requirements.