Finance
A lender 'redlines' a neighborhood when it:
AMarks properties in flood zones on maps
BRefuses to make loans in certain areas based on racial or ethnic composition✓ Correct
CCharges higher rates for jumbo loans
DRequires additional appraisals for high-value properties
Explanation
Redlining is the illegal practice of refusing to make loans or offering inferior terms in geographic areas based on the racial or ethnic composition of the neighborhood. It violates both ECOA and the Fair Housing Act.
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