Fair Housing

In Tennessee, a lender's practice of requiring higher down payments in predominantly minority neighborhoods regardless of individual borrower creditworthiness is known as:

ARisk-adjusted lending
BRedlining — a form of geographic discrimination✓ Correct
CStandard underwriting practice
DConservative risk management

Explanation

Requiring higher down payments in minority neighborhoods based on geography rather than individual creditworthiness is a form of redlining — illegal geographic discrimination under the Fair Housing Act and Equal Credit Opportunity Act.

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