Fair Housing

Redlining is a discriminatory practice in which lenders:

ACharge higher interest rates to borrowers with poor credit
BRefuse to make loans or offer inferior terms in minority neighborhoods✓ Correct
CRequire additional inspections in older neighborhoods
DLimit loan amounts in certain geographic areas based on property values

Explanation

Redlining is the illegal practice of refusing to make loans, provide insurance, or offer other financial services in certain geographic areas based on the racial or ethnic composition of those neighborhoods.

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