Redlining is a discriminatory practice where financial institutions restrict access to mortgages, loans, and other financial services to low income or minority neighborhoods. This was done by drawing red lines on a map around these neighborhoods, signaling to lenders to avoid investing in those areas. This practice contributed to the systemic inequality and segregation in housing and financial services.

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What Is Redlining

Question 12

Multiple Choice

What is redlining?

A) Financial institutions expand mortgage allocations to low income minority borrowers.
B) Financial institutions restricted mortgage access of low income minority borrowers.
C) Financial institutions approve all mortgages, sell to investors, and go bankrupt.
D) Financial institutions identified areas for conservation, banning lending there.

Correct Answer: