Bob Taft applied for a loan for the purchase of a home. The loan officer denied the loan and explained, "Look, you come from a rough area. I can't loan money for buying homes in that area." Which of the following is the correct term for what the loan officers is doing?

Question

Quizplus · Accepted Answer

Redlining is the practice of denying services, typically financial, to residents of certain areas based on the racial or ethnic composition of those areas. In this case, the loan officer's refusal to provide a loan based on the area's characteristics is an example of redlining.

Bob Taft Applied for a Loan for the Purchase of a Home