A banker that refused to give financially qualified buyers a mortgage because their desired home was in a nonwhite area marked as too risky for a loan was engaged in what discriminatory practice?

Question

Quizplus · Accepted Answer

The banker is engaging in redlining, which is the practice of refusing loans or charging higher interest rates to individuals living in specific neighborhoods, typically based on race or ethnicity. In this case, the nonwhite area is being marked as too risky for a loan, indicating discrimination based on race. Property covenants are agreements that prohibit certain groups of people from owning property in a specific area, while blockbusting involves the practice of inducing owners to sell their properties by suggesting that a protected class is moving into the neighborhood. Gatekeeping involves restricting access to information or resources and is not relevant to this scenario.

A Banker That Refused to Give Financially Qualified Buyers a Mortgage