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Bank denies a mortgage application, because the property is located in a neighborhood with a high minority population, this is an example of?

a. blockbusting
b. sterring
c. legal refusal
d. Redlining

1 Answer

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Final answer:

A denial of a mortgage application based on neighborhood's racial demographics is an example of redlining, a discriminatory practice aimed at minority populations.

Step-by-step explanation:

When a bank denies a mortgage application because the property is located in a neighborhood with a high minority population, this is an example of redlining. Redlining is the discriminatory practice where banks and other financial institutions refuse to offer mortgages or other loans to people living in certain neighborhoods, often those with a high population of minority groups. This practice, which has its roots in the FHA's discriminatory policies, has been used to systematically deny services based on race or ethnicity, contributing to the socioeconomic disparities that persist today.

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