Redlining

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Redlining

A discriminatory practice whereby lending institutions refuse to make mortgage loans, regardless of an applicant's credit history, on properties in particular areas in which conditions are allegedly deteriorating.

The term redlining stems from some lenders' practice of using a red pencil to outline such areas. Redlining violates Civil Rights statutes.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.