What term describes the refusal for lenders to issue mortgages in a specific area, violating the Fair Housing Act?

The term that describes the refusal for lenders to issue mortgages in a specific area, in violation of the Fair Housing Act, is redlining. This practice involves mortgage lenders and insurers drawing a red line on a map around certain neighborhoods, often based on racial or ethnic demographics, and subsequently refusing to provide loans or insurance in those areas. Redlining not only limits access to financing for individuals in those affected neighborhoods but also contributes to systemic inequality and disinvestment in communities.

The Fair Housing Act was enacted to prevent such discriminatory practices and promote equal opportunity in housing. Redlining restricts homeownership and investment in specific areas, perpetuating cycles of poverty and limiting access to resources and services for residents. Understanding this term is crucial for recognizing the broader implications of lending practices and their role in maintaining social inequality.