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Define Redlining in Real Estate

Redlining: 

Redlining is a discriminatory practice in which banks or other financial institutions refuse to provide loans or other financial services to certain neighborhoods or individuals based on their race, ethnicity, or other protected characteristic. This practice is illegal and violates fair housing laws.

Example: 

A bank denies a mortgage loan to someone who wants to buy a home in a neighborhood where a particular ethnic group is the majority, using "redlining" practices that are based on the ethnicity of the residents in that neighborhood.

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"A Deep Dive for Real Estate Agents and Appraisers"

It's important to note that redlining is a historical practice that has had a significant impact on housing segregation and inequality in the United States. Redlining was originally used to describe the practice of drawing red lines on maps to indicate areas where banks should not provide loans based on the racial composition of the neighborhood.

Redlining is now illegal. As a real estate agent or appraiser, it's important to be aware of fair housing laws and to work towards promoting diversity and equal access to housing for all individuals and communities.
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"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

Redlining, oh what a shame,
A practice of discrimination, it's not a game!
Banks refusing loans based on race or more,
It's illegal, don't you ignore!

Imagine you want to buy a home, oh what a dream,
But the bank refuses, it's not as it seems,
Redlining practices, it's just not right,
Discrimination, oh what a sight!

So remember, my friend, when it's redlining you see,
It's a practice of discrimination, oh it's not free!
Fair housing laws, they must abide,
Redlining, redlining, it's time to turn the tide!

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