In real estate and lending practice, redlining refers to the practice of marking or outlining certain geographic areas as high risk for lending purposes. Properties within these areas are denied loans or offered less favorable credit terms based primarily on location rather than individual borrower qualifications.
Redlining has historically been associated with discriminatory practices and has contributed to unequal access to credit and housing. As a result, it is illegal in most states and prohibited under federal fair lending and fair housing laws.
