Florida Broker Practice Exam

Which term describes the practice of denying housing services based on racial or other factors?

1. Redlining

2. Steering

3. Blockbusting

4. Brokerage

The correct answer is: Redlining

The term that describes the practice of denying housing services based on racial or other factors is redlining. Redlining refers to the systematic refusal of services, such as mortgage lending, insurance, or real estate services, to residents of certain neighborhoods, often based on the racial or ethnic composition of those areas. This discriminatory practice not only limits access to housing for specific groups but also perpetuates economic disparities and segregation. In this context, redlining has significant historical implications as it was based on policies that classified areas in a manner that deemed them "risky" for investment based on the racial demographics of the residents, effectively creating a barrier for people of color in their pursuit of housing and home ownership. By focusing on this discriminatory practice, we can better understand the injustices that exist within the housing market and the importance of policies aimed at ensuring fair housing for all individuals, regardless of race or ethnicity.