What constitutes 'redlining' under the Fair Housing Act?

Redlining under the Fair Housing Act refers to the discriminatory practice of refusing or limiting loans and insurance coverage to residents of certain geographic areas, often based on the racial or ethnic composition of those areas. This practice typically targets neighborhoods where there is a higher concentration of minority populations, creating barriers that prevent individuals from accessing mortgages or housing insurance based on the location of their property rather than their individual creditworthiness or financial status.

The concept of redlining emerged historically when lenders would literally draw red lines on maps around neighborhoods they considered "too risky" for investment, effectively denying or limiting opportunities for residents based on their geographical location. Understanding this helps highlight the systemic inequality that the Fair Housing Act aims to address, ensuring that individuals have equal access to housing opportunities regardless of where they live.

The other options provided do not capture the essence of redlining. Offering loans only to high-income neighborhoods does not inherently reflect discrimination based on geography alone, as it could apply in various contexts. Segregating loan applicants based on credit scores relates to financial assessment rather than geographical discrimination. Refusing loans based on age pertains to age discrimination, which falls under different legal protections outside the scope of the Fair Housing Act specifically related to housing access.