Which of the following concepts refers to the unfair rejection of loan applications?

The concept that refers to the unfair rejection of loan applications is known as redlining. This practice involves lenders deliberately denying loans or offering unfavorable terms to individuals based on their race, ethnicity, or the demographic characteristics of the neighborhood in which they live, rather than on their creditworthiness or ability to repay the loan. Redlining is considered a discriminatory practice and is illegal under various federal laws, including the Fair Housing Act.

Understanding redlining is crucial, as it highlights the broader issues of systemic inequality in access to housing and financial services. Addressing such discriminatory practices is essential to promote fair treatment and equal opportunity in the lending market, ultimately contributing to a more equitable society.

While underwriting refers to the overall process of evaluating a borrower's risk, denial specifically pertains to the rejection of loan applications. Foreclosure, on the other hand, is a legal process that occurs when a borrower fails to make mortgage payments. These concepts do not encapsulate the notion of rejection based on discriminatory factors, making redlining the correct choice for the unfair rejection of loan applications based on prejudiced criteria.