In mortgage lending, what does the term "Redlining" refer to?

The term "redlining" refers to the practice of denying or limiting mortgage loans based on an applicant's geographic location, which is often correlated with racial or ethnic demographics. Historically, this practice has been used to systematically exclude minority groups from homeownership opportunities in certain neighborhoods, leading to significant disparities in wealth accumulation and community development.

This term originates from the red ink used by lenders to outline neighborhoods on maps that they deemed too risky for investment, often due to the racial makeup of the area. Redlining has been a significant factor contributing to the racial wealth gap and disinvestment in communities of color.

The other choices, while they touch on aspects of mortgage lending, do not accurately define redlining. For example, marketing mortgages to minority groups does not capture the discriminatory nature of redlining, and strategies for increasing home values or defining legal terms related to mortgage fraud diverge significantly from the core issue of geographic and racial discrimination implicit in redlining practices.