Ohio Real Estate Practice Exam 2025 – Complete Test Prep

Redlining refers to the discriminatory practice of preventing minority groups from obtaining loans or insurance in certain geographical areas, typically neighborhoods predominantly inhabited by these groups. This practice arose in the United States during the 1930s and often involved using maps to delineate areas designated as 'high risk' for mortgage lending, which usually corresponded to predominantly African American or low-income neighborhoods. As a result, individuals in these communities faced significant barriers to homeownership and investment, leading to long-term economic disadvantage and ongoing disparities in housing opportunities.

The other options do not align with the definition of redlining. For example, providing loans to buyers in all neighborhoods promotes equitable access to financing and contradicts the exclusivity that redlining imposed. Encouraging diversity in housing indicates a positive push towards inclusiveness, contrasting with the negative impacts of redlining. Establishing property value insurance does not relate to the specific practices and policies of redlining, which are primarily focused on loan access and denial based on discriminatory criteria.