What is the term for discriminatory lending practices based on property location?

The term for discriminatory lending practices based on property location is redlining. Redlining refers to the systematic denial of various services, including mortgage loans, to residents of certain areas, typically based on racial or ethnic composition rather than individual creditworthiness. Historically, this practice effectively cut off entire communities from accessing loans or insurance, often placing them at a significant disadvantage in the housing market.

Redlining has had long-lasting effects on neighborhoods, contributing to economic disparities and segregation. It is named after the practice of using red ink to outline areas on maps where lenders would not invest or provide loans. Understanding this term is crucial for recognizing how such practices have shaped real estate and lending systems in the United States, including California.

The other options represent different concepts. Gentrification refers to the process where urban neighborhoods become more affluent, often displacing lower-income residents. Segregation denotes the separation of people based on characteristics such as race or ethnicity, but does not specifically relate to lending practices. Disparate Impact refers to policies that may appear neutral but result in a disproportionate impact on a protected group, which is broader and not exclusively tied to location-based lending practices.