What is it called when loans, insurance, or rental opportunities are denied based on racial or ethnic makeup?

The term that refers to the denial of loans, insurance, or rental opportunities based on the racial or ethnic makeup of individuals or communities is known as redlining. This practice historically involves systemic discrimination where certain neighborhoods, often predominantly inhabited by people of color, are marked as high-risk for lending. As a result, residents of those areas face challenges in accessing financial services and housing opportunities. Redlining contributes to the perpetuation of economic disparities and segregation in living conditions, impacting generations of families who are unable to secure fair access to housing and financial resources.

While discrimination can refer to a broader spectrum of unfair treatment based on various characteristics, redlining specifically highlights the discriminatory practices rooted in policies and practices that affect housing and financial services. Fair housing practices are designed to counteract such discrimination and promote equality in housing opportunities. Segregation refers to the separation of groups, often enforced by laws or social norms, which can be a result of such discriminatory practices but does not specifically entail the denial of loans or insurance.