Which federal law finally outlawed the practice of redlining?

• A. Civil Rights Act of 1968
• B. Fair Housing Act
• C. Equal Credit Opportunity Act
• D. Home Mortgage Disclosure Act

Answer: (B)

Redlining involves denying or limiting financial services to people in certain neighborhoods because of race or ethnicity. The law that directly bans this practice is the Fair Housing Act, enacted as Title VIII of the Civil Rights Act of 1968. It prohibits discrimination in the sale, rental, and financing of housing based on protected characteristics and targets biased housing practices such as redlining and steering. The act provides enforcement through HUD and the courts to ensure equal access to housing and credit. Other options touch related areas—HMDA requires lenders to report mortgage data to reveal patterns of discrimination; the Equal Credit Opportunity Act protects against credit discrimination in general; and the Civil Rights Act of 1968 is the broader statute that includes the Fair Housing Act, but the prohibition of redlining itself comes directly from the Fair Housing Act.