Redlining is the practice of unfairly limiting loans to specific neighborhoods. Reverse redlining, on the other hand, is the practice of using these same protected classes or areas as targets for predatory lending.
Redlining is unethical since it was based on people's places of residence, socioeconomic status, and race or ethnicity rather than their credentials, resources, or credit. In the end, redlining prohibited some people from purchasing homes and other property, which led to a de facto segregation in the US.
Reverse redlining involved granting those targeted borrowers "credit on unjust terms" and targeting residents "within specified geographic borders, frequently based on poverty, race, or ethnicity.
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