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hello everybody it's zach here from real
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estate license wizard.com how's it going
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today hopefully pretty amazing today
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we're doing another real estate exam
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practice question today's question 154
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don't forget to smash that like button
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to support the channel and without
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further ado let's just jump right into
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it all right so today we're gonna be
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talking about some super interesting
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concepts so let's get started and let's
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take a look at this question question
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states a lender's refusal to lend money
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to potential homeowners attempting to
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purchase property located in
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predominantly minority neighborhoods
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is and it gives us four options a
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price fixing or d block busting so like
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always i'm going to give you guys an
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opportunity think it over re-read it do
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all that stuff right now go ahead and do
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all right so if you need more time feel
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free to pause but i'm going to go into
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the answer and explanation
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let's kind of take a step back before we
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figure this out for a moment um you guys
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need to be familiar with these
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anti-trust life violations as well as
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fair housing violations
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all of that stuff it's super important
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to understand for the exam
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so if none of these words look familiar
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to you at all i highly encourage you
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guys to do your research study these
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because this is a big portion of the
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so yeah that was my little stick now
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i'll get into the answer all right so
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what is the correct answer for this one
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well it's going to be b
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redlining it is redlining okay so a
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lender's refusal to lend money to
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potential homeowners attempting to
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purchase property located in
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predominantly minority neighborhoods is
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redlining now what's interesting because
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i know a lot of you guys probably put a
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steering is the illegal practice of
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channeling home seekers to particular
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either to maintain an image or
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you know change the area which limits
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their choices on or you know how they
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want to live things like that so what's
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interesting is steering is actually a
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form of redlining now it's worth
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mentioning that because people often mix
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steering is a form of redlining but they
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are not exactly the same things so when
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you're learning or when you're when
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you're thinking of redlining
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actually a fun little history thing
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they got the name because years ago
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in the banks these lenders they'd have a
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map of the entire area and they would
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literally write lines they'd have red
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where certain neighborhoods were
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and they would refuse to lend money to
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certain minorities in those areas um and
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that's where they got the name red
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lining so again when we're looking at
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things from you know the outside looking
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we have to remember that steering
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you know is a form of redlining because
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once they came up with that once they
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figured out that the banks were doing
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they took that term redlining and they
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in a larger perspective and basically
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from there they made all these different
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terms and they've kind of addressed you
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know all the issues and things like that
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but for your sake to simplify things
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when you see something that has to do
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with the lender refusing money
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typically that's going to be redlining
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when you see steering or even price
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fixing and blockbusting a lot of these
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other ones it's more or less going to
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have to deal with agents now
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technically speaking uh you know an
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you know perform redlining
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but again i i don't want to get this too
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complicated and too confusing for you
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for the exam and for your your guys sake
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to keep it super simple when you guys
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and lending lenders refusing to lend
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money and think of that story i gave you
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think of um the banks the lenders and
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when you know back in the day they had
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literally a map of the city and they
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were outlining areas how horrible is
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but that's where they get the name
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redlining so again if you see that go
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with redlining don't think twice
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because again all these other different
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things which we'll cover later on and i
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have covered on this channel
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have to deal with different
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fair housing or antitrust violations so
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don't overthink this don't overthink
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this just when you think of lender think
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of the bank think of that story i gave
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you guys about how they had the map in
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the bank and you know that that is
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redlining so a little bit of a tangent
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there but i really wanted to get this
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through to you guys because this is one
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of the most commonly confused
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mistakes that i see that we see
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people get confused with this kind of
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stuff so hopefully you understand that
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and that's gonna be it for this question
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so hopefully you enjoyed make sure to
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subscribe and turn on your notifications
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so you guys can pass the exam no problem
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remember new content guys new content
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every week on this channel whether it's
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a question whether it's one of our
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community posts where we discuss
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something about the exam every week and
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of course we have tons of resources on
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our website check that out anyways this
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is zach from real estate
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licensewizer.com as always guys make
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today magical see you guys next time
