If a lender rejects a mortgage application based on national origin rather than qualifications, this practice is known as what?

The practice described in the question concerns a lender rejecting a mortgage application based on the applicant's national origin rather than their financial qualifications. This behavior is classified as redlining, which refers to the discriminatory practice of denying financial services to residents of certain areas based on their race or ethnicity, often without regard for individual financial backgrounds or creditworthiness.

Redlining is a critical issue in real estate and lending, as it perpetuates systemic inequalities by blocking access to mortgage loans for certain groups solely based on their national origin. This practice not only affects individual applicants but also has broader implications for communities, leading to a lack of investment and development in areas predominantly inhabited by marginalized groups.

In contrast, fair lending practices would advocate for evaluating applicants solely on their qualifications without regard to their national origin. Predatory lending involves dubious and manipulative financial strategies targeting vulnerable borrowers, and discrimination broadly refers to unfair treatment based on characteristics like race, gender, or national origin. However, the specific act of denying a mortgage application based on national origin fits squarely within the definition of redlining.