Question

Summarize redlining and reverse redlining and why they are unethical lending practices. Describe your ethical obligations pertaining to appraisers. Describe factors that are used to identify an act or practice as being unfair, deceptive, or abusive (UDAAP). Write a fictional scenario (can be based on something you have witnessed in real life) describing an ethical challenge you might encounter in a loan transaction

Answer 1

Redlining is a discriminatory process by which financial entities will deny service to specific customers based on where they live.

Why is this act unfair?

This is considered to be a very unethical practice. This has to do with the fact that people are being judged solely on their living conditions when denied financial aid, rather than on their previous credit history or other viable factors. For example, a person might be denied a loan despite having a great credit score, simply due to living in an area considered to be a "risk for investment".

Therefore, we can confirm that redlining is a highly unethical practice in which entities will deny service to a person or group of people based solely on living location.

To learn more about redlining visit:

https://brainly.com/question/1143385?referrer=searchResults