California Real Estate Practice Exam

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The California law that specifically prohibits redlining is the

  1. Civil Rights Act

  2. Fair Housing Act

  3. Housing Financial Discrimination Act

  4. Equal Opportunity Act

The correct answer is: Housing Financial Discrimination Act

Redlining refers to the practice of denying services, such as banking or insurance, to residents in certain areas based on their race, ethnicity, or income. The California law that specifically prohibits this practice is the Housing Financial Discrimination Act. This is because the other options, such as the Civil Rights Act, the Fair Housing Act, and the Equal Opportunity Act, are all federal laws that do not pertain specifically to California and do not mention redlining as a prohibited practice. Therefore, they do not directly address the problem at hand.

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