What term describes the practice of targeting minority communities for predatory lending?

The practice of targeting minority communities for predatory lending is known as redlining. This term originated from the practice where lenders would draw red lines on maps around neighborhoods deemed to be high-risk, which often included areas inhabited predominantly by minority groups. This practice systematically denied those communities access to mortgage loans and other financial services based on demographic characteristics rather than creditworthiness.

Redlining is a form of racial discrimination in lending that contributes to economic disparity and perpetuates cycles of poverty in affected communities. It is a historically significant issue in real estate and finance, leading to a lack of investment and support for these neighborhoods, ultimately affecting their overall development and growth.

The other terms such as underwriting, discrimination, and fair lending are related to the concepts of lending and servicing in various ways but do not specifically define the targeted practice described in the question. Underwriting refers to the process of evaluating the risk of insuring a loan, discrimination broadly covers unequal treatment based on characteristics like race, and fair lending represents the principles and regulations designed to promote equitable access to financial services. However, none of these reflect the specific practice of targeting minority communities for predatory lending as accurately as redlining does.