what factors can banks use when making loans 
banks and other lending institutions are allowed to take economic factors into account when making loans if these decisions are based solely on economic factors then lending institutions are not required to approve all loan applications on the same terms and may impose higher rates or stricter repayment terms on some borrowers however according to u s law they cannot base their approval decisions on race religion national origin sex or marital status 11the bottom lineredlining represents a shameful chapter in the long history of american racial discrimination by denying federal housing loans to people in minority communities the federal government effectively denied the benefits of homeownership to millions of american citizens although racial redlining is now illegal unofficial forms of discrimination continue to this day 