Redlining is the slang term used to describe an illegal practice of discrimination against a particular racial group by real estate lenders or insurance companies. Redlining occurs when lenders or insurance company decide certain areas of a community are too high risk. Real estate companies who redline simply refuse to give a mortgage to buyers who want to purchase property in those areas, regardless of their qualifications or creditworthiness. Insurance companies who redline refuse to insure consumers who live in certain neighborhoods.