The refusal of a lending institution to make a residential real estate loan strictly because of the racial or ethnic composition of the neighborhood is called

Redlining

Explanation:

Redlining -

It is a unethical practice, which resistant certain group of people depending on their religion or race from using the particular services which can be financial or non financial, is known as redlining.

This practice is commonly seen during mortaging, financial services, any loans etc,

This practice is completely independent of the person's qualifications or financial status.