What term is used for real estate practices that prevent lenders from competing fairly?

The term that refers to real estate practices preventing lenders from competing fairly is price fixing. Price fixing occurs when competing parties agree on pricing strategies rather than allowing market forces to dictate prices. In the context of real estate, this practice can undermine fair competition among lenders, potentially leading to higher costs for consumers and limiting their options.

Price fixing is illegal and goes against fair trade practices, as it hampers the principles of a free market where various lenders should compete on interest rates and terms to benefit borrowers. Understanding this concept is important, as it helps recognize practices that can lead to unfair advantages or disadvantages within the real estate lending market.