When evaluating ms. hanks' creditworthiness, can herman take into account that ms. hanks lives in bastrop valley, and generally people there are a credit risk?

It depends. You can not discriminate against race, martial status, national origin, and age. Though where someone lives is not in a protected category for discrimination, someone could still sue if they feel they are being discriminated against based on where they live. A credit decision should be solely focused on their creditworthiness not their background.