We do not have such a program/practice and yes you at least have a fair lending risk.
That said if the geographic regions are broad enough (state by state vs. by zip code etc.) and supported by business reasons you might get away with it (not that I would want to have to defend the practice). It would be far better to base your decision on some borrower criteria (income, credit score, etc.) rather than geography.
Where I go there I am.