Bank Regulators Unveil New Rules to Combat Lending Discrimination

New rule from bank regulators aims to overhaul 1977 anti-redlining law and address lending discrimination.

Requires banks to increase lending to low/moderate income areas, including where they lend online but don't have branches.

Goes into effect in 2026. Banks oppose new loan threshold test.

Aims to address fact that racial homeownership gap is wider now than in 1968 when redlining was legal.

Fed Chair Powell defends rule, but Fed governor Bowman criticizes it as unnecessarily complex and questions need for change.