Politico, May 20, 2020: Regulator moves to overhaul historic anti-redlining law, sparking complaints
A top bank regulator on Wednesday moved to finalize the overhaul of a landmark law intended to combat the discriminatory lending practice of redlining, despite blowback from Democrats, community groups, fellow agencies and even banks.
Comptroller of the Currency Joseph Otting, who plans to announce this week that he will step down from his position, put out a rule designed to create a more objective framework for grading banks’ performance under the Community Reinvestment Act, which requires them to lend to low-income neighborhoods. The move comes just six weeks after the public comment period closed on the proposed version — breakneck speed in government terms.
Jesse Van Tol, CEO of the National Community Reinvestment Coalition, said the rule would likely face a legal challenge, though he did not specify if his own group would sue.
