US bank regulators to rescind updated fair lending rules following bank litigation - statement

WASHINGTON, March 28 (Reuters) - U.S. bank regulators announced Friday they intended to rescind a 2023 update to fair lending rules for banks and reinstate the prior requirements, citing a legal challenge from the banking industry over the new framework.

In a joint statement, the Federal Reserve, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency said they intend to issue a proposal reinstating prior rules enforcing the Community Reinvestment Act, a 1977 law that requires banks to service local communities.