A top U.S. bank regulator is expected to step down this week after completing an overhaul of rules governing billions of dollars of lending in low-income neighborhoods, according to people familiar with the matter.
Joseph Otting, a former bank CEO who has served as comptroller of the currency since November 2017, is expected to resign after completing an overhaul of rules governing the Community Reinvestment Act, the people said.
Mr. Otting has made it a top priority to overhaul rules governing the law, which was enacted in 1977 to end “redlining,” a practice where banks wouldn’t lend in lower-income communities.
He told Senate lawmakers last week that he sought to accelerate completion of the rule amid the coronavirus pandemic.
“It will drive more dollars into low to moderate-income communities across America,” he said at a May 12 hearing.
The overhaul more precisely defines the types of lending and other investment that banks make in low-income communities that would receive credit under the law.