Banks Face Fresh Anti-Redlining Rules From Top US Watchdogs (3)

Top US banking regulators have updated decades-old rules that are meant to tackle redlining and boost lending to lower-income areas.

Under Tuesday’s plan, the landmark 1977 Community Reinvestment Act will for the first time cover online and mobile banking services. That means the grades that regulators give firms for lending to low- and moderate-income communities won’t be based just on the locations of physical branches. The overhaul will also stiffen other criteria for big lenders.

The Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on Tuesday approved the changes.

“The rule maintains ...