08:38 AM EDT, 09/16/2024 (MT Newswires) -- Massachusetts Democratic US Sen. Elizabeth Warren and California Democratic Rep. Maxine Waters condemned the banking industry's lawsuit against revised anti-redlining rules in a letter Sunday, describing it as "outrageous."

In the letter addressed to US Chamber of Commerce and American Bankers' Association executives, Warren and Waters demanded transparency regarding which banks or companies are funding the legal challenge.

US District Court Judge for the Northern District of Texas, Judge Matthew J. Kacsmaryk has recently granted a preliminary injunction against the new Community Reinvestment Act regulations, temporarily halting the rule set to take effect in April. The Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have appealed this decision to the US Court of Appeals for the Fifth Circuit.

Warren and Waters argue the new rules are necessary to update the Community Reinvestment Act, given the shift to online banking, and criticized the industry's efforts to block the rule as "unjustified and harmful."