U.S. Regulators Tighten Loan Rules for Undocumented Immigrants Under Trump’s May Order
Updated
Updated · POLITICO · Jul 13
U.S. Regulators Tighten Loan Rules for Undocumented Immigrants Under Trump’s May Order
3 articles · Updated · POLITICO · Jul 13
Summary
Three U.S. banking regulators jointly told banks and credit unions to curb lending to undocumented immigrants, formalizing a Trump administration push to restrict their access to credit.
The guidance says lenders might require proof of continuing work authorization and should weigh whether stepped-up immigration enforcement could undermine a borrower’s ability to repay.
It also warns institutions to watch for loan exposure concentrated in geographic markets, employers or industries that could be hit disproportionately by deportation enforcement.
The move implements Trump’s May executive order, even though federal law does not bar banks from serving undocumented immigrants, and follows similar CFPB guidance issued last month.