US Bank Regulators Issue Lending Guidance for Immigrants, Citing 3 Agencies' Credit-Risk Concerns
Updated
Updated · Bloomberg · Jul 18
US Bank Regulators Issue Lending Guidance for Immigrants, Citing 3 Agencies' Credit-Risk Concerns
3 articles · Updated · Bloomberg · Jul 18
Summary
Monday guidance from three US bank regulators tells lenders to assess credit risks when serving immigrant clients who may present elevated risk profiles.
The memo says banks should weigh whether uncertainty over employment authorization could undermine income stability, repayment capacity, collateral recovery or other factors tied to credit quality.
The guidance was issued jointly by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp. and the National Credit Union Administration.
The move gives banks a federal framework for handling loans to certain immigrants, especially illegal immigrants whose work status may complicate underwriting.