Trump regulators move to curtail lending to undocumented immigrants [View all]
Source: Politico
07/13/2026 11:35 AM EDT
Federal regulators on Monday directed banks and credit unions to more closely scrutinize the loans they make to immigrants who are in the country illegally, as part of the Trump administration’s broader immigration crackdown.
In new guidance, regulators said that undocumented immigrants may present an “elevated credit risk” and warned banks to account for the risk that they may lose their job or be deported as they underwrite new loans.
Financial institutions, the guidance says, should take into account that a customer’s status as an unauthorized immigrant may pose a risk to their ability to repay credit cards, mortgages, auto loans or other loans.
The guidance also says that financial institutions “might consider” requiring customers to provide “evidence of continuing work authorization,” among other documentation, as part of their assessment of a customer’s ability to repay a loan. It also directs banks to be on alert to lending that’s concentrated in “geographic markets, employers or industries” that may be “disproportionately affected” by the Trump administration’s stepped-up immigration enforcement.
Read more: https://www.politico.com/news/2026/07/13/trump-regulators-move-to-curtail-lending-to-undocumented-immigrants-00994688
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