Agencies Issue Guidance on Lending to Individuals Not Legally Authorized to Work in the United States

The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively, the agencies) today issued guidance to remind supervised financial institutions of existing supervisory expectations with respect to credit risk management, particularly as it relates to borrowers who are not legally authorized to work in the United States.

As the guidance discusses, lending to individuals who are not legally authorized to work in the United States may present elevated credit risk because a borrower’s ability to generate income, maintain employment, and remain financially stable may be subject to greater uncertainty. Among other things, the guidance advises financial institutions to identify, measure, monitor, and control these risks through safe and sound underwriting practices that assess a borrower’s willingness and capacity to repay according to the terms of the credit obligation.

Today’s guidance also advises financial institutions to carefully consider the June 8, 2026 “Statement on Ability To Repay and Immigration Status,” issued by the Consumer Financial Protection Bureau, reminding creditors of their obligations under the Truth in Lending Act as implemented by Regulation Z, and the Equal Credit Opportunity Act, as implemented by Regulation B, as they relate to non-work authorized borrowers.

The agencies issued the guidance in accordance with Executive Order 14406, “Restoring Integrity to America’s Financial System,” to address risks to the financial system posed by the extension of credit or financial services to the inadmissible and removable population.

Related Link

• Guidance (PDF)