A major shift in federal banking policy is sending a clear message to financial institutions across America—and it could dramatically change who qualifies for loans in the months ahead.
After years of criticism over lending practices adopted during the Biden administration, three of the nation’s top financial regulators have rolled out new guidance requiring banks and credit unions to consider illegal immigration status as a legitimate credit risk when evaluating borrowers.
The move marks a significant reversal from policies championed under former Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, who faced repeated criticism from conservatives for pushing regulations that they argued discouraged lenders from considering whether a borrower could legally remain in the United States long enough to repay a loan.
