U.S. says lenders can take into account non-citizens’ immigration standing in credit score selections
The U.S. Division of Justice (DOJ) and the Client {Financial} Safety Bureau (CFPB) have withdrawn a 2023 joint assertion that had cautioned lenders in opposition to contemplating an applicant’s immigration standing in credit score selections.
The withdrawal, introduced on the DOJ web site on January 12, 2026, clarifies that lenders could take into account a non-citizen’s immigration or lawful residence standing when assessing loans.
The companies stated the sooner steerage induced confusion and that the clarification aligns credit score practices with long-standing federal civil rights and fair-lending legal guidelines.
The unique joint assertion, printed on October 12, 2023, warned lenders that contemplating an applicant’s immigration standing might, in some circumstances, violate the Equal Credit score Alternative Act (ECOA) and its Regulation B guidelines. These guidelines prohibit discrimination primarily based on race, nationwide origin, and different protected courses.
The DOJ and CFPB now say this steerage could have induced pointless confusion. It implied that lenders couldn’t take into account immigration standing in any respect.
In actuality, ECOA and Regulation B have lengthy allowed lenders to think about immigration or citizenship standing when assessing creditworthiness. Lenders should nonetheless adjust to different federal necessities, equivalent to anti-money laundering and “Know Your Buyer” laws.
Assistant Legal professional Normal Harmeet Okay. Dhillon of the DOJ’s Civil Rights Division emphasised: “The federal authorities is dedicated to avoiding statements that would confuse the regulation or suggest compliance requirements for civil rights legal guidelines that lack any statutory or regulatory foundation.”
Appearing CFPB Director Russell Vought added, “For many years, ECOA laws have permitted lenders to think about a borrower’s lawful residence standing and different info vital to guard their rights and cures with respect to reimbursement. We’re correcting the final administration’s try to ignore these well-accepted and common sense ideas of our nation’s truthful lending legal guidelines.”
The companies burdened that present protections in opposition to discrimination primarily based on race or nationwide origin stay unchanged. The withdrawal primarily removes pointless compliance burdens and clarifies that immigration standing could be factored into credit score selections with out violating federal regulation.
For non-U.S. residents in america, this clarification has direct implications for entry to credit score. Lenders can legally take into account immigration standing when evaluating functions for mortgages, private loans, or enterprise financing, decreasing uncertainty for each debtors and {financial} establishments.
The withdrawal additionally reduces regulatory confusion, guaranteeing that lenders don’t misread prior steerage or unnecessarily restrict customary credit score practices.
As debates over immigrant welfare and {economic} contribution proceed within the U.S., President Donald Trump and plenty of Republicans have centered on knowledge displaying reliance on public help, whereas Democrats emphasize broader social help and integration insurance policies.
In accordance with a chart Trump shared on January 4, 2026, about 33.3% of Nigerian immigrant households within the U.S. obtain some type of public help, together with meals and healthcare advantages.
Different nations with excessive immigrant welfare charges embrace Bhutan, Yemen, Somalia, the Marshall Islands, Dominican Republic, Afghanistan, Congo, Guinea, Samoa, and Cape Verde.
The figures add to ongoing discussions on how immigration intersects with U.S. social insurance policies and {economic} debates.