TITLE: Federal Deposit Insurance Corporation Issues Interagency Guidance on Lending to Unauthorized Workers
BODY:
On July 13, 2026, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA) issued interagency guidance on lending to individuals not legally authorized to work in the United States. The guidance was issued in accordance with Executive Order 14406, "Restoring Integrity to America's Financial System," and applies to all FDIC-supervised financial institutions.
The guidance reminds supervised financial institutions of existing obligations with respect to credit risk management, particularly regarding borrowers not legally authorized to work in the United States. The agencies acknowledge that lending to such individuals 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. The guidance emphasises that financial institutions should identify, measure, monitor, and control credit 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.
The guidance addresses underwriting and risk-management considerations including source of repayment, collateral, documentation and verification, portfolio and concentration risk, and consumer compliance risk. It reminds financial institutions that prudent underwriting includes consideration of the source of repayment, repayment capacity, financial condition, resources, and willingness to repay as agreed.
The guidance applies immediately to all FDIC-supervised financial institutions and is available as FIL-36-2026 on the FDIC website.