TITLE: Federal Banking Regulators Issue Guidance on Lending to Individuals Not Legally Authorized to Work
BODY:
On July 13, 2026, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA) jointly issued guidance reminding supervised financial institutions of their existing obligations regarding credit risk management for borrowers not legally authorized to work in the United States.
The agencies identified that lending to individuals without legal work authorization may present elevated credit risk because such borrowers face greater uncertainty in their ability to generate income, maintain employment, and remain financially stable. 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. The agencies also directed financial institutions to carefully consider the Consumer Financial Protection Bureau's June 8, 2026, "Statement on Ability To Repay and Immigration Status," which reminded 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 OCC, FDIC, and NCUA issued the guidance in accordance with Executive Order 14406, "Restoring Integrity to America's Financial System," which addresses risks to the financial system posed by the extension of credit or financial services to the inadmissible and removable population. Financial institutions should review their current lending practices and underwriting standards to ensure compliance with the agencies' expectations regarding credit risk assessment for this borrower population.
REFERENCE:
Federal Deposit Insurance Corporation. "Agencies Issue Guidance on Lending to Individuals Not Legally Authorized to Work in the United States." July 13, 2026. https://www.fdic.gov/news/news-releases/2026/pr26044.html