TITLE: US Financial Regulators Issue Guidance on Lending to Non-Work-Authorized Individuals
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) issued joint 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 work authorization may present elevated credit risk, as such borrowers face greater uncertainty regarding income generation, employment maintenance, and financial stability. 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 credit obligation terms. The agencies also directed financial institutions to 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 guidance was issued in accordance with Executive Order 14406, "Restoring Integrity to America's Financial System," which addresses risks to the financial system posed by extending credit or financial services to the inadmissible and removable population.
Financial institutions should review the joint guidance and ensure their underwriting practices and credit policies comply with the agencies' recommendations and applicable consumer protection laws. The guidance is effective immediately and applies to all supervised credit unions, banks, and other financial institutions under NCUA, OCC, and FDIC oversight.