On July 13, 2026, the FDIC, OCC, and NCUA issued guidance to remind supervised financial institutions of their existing obligations with respect to credit risk management, particularly as it relates to borrowers who are not legally authorized to work in the United States. The guidance was issued consistent with President Trump’s Executive Order 14406, Restoring Integrity to America’s Financial System to mitigate systemic risks associated with lending and providing services to individuals who are inadmissible or subject to removal.
The guidance highlights that providing credit to individuals lacking legal work authorization in the U.S. can involve heightened credit risk, as there may be significant uncertainty regarding their employment stability and financial durability. Consequently, the agencies 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. Furthermore, the agencies encourage supervised institutions to review the CFPB’s June 8, 2026, “Statement on Ability To Repay and Immigration Status.” This statement provides a reminder of existing mandates under the Truth in Lending Act and the Equal Credit Opportunity Act regarding lending to individuals who are not authorized to work in the United States.
Read the FDIC’s press release here.
The full Guidance can be found here.