On June 8, 2026, the CFPB issued a statement to remind creditors of their obligations under the Truth in Lending Act (TILA) and consistent with President Trump's E.O. “Restoring Integrity to America's Financial System.” TILA and its implementing Regulation Z require creditors to assess consumers' ability to repay before offering mortgages and certain open-end credit products.
Under TILA and Reg Z, creditors must make “a reasonable and good faith determination at or before consummation that the consumer will have a reasonable ability to repay the loan according to its terms" before lending to consumers for dwelling-secured transactions like mortgages. In addition, Regulation B, which implements the the Equal Credit Opportunity Act (ECOA), permits creditors to consider an applicant's immigration or residency status when evaluating creditworthiness, as it may affect the lender's ability to enforce repayment obligations. The CFPB reiterates that immigration status can be a legitimate factor in making lending decisions because it may affect the lender's ability to collect and recover a loan if repayment problems arise.
Read the CFPB’s statement here.