National Credit Union Association

Regulators issue guidance to remind banks of their obligations to assess credit risk for borrowers unauthorized to work in the U.S., part of broader Trump administration efforts to limit access to the financial system by individuals living illegally in the country. The guidance highlights risks such as deportation affecting loan repayment and aligns with an executive order requiring banks to scrutinize customer citizenship.

The Trump administration is implementing measures to restrict access to the U.S. financial system by individuals living illegally in the country, with regulators issuing guidance to banks about assessing credit risks from unauthorized borrowers. Financial institutions are urged to consider deportation risks when evaluating loan repayments, following an executive order in May requiring closer scrutiny of customer citizenship.

The Trump administration, through three major bank regulators, is issuing new guidance to address credit risk from borrowers in the U.S. illegally. The guidance emphasizes banks' obligations to assess repayment capacity and monitor risks tied to unauthorized borrowers, aligning with an executive order from May 2017 requiring stricter scrutiny of customer citizenship.