Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and National Credit Union Administration issue guidance on credit risk management for non-work authorized borrowers

The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration issued joint guidance reminding supervised financial institutions of existing supervisory expectations for credit risk management when lending to borrowers who are not legally authorized to work in the United States. The agencies said such lending may present elevated credit risk because a borrower’s ability to generate income, maintain employment and remain financially stable may be subject to greater uncertainty. The guidance tells institutions to identify, measure, monitor and control those 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. It also advises 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 and Regulation Z, and the Equal Credit Opportunity Act and Regulation B, as they relate to non-work authorized borrowers. The agencies said they issued the guidance in accordance with Executive Order 14406, Restoring Integrity to America’s Financial System, to address risks to the financial system posed by the extension of credit or financial services to the inadmissible and removable population.