CFPB Tells Banks to Review Immigration Status for Borrowers (1)

The Trump administration issued guidance encouraging banks to consider a customer’s immigration status when they apply for loans and credit cards.

The policy statement, posted to the Federal Register on Friday by the Consumer Financial Protection Bureau, invokes the Truth in Lending Act in permitting financial institutions to consider how a client’s immigration status might affect their ability to repay. The bureau cited the need when assessing a loan’s risk to consider the link between a borrower’s US-based income and the possibility they’ll be deported.

The move is President Donald Trump’s latest effort to enlist banks in his ...