Interagency Guidance on Lending to Unauthorized Workers Raises New Fair Lending Compliance Concerns

Short summary

OCC, FDIC, and NCUA issued interagency guidance stating that lending to unauthorized workers presents elevated credit risk requiring prudent underwriting. The guidance aligns with Trump administration actions withdrawing prior Biden-era fair lending protections for noncitizen borrowers. Financial institutions must now review underwriting practices, compliance protocols, and customer-facing forms while managing fair lending risk under ECOA.

• •OCC, FDIC, NCUA guidance flags elevated credit risk for lending to unauthorized workers
• •Aligns with Trump administration rollback of Biden-era noncitizen fair lending protections
• •Banks must review underwriting and compliance protocols while managing ECOA risk

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