US bank regulators have warned banks to be cautious when lending to people not legally authorized to work in the United States. The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation issued guidance stating that non-citizens working in the US illegally may have less reliable income and pose a higher credit risk.
Guidance Details
The guidance, which is nonbinding and does not impose new requirements on banks, reminds them of existing obligations to assess credit risk. It notes that when a borrower’s income is derived from employment that is not legally authorized, the source of repayment may be less reliable and may present increased credit risk.
The guidance was issued in response to an executive order signed by President Donald Trump in May, which focused on the potential misuse of financial services by people living in the US illegally.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
