CFPB and DOJ Withdraw Prior Guidance on Lending to Immigrants and Noncitizens

The Consumer Financial Protection Bureau ("CFPB") and the Department of Justice ("DOJ") rescinded previous guidance on the application of the Equal Credit Opportunity Act ("ECOA") to noncitizen borrowers.

The guidance, issued in October 2023, cautioned that "creditor policies related to an applicant’s immigration or citizenship status could, in certain circumstances, run afoul of ECOA’s and Regulation B’s prohibition of discrimination on the basis of protected classes, including race and national origin." 

In the Notice of Withdrawal, the agencies said the withdrawal was needed because: (i) the previous statement’s exclusive focus on discrimination risks created a "misimpression" that ECOA prohibits the consideration of immigration status, despite Regulation B explicitly permitting it; (ii) illustrative scenarios regarding Social Security Numbers created confusion that may have discouraged legitimate Anti-Money Laundering and "Know Your Customer" compliance efforts; (iii) the guidance suggested that blanket underwriting policies for noncitizens were presumptively discriminatory, a standard not supported by the statute or regulation which allows creditors to assess specific repayment risks; and (iv) the statement contradicts the Bureau’s revised May 2025 policy to avoid issuing guidance that is unnecessary or increases compliance burdens.

The withdrawal of the joint statement is effective as of January 12, 2026.