CFPB, DOJ Withdraw Joint Statement on Fair Lending for Noncitizen Borrowers

CFPB Newsroom

Published October 12th, 2023

Detected March 28th, 2026

Summary

The CFPB and DOJ have withdrawn their joint statement on fair lending for noncitizen borrowers, originally issued October 12, 2023. The agencies stated the withdrawal is to avoid conflict with the Equal Credit Opportunity Act (ECOA) and Regulation B, which permit consideration of immigration status under certain circumstances.

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What changed

The Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) have jointly withdrawn a statement they issued on October 12, 2023, concerning the implications of a creditor's consideration of an individual's immigration status under the Equal Credit Opportunity Act (ECOA) and Regulation B. The agencies cited a need to avoid conflict with the express language of ECOA and Regulation B, which permit lenders to consider a borrower's lawful residence status and other information necessary to protect their rights and remedies with respect to repayment. This withdrawal effectively removes guidance that suggested certain policies regarding immigration or citizenship status could violate ECOA's prohibition of discrimination based on race and national origin.

Financial institutions that previously adjusted their policies or compliance efforts based on the October 2023 joint statement should review their current practices. The withdrawal clarifies that lenders may legitimately consider immigration status when necessary to avoid financial risks, comply with other laws, or for other permissible reasons, aligning with decades of established regulatory interpretation. This action aims to prevent confusion and reduce unnecessary compliance burdens for lenders, restoring alignment with established federal civil rights law and established principles of fair lending.

What to do next

Review internal policies and procedures regarding the consideration of immigration or citizenship status in lending decisions.
Ensure compliance with ECOA and Regulation B, which permit consideration of immigration status under specific circumstances.
Discontinue any compliance efforts or training based solely on the withdrawn October 12, 2023, joint statement.

Source document (simplified)

Washington, D.C. – The Consumer Financial Protection Bureau and the Department of Justice (together, the “agencies”) announced today that they have withdrawn a joint statement regarding the implications of a creditor’s consideration of an individual’s immigration status under the Equal Credit Opportunity Act (ECOA).

On October 12, 2023, the agencies published a joint statement cautioning 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. The agencies withdrew the joint statement to avoid any conflict with the express language of ECOA and its implementing regulation, Regulation B.

“For decades, ECOA regulations have permitted lenders to consider a borrower’s lawful residence status and other information necessary to protect their rights and remedies with respect to repayment,” said Acting Director Russell Vought at the Consumer Financial Protection Bureau. “We are correcting the last administration’s attempt to ignore these well-accepted and common-sense principles of our nation’s fair lending laws.”

“The federal government is committed to avoiding statements that could confuse the law or imply compliance standards for civil rights laws that lack any statutory or regulatory basis,” said Assistant Attorney General Harmeet K. Dhillon at the Justice Department’s Civil Rights Division. “This administration is restoring alignment with established federal civil rights law rather than continuing the prior administration’s ideologically-driven departures.”

ECOA and Regulation B respectively permit creditors to consider pertinent elements of credit-worthiness and information necessary to protect creditor rights and remedies, including a borrower’s immigration or citizenship status. The agencies also believe withdrawal is appropriate to avoid any confusion that lenders may legitimately consider immigration status under several circumstances, including when necessary to avoid financial risks and to comply with other laws. In addition, withdrawal is appropriate to address any misimpression that the joint statement interprets 42 U.S.C. § 1981 to confer any liability under the statute that has not already been recognized by courts. Finally, the agencies believe withdrawal is appropriate to avoid any unnecessary burdens from new or increased compliance efforts.

Read the Withdrawal of Joint Statement on the Equal Credit Opportunity Act and Noncitizen Borrowers

Contact

Office of Communications

Rachel.Cauley@cfpb.gov

Alexandra.McCandless@cfpb.gov

The Consumer Financial Protection Bureau is a 21st century agency that implements and enforces Federal consumer financial law and ensures that markets for consumer financial products are fair, transparent, and competitive. For more information, visit www.consumerfinance.gov .

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Jan. 12, 2026

08:12 AM EST

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