The Trump administration on Monday released guidance from several financial regulators reminding banks and credit unions about the credit risks posed by lending to borrowers who aren't authorized to work in the U.S.
The guidance said that borrowers who aren't legally eligible to work in the U.S. pose an elevated credit risk because there's greater uncertainty about their ability to generate income, maintain employment and remain financially stable.
It was issued by the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration, with the agencies urging financial institutions to identify, measure, monitor and control these risks through safe underwriting practices that take it into account.
