Consumer Financial Protection Bureau and the Department of Justice Withdraw Joint Statement on Fair Lending and Credit Opportunities for Noncitizen Borrowers

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Financial Protection Bureau and the Department of Justice (together, the "agencies") announced today that they have withdrawn a joint statement regarding the implications of a creditor's consideration of an individual's immigration status under the Equal Credit Opportunity Act (ECOA).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

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