Overview
- The agencies formally rescinded an October 2023 joint statement, saying it created a misimpression that ECOA or Regulation B limits consideration of immigration or citizenship status.
- They emphasized that creditors may weigh immigration status to assess repayment risk, protect creditor rights and remedies, and comply with other laws.
- The withdrawal aims to avoid legal confusion, reduce unnecessary compliance burdens, and prevent any misreading of potential liability under 42 U.S.C. § 1981.
- Acting CFPB Director Russell Vought and DOJ Civil Rights Division head Harmeet K. Dhillon said the step restores alignment with established federal civil rights law.
- Legal experts warned the change could restrict access to credit for some noncitizens and reflects the administration’s broader rollback of Biden-era regulatory guidance.