Overview
- On Tuesday, July 14, the OCC, FDIC and NCUA issued a joint reminder telling banks to step up supervision of loan applications from people not authorized to work in the U.S.
- The agencies tied the reminder to Executive Order 14406 and told banks to consider the CFPB's June 8 statement on ability to pay and immigration status when evaluating credit risk.
- Regulators recommended banks strengthen identification, measurement, monitoring and controls under existing know‑your‑customer and anti‑money‑laundering rules and follow Truth in Lending obligations.
- The guidance does not require account closures or automatic denials, but officials and reporting say it is likely to push some banks to tighten documentation or withdraw services, which could reduce access to loans for undocumented immigrants and some DACA or TPS recipients.
- This action builds on a May FinCEN notice that warned banks about identity theft, payroll‑tax fraud and money‑laundering tied to unauthorized workers and signals a broader shift of immigration scrutiny into the financial sector.