The U.S. Department of Justice and Consumer Financial Protection Bureau have withdrawn a 2023 joint statement that cautioned lenders against considering immigration status in credit decisions, clarifying that lenders may legally factor in a non-citizen’s immigration or lawful residence status when assessing loans while maintaining protections against discrimination based on race or national origin.
The U.S. Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) have withdrawn a 2023 joint statement that cautioned lenders against considering an applicant’s immigration status in credit decisions. The withdrawal, announced on January 12, 2026, clarifies that lenders may consider a non-citizen’s immigration or lawful residence status when assessing loans.
The original joint statement, published on October 12, 2023, warned lenders that considering immigration status could violate the Equal Credit Opportunity Act (ECOA) and its Regulation B rules prohibiting discrimination based on race, national origin, and other protected classes. However, the agencies now say this guidance caused unnecessary confusion by implying lenders could not consider immigration status at all, when ECOA and Regulation B have long allowed such consideration when assessing creditworthiness.
Assistant Attorney General Harmeet K. Dhillon of the DOJ’s Civil Rights Division emphasized: “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.”
Acting CFPB Director Russell Vought added, “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. We are correcting the last administration’s attempt to ignore these well-accepted and common-sense principles of our nation’s fair lending laws.”
For non-U.S. citizens including Nigerians and other immigrant communities living in the United States, this clarification means lenders can legally consider immigration status when evaluating applications for mortgages, personal loans, or business financing. Borrowers remain protected against discrimination on grounds such as race or national origin, with the withdrawal reducing regulatory confusion and ensuring lenders do not misinterpret prior guidance or unnecessarily limit standard credit practices amid ongoing debates over immigrant welfare and economic contribution in the U.S.