CFPB Statement on Ability To Repay and Immigration Status

June 8, 2026 / Source: Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (Bureau or CFPB) is issuing this statement to remind creditors of their obligations under the Truth in Lending Act (TILA) as implemented by Regulation Z, and consistent with Executive Order 14406, titled “Restoring Integrity to America’s Financial System.”

Lending and Immigration Status

In making lending decisions, creditors are permitted to take into account a wide range of information in order to make a reasonable assessment of a consumer’s ability to repay. Regulation B, which implements the Equal Credit Opportunity Act (ECOA), expressly states that “[a] creditor may take the applicant’s immigration status into account,” and that a creditor “may consider the applicant’s immigration status or status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor’s rights and remedies regarding repayment.” Such a consideration may be necessary because an “applicant’s immigration status and ties to the community (such as employment and continued residence in the area) could have a bearing on a creditor’s ability to obtain repayment.”  As the Bureau recently explained, “[a] credit applicant’s immigration or citizenship status may present underwriting risks that typical assessments of financial capacity alone will not fully resolve. As Regulation B acknowledges, this is something creditors may legitimately consider.”