U.S. CFPB, DOJ Withdraw Guidance Protecting Immigrants From Lending Discrimination

The U.S. Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) on Monday withdrew prior guidance that explicitly barred lenders from discriminating against immigrants and non-citizens, a move that could weaken legal clarity for immigrants seeking access to loans. The guidance, issued in 2023 during former President Joe Biden’s administration, aimed to reinforce that lenders could consider immigration or citizenship status in loan decisions only in limited ways — without making it the sole factor or allowing it to fuel bias or discriminatory practices.

Legal experts said the withdrawal signals a renewed shift toward dismantling Biden-era enforcement frameworks while aligning with President Donald Trump’s broader immigration agenda. Lori Sommerfield, a partner at Troutman Pepper Locke, said the move reflects two administration priorities: a tougher stance on immigration and scaling back federal fair-lending enforcement. In a joint statement, Assistant Attorney General Harmeet Dhillon, who leads the DOJ’s Civil Rights Division, called the Biden-era guidance “ideologically-driven,” adding that rescinding it restores alignment with established federal civil rights law.

Former CFPB officials and consumer finance lawyers warned the decision could encourage stricter lender policies that indirectly shut out immigrants, even if the core anti-discrimination law remains intact. Kris Kully, a partner at Mayer Brown, said the rollback may be perceived by lenders as a “wink and a nod,” particularly as the administration escalates immigration crackdowns. Analysts pointed to measures such as steps that voided Social Security numbers issued under temporary protected status, which could prompt lenders to adopt blanket requirements for active Social Security numbers — potentially serving as a pretext to deny credit and making it harder for certain immigrant groups to remain in the country.

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