Statement on the Ability to Repay and Immigration Status

On June 8, 2026, the Consumer Financial Protection Bureau (CFPB) issued a statement on the ability to repay and immigration status (the ATRIS Statement) under Regulation Z. Under the ATRIS Statement, the CFPB is expanding on a creditor’s use of immigration when making lending decision. Specifically, the CFPB is emphasizing that, for ability to repay/pay requirements, a creditor may be obligated to consider an applicant’s immigration status “where removal from the United States may disrupt the consumer’s income.”

So, what’s the deal with immigration status and how does the ATRIS Statement affect a creditor’s consideration of immigration?

History of The Use of Immigration Status in Lending

The Equal Credit Opportunity Act (ECOA) and Regulation B prohibit the consideration of an applicant’s race or national origin. However, Regulation B, section 1002.6(b)(7) , comment 2(z)-2, and comment 6(b)(7)-1 and 2 permit a creditor to take an applicant’s immigration status into account. 

In 2023, the CFPB and the Department of Justice (DOJ), issued the Joint Statement on the Equal Credit Opportunity Act and Noncitizen Borrowers. Under this 2023 joint statement, the CFPB and DOJ noted that unnecessary or overbroad reliance on immigration status may run afoul of ECOA’s antidiscrimination provision and potentially other laws, such as state antidiscrimination laws.

On January 12, 2026, the CFPB and the DOJ withdrew the 2023 joint statement. 

The Statement on Ability to Repay and Immigration Status

The ATRIS Statement discusses a creditor’s permitted consideration of an applicant’s immigration status when making lending decisions. The statement notes that, under Regulation Z, a creditor must consider an applicant’s ability to repay a loan for mortgages and the ability make the required minimum periodic payment for credit cards. 

Specifically, Regulation Z, section 1026.43(c) requires creditors to consider an applicant’s ability to repay and their current or reasonably expected income or assets. Section 1026.51 requires card issuers to consider the consumer’s ability to make a credit card’s required minimum periodic payment based on the consumer’s income or assets and current obligations. What is important to note about both of these requirements is that neither require the consideration of income, but the consideration of income or assets. The ATRIS Statement focuses on the consideration of income for both of the above requirements.

The ATRIS Statement notes that an awareness of immigration status may implicate whether a consumer’s income from U.S.-based employment will remain available for repayment. The ATRIS Statement provides the following example: 

“[A] creditor may regard a credit applicant who is neither lawfully present nor permitted to work in the United States as being subject to removal, in light of the Administration’s stated policy of removing any person unlawfully present in the United States.  Indications that an individual may not be lawfully present, and therefore may be at risk of removal, may come from various sources, including direct inquiry or the consumer’s reliance on atypical identification methods, such as an Individual Taxpayer Identification Number (ITIN), typically issued to taxpayers to individuals who lack proof of legal residency.

To the extent a creditor’s information regarding the borrower’s immigration status indicates that the borrower may be an unlawfully present individual and removed from the United States, there is a danger that removal would render any such borrower unable to earn income derived from employment that requires physical presence in the United States.  Accordingly, considering whether information regarding an applicant’s immigration status indicates a reasonably expected change in future income is a matter of sound compliance practice.  The Bureau expects compliance with the law and failure to account for such a reasonably expected change in income may not comply with a creditor’s obligation to reasonably assess a borrower’s ability to repay the loan or line of credit sought.”

Under the above, the CFPB and DOJ make clear that it is reasonable to expect a person who works in the U.S. but is not permitted to work and/or remain in the U.S. to lose their current source of income due to deportation.

The CFPB does note that there are different types of immigration status and that creditors should review a consumer’s immigration status, lawful presence, authorization to work, and other factors when considering a consumer’s current or reasonably expected income.

Credit unions should note that the ATRIS Statement is a policy statement and does not have the force or effect of law. That being said, the ATRIS Statement is a reflection of the administration’s overall policy and may influence the expectations of both CFPB and NCUA examiners. 

In a similar vein to the ATRIS Statement, credit unions may want to note that FinCEN, the NCUA, the FDIC, and the OCC issued a joint advisory regarding non-work authorized populations. According to this NCUA press release, the advisory urges “financial institutions to be vigilant against risks presented by the unlawful employment of illegal aliens in the United States.”