00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The Trump administration issued guidance that could reduce bank lending to unauthorized
00:06immigrants as it expands the use of the financial system to enforce immigration policy, according
00:11to CNBC.
00:12Federal bank regulators said borrowers without U.S. work authorization may pose elevated
00:17credit risks because their employment and income may be less stable.
00:21The guidance does not impose new rules, but reminds banks to assess borrowers' ability
00:26and willingness to repay debt.
00:27Critics warned the guidance could discourage immigrants from using banks, raise compliance
00:32costs, and push money outside the regulated financial system.
00:36The action follows Trump's May executive order, directing regulators to address risks tied
00:41to mortgages, auto loans, credit cards, and other lending to unauthorized immigrants.
00:46The executive order treats immigration status and work authorization as credit risk factors,
00:51but does not require banks to verify every customer's immigration status.
00:56data on undocumented immigrants' access to loans is limited because banks do not have
01:00to collect customers' citizenship information.
01:02For all things money, visit Benzinga.com.
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