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Washington — Federal banking regulators on Monday, July 13, 2026, issued joint guidance that significantly tightens credit standards for borrowers who are not legally authorized to work in the United States, a move that could reshape parts of the U.S. housing and banking markets. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the National Credit Union Administration said in a coordinated statement that lending to such borrowers presents “elevated credit risk” and must be subject to rigorous, safe-and-sound credit risk management practices. The interagency guidance, formally designated as OCC Bulletin 2026-31, stems directly from President Donald Trump’s Executive Order on “Restoring Integrity to America’s Financial System,” and applies to national banks, federal savings associations and credit unions overseen by the agencies. The regulators said undocumented borrowers face heightened uncertainties over their long-term ability to generate income, maintain continuous employment and achieve financial stability, citing risks such as deportation, workplace enforcement actions that can abruptly end jobs and the lack of legal access to federal safety nets. As a result, supervised institutions are instructed to perform enhanced due diligence when evaluating loan applications from non-work authorized immigrants, including verifying the validity of identification documents and closely assessing the stability and reliability of the borrower’s income sources. The agencies framed the measures as necessary to ensure that credit decisions reflect the higher risk profile associated with borrowers who do not have legal authorization to work in the United States.

Prepared by Christopher Adams and reviewed by editorial team.