CFPB, Justice Department Withdraw Statement On Creditor’s Consideration Of ECOA Immigration Status

The CFPB and Department of Justice have withdrawn their October 2023 joint statement that warned creditors about the civil-rights risks of considering immigration status under ECOA, but this does not change the underlying law or Regulation B. ECOA and Regulation B continue to permit lenders to consider immigration or citizenship status to assess repayment risk, so long as they do not use it to discriminate on a prohibited basis such as race or national origin.​

What was withdrawn

• In October 2023, CFPB and DOJ issued a joint statement saying that “overbroad” or “unnecessary” reliance on immigration or citizenship status in credit decisions could violate ECOA and Regulation B, especially if it functioned as a proxy for protected traits.​

• That statement also highlighted examples such as blanket denials of credit to certain non‑citizen groups or heavy reliance on factors like how long a person has had a Social Security number as potential ECOA risks.​

Why it was withdrawn

• On 10–12 January 2026, the agencies formally withdrew the 2023 joint statement via a Federal Register notice and public announcements.​

• They said the earlier statement may have created the impression that ECOA or Regulation B themselves limited consideration of immigration or citizenship status, when in fact no such categorical limitation exists in the statute or rule.​

What ECOA and Regulation B still allow

• The agencies emphasize that nothing in ECOA or Regulation B prohibits creditors from considering an applicant’s immigration or citizenship status; Regulation B expressly allows consideration of such status and other information needed to protect a creditor’s rights and remedies regarding repayment.​

• Creditors may therefore evaluate immigration status as an underwriting factor, including situations involving borrowers without lawful status or authorization to work, provided they do not discriminate on protected bases.​

Practical impact for creditors and consumers

• Because the 2023 joint statement was non‑binding guidance, its withdrawal does not change creditors’ legal obligations or create new liabilities under ECOA; it mainly removes a source of perceived additional constraints or confusion.​

• Creditors that aligned their policies with the 2023 statement can keep operating that way, but lenders generally have more explicit regulatory support to consider immigration status and related data (such as Social Security number tenure) where relevant to credit risk, AML, or KYC obligations.​

If you share your role (e.g., bank, credit union, fintech), a short outline of specific compliance or policy steps under this change can be provided.