Trump Regulators Move to Discourage Mortgages, Auto Loans and Credit Cards for Undocumented Immigrants
- Federal regulators are drafting guidance to make it harder for undocumented immigrants to obtain mortgages, auto loans and credit cards, instructing banks they may consider 'potential deportation and loss of wages' in ability-to-repay underwriting (WSJ).
- The push stems from Trump's May executive order 'Restoring Integrity to America's Financial System,' which directed tougher customer-identity due diligence across the banking system.
- The move adds another compliance and revenue headwind for large retail banks heading into Q2 earnings this week.