Maryland Legal Alert for Financial Services
CFPB and DOJ Withdraw Joint Statement on Consideration of Immigration Status Under ECOA
On January 12, 2026, the Consumer Financial Protection Bureau (“CFPB”) and the U.S. Department of Justice (“DOJ”) announced the withdrawal of their October 12, 2023, Joint Statement addressing a creditor’s consideration of an applicant’s immigration or citizenship status under the Equal Credit Opportunity Act (“ECOA”) and Regulation B.
As discussed in our November 2023 Maryland Legal Alert on the Role of Immigration Status in Credit Decisions, the 2023 Joint Statement cautioned that certain creditor policies related to immigration or citizenship status could, in some circumstances, present fair lending risk, particularly where such policies could operate as proxies for prohibited bases such as race or national origin.
In withdrawing the statement, the CFPB and DOJ indicated that the guidance conflicted with the express language of ECOA and Regulation B and could lead to uncertainty or unnecessary compliance burdens. The agencies reiterated that Regulation B permitted creditors to request and consider information regarding lawful residency and related factors where necessary to evaluate creditworthiness or to protect a creditor’s rights and remedies with respect to repayment.
The agencies emphasized that the withdrawal does not alter the underlying requirements of ECOA or Regulation B, which continue to prohibit discrimination on prohibited bases, including race and national origin.
Practice Pointer: Financial institutions should review underwriting, servicing, and compliance policies to confirm that any consideration of immigration or citizenship status is clearly connected to permissible credit-related purposes and is applied consistently. Institutions may also wish to ensure that internal documentation and training materials reflect current regulatory guidance and accurately describe how such factors may be used in credit decisioning, consistent with ECOA and Regulation B.
For more information concerning this topic, please contact Tamia J. Morris