U.S. Regulators Flip Course on Immigrant Lending, From Protection to Caution

U.S. banking regulators withdrew a January anti-discrimination policy and issued new guidance as of July 13 directing banks to treat loans to undocumented immigrants as heightened risk. The shift removes an explicit legal backstop while signaling examiners expect tighter underwriting. Banks typically over-comply with guidance before formal rules materialize, meaning compliance teams face pressure to tighten standards despite no regulatory mandate.