US bank regulators warn lenders on credit risks of

US bank regulators warn lenders on credit risks of unauthorized workers

Trump says U.S. to restore Hormuz blockade, seek 20% fee on cargo Investing.com -- Three U.S. banking regulators issued guidance on Monday advising financial institutions to exercise caution when lending to individuals not legally authorized to work in the country. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Association released the guidance, stating that borrowers whose income comes from unauthorized employment may present higher credit risks. "When a borrower’s income is derived from employment that is not legally authorized, the

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source of repayment may be less reliable and may present increased credit risk," the guidance stated. The regulators cited several factors that could make repayment less reliable, including potential job loss due to nonlegal status, inability to obtain legal employment, or removal from the United States. The guidance is nonbinding and does not create new requirements for banks. It serves as a reminder of existing obligations and aims to implement an executive order signed by President Donald Trump in May. The May executive order addressed potential misuse of financial services by people living in the U.S. illegally. It directed the Treasury Department and other agencies to identify potential warning signs for the industry. The order represented a more limited approach than one previously considered by the Trump administration, which would have required banks to collect citizenship...

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