Democratic former President Joe Biden issued the guidance in 2023 to clarify that lenders could use immigration or citizenship status when deciding loan applications, as long as it was not the only factor nor lead to bias or discrimination.
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Although the underlying law already bars lenders from discriminatory practices, the guidance sought to expressly clarify and enforce it to avoid discrimination.
Withdrawing the guidance further whittles away the remnants of any and all Biden-era regulations and fulfills President Donald Trump’s immigration policies, two key priorities of the administration, according to Lori Sommerfield, a partner at Troutman Pepper Locke in the law firm’s consumer financial services practice.
US withdraws policy expressly barring lending bias against immigrants
