The agencies announced the withdrawal on April 15, 2026, reversing a policy position issued by the previous administration on October 12, 2023. The original statement had cautioned that creditor policies related to an applicant's immigration or citizenship status could violate ECOA's and Regulation B's prohibition of discrimination based on race and national origin.
Acting Director Russell Vought said the withdrawal corrects "the last administration's attempt to ignore these well-accepted and common-sense principles of our nation's fair lending laws." He noted that ECOA regulations have "for decades" permitted lenders to consider a borrower's lawful residence status and other information necessary to protect repayment rights.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department's Civil Rights Division said the federal government is "committed to avoiding statements that could confuse the law or imply compliance standards for civil rights laws that lack any statutory or regulatory basis." She characterized the move as "restoring alignment with established federal civil rights law rather than continuing the prior administration's ideologically-driven departures."
The agencies stated that ECOA and Regulation B permit creditors to consider pertinent elements of creditworthiness and information necessary to protect creditor rights and remedies, including a borrower's immigration or citizenship status. The withdrawal addresses concerns that the joint statement could confuse lenders about their ability to legitimately consider immigration status when necessary to avoid financial risks and comply with other laws.
The agencies also withdrew the statement to address any misimpression that the joint statement interpreted 42 U.S.C. § 1981 to confer any liability under the statute that has not already been recognized by courts. Finally, the agencies believe withdrawal is appropriate to avoid unnecessary burdens from new or increased compliance efforts.