CFPB and DOJ Statement Cautions against Consideration of Immigration Status under Fair Lending Laws.

The article discusses a joint statement issued by the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) regarding the consideration of borrowers' immigration status under the Equal Credit Opportunity Act (ECOA). While Regulation B, which implements ECOA, does not explicitly prohibit considering immigration status, it does allow creditors to take it into account in certain contexts. However, the joint statement cautions against unnecessary or biased reliance on immigration status, as it may violate ECOA's antidiscrimination provisions and other laws. The statement also highlights the potential for immigration status to serve as a proxy for protected characteristics, such as race and national origin, and emphasizes the need for evidence-based criteria and fair lending practices. Additionally, the article mentions creditors' obligations under 42 U.S.C. § 1981, which provides broad antidiscrimination protections. [Extracted from the article]