(DailyVantage.com) – While it is not against the law, banking organizations may still face legal troubles if they consider immigration status when making lending decisions. President Joe Biden and the Consumer Financial Protection Bureau (CFPB) want lenders to keep an open mind and provide illegal migrants with affordable loan options. He threatened to send his auxiliaries to conduct federal investigations into banks that refused to abide by his wishes.
Financial institutions worry that giving these loans to illegal migrants will add stress to an already weakened U.S. economy. This would create more financial struggles for all banks and the average American citizen, but it would also help stockholders and immigrants flourish.
Banks generally do not grant risky loans. If they do, there would be a high lending rate or no money lent at all. Illegal immigrants tend to start at a higher risk for lenders than the average U.S. citizen does. Their income is often unverifiable, and they are not always able to work in the United States legally. Also, they could be deported at any time.
Kristen Clarke, who serves as the head of the Department of Justice’s Civic Regulation Division in the Biden administration, has not observed any investment banking violations. However, she is convinced Biden is correct when he says refusing financial assistance to foreign nationals goes against federal regulations.
Sonia Lin, a senior fellow at the CFPB, wrote about a DACA recipient who allegedly was denied a loan. Lin wrote that the DACA member and friend were told they had a good income and credit score and would easily get approved for a loan. Lin noted that once the lenders noticed the friend was a DACA recipient, the agent said they “did not qualify” for the loan. In 2022, Lin wrote about her worries about illegal migrants who have not “been granted legal protection in the United States”. She encourages pro-migration lobbyists to join her in helping illegal migrants.
America leads the world in the number of non-native residents, with the number coming in at over 44 million people. Biden’s pressure to extend economic loan opportunities for undocumented immigrants will continue to weigh on the backs of all American lenders.
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