On May 19, 2026, the White House issued Executive Order 14406 addressing issues relating to lending and banking for customers lacking legal residency and work authorization. The order explains that national security and public safety risks arise from illicit cross-border financial activity. The order also describes risk to the financial system relating to extensions of credit or financial services to inadmissible and removable alien customers.
The order urges banks and non-bank financial institutions to monitor credit risks posed by extension of “mortgage and auto loans, credit cards, and other consumer credit” to customers who lack legal residency and work authorization. The order states that lending to such customers creates a “structural ‘ability to repay’ deficiency that undermines the safety and soundness of the national banking system.”
The order instructs the CFPB to “consider clarifying that potential deportation and loss of wages are factors that could adversely affect a non-work authorized borrower’s ability to repay an extension of credit…”
The order mentions existing “ability-to-repay” standards, but under current law, on the federal level those only exist for mortgage lending.
The order instructs Treasury to:
- Issue a formal advisory to financial institutions regarding risks to the financial system from exploitation by non-work authorized persons and their employers; and,
- In consultation with other banking regulators, propose changes to Bank Secrecy Act regulations to strengthen risk-based customer due diligence and customer identification requirements.
AFSA will monitor the work initiated under this order and share updates with members as we receive them.
New EO on Undocumented Customer Accounts
May 28, 2026
On May 19, 2026, the White House issued Executive Order 14406 addressing issues relating to lending and banking for customers lacking legal residency and work authorization. The order explains that national security and public safety… Read the rest
FDIC Says Yes to Stellantis
May 14, 2026
The recent FDIC approval of Stellantis Bank USA marks a meaningful milestone for the vehicle finance industry, and the benefits extend well beyond one automaker’s balance sheet.
This approval expands consumer access to financing… Read the rest
New Voice for Consumer Finance
May 13, 2026
AFSA is pleased to be supporting the inaugural conference of the newly launched Institute for Consumer Financial Choice (ICFC) at George Mason University’s Antonin Scalia Law School. Entitled, “The Future of Consumer Financial Protection,”… Read the rest
Industry Expertise | What Lenders Don’t See in the Dealership Payoff Process
May 13, 2026
“Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan … Read the rest
Industry Expertise | Seeing the Full Picture in Auto Finance
May 11, 2026
“Industry Expertise” is sponsored content produced by AFSA’s Business Partners’ to provide thought leadership and best practices for AFSA member companies. For more information about this sponsored content opportunity, contact Dan … Read the rest
Q1 C3 Index Released
May 07, 2026
AFSA released its quarterly Consumer Credit Conditions (C3) Index, a survey of leading providers of consumer credit, including mortgages, vehicle financing, personal installment loans, and credit cards. The top line results:
- Higher-income
May the Fourth Be With Your Credit
May 04, 2026
It doesn’t take a light-speed leap to see that Star Wars creator George Lucas based his saga a long time ago in a galaxy far, far, away on the consumer finance industry. After all, the currency he created was called credits.
Republic credits. … Read the rest
🚨THIS THURSDAY | AFSA Webinar | From Risk to Vehicle Recovery: Connected Intelligence Ecosystem
May 04, 2026
From Risk to Vehicle Recovery: Connected Intelligence Ecosystem
Thursday, May 7, 2026 at 2:00 p.m. ET
Auto lenders are navigating rising delinquencies, increased charge-offs, and greater pressure to recover assets faster while maintaining… Read the rest
CFPB Small Business Lending Data Collection Rule Released
Apr 30, 2026
The CFPB’s Final Rule on Small Business Lending Data Collection has been released for public inspection, with publication expected on May 1. This rule implements Section 1071 of the Dodd-Frank Act, which required the CFPB to collect information… Read the rest
Recapping Financial Literacy Month
Apr 30, 2026
As Financial Literacy Month wraps, the AFSA Education Foundation staff wants to thank the AFSA team and Member Companies across the country for their support of MoneySKILL through volunteerism efforts, financial donations, and the many… Read the rest