Banks Warned to Scrutinize Undocumented Borrowers | San Antonio News

San Antonio News Today | 2 Min News | The Daily News Now! · Jul 13, 2026 · 1m

Banks are getting a stern wake-up call from regulators: tighten lending standards for undocumented borrowers, who may face deportation and struggle to repay loans, adding serious risk to the financial system. This isn’t new—part of a broader administration push to scrutinize financial interactions with people without legal status. Agencies like the OCC and FDIC are reiterating “know your customer” rules, urging banks to assess repayment ability—including legal status and deportation risk. It follows a May executive order and recent advisories on fraud, money laundering, and tax credit changes…