Trump Order Increases Scrutiny of Illegal Migrants’ Banking Activity

President Donald Trump signed an executive order on May 19 directing Treasury Secretary Scott Bessent to provide banks with an advisory on financial risks posed by individuals living in the country illegally. In his order, Trump urged banks to pay attention to credit risks posed by offering mortgage loans, car loans, credit cards, and other consumer credit products “to the inadmissible and removable alien population.” “Many of those borrowers face the possibility of the loss of wages due to removal or their employers’ decisions to comply with immigration law,” the president stated. “Lending to aliens without legal work authorization or who face a substantial loss-of-wage risk creates a structural ‘ability to repay’ deficiency that undermines the safety and soundness of the national banking system.”...