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Loan Denial Based Upon Visa Status
by Andy Zavoina, BOL Guru
BIO AND CONTACT INFO
Question: If we have an application for a consumer loan by an individual who is in this country on a visa and may be returning to his home country soon, can we deny the loan based on the fact that we are concerned about the repayment of the loan if he returns to his home country?
Answer: That is not a prohibited basis under Reg. B and you may consider that in your approval process.
12 CFR §202.6 Rules concerning evaluation of applications.
1. National origin--immigration status. The applicant’s immigration status and ties to the community (such as employment and continued residence in the area) could have a bearing on a creditor’s ability to obtain repayment.
Accordingly, the creditor may consider and differentiate, for example, between a noncitizen who is a long-time resident with permanent resident status and a noncitizen who is temporarily in this country on a student visa.
First published on BankersOnline.com 8/05/02
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