The Consumer Financial Protection Bureau and Department of Justice on Monday withdrew guidance that had clarified lenders should not discriminate against immigrants and non-citizens in loan applications, Reuters reported.

The move removes explicit federal guidance designed to enforce fair lending protections, although the underlying law already bars discriminatory practices.

Assistant Attorney General Harmeet Dhillon, who leads the DOJ’s Civil Rights Division, said in a joint statement with the CFPB that the 2023 guidance under former President Joe Biden had been “ideologically-driven,” and that its removal restores alignment with established federal civil rights law, Reuters noted.

The guidance initially allowed lenders to consider immigration or citizenship status when evaluating loan applications, provided it was not the sole factor and did not result in bias or discrimination. Its withdrawal eliminates this clear clarification, potentially affecting immigrants’ access to credit.

Legal experts say the decision reflects priorities of the Trump administration. Lori Sommerfield, partner at Troutman Pepper Locke, said it underscores both a stricter stance on immigration and a reduction in enforcement of federal fair lending laws, according to Reuters.

Observers also flagged practical implications for lenders and immigrant borrowers. Kris Kully, partner at Mayer Brown, noted that financial institutions could interpret the withdrawal as a signal to adopt stricter requirements, such as mandating active Social Security numbers, which may inadvertently restrict access to credit for immigrants.

The guidance removal follows previous administration measures that indirectly affected immigrants, including voiding Social Security numbers issued under temporary protected status.