Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra is set to face tough questions from Republicans this Thursday when he presents his semi-annual report to the U.S. House Financial Services Committee. At the heart of the inquiry is the controversial encouragement for financial institutions to provide mortgages to illegal immigrants.
Chopra, along with U.S. Attorney General Merrick Garland, issued a letter last year that urged banks to offer loans to illegal immigrants. This move has sparked significant backlash. One such lender, the Latino Community Credit Union (LCCU) in North Carolina, confirmed they provide “mortgages to immigrants irrespective of their immigration status,” following the guidance from Chopra and Garland. A former LCCU CEO defended the practice, stating, “People have the right to fulfill their dreams.”
This policy reversal has been a point of contention, with U.S. Sen. J.D. Vance (R-OH) and other Republicans arguing it disrupts decades of guidance from the CFPB and the Federal Reserve. Vance and his colleagues have demanded the letter be withdrawn, citing concerns about the financial risks. “If someone is deported to their home country, how is a bank in Ohio supposed to recoup the loan it was forced to issue?” Vance asked, criticizing the policy for potentially encouraging more illegal immigration.
According to Restoration News, LCCU representatives indicated they assist undocumented immigrants in obtaining a tax ID, which is required for securing a mortgage. They also encourage these clients to build credit by applying for credit cards.
As Chopra’s testimony approaches, Republicans on the House Financial Services Committee are expected to join Sen. Vance in demanding answers. Steve Cortes, who leads the League of American Workers, emphasized the need for accountability, asking, “Does CFPB Director Chopra work for American citizens or for illegal aliens?”
The hearing promises to be a pivotal moment in the ongoing debate over the CFPB’s policies and their impact on immigration and financial stability.
