Consumer loan originations for borrowers lacking credit scores have cratered by over 70% since 2024, as banks tighten standards and immigrants increasingly withdraw from the formal financial system.
Wells Fargo is explicitly mentioned as a bank that issued a credit card to an immigrant family, but the article focuses on industry-wide lending trends rather than company-specific financial impact.
Lending to individuals without credit scores has plummeted by more than 70% since 2024, signaling a major shift in banking behavior amid heightened immigration enforcement. Data from dv01 suggests lenders are retreating from this segment due to regulatory pressure and fears of policy-driven repercussions.
Lenders are responding to increased regulatory scrutiny and executive orders that encourage monitoring of customer status, leading to a risk-averse environment.