Regulators tighten standards for subprime mortgages

Senate Banking Committee Chairman Chris Dodd, D-Conn. "Subprime borrowers, who are disproportionately black and Hispanic,

deserve strong protections to attain and sustain homeownership, regardless of whether they get a loan from a federal or state lender."

Mortgage Bankers Assn. Chairman John Robbins warned that the guidance could help curb abuses, but "will likely also constrain consumer credit choices."

He urged Congress to refrain from passing legislation that will further clamp down on underwriting standards.

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