7/2/2007

More borrowers may be denied credit after federal regulators announced a tightening of subprime-lending rules Friday. The new rules come in the wake of a fallout in the risky mortgage sector and were cheered by consumer advocates. Among the changes are regulations requiring lenders to underwrite loans based on a borrower's ability to make payments on a loan's adjusted rate, not just its low introductory rate.

Related Summaries