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08/18/07
Subprime standards tighten
Filed under: General
Posted by: Lillian Wong @ 6:25 pm

WASHINGTON - More banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of spreading problems. The Fed said it found that over half of banks responding to a survey reported they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The Fed survey found that of 16 banks that said they were still in the subprime market, nine of those banks had tightened lending standards in the past three months. The 16 banks are among the nation’s largest and accounted for 57 percent of all residential loans at the end of March, the Fed said.   More…

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