Financial Times FT.com

Subprime lenders act to cut defaults

By Saskia Scholtes and Richard Beales

Published: February 1 2007 18:46 | Last updated: February 1 2007 18:46

The giant US subprime mortgage business is displaying a new-found caution with lenders tightening loan standards and cutting ties to overly aggressive brokers, delegates to an industry conference were told this week.

The American Securitisation Forum’s annual conference in Las Vegas took place as an index that measures the health of bonds backed by subprime loans, which are made to borrowers with tarnished credit histories, flashed new warning signals.

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