Financial Times FT.com

Scrutiny grows on US subprime lenders

By Richard Beales in New York and Sarah Spikes in London

Published: March 4 2007 19:44 | Last updated: March 4 2007 21:48

Recent aggressive lending to American home buyers with weak credit histories is attracting mounting official scrutiny with at least two US lenders now facing federal probes or restrictions on their operations.

A group of US financial regulators is also proposing new guidelines that would clamp down on subprime mortgage lending practices amid concerns that stretched borrowers have not fully understood the risks involved.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this