U.S. bank regulators Friday tightened standards for mortgage lending in a bid to curtail risky practices that have been blamed for a record level of foreclosures. Borrowers should not be penalized for refinancing a mortgage before a low introductory rate resets to a higher level and lenders must have evidence a borrower can repay, according to a statement of principles issued by the regulators. As the housing market has soured, many of those borrowers fell behind in their payments and a record portion of borrowers faced losing their homes in the first three months of the year. Many of the biggest lenders to subprime borrowers have been pushed into bankruptcy. House Poor: Pumped Up Prices, Rising Rates, and Mortgages on Steroids: How to Survive the Coming Housing Crisis

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