Lean times for mortgage lenders foreseen in 2007 Premium Content

Industry will shed workers, consolidate and modernize

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Private-label, subprime mortgage originators will have a more difficult time selling Wall Street investors risky loans in 2007, experts say, even as they face tougher underwriting and disclosure standards from regulators.

But don't expect "exotic" loans to become extinct as the mortgage lending industry copes with slackening demand for all types of loans through layoffs, consolidation and modernization.

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