Subprime mortgage lending contributes significantly to Tennessee's economy and is reasonably priced in view of the credit risks involved, according to a study released by the Tennessee Consumer Finance Association.TCFA president John Bruno warned that "over-reaching pricing restrictions" on subprime lending could hurt the state's weak economy. "This research reveals how economically significant the Tennessee subprime lending industry is, making a valuable contribution to the recession-hit state economy while providing fair and reasonably priced mortgage credit for individuals who might well be denied credit elsewhere," he said. Warning of "damaging regulation which has had such disastrous effects in other states," Mr. Bruno urged Tennessee policymakers to adopt "a sensible and measured approach to any regulation." The study, conducted by the Center for Statistical Research, also found that subprime mortgage lending in Tennessee is not concentrated in areas dominated by minority and low-income households. The most common users of subprime mortgage credit in the state are borrowers with incomes near or above the median household income, TCFA reported.

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