Borrowers and lenders are dismayed by the Federal Deposit Insurance Corporation's action last week to set specific loan-to-value ratios for real estate lending.

"It's unfortunate that the agencies decided to go with specific numerical limits," said Gary G. Gilbert, bank agencies liaison director at the Savings and Community Bankers of America. "We also believe they should treat residential lending more leniently than commercial lending. These LTV ratios appear to apply to both." He was not alone on the issue.

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