RALEIGH, N.C. -- Freddie Mac told an industry meeting here that lenders were barring creditworthy borrowers from home loans because of "preconceived notions" about the agency's underwriting guidelines.

The guidelines have "tremendous flexiblilty that simply goes unused" because of these notions, said Daniel Russell III, vice president of affordable housing. Mr. Russell spoke at the Eastern Secondary Mortgage Market conference on Monday.

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