WASHINGTON — Regulators sought to assure lawmakers and financial institutions on Thursday that they would weigh potential conflicts from a slew of proposed mortgage regulations due out shortly as they finalize Basel III capital and liquidity rules.

"We recognize the close linkage and the potential interactions have to be taken into account," said George French, deputy director of risk management supervision for the Federal Deposit Insurance Corp., at a joint hearing of two House Financial Services subcommittees. "We certainly looked at the proposed 'qualified mortgage' standards as we were developing those mortgage proposals in these rules."

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