Mortgage companies that lend to people with spotty credit records are worried that a Freddie Mac program to expand their market will create a credit-quality problem that could end up hurting all lenders in the business.

Freddie Mac says the program has the potential to draw some 500 new companies to the market - and that has established players worried. Their concern: the newcomers will lack experience in evaluating and servicing so- called B and C credits.

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