Britain's Labor Party is looking to regulate the country's mortgage industry and has pegged a subsidiary of subprime lender Cityscape Financial Corp. as the first target.

Paul Flynn, a member of Parliament representing Newport West, Wales, is calling for the cancellation of City Mortgage Corp.'s credit license. The Cityscape subsidiary charges "punitive" rates, Mr. Flynn said in a written statement last week. Mr. Flynn is calling for compensation for homeowners who took out City Mortgage loans, and new laws for mortgage lenders.

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