The government will not train its fair-lending sights on banks that charge higher rates to borrowers who are more likely to default on their mortgages, according to a senior Justice Department official.

"We are trying hard not to interfere with risk-based pricing," said Paul F. Hancock, chief of the department's housing section. "The whole lending concept is to make loans based on the risk to the institution."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.