WASHINGTON — Lawmakers at a House Financial Services Committee hearing Thursday appeared open to moderating mortgage reform legislation after complaints that it would reduce lending.

House Financial Services Chairman Barney Frank said he is willing to compromise on two key provisions. One would require banks to retain at least 5% of a loan after they sell it to the secondary market, and the other would give lenders legal protections only on 30-year traditional mortgages.

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.