Lehman Brothers Could Cease Subprime Lending

New York–New York-based Investment bank Lehman Brothers may stop issuing loans from its two British subprime mortgage units, making it harder for borrowers with imperfect credit histories to refinance or get new home loans, the Financial Times reports.The mortgage-backed securities market freeze and increased cost of interbank lending have made it difficult to issue loans to customers at low interest rates, which may be influencing Lehman, according to the Times. Earlier this year, Lehman tried to reduce loan risk by easing repayment terms for borrowers at risk of default and by altering the terms of the mortgage-backed securities its loan servicer issued.Lehman declined to comment on whether or not it would cease issuing subprime loans from its British units.