Dodd’s novel idea for subprime borrowers

Dodd’s bill has similar goals to one passed by House lawmakers last month.

It would enact stricter standards for subprime loans made to borrowers with poor credit — and for other “nontraditional” loans that allow borrowers to defer principal or interest payments, according to an outline distributed at a briefing for reporters Monday.

For those types of loans, lenders would be required to determine that a borrower can pay back the loan.