RENEE MONTAGNE, host: Our business news starts with banks reassessing risky loans.</s>RENEE MONTAGNE, host: Defaults on loans are rising, and some banks are clamping down on riskier mortgages that allow borrowers to finance up to the entire cost of their home. The Wall Street Journal reports this shift in lending affects mainly the sub prime housing market - that's loans to people with lower credit ratings.</s>RENEE MONTAGNE, host: As home prices have soared beyond people's salaries, fewer can afford down payments. A new survey shows that last year nearly half of first-time homebuyers used mortgages for the entire cost of their homes.
Some banks are less eager to approve mortgages that allow borrowers to finance the full cost of their home without offering a down payment. The Wall Street Journal says the shift mainly affects people with lower credit ratings.