Fed. Gov. Warning

[WASHINGTON, June 7 (Reuters) - U.S. bank regulators have observed slippage of loan underwriting standards for home equity lending and commercial real estate loans, a worry for banks if house prices drop, Federal Reserve Board Gov. Susan Bies said on Tuesday.

"There is concern that banks' home equity loan portfolios may be vulnerable to a rise in interest rates and a decline in home values," she said in remarks prepared for delivery to an American Bankers Association conference in Chicago…]