Mortgage industry participants support a new proposed definition of subprime consumer loans for banks with more than $10.0 billion in assets. However, some raised concerns that the Federal Deposit Insurance Corp.’s proposal could unnecessarily impact holdings of nontraditional mortgages. In March, the FDIC proposed a revised definition of “higher-risk” consumer, commercial and industrial loans and securities for the large bank pricing model, which determines deposit insurance rates. Instead of defining subprime loans based ...