Senators from both sides of the aisle urged federal regulators to act more quickly to protect consumers who use nontraditional mortgages and pressed lenders to defend their “education first” approach to the problem. Lawmakers used a joint hearing of the Senate Banking Subcommittees on Housing and Transportation and Economic Policy to sound alarms about the growing presence of option ARMs and interest-only loans. Both Republicans and Democrats expressed concern that loose underwriting, rising interest rates...