Congressional wrangling over home mortgage standards for brokers, lenders and Wall Street firms will take a back seat in the next month as the Federal Reserve prepares to issue rules that would place curbs on the businesses, where loose underwriting standards have contributed to a record number of foreclosures and rattled credit markets, CongressDaily reported yesterday. The Federal Reserve is expected to issue preliminary rules to tighten lending standards under its authority under the 1994 Home Ownership and Equity Protection Act, which prohibits unfair, abusive or deceptive practices. What the Fed proposes should have a major effect on Congress. Senate Banking Chairman Christopher Dodd (D-Conn.) said that he would not move any bill until the Fed releases its preliminary rules. “They may be doing all what we are going to do anyway,” Dodd said, “so if I get the regulations that I am looking for, then I will go looking for a narrower bill.” The House passed legislation this month that would require brokers and lenders to ensure borrowers have an ability to repay adjustable rate mortgages, mandate that there would have to be a “net tangible benefit” for home refinancing and expand the authority of federal banking regulators. The bill was strongly opposed by the lending industry and only mildly supported by consumer groups; it passed 291-127 in part because lawmakers were concerned about the housing market.