Kroszner: Fed to work with state agencies on subprime

NEW YORK (Reuters) - The U.S. central bank will work with state agencies to enforce rules to curb subprime mortgage lending abuses, a Federal Reserve governor said on Thursday.

"The key is effective enforcement," said Federal Reserve Board Governor Randall Kroszner, when asked about potential abuses and fraud in the subprime mortgage market. "We are working with state agencies and others" to ensure that rules are enforced against such lending practices, he said.

He was answering audience questions after delivering a speech to real estate industry professionals in Washington about proposed regulations for the mortgage market.

(Reporting by John Parry and John Poirier; Editing by Tom Hals)