Mark Takano saw how subprime mortgages devastated his hometown of Riverside, California, after Wall Street helped inflate a housing bubble that burst and left a trail of foreclosures among the worst in the U.S.

Now a first-term Democratic Congressman representing a district east of Los Angeles, Takano said he worries about a repeat as banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. prepare to create securities based on the latest real estate boom: rental homes.

"We should learn from history," Takano, 53, said in a telephone interview this week, days after he asked the Financial Services Committee to hold hearings on the bonds. "We see a similar kind of instrument now being pioneered."

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