ATLANTA, Ga., Nov 10 (Reuters) - A senior U.S. Federal Reserve official said on Tuesday that despite signs of recovery in battered housing markets, flat or falling personal income could keep problem loan rates high.

"There is a worrisome concern, and that relates to personal income. Personal income has been extremely flat and falling in many cases," Atlanta Federal Reserve Bank President Dennis Lockhart said in response to a question after a speech. "And therefore you could see the development of more stressed personal mortgages."

Lockhart is a voter on the Fed's policy-setting panel this year. (Reporting by Mark Felsenthal; Editing by James Dalgleish)