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Fallout From Subprime: The states react in various ways to the event of the past few months.

Publication: Broker Magazine
Publication Date: 01-MAR-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
CALIFORNIA

New Predatory Bill on Tap

Abill has been introduced, which, if enacted, would impose restrictions on certain subprime loans. The Subprime Lending Reform Act defines those loans to be ones with an annual percentage 3% greater than the Treasury bill rate for first mortgages or 5% for subordinate-lien loans, according to the law firm Buckley Kolar.

It would impose restrictions on "nontraditional mortgages" as defined in the federal banking agencies' Interagency Guidance on Nontraditional Mortgages. The bill would prohibit brokers from receiving yield-spread premiums in connection with high-cost loans and certain subprime and nontraditional loans....

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