California lawmakers will allow the state's Housing Finance Agency to take on another $2 billion in debt while criminalizing attempts to pressure appraisers and adopting federal guidance for subprime and "exotic" loans. California Gov. Arnold Schwarzenegger promised this week to sign into law three separate bills affecting mortgage lending in the state, including legislation that would subject lenders licensed at the state level to guidance that had pertained only to federally chartered lenders. The guidance advises lenders to provide more complete disclosure of loan terms, and to qualify borrowers at the fully indexed rate -- assessing whether they will be able to afford their monthly payments even after interest rates reset. The guidance for "exotic" interest-only and pay-opt...
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