California's budget crisis has forced the state's Housing Finance Agency to suspend its 30-year fixed-rate mortgage loan and down-payment assistance programs.CalHFA, which purchases more than $1 billion in mortgage loans a year, is among state agencies that depend on a line of credit from a pooled money investment account that's funded by state bond issues. The board that administers the account determined on Dec. 17 that with California facing a $40 billion budget shortfall, the state cannot issue either commercial paper or bonds. That decision led the Pooled Money Investment Board (PMIB) to shut down $3.8 billion in funding for infrastructure projects, and also prohibit state agencies from spending any more funds under existing loans.California Treasurer Bill Lockyer, who sits on the boa...
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