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California Considers Subprime Regulation

HeadlineNov 30, 2007

In California, state lawmakers are considering legislation to regulate the predatory practices of the subprime mortgage market. Home foreclosures have skyrocketed under the growth of high-interest loans to low-income Americans. The proposed measures include creating a standard process for restructuring mortgages and banning higher-interest loans when recipients are eligible for lower ones. Some 200,000 homes are expected to go into foreclosure in California next year.

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