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Subpriming

The sun is finally setting on subprime loans in California, if the State Assembly has anything to say about it. They've just approved legislation that would set restrictions on the trouble making high interest loans. Among the new rules: borrowers would have to prove that they can afford all the payments associated with their property, and loan officers will be prohibited from getting commissions for luring borrowers into loans they can't afford. Violators could be slapped with fines as high as $10,000. The bill is now off to the Senate. [SF Gate]