Fitch Won't Rate Pools With Certain Oakland, LA Loans

Fitch Ratings has announced that it will not rate loan pools containing home loans originated in Oakland, Calif., or high-cost home loan refinances originated in Los Angeles.Loans originated by entities regulated by the Office of Thrift Supervision are exempt from the prohibitions. The recent activity comes in response to municipal predatory lending laws in the two California cities, neither of which have taken effect because of lawsuits questioning their legitimacy. However, a recent court decision in favor of Oakland's law gave a push to the legislation in both places. The case is being appealed to the state Supreme Court.