Standard & Poor's has announced that it will not rate loan pools containing mortgages from Oakland, Calif., or high-cost refinance mortgages from Los Angeles.S&P's restrictions on what it will allow in its structured finance transactions mirror those of Fitch Ratings, which recently made an almost identical announcement. The agencies' decisions become effective only if and when the municipal laws in LA and Oakland go into effect. Oakland's law is being challenged in the California Supreme Court, and LA's law is frozen pending the outcome of that case.
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