Arizona, Colorado and Virginia do, as well as one agency in California, and Wisconsin has created an agency devoted in large measure to issuing bonds on behalf of out-of-state borrowers.
In a few states, borrowers are not liable for the shortfall between an unpaid loan and the resale value of the home it is secured upon.
Carol DeRosa, the administrator of residential mortgage programs at Connecticut's Housing Finance Authority, said that as with the affordable-housing programs of other states, borrowers need not be first-time buyers if the home they want to buy is in federally targeted urban areas like Bridgeport, Stamford and Norwalk.
Since then, subprime mortgage lending by finance companies in the state to borrowers with incomes below $25,000 has dropped by nearly 50percentt.
Her loan documents, like those of others, state that borrowers with a steady repayment history can have co-signers taken off their loans.
In Andhra Pradesh, one of India's largest states, many borrowers stopped repaying their loans, and more than 80 people there committed suicide after defaulting.
Their prices are kept low as a matter of social policy, forcing the companies to become heavy state-backed borrowers to finance upkeep and expansion.
One critical element of the legislation pending in Congress would force lenders to abide by usury caps in the states where borrowers live rather than where the lenders are based.
Although the banks (and many of the big state-owned borrowers) will probably be bailed out by the government if required, a financial crisis could still lead to a crackdown on lending that pushes many private sector borrowers to the wall.
Both Idaho and Washington passed laws stating that borrowers don't have to pay back loans from unlicensed payday lenders.
