Litigation gauges banks’ ability to cut credit lines
Picture this nightmare financial scenario: You’ve taken out a $150,000 home-equity credit line to remodel your house, you’ve already pulled out thousands of dollars to pay contractors and owe thousands more, when suddenly you get a curt letter from the bank.

O.C. could feel impact of federal loan limits
That move three years ago to hike the conforming loan limit made it cheaper for borrowers in more expensive housing markets to get mortgages, thanks to government guarantees that investors will receive payments on those mortgages, even if homeowners default.

CREDIT
On a house in Arlington, Texas, originally valued at $172,000, an automated valuation model lowered the amount to $151,000. On appeal, the owner presented a physical appraisal completed 10 days before the bank’s action that put its market value at $165,000.

Foreclosure starts fall to lowest level in 4 years
The number of Californians entering foreclosure dropped steeply in the second quarter to hit its lowest level since 2007, a sign the foreclosure crisis in the Golden State could be easing amid a more stable housing market and increased scrutiny from regulators.