SMALL TOWNS: The three worst hit California counties are in the Central Valley and are near the top in U.S. foreclosure rates.

A memo says it will stop offering the risky loans in many California counties, but the lender says that was premature. Wachovia Corp. signaled that it may no longer offer some Californians the controversial "option ARM" mortgages that give borrowers the choice of paying so little that their balances actually rise.

Get the scoop on Trail Mix, the Journal's new political blog. » Read more Wachovia Corp. is considering ending its Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures.

Get the scoop on Trail Mix, the Journal's new political blog. » Read more Wachovia Corp. is considering ending its Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures.

Wachovia is considering ending its infamous Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures.

Wachovia is considering ending its infamous Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures.

CHARLOTTE, N.C. - Wachovia is considering ending their infamous Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures.

CHARLOTTE, N.C. (AP) - Wachovia Corp. may stop making their infamous Pick-A-Payment mortgage loans in 17 California counties that have been hit hard by falling home prices and rising foreclosures.

It's official. The Department of Housing and Urban Development has raised the new conforming limits for loans guaranteed by the Federal Housing Administration in Santa Clara, San Mateo and 12 other high-cost California counties to a maximum of $729,750.

Offering a ray of hope for a struggling California housing market, the government Wednesday doubled the limit for loans guaranteed by the Federal Housing Administration in 14 high-cost California counties, including Santa Clara County.