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· The Arizona law is a narrow measure that mirrors federal law – making the Justice Department’s preemption argument a difficult one, at best. Because other kinds of pre-emption don’t apply, the department can only win if it can show a conflict with federal law. But there is no federal statute that Arizona’s law conflicts with.
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The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans.
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