Bidding to become the first banking company to make a significant move into the hot high-loan-to-value mortgage business, Bay View Capital Corp. said Wednesday it would buy PSB Lending Corp. for $300 million.

PSB, based in Carlsbad, is the third-largest originator of the controversial second-mortgage loans, which enable homeowners to borrow more than the value of their homes. PSB originated over $750 million in such loans in 1997.

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