Bay View Capital Corp. said Monday that its agreement to buy high-loan-to-value lender PSB Lending Corp. "has been placed on hold" pending federal guidelines on the new type of loans.

Bay View, a financial services company whose subsidiaries include a thrift, Bay View Bank, said it would halt the transaction until regulators issue guidelines on the number of high-LTV loans that an insured financial institution may own.

The General Accounting Office is to release a study on high-LTV lending practices next month.

Bay View agreed June 10 to buy PSB Lending for $300 million. If the deal closes, high-LTV loans would account for one-quarter of Bay View's portfolio.

High-LTV home equity loans let homeowners borrow in excess of their home's worth.

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