Newspaper article from our research archive:

Mortgage Lending Needs Quick Repairs

A new report on mortgage lending in New Mexico is enough to throw a chill over anyone who bought a house here during the boom years that began in 2000.

An examination of 10 home loans at each of five small mortgage offices showed an alarming number of problems: 26 individuals in the offices were not properly registered with the state; five of the loans showed apparent overcharging for closing costs; three loans revealed apparent overstatement of borrowers' income.

If the sampling is an accurate reflection of industry practices during the boom, as many as 735 mortgages could have involved overcharges at closing, and 450 could have been based on overstated incomes, a form of fraud.

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