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Mortgage Lending Needs Quick Repairs
- Article from:
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Albuquerque Journal
- Article date:
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December 7, 2007
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Copyright informationCopyright 2007 Albuquerque Journal. Provided by ProQuest LLC. (Hide copyright information)
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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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