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Buy a vowel please

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Lobo Fan

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Elite Member
Joined
Nov 28, 2004
Professional Status
Certified Residential Appraiser
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New Mexico
New Mexico regulators finally catch a clue

Thursday, December 6, 2007

New Mexico Sampled Its Mortgage Industry and Found Problems

By Richard Metcalf
Copyright © 2007 Albuquerque Journal; Journal Staff Writer
A new state report suggests a troubled picture of the mortgage lending sector in New Mexico.
Literally thousands of unregistered mortgage brokers could be doing deals and hundreds of home loans could violate regulations, according to the report that admittedly was based on a small sample of data.
The scope of the potential problems has prompted the state Regulation and Licensing Department to propose an expansion of its Financial Institutions Division for more mortgage lending oversight.
"We know there are problems," division director Bill Verant told the Journal in an interview. "We just don't know the depth of the problems."
The report was based on a pilot project in which examinations were made of a sample of 10 home loans at each of five randomly picked small mortgage offices.
The report's key findings were:

Twenty-six individuals at the five surveyed lending offices weren't properly registered with the state.

Five of the loans, or 10 percent, showed apparent overcharging for closing costs.

Three of the loans, or 6 percent, showed apparent overstatement of borrowers' income, which is a form of fraud.
The state has no oversight over federally charted banks, mortgage companies or credit unions.
Stephen Cecco, president of the New Mexico Association of Mortgage Brokers, said his organization supports a state initiative to require licenses, background checks and education for all loan originators, not just mortgage brokers.
"Unfortunately, as in all industries, there are bad actors giving those who try to do right by their customers a bad name," he said in a prepared statement.
Cecco noted that the association has supported past attempts by the state Legislature to adopt a licensing law. Those attempt have failed because of opposition from federally chartered banks, he said.
"Maybe now that the whole financial industry has become a hot political issue will progress be made," he said.

Read the rest at: http://www.abqjournal.com/biz/267221business12-06-07.htm
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Yeah . . New Mexico remains 49th in most things .... Its not hard when the good old Patron system remains in place... the real question is how many of those mbs were your clients? Thats a big question in my mind ??? And we may never know ... or someone could come knocking at the door ... Only time will tell ... and I seriously hope they go knocking on LOTS of doors ... it needs to be done as these same mbs have their favorite appraisers ... I hope they all burn before its over.
 

JT1974

Senior Member
Joined
Dec 16, 2006
Professional Status
Certified General Appraiser
State
Wisconsin
The government sent in a few inspectors, found "a form of fraud" and seem surprised by it. Meanwhile, George W. Bush proposes to use our tax dollars to bail out the lenders and borrowers who committed fraud in order to obtain mortgages.

I would rather see fraudster borrowers face the foreclosure they rightfully deserve and the taxpayer money that would have went for the bailout instead go to hire more investigators to find and lock up the bad actors including lenders and borrowers who committed fraud.
 

Lobo Fan

Thread Starter
Elite Member
Joined
Nov 28, 2004
Professional Status
Certified Residential Appraiser
State
New Mexico
I quit doing business with mortgage brokers almost 2 years ago. I got tired of chasing my money and putting up with predetermined value requests, calling manufactured homes modulars and ignoring obvious defects. I wouldn't do any of those things which cut down my customer list considerably.

Skippies prosper, while playing by the rules gets you broke. I hope that they put some teeth in any new legislation. But I doubt it. I am getting so sick of the "few bad apples" excuse. Stupidity and corruption are rampant in the MB industry. They answer to nobody and have no rules to abide with.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
I quit doing business with mortgage brokers almost 2 years ago. I got tired of chasing my money and putting up with predetermined value requests, calling manufactured homes modulars and ignoring obvious defects. I wouldn't do any of those things which cut down my customer list considerably.

Skippies prosper, while playing by the rules gets you broke. I hope that they put some teeth in any new legislation. But I doubt it. I am getting so sick of the "few bad apples" excuse. Stupidity and corruption are rampant in the MB industry. They answer to nobody and have no rules to abide with.


And who exactly do you do business for now???? This post contradicts posts you have made in the not so recent past ... Im just curious who your clients are now .. or what type lets say because that would be quite a difference than what youve said before.
 
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