Group to Address Subprime Lending in New Mexico
Santa Fe, NM, Aug. 30, 2007 — Governor Bill Richardson today signed an executive order establishing a Governor’s Task Force on Mortgage Lending to evaluate the potential impact of the national subprime lending crises on in-state mortgage lending and make recommendations to protect New Mexico consumers.
“Should the national trend of foreclosures linked to subprime mortgages continue, it’s important that we take every precaution to assure that New Mexico consumers are protected from abusive lending practices and the dream of homeownership remains in the reach of our citizens,” said Governor Bill Richardson.
Over the course of the next 60 days the Mortgage Lending Task Force will address the following agenda:
- Determine the extent of the problem of mortgage lending and evaluate how much the national crisis will impact our state.
- Evaluate the effectiveness of New Mexico’s Home Loan Protection Act.
- Review the homebuyer financial literacy education information available to the public.
- Evaluate the licensing requirements for originators, as well as New Mexico’s underwriting guidelines and disclosure requirements.
New Mexico’s Home Loan Protection Act, signed by Governor Richardson in 2003, is considered one of the strongest laws in the country for protecting mortgage borrowers.
“Even with a strong law on the books, I believe we must remain vigilant,” said Governor Richardson. “In several months, many subprime mortgages with costly triggers are going to come due. We need to do everything possible to help these consumers make the smart financial decisions to move away these high-risk, high-interest loans—so they can remain in their homes.”
The task force will be chaired by Mike Loftin of Homewise and Tomasita Duran of the Ohkay Owingeh Housing Authority and has a broad representation including the following communities: the banking, finance, and mortgage professions; the real estate profession; the homebuilding profession; the legal profession; New Mexico government; and the general public. The task force has 60 days to complete its work and make recommendations to Governor Richardson.