New Mexico AG Files Separate Suits Against Lenders, Mortgage Brokers For Actions That Left Elderly Homeowners Facing Foreclosure

In Santa Fe, New Mexico, KRQE-TV Channel 13 reports:

• New Mexico's attorney general is going after everyone from mortgage brokers to banks after accusing them of mortgage frauds that took advantage of two homeowners now facing foreclosure. In two civil lawsuits filed Friday morning the AG is asking a judge for immediate action to stop foreclosures on the two properties. Both incidents involve elderly residents.

• In one suit is based on a Los Lunas couple who said they gave money to their brokers and bank to pay off bills. They claimed that money never made it to creditors and that they were cheated and overcharged by their mortgage company. According to the AG the second case showed lenders ignored numerous red flags in working with a 78-year-old Chimayó woman who clearly couldn't afford her mortgage. The woman had filed a complaint with the AG's office alleging her signature was forged and other information on the mortgage application falsified.

For more, see AG casts wide net in mortgage suits (Fraud victims face foreclosure, AG says).

For the New Mexico AG press release, see Alleged Mortgage Loan Fraud Brings Two AG Lawsuits...Banks, Loan Servicers and Brokers Targeted.