New Mexico Statutes 47-15-5. Violations
It is a violation of the Mortgage Foreclosure Consultant Fraud Prevention Act for a foreclosure consultant to:
Terms Used In New Mexico Statutes 47-15-5
- Contract: A legal written agreement that becomes binding when signed.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Personal property: All property that is not real property.
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- Venue: The geographical location in which a case is tried.
A. claim, demand, charge, collect or receive any compensation until after the foreclosure consultant has fully performed every service the foreclosure consultant contracted to perform or represented the consultant would perform;
B. claim, demand, charge, collect or receive any fee, interest or any other compensation for any reason that exceeds five percent per annum of the amount of any loan that the foreclosure consultant may make to the owner. Such a loan may not be secured by the residence in foreclosure or any other real or personal property;
C. take a wage assignment, lien of any type on real or personal property or other security to secure the payment of compensation. Any such security is void and unenforceable;
D. receive any consideration from a third party in connection with services rendered to an owner;
E. acquire any interest, directly or indirectly, or by means of a subsidiary or affiliate in a residence in foreclosure from an owner with whom the foreclosure consultant has contracted;
F. take a power of attorney from an owner for any purpose, except to inspect documents as provided by law;
G. include a provision in a foreclosure consulting contract that:
(1) attempts or purports to waive an owner’s rights under the Mortgage Foreclosure Consultant Fraud Prevention Act;
(2) requires an owner to consent to jurisdiction for litigation or choice of law in a state other than New Mexico;
(3) provides for venue in a county other than the county in which the residence in foreclosure is located; or
(4) imposes any costs or filing fees greater than the fees required to file an action in a district court; or
H. induce or attempt to induce an owner to enter a contract that does not comply in all respects with the Mortgage Foreclosure Consultant Fraud Prevention Act.