Finance

New Mexico's Mortgage Fraud Act prohibits which of the following?

ACharging market-rate interest on mortgage loans
BMaking false statements or material misrepresentations in a mortgage application or loan documents✓ Correct
CRequiring a property appraisal before lending
DCharging origination fees

Explanation

Mortgage fraud involves intentional misrepresentation or omission in a mortgage transaction, including false income statements, inflated appraisals, identity theft, or straw buyer schemes. New Mexico prohibits such conduct.

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