Subprime Lenders Respond to NM AG

Seven subprime mortgage lenders have voluntarily responded to a state attorney general's request for information about their practices and procedures for protecting borrowers from abusive lending.New Mexico Attorney General Patricia Madrid sent letters to nearly 160 subprime lenders nationwide in July to see if they have adopted consumer protection standards spelled out in a 2002 settlement with Household Finance International. "The information I have requested will help us determine if these consumer protection standards are being followed by the other members of the subprime lending industry," she said. So far, the AG's office has received seven written responses and numerous phone calls from companies that plan to send written responses, according to spokeswoman Sam Thompson. While the July letter indicated an Aug. 22 deadline, Ms. Thompson said responses will be appreciated even if they are late. Attorney General Madrid is vice chair of the subprime lending working group of the National Association of Attorneys General. However, the spokeswoman explained that Ms. Madrid is soliciting the best-practices information on her own initiative, not the NAAG's.