New Mexico dodged the worst of the sub-prime lending crisis.
If there is any good news in the sub-prime mortgage scandal, it is that New Mexico is coming out relatively unscathed in the number of risky loans within the state. An article from New Mexico Business Weekly (below) highlights some of the reasons.
“Mortgage Shakeout… The subprime lending crisis has touched Thornburg and Frost in New Mexico, but the state has dodged the worst due to fewer risky loans.
While the nationwide mortgage credit quality crisis spawned by lax subprime lending has had an impact on New Mexico, the state has been spared the worst of the carnage that has claimed dozens of lenders around the country.
The reasons? Two big mitigating factors have helped lessen the impact: a below-average percentage of subprime lending, and the fact that much of subprime volume is done by out-of-state lenders.”
source: New Mexico Business Weekly - Aug. 31, 2007 by Mark Fogarty