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NM reaches settlement over foreclosure ads

ALBUQUERQUE, N.M. (AP) -- The New Mexico Attorney General's Office has reached a settlement with a California law firm that will bring to an end misleading radio ads regarding mortgage foreclosure assistance.

Attorney General Gary King says the ads by Granite Law targeted homeowners who were in distress and facing foreclosure. The ads promoted a "national mortgage helpline."

King's office accused the firm of engaging in unfair and deceptive trade practices.

Granite did not admit any wrongdoing but agreed to pay $25,000 to settle the claim. The firm will also stop advertising in New Mexico for at least three years.

King says his office helps coordinate a statewide homeownership preservation program that offers housing counselors and attorneys to those who are at risk of foreclosure.