It was late when I responded to this last night, so I re-read it again. I'm pretty sure the facts state that she gave up ownership of the house before any loans were ever given. Therefore, the reporter is deliberately misleading the readers in stating that the house was hers, and that she took a mortgage out on it.
I'll be surprised if the mortgage company even discussed this with her, knowing she wasn't the person who took out the loan.
Somebody please correct me if I'm not understanding this.
No, you are right!