New Mexico Administrative Code

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Financial Institutions Division, Regulation and Licensing Department, 725 St. Michael's Drive, Santa Fe, New Mexico 87504. Telephone No. (505) 827-7100

All banks chartered by the state of New Mexico.

A. This approval of forms is issued pursuant to the authority granted to the financial institutions division by New Mexico Laws 1981, Chapter 263. B. This part is issued pursuant to the authority granted by the banking laws of the state of New Mexico Sections 58-1-1 through 58-9-…

Permanent.

July 1, 1981, unless a later date is cited at the end of a section or paragraph. Reformatted in NMAC format effective August 30, 1997.

The objective of this part is to establish uniform disclosures, for all lenders supervised by the financial institutions division which represent the major portion of the credit granting industry in this state, in order to reduce the administrative burden upon the financial insti…

[Reserved]

A. In reviewing the disclosures required by New Mexico Laws 1981, Chapter 263, Section 2A, and in reviewing the requirements for disclosure under the federal Truth in Lending Act, Title 15 U.S.C. Section 1601 et seq. and Regulation Z issued pursuant thereto, the financial institu…

Financial Institutions Division of the Regulation and Licensing Department.

The "conforming loan size limit for a single-family dwelling established by the federal national mortgage association," referred to in Section 58-21A-3(J) NMSA 1978, is the maximum original principal obligation set forth in, and from time to time adjusted, according to the provis…

The categories listed under the definition of "points and fees" in Section 58-21A-3(M) NMSA 1978, are not exclusive.

The phrase "comparable periods of maturity", as used in Section 58-21A-3(N) NMSA 1978, refers to the "treasury constant maturities" published in the federal reserve "selected interest rates" (statistical release H-15). A. Creditors must use the yield corresponding to the constant…

For purposes of the act, the term "credit property insurance," does not include fire and hazard insurance, flood insurance, federal housing administration (FHA) mortgage insurance, veteran's administration (VA) loan guarantees, guaranteed rural housing (GRH) loan guarantees and p…

For purposes of the act, the term "total principal loan amount," as used in Section 58-21A-3(Q) (1) and (2), NMSA 1978, refers to the total principal loan amount as stated in the promissory note.

In reference to 58-21A-3(M)(1)(d)(14) NMSA 1978, the "percentage rate" will be set biannually on the financial institutions division's mortgage lending website on the first business day in January and July.

All persons subject to the Home Loan Protection Act, Sections 58-21A-1 to -14 NMSA 1978 (2003, as amended through 2004) ("Act").

Section 58-21A-13 NMSA 1978.

Permanent.

January 23, 2004, unless a later date is cited at the end of a section.

The objective of this rule is to clarify and interpret certain terms used in the act.

For purposes of this rule, the definitions set forth in the act shall apply unless otherwise noted. A. "Grossed up income" means income that is not taxable by the federal government and has been increased to reflect the amount of tax savings attributed to this type of income. The…

The phrase "annual percentage rate" as used in Section 58-21A-3(C) and (G) NMSA 1978, has the same meaning as the term "annual percentage rate" defined in 15 U.S.C. Section 1606(a).

The phrases "most recently published annual yield on conventional mortgages published by the board of governors of the federal reserve system as of the fifteenth day of the month immediately preceding the month in which the application for the extension of credit is received by t…

Financial Institutions Division of the Regulation and Licensing Department.

All creditors subject to the Home Loan Protection Act, Sections 58-21A-1 to -14 NMSA 1978 (2003) ("Act").

Section 58-21A-13 NMSA 1978.

Permanent.

January 30, 2004, unless a later date is cited at the end of a section.

The objective of this part is to establish the reasonable ability to repay a home loan required by Section 58-21A-4(C) NMSA 1978.

For purposes of this rule, the definitions set forth in the act and regulations adopted pursuant to the act shall apply unless otherwise noted. "Reasonably reliable documentation" means any documentation that is required by a mortgage loan company to satisfy the requirements of a…

The documentation of "reasonable ability to repay" in Section 58-21A-4(C) NMSA 1978, will depend upon the totality of facts and circumstances relating to a specific residential mortgage loan transaction and the borrower's financial condition and circumstances. While the documenta…

Financial Institutions Division of the Regulation and Licensing Department.

All creditors subject to the Home Loan Protection Act, Sections 58-21A-1 to -14 NMSA 1978 (2003, as amended through 2004) ("Act").

Section 58-21A-13 NMSA 1978.

Permanent.

June 30, 2004, unless a later date is cited at the end of a section.

The objective of this rule is to provide guidance to creditors covered by the act regarding the application of Section 58-21A-4(B) NMSA 1978, which prohibits creditors from engaging in the unfair act or practice of flipping a home loan.

For purposes of this rule, the definitions set forth in the act and regulations adopted pursuant to the act shall apply unless otherwise noted.

For purposes of Section 58-21A-4(B) NMSA 1978, a creditor shall not have "knowingly and intentionally" engaged in the unfair act or practice of flipping a home loan when the new loan provides a "reasonable, tangible net benefit" to the borrower. A creditor shall have "knowingly a…

A. The reasonable, tangible net benefit" standard in Section 58-21A-4 B NMSA 1978, is inherently dependent upon the totality of facts and circumstances relating to a specific transaction. While the refinancing of certain home loans may clearly provide a reasonable, tangible net b…

Financial Institutions Division of the Regulation and Licensing Department.

Any person or his agent who purchases or is otherwise assigned a high-cost home loan subject to the Home Loan Protection Act, Sections 58-21A-1 to -14 NMSA 1978 (2003, as amended through 2004) ("Act").