I received a bulletin from an invetsor, which addresses points & fees on loans in New Mexico. I need to clarify on first loans = or more than $20,000 are the total points and fees limited to 5% and for seconds are they limited 8% or $1,000 on loan amounts of $20,000 or less? Thanks for your input.

The New Mexico Bankers Association issued a memo to it's membership yesterday stating that the OCC's preemption rules will preempt New Mexico's predatory lending law for national banks. Don't know if that helps you out or not!

I appreciate your response to my posting. However, I had another question concerning the NM Home Loan Protection Act. According to the bill, it says that the high cost is 7 or 9 plus the like treasury index (first & second respectively). However, I have informaion which indicates it only applies if the loan is a non-HELOC, owner-occupied with a loan amount less than the Fannie Mae limit. Am I correct to assume that this applies to all loan types in New Mexico. I've spoken with a former co-worker who says at her company, based on their interpretation of the bill it includes all loan types. I've tried reaching an examiner in NM, but did not have any success in locating anyone. I understood your part about New Mexico's predatory lending law for national banks and the preemption rule. However, I work a mortgage company, so it is my understanding that this would not apply to my operations. What are your thoughts? Thanks.

When the law was signed, I read it several times. Immediately thereafter, though - the governor appointed a committee to rework the law and delayed implementation until they could report to him. I stopped analyzing at that time, and since I work for a national bank - I won't start again.

I agree that if you are with a mortgage company that you will need to comply with this law. I'm sorry that I'm not able to be of more help to you. I can't even think of anyone to call right now. I'll keep thinking on it, though and post if I come up with anything.

You might need to bring NM counsel in to help you decipher this law.

Thanks Lestie G. I had a feeling that as mortgage company, I would have to comply with the law. As I've said in my previous posting, I made attempts to contact the NM Financial Institutions Division and to no avail I was not able to get any assistance. However, I did touch base with a former contact who actually was able to get hold of someone who's an examiner and she asked the same question as me and the examiner said that he was not sure. That's not encouraging news coming from the regulatory agency. At this point, I'll contact our outside counsel. Thanks again.

I work for a national bank as well. With the OCC ruling, we are exempt from state predatory lending laws; however, we must still conform in order to sell in the secondary market.

Your best bet is to contact outside counsel. The contact person for NM Financial Institutions is Henry Vigil. Yes you're correct they don't have a clue about the law, because I received the same reply when I contacted the regulatory agency back in December 2003. A pretty sad commentary for people who are supposedly there to enforce the law.

So does anyone have a worksheet that they would be willing to share?

And when the reg states that all amounts payable by a borrower does that mean EVERY fee on the borrowers side of the HUD-1 except for the excluded items?