New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 15 - FINANCIAL INSTITUTIONS - GENERAL
Part 3 - HOME LOAN PROTECTION ACT- GENERAL PROVISIONS
Section 12.15.3.12 - RATE THRESHOLD
Current through Register Vol. 35, No. 18, September 24, 2024
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 maturity that is closest to the loan's maturity or the lower yield if the loan's maturity is midway between constant maturities published in the statistical release.
B. If the 15th day of the month immediately preceding the month in which the loan is made is not a business day, the creditor must use the yield calculated as of the business day immediately preceding the 15th.
C. A loan is considered "made," within the meaning of Section 58-21A-3(N), NMSA 1978, when the consumer becomes contractually obligated on a credit transaction.
D. When calculating the interest rate for adjustable rate loans, the creditor shall not use any introductory rate. The interest rate will be based on the loan's disclosed index plus the margin, which is the fully indexed rate, at the time the loan is made. As an example, if the index is 2% and the margin is 3% for a first lien mortgage, the interest rate is 5% (fully indexed rate).
