New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 19 - MORTGAGE LENDING
Part 8 - MORTGAGE LOAN COMPANY REQUIREMENTS
Section 12.19.8.15 - REASONABLE ABILITY TO REPAY

The documentation of "reasonable ability to repay" in Section 58-21-8(N) 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 documentation of certain residential mortgage loan transactions may clearly demonstrate the borrower's reasonable ability to repay, others may require closer scrutiny to determine whether the documentation for a particular residential mortgage loan transaction sufficiently demonstrates ability to repay. The "reasonable ability to repay" standard shall be demonstrated through reasonably reliable documentation.