New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 19 - MORTGAGE LENDING
Part 8 - MORTGAGE LOAN COMPANY REQUIREMENTS
Section 12.19.8.7 - DEFINITIONS
Current through Register Vol. 35, No. 18, September 24, 2024
A. "Applicant" means a person who has applied for a license pursuant to the provisions of the Mortgage Loan Company Act, and includes all directors, officers, employees, trustees and owners of such person.
B. "Days" means a period of time expressed in calendar days, except when disclosures are required to be given to borrowers, then "days" shall exclude Saturdays, Sundays and legal holidays.
C. "Independent contractor" means any person who originates, processes or underwrites mortgage loans and is not a W-2 employee of a licensed mortgage loan company.
D. "Licensee" means a person who is licensed pursuant to the provisions of the act, and includes all directors, officers, employees, trustees and owners of such person.
E. "Person who controls or is controlled", with respect to Section 58-21-2(A) NMSA 1978, means a person who is a director or executive officer of a business or organization, who directly or indirectly, or acting in concert with one or more other persons or entities, owns, controls or holds power to vote, or holds proxies representing ten percent (10%) or more of the voting shares or rights of any entity, or the spouse of such person.
F. "Reasonably reliable documentation" means any documentation that is required by a mortgage loan company to satisfy the requirements of a loan product that meets the borrower's requested terms and qualifications, documents the source of repayment and includes verifiable written documentation obtained from the borrower or a third party. Reasonably reliable documentation may include but may not be limited to verbal verifications.
G. "Scheduled long-term monthly debt payments" means the monthly payments of all installment debts, revolving charge accounts, open accounts and lines of credit that would be used to determine a borrower's ability to repay per the current underwriting guidelines of the federal housing administration (FHA), the federal national mortgage association (FNMA), the federal home loan mortgage corporation (FHLMC) or the department of veteran's affairs (VA).
