New Mexico Administrative Code
Title 12 - TRADE, COMMERCE AND BANKING
Chapter 19 - MORTGAGE LENDING
Part 8 - MORTGAGE LOAN COMPANY REQUIREMENTS
Section 12.19.8.8 - APPLICANT AND LICENSEE REQUIREMENTS
Universal Citation: 12 NM Admin Code 12.19.8.8
Current through Register Vol. 35, No. 18, September 24, 2024
A. Application for licensure:In addition to the information required by Section 58-21-4 NMSA 1978 of the act, each applicant for issuance or renewal of a license shall be subject to the following requirements:
(1)
applications for license or renewal of a license shall be made using the
nationwide mortgage licensing system and registry;
(2) a mortgage loan company shall obtain and
maintain a unique identifier number issued by the nationwide mortgage licensing
system and registry for each principal office, divisional office or branch
office;
(3) an independent
contractor who intends to originate mortgage loans and is not sponsored by a
licensed New Mexico mortgage loan company shall, prior to originating mortgage
loans, obtain a license under the Mortgage Loan Company Act, Section
58-21-1
NMSA 1978 et.seq.
B. The unique identifier number of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan applications, solicitations, advertisements, including business cards and web sites.
C. Licensees shall keep the following records and make them available upon examination or investigation:
(1) documents related to the withdrawal,
denial or settlement of a residential mortgage loan which includes, but are not
limited to:
(a) mortgage loan transaction
documents: all loan applications, written or electronic, mortgage loan
settlement statement, loan transmittal summary, credit report, appraisal, all
verifications (mortgage, rent, deposits, employment, income), lender loan
approval, clear to close and interest rate lock-in confirmation, title
commitment, survey and sales contract (if loan is a purchase);
(b) rate sheet(s) used in the determination
of the information used on the initial good faith estimate and loan application
and any subsequent good faith estimate and loan application done prior to
interest rate lock-in;
(c) rate
sheet(s) used for the determination of the interest rate that was locked-in
with the lender for the purpose of settlement and funding the loan;
(d) all disclosures required by the Real
Estate Settlement Procedures Act, Truth in Lending Act (Regulation Z), the
Equal Credit Opportunity Act, the Patriot Act and the Mortgage Loan Company
Act;
(e) disclosures that include:
borrower's signature, certification and authorization, fair credit reporting,
affidavit of occupancy, insurance anti-coercion statement, mortgage loan
agreement, privacy policy, loan comparison for adjustable rate mortgages,
credit score information;
(f) title
documents: note, mortgage or deed of trust (including all riders for the note
and mortgage or deed of trust), final signed truth-in-lending disclosure,
lender's closing instructions to the title company, closing disbursement sheet
and copies of issued checks or direct deposits, initial escrow account
statement and right of rescission;
(2) all evidence of payment of commissions,
brokers' fees or other forms of compensation for services rendered in
connection with a mortgage loan transaction;
(3) all books, records, canceled checks
pertaining to, but are not limited to, the mortgage loan transactions and
payment of fees; books and records shall include cash receipts and
disbursements journals, to be posted daily, and a general ledger, to be posted
monthly;
(4) the books of account
shall include a funded residential mortgage loan journal showing an entry for
each mortgage loan transaction completed;
(5) records covered by 12.19.8 NMAC include
electronic records.
D. Licensees' accounts.
(1) Trust accounts: All
funds belonging to third party settlement service providers (e.g., appraisal
services, credit reporting agencies), borrowers or sellers, shall, upon receipt
thereof, be deposited into the licensee's trust account that is set up
exclusively for the deposit and disbursement of third party settlement service
fees and the borrowers or sellers funds. The trust account shall be established
with a depository institution the accounts of which are insured by the federal
deposit insurance corporation or the national credit union administration.
Deposited funds shall remain in the trust account until disbursed to the third
party settlement service providers, used at settlement for the borrowers
benefit or returned to the rightful borrowers or sellers. If the trust account
is interest-bearing, all interest shall be distributed to the appropriate
parties, on a pro rata basis, at the time trust funds are disbursed or
returned. All funds received by the licensee must be disbursed within 30 days
of the settlement of the residential mortgage loan.
(2) If a licensee requires a deposit in
connection with an application for a mortgage loan, there must be an agreement
in writing between consumer and licensee, setting forth the disposition of the
deposit, whether the loan is finally consummated or not.
(3) Deposit accounts: All deposit accounts
maintained by a licensee shall be reconciled within ten (10) business days
after receipt of statements; "deposit accounts" includes all accounts
maintained with depository institutions.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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