SENATE BILL 859

46th legislature - STATE OF NEW MEXICO - first session, 2003

INTRODUCED BY

Richard M. Romero







AN ACT

RELATING TO MORTGAGES; REQUIRING LICENSURE AND EDUCATIONAL REQUIREMENTS FOR RESIDENTIAL MORTGAGE LOAN OFFICERS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. A new section of the Mortgage Loan Company and Loan Broker Act is enacted to read:

"[NEW MATERIAL]"residential mortgage loan officer" means an individual who, for compensation or gain, takes or receives a mortgage application, assembles information, and prepares paperwork, and documentation necessary for obtaining a residential mortgage loan, or arranges for a conditional mortgage loan commitment between a borrower and a lender, or arranges for a residential loan commitment from a lender. Residential mortgage loan officer may mean an employee who solicits financial and mortgage information from the public for sale to another residential mortgage broker.

principal mortgage owner" means the owner, or managing general partner, or responsible individual, or any Officer, or stock holder, who holds themselves our to be the party accountable for residential mortgage loan originations or branch mortgage operations, with in the state, and/or the person in direct management of residential mortgage loan origination.

Exempt. Any individuals who do not deal (i.e. negotiate interest rates, loan programs, offer loan locks, loan commitments) directly with borrowers. This includes persons who complete incidental services in arranging or procuring a mortgage loan, including administrative staff wherein their primary function is the verification of data provided by the borrower, assembly of documents and coordination of third party service such as ordering an appraisal, title report or credit reports.

Anyone who deals directly with a consumer and reviews, analyzes, evaluates a proposed borrowers financial statements, income, property characteristics and credit history should obtain a license.

Licensing Requirements

To obtain a state license to become a residential mortgage loan originator, the following concepts should be adopted:

1. A written application for licensure must be required. The application should require an attestation by the applicant as to the applicant's experience and knowledge of the mortgage industry.

2. The applicant should submit to a background investigation of, at a minimum, criminal records, and employment history.