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SENATE MEMORIAL 41

TH LEGISLATURE

- STATE OF NEW MEXICO -

FIRST SESSION

, 2007

INTRODUCED BY

Bernadette M. Sanchez

A MEMORIAL

REQUESTING THE REGULATION AND LICENSING DEPARTMENT TO CONDUCT A

STUDY OF THE EXISTING REGULATORY FRAMEWORK FOR CONSUMER

LENDING, CONSUMER LENDING PRACTICES AND CONSUMER LENDING NEEDS.

WHEREAS, many New Mexicans need access to short-term and

long-term loans for a variety of purposes; and

WHEREAS, this need extends throughout the population,

affecting persons with both substantial income and financial

resources as well as those existing with little or no income

and inadequate financial resources on a daily basis; and

WHEREAS, the New Mexico Small Loan Act was originally

enacted by the legislature in 1955; and

WHEREAS, the Motor Vehicle Sales Act was originally

enacted by the legislature in 1958; and

WHEREAS, the New Mexico Bank Installment Loan Act was

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originally enacted by the legislature in 1959; and

WHEREAS, state laws relating to money and usury were

extensively revised in 1983; and

WHEREAS, the Pawnbrokers Act was originally enacted by the

legislature in 1985; and

WHEREAS, the Home Loan Protection Act was originally

enacted by the legislature in 2001; and

WHEREAS, current statutes and rules relating to consumer

lending have not been comprehensively updated to reflect recent

trends in consumer financing;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE

OF NEW MEXICO that the director of the financial institutions

division of the regulation and licensing department be

requested to establish a consumer lending study committee made

up of representatives of all segments of the consumer loan

industry and consumers within the state; and

BE IT FURTHER RESOLVED that the consumer lending study

committee be requested to study the existing state statutes and

administrative rules and current consumer lending practices in

the state to determine what statutory or regulatory framework

might be needed to regulate modern consumer lending practices

to ensure consumer access to necessary financial services and

protect consumers from predatory lending practices as well as

to provide a healthy economic environment for both lenders and

consumers; and

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BE IT FURTHER RESOLVED that the director of the financial

institutions division of the regulation and licensing

department present the findings and recommendations of the

consumer lending study committee to the governor and to the

appropriate interim legislative committees by September 30,

2008; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the governor, the superintendent of regulation

and licensing and the director of the financial institutions

division of the regulation and licensing department.

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