REQUESTING THE DIRECTOR OF THE FINANCIAL INSTITUTIONS DIVISION OF THE REGULATION AND LICENSING DEPARTMENT TO SELECT A STUDY COMMITTEE MADE UP OF REPRESENTATIVES OF THE LENDING INDUSTRY AND CONSUMERS TO STUDY THE EXISTING REGULATORY STATUTES OF AND THE EXISTING LENDING PRACTICES IN THE STATE TO DETERMINE WHAT, IF ANY, LEGISLATION IS NECESSARY TO PROVIDE A HEALTHY ECONOMIC ENVIRONMENT FOR BOTH LENDERS AND CONSUMERS.

WHEREAS, many New Mexicans need access to short-term and long-term loans; 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, computer and communications technology has made it possible to offer instant short-term high interest loans to people in dire financial circumstances without requirements for credit establishment or verification; and

WHEREAS, serious questions arise about whether this relatively new fast loan industry is regulated adequately under current law;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF NEW MEXICO that the director of the financial institutions division of the regulation and licensing department be requested to select a committee made up of representatives of all segments of the loan industry and consumers within the state to study the existing regulatory statutes of and the existing lending practices in the state to determine what, if any, legislation is necessary to provide a healthy economic environment for both lenders and consumers; and

BE IT FURTHER RESOLVED that the director of the financial institutions division report to the second session of the forty-fourth legislature his findings and recommendations resulting from the study; and

BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the governor, the superintendent of regulation and licensing and to the director of the financial institutions division of the regulation and licensing department.