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(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

New Mexico Mortgage Finance Authority

Department of Insurance, Title Insurance Bureau

Regulation and Licensing Department, Financial Institutions Division

SUMMARY

Synopsis of Bill

House Bill 94 combines two separate trust funds under the Land Title Trust Fund to allow for more efficient administration of the funds collected pursuant to the Low-Income Housing Trust Act and the Land Title Trust Fund Act, both legislatively created for the purpose of assisting low income New Mexicans.

Significant Issues

The Land Title Trust Fund was established and designed to operate under guidelines that are more specific than those that apply to the Low-Income Housing Trust Fund. To be able to more efficiently implement the policies inherent in both Acts, the funds created by those Acts need to be combined into a single fund and administered by the New Mexico Mortgage Finance Authority pursuant to more specific provisions of the Land Title Trust Fund Act.

House Bill 94 designates the director of the financial institutions division to adopt rules to carry out the provisions of the Low-Income Housing Trust Act rather than the Real Estate Commission. The bill also removes the current language which provides parameters for how the low income housing trust funds will be used and directs the money to be used in accordance with the provisions of the Land Title Trust Fund Act, since the money resulting from both acts will be deposited to the same fund. House Bill 94 would combine the funds created by these Acts into a single fund, thereby providing for a distribution method to low income persons.

According to the MFA, the Low Income Housing Trust Fund had a balance of $89,869.78 as of November 17, 1998. The balance in the Land Title Trust Fund was $168,021.85 as of November 29, 1998. House Bill 94 directs the trustee to deposit in the Land Title Trust Fund, the money it receives pursuant to the Low Income Housing Trust Act, and transfers the balance in the Low Income Housing Trust Fund to the Land Title Trust Fund.

FISCAL IMPLICATIONS

There will be no fiscal impact to the state general fund or to the MFA.

ADMINISTRATIVE IMPLICATIONS

The Department of Regulations and Licensing, Financial Institutions Division will have to review and amend the current regulations to coincide with the direction of the legislation, however, no additional personnel will be required.

LMK/njw