N.M. Admin. Code § 2.60.23.11

Current through Register Vol. 35, No. 23, December 10, 2024

Section 2.60.23.11 - REQUIREMENTS FOR MORTGAGE LOANS

All mortgage loans which are included in any mortgage pass-through security purchased by the council shall contain the following minimum criteria:

A. be originated by a qualified mortgage lender;

B. be secured by a single family residence;

C. be a conventional mortgage;

D. have a maximum term which shall not be greater than thirty years and a minimum term which shall not be less than twenty years;

E. be made to an eligible mortgagor;

F. contain no prepayment penalties;

G. be freely assumable by an eligible assumptor, if the single family residence will be owner-occupied after assumption;

H. not exceed the dollar limit for FNMA approved mortgages, as in effect at the time the loans are originated;

I. have a maximum loan-to-value ratio of 80 percent, however mortgage loans with loan-to-value ratios of up to and including 95 percent may be considered for inclusion if such mortgage loans are subject to primary mortgage insurance in an amount sufficient to provide that the uninsured portion of the mortgage loan does not exceed 72 percent of the value of the property;

J. permit the mortgage lender to charge, as an origination fee, no more than 2 percent of the amount of the mortgage loan, to be allocated between the eligible mortgagor and the seller; and

K. such other requirements that an independent nationally recognized bond rating service would require to give a security purchased under the "Pass-through Securities Investment Act" a AA rating or higher.

N.M. Admin. Code § 2.60.23.11

Recompiled 10/1/01