N.M. Code R. § 12.20.35.12
Current through Register Vol. 35, No. 11, June 11, 2024
Section 12.20.35.12 - LEEWAY AUTHORITY FOR LOANS RELATING TO RESIDENTIAL REAL ESTATE AND FARMSA. Loans without requirement of security for construction purposes: In addition to loans in which it may invest under other provisions of this regulation, an association may invest an amount not exceeding the greater of its surplus, undivided profits, and reserves or 5 percent of its assets in loans the principal purpose of which is to provide financing with respect to what is or is expected to become primarily residential real estate where the association relies substantially for repayment on:(1) the borrower's general credit standing and forecast of income with or without other security, or(2) other assurances of repayment, including but not limited to a third-party guaranty or similar obligation.B. Nonconforming secured loans: In addition to loans in which it may invest under other provisions of this regulation, an association may invest an amount not exceeding five percent of its assets in loans, advances of credit, and interests therein, secured by real estate for primarily residential use or real estate used or to be used for commercial farming that are not otherwise authorized: provided, that home loans made under this authority must conform to the notice and disclosure requirements of paragraph III (a) (2) of this regulation [now Paragraph (2) of Subsection A of 12.20.35.10 NMAC].N.M. Code R. § 12.20.35.12