N.M. Code R. § 12.20.35.15

Current through Register Vol. 35, No. 11, June 11, 2024

Section 12.20.35.15 - FARMERS HOME ADMINISTRATION RURAL HOUSING PROGRAM GUARANTEED LOANS

A. General: An association may invest in loans on residential real estate guaranteed under the farmers home administration (FmHA) rural housing program, without regard to other provisions in this regulation or the Savings and Loan Act.

B. Limitations:

(1) FmM shall guarantee at least 80 percent of the principal amount and accrued interest of each loan made under the program.

(2) The loan terms must be acceptable to FmHA.

(3) An association may invest up to the greater of 2.5 percent of its assets or one-half of its net worth in the aggregate outstanding balance of the non-guaranteed portions of all loans made under the program and held by the association.

C. Record keeping: An association shall maintain records to verify compliance with the requirements for each investment made under this section including the loan note guarantee, lender's agreement, and documentation that the investment limitation has not been exceeded.

N.M. Code R. § 12.20.35.15

Recompiled 10/31/03