N.M. Code R. § 12.20.44.7

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

Section 12.20.44.7 - DEFINITIONS

A. "Acquisition charges" includes finder's fee, buying commission, attorney's fee and brokerage fee paid by an association in connection with the making or acquisition of a mortgage loan or commitment, but does not include a premium paid by such association in connection with the purchase of a mortgage loan.

B. "Acquisition credits" means that portion of any consideration other than the average interest provided by the loan contract, charged or received by an institution for or in connection with the making or acquisition of a mortgage loan or commitment that is made or acquired, that is in excess of the greater of a) $50.00 or b) two percent of the amount of the loan if the loan is for the purpose of construction, or one percent of the amount of the loan if the loan is for any other purpose, plus for either type of loan $50.00 for those associations utilizing employees of the association to perform appraisal, attorney or loan closing functions; provided that the term "acquisition credits" does not include specifically itemized charges collected by an association from the borrower and paid out to third parties for necessary initial charges in connection with the mortgage loan.

C. "Amount of loan" means the face amount of the obligation executed by the primary obligor on a mortgage loan, except that with respect to a mortgage loan acquired by an association such term means the principal balance of such loan at the time of its acquisition by such association.

D. "Mortgage loan" means any loan or contract (or interest therein) on the security of real estate.

N.M. Code R. § 12.20.44.7

3/31/78; 8/30/97; Recompiled 10/15/01