N.M. Admin. Code § 13.14.9.39

Current through Register Vol. 35, No. 21, November 5, 2024

Section 13.14.9.39 - SUBSTITUTION RATE ON LOANS TO TAKE UP, RENEW, EXTEND OR SATISFY AN EXISTING INSURED LOAN

A.For purpose of the premium discount on refinanced property pursuant to Section 59A-30-6.1 NMSA 1978, the term "same borrower" in Section 59A-30-6.1 NMSA 1978 shall have the same meaning as "insured" as defined in Paragraph 1 (D) of the conditions set forth in NM form 1.

B.The term "same property" in Section 59A-30-6.1 NMSA 1978 shall mean the identical property or any portion thereof. The reduction in rate pursuant to Section 59A-30-6.1 NMSA 1978 shall not apply in any case where any additional property not covered by the original policy or policies is included in the policy to be issued.

C.If two or more previous loan policies insuring different properties are presented to the title insurance agency or title insurer for a refinance discount pursuant to Section 59A-30-6.1 NMSA 1978, and provided that the new policy will contain the same properties as shown in said previous policies, the discount will be computed as follows: title insurance agency or title insurer shall base the discount on the date of issue of the oldest previous policy and upon a liability amount equal to the sum of the liability amounts of the previous policies. In no event shall the premium collected be less than the regular minimum promulgated rate for an owner's policy.

D.This rule, may be applied in connection with the issuance of a series of mortgage policies issued by reason of noted being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual loan policies must be issued at the original first loan single issue rate.

N.M. Admin. Code § 13.14.9.39

4-3-95; 13.14.9.39 NMAC - Rn, 13 NMAC 14.9.12.5, 5-15-00; A, 7-1-05, Amended, New Mexico Register, Volume XXV, Issue 15, August 15, 2014, eff.8/15/2014, Amended by New Mexico Register, Volume XXIX, Issue 10, May 29, 2018, eff. 7/1/2018, Amended by New Mexico Register, Volume XXIX, Issue 12, June 26, 2018, eff. 7/1/2018, Adopted by New Mexico Register, Volume XXXI, Issue 24, December 29, 2020, eff. 1/1/2021