3 Hour NM SAFE: New Mexico Mortgage Lending Laws

This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in New Mexico under the New Mexico Financial Institutions Division (FID). This 3-hour course covers New Mexico specific rules and regulations, and is required as part of the 20 hours of prelicense education needed to become a NM-licensed mortgage loan originator.

Topics and Learning Objectives

This course consists of five modules and a final exam:

1. Mortgage Acts and Authority (20 minutes)

2. New Mexico Licensure Steps (18 minutes)

3. Complying with the Mortgage Loan Company Act (22 minutes)

4. Complying with the Mortgage Loan Originator Licensing Act (20 minutes)

5. The New Mexico Home Loan Protection Act (50 minutes)

6. Final Exam (20 minutes)

Total study time: 3 clock hours (150 minutes)

Module 1: Mortgage Acts and Authority

The New Mexico Financial Institutions Division (FID) is the state agency in charge of consumer financial protection, ensuring a safe environment for lending in our state, and licensing and regulating those who want to work in the industry at such locations as banks, escrow companies, credit unions, and mortgage loan companies. This chapter introduces the FID and its Director, and presents industry terms that will be used throughout the course.

Module 2: New Mexico Licensure Steps

Before you can accept a residential mortgage loan application from a potential borrower, or offer to arrange or negotiate a loan transaction for an applicant, with the expectation of being compensated for your efforts, you need to be licensed as a mortgage loan originator. This module will explain the requirements for obtaining an MLO license from the Financial Institutions Division.

Module 3: Complying with the Mortgage Loan Company Act

Once a mortgage company or mortgage originator has obtained a license under the Mortgage Loan Company Act or the Mortgage Loan Originator Licensing Act, the licensee must follow rules and procedures contained in the Acts. The Financial Institutions Division of the Regulation and Licensing Department has a number of enforcement and sanction powers should a licensee or an affiliate not comply with the Acts or the terms of their license.

This module will analyze the regulations expected of licensees who are licensed under the Mortgage Loan Company Act (MLCA) can

Module 4: Complying with the Mortgage Loan Originator Licensing Act

In writing and passing the Mortgage Loan Originator Licensing Act, the New Mexico legislature emphasized the importance of mortgage loan origination services to the state’s people, communities, and economy. At the same time, lawmakers said, reasonable licensing and regulatory standards are "essential for the protection of the residents of New Mexico and the stability of New Mexico’s economy[.]" (NM Stat 58-21B-2.A) With this explicit consumer-protection focus, the Act contains more requirements, and is in some ways more specific in those requirements, than the Mortgage Loan Company Act.

In this module, we'll cover the acts outlined by the MLOLA that mortgage loan originators must follow as part of the authorization given to them as a New Mexico licensee.

Module 5: The New Mexico Home Loan Protection Act

The New Mexico Home Loan Protection Act (HLPA) contains rules and regulations intended to protect New Mexico residential mortgage borrowers from deceptive acts initiated by tricky lenders. This module dives into the details of the act, the restrictions it places on creditors, and the safeguards it gives to consumers.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID, but don't remember what it is:

• Login into NMLS,
• Click on the Composite View tab, then
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center