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A MEMORIAL

REQUESTING THE REGULATION AND LICENSING DEPARTMENT TO CONDUCT

A STUDY OF THE EXISTING REGULATORY FRAMEWORK FOR CONSUMER

LENDING, CONSUMER LENDING PRACTICES AND CONSUMER LENDING

NEEDS.

WHEREAS, many New Mexicans need access to short-term and

long-term loans for a variety of purposes; and

WHEREAS, this need extends throughout the population,

affecting persons with both substantial income and financial

resources as well as those existing with little or no income

and inadequate financial resources on a daily basis; and

WHEREAS, the New Mexico Small Loan Act was originally

enacted by the legislature in 1955; and

WHEREAS, the Motor Vehicle Sales Act was originally

enacted by the legislature in 1958; and

WHEREAS, the New Mexico Bank Installment Loan Act was

originally enacted by the legislature in 1959; and

WHEREAS, state laws relating to money and usury were

extensively revised in 1983; and

WHEREAS, the Pawnbrokers Act was originally enacted by

the legislature in 1985; and

WHEREAS, the Home Loan Protection Act was originally

enacted by the legislature in 2001; and

WHEREAS, current statutes and rules relating to consumer

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lending have not been comprehensively updated to reflect

recent trends in consumer financing;

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE

STATE OF NEW MEXICO that the director of the financial

institutions division of the regulation and licensing

department be requested to establish a consumer lending study

committee made up of representatives of all segments of the

consumer loan industry and consumers within the state; and

BE IT FURTHER RESOLVED that the consumer lending study

committee be requested to study the existing state statutes

and administrative rules and current consumer lending

practices in the state to determine what statutory or

regulatory framework might be needed to regulate modern

consumer lending practices to ensure consumer access to

necessary financial services and protect consumers from

predatory lending practices as well as to provide a healthy

economic environment for both lenders and consumers; and

BE IT FURTHER RESOLVED that the director of the

financial institutions division of the regulation and

licensing department present the findings and recommendations

of the consumer lending study committee to the governor and

to the appropriate interim legislative committees by

September 30, 2008; and

BE IT FURTHER RESOLVED that copies of this memorial be

transmitted to the governor, the superintendent of regulation

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and licensing and the director of the financial institutions

division of the regulation and licensing department.