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F I S C A L I M P A C T R E P O R T

SPONSOR Foley

ORIGINAL DATE

LAST UPDATED

3/14/2007

HM 106

SHORT TITLE NM Credit Unions Real Solutions Program

SB

ANALYST Schuss

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

House Memorial 106 requests support for New Mexico Credit Unions participating in the REAL

Solutions program to offer affordable savings and borrowing opportunities, commending the

Credit Unions that participate in the REAL Solutions program.

SIGNIFICANT ISSUES

House Memorial 106 states that financial literacy, improved personal financial management and

creditworthiness help provide an avenue to personal financial stability and improve the financial

and economic well-being of New Mexico communities. Many New Mexicans with poor credit

histories are excluded from affordable savings and borrowing opportunities and, instead, turn to

high-cost, short-term lending practices that perpetuate a dangerous cycle of debt. Credit Unions

around New Mexico are working to provide New Mexicans with programs to keep members

financially solvent and out of the cycle of predatory lending through a program called REAL

Solutions.

REAL Solutions is a promising statewide initiative to help New Mexicans build financially

strong, self-supporting families and communities by offering affordable alternatives to high-cost

financial products and services. Credit Unions around New Mexico have committed to REAL

House Memorial 106 – Page

2

Solutions and rededicated themselves to the principles upon which they were founded, including

service to members and values placed on people, not profits.

The House of Representatives of the State of New Mexico requests that New Mexico

Credit Unions be commended for participation in the REAL Solutions program and for helping

to improve the financial viability of New Mexico families. HM 106 also requests that the House

of Representatives support credit unions’ efforts to provide financial literacy programs and

affordable alternatives to high-cost financial products and services

BS/mt