Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports
if they are used for other purposes.
Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).
Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and
attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.
F I S C A L I M P A C T R E P O R T
SPONSOR Boitano
ORIGINAL DATE
LAST UPDATED
1/25/06
HB
SHORT TITLE Individual Loan Originator Licensing Study
SM 1
ANALYST Baca
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
SUMMARY
Synopsis of Bill
.
Senate Memorial 1 requests that a study group be formed to study the extent of any existing or
potential problems under present unregulated status of the loan originating industry, and that the
working group report its findings and recommendations for proposed legislation to the interim
legislative Mortgage Authority Act Oversight Committee by no later than October 1, 2006. The
study group is to be composed of one person from each of the following:
New Mexico Mortgage Lenders Association,
New Mexico Financial Services Association,
New Mexico Realtors Association,
New Mexico Manufactured Housing Association,
Consumer Protection Division of the Attorney Generals Office, and
Financial Institutions Division of the Regulation and Licensing Department.
Copies of this memorial are to be transmitted to each of the participating organizations.
FISCAL IMPLICATIONS
The bill contains no appropriation. As has been done with other similar studies, it is assumed
that each participating organization will absorb costs associated with the study within their exist-
ing budgets.
pg_0002
Senate Memorial 1 Page
2
SIGNIFICANT ISSUES
The bill addresses concerns that many persons working with consumers in the loan origination
of mortgage loans are not currently licensed or regulated by the state. Absent any training or ex-
perience requirements for a person to engage in assisting consumers to obtain mortgage loans
loan origination, it is feared that consumers may not be as well served as they should be.
WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL
The proposed study may not be conducted.
LB/yr