A. No licensee shall originate financing that will not need consideration and documentation associated with the consumer’s reasonable capacity to repay that loan pursuant to its terms.
B. a customer’s capacity to repay financing will probably be demonstrated through fairly dependable paperwork of this customer’s income, the buyer’s month-to-month debt burden, the expense of the mortgage, including major and interest when it comes to complete term of this loan, therefore the customer’s debt-to-income ratio.”
SECTION 11. a section that is new of brand brand New Mexico Small Loan Act of 1955 is enacted to learn:
” NEW MATERIAL PROHIBITED PRACTICES.–
A. a loan provider shall maybe perhaps perhaps not participate in any training whereby the financial institution communicates, through any means, by means of a direct, targeted solicitation to active borrowers to tell them they’ve extra credit accessible to them or that otherwise has got the purpose or effectation of enhancing the number of indebtedness of active borrowers owed towards the loan provider by motivating them to boost the quantity of their major financial obligation responsibility in a available loan item or by motivating them to obtain a brand new loan or even roll over or refinance a current loan. (mais…)