A. General: A real estate loan is any loan secured by real estate where the association relies substantially upon that real estate as the primary security for the loan. An association may invest in, sell, purchase, participate or otherwise deal in real estate loans or interests therein, as provided in this regulation, notwithstanding provisions to the contrary contained in the Savings and Loan Act.
B. Determination of loan-to-value ratios:
(1) In determining compliance with maximum loan-to-value limitations in this regulation, at the time of making a loan an association shall add together the unpaid amount of, all recorded loans secured by prior mortgages, liens or other encumbrances on the security property that would take precedence over the association's loan, and shall not make such a loan unless the total armunt of such loans (including the one to be made but excluding loans that will be paid off out of the proceeds of the new loan) does not exceed applicable maximum loanw-to value limitations prescribed in this regulation, as indicated by documentation retained in the loan file.
(2) In valuing the real estate security, an association shall use the current appraised value of the security property, which may include any expected value of improx-rements to be financed. "Value" for a real estate loan means market value.
C. Purchase of loans from the federal savings and loan insurance corporation. An association may purchase from the federal savings and loan insurance corporation any real-estate-related loan guaranteed by the corporation under a guarantee contract made by the corporation with the purchasing association


N.M. Code R. §
Recompiled 10/31/03

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