Effective July 31, 2009, all mortgage loan originators, as well as a qualified manager for each mortgage loan company, must obtain a license in order to participate in the business of a mortgage loan originator with respect to any dwelling located in New Mexico. 

Each mortgage loan company must assign at least one qualified manager which is defined in the statutes as “an individual, designated by a mortgage loan company, responsible for the activities of the licensed mortgage loan company’s office, divisional office or branch office in conducting the business of that mortgage loan company’s office, divisional office or branch office and who meets requirements as specified by the director”. 

The qualified manager must have at least two years verifiable experience as a principal, partner, officer, director, manager, processor or underwriter of a mortgage loan company or a mortgage loan originator or have equivalent lending experience in a related business during the four years immediately preceding the time of application.

The requirements for licensure under the New Mexico Mortgage Loan Originator Licensing Act and the Mortgage Loan Company Act are as follows:

• Applicants must apply in a form prescribed by the director and may be changed or updated as necessary by the director in order to carry out the purposes of participation in the Nationwide Mortgage Licensing Registry.
• Criminal background check, credit report, and check of governmental information related to administrative, civil or criminal filings
• Character and fitness for licensure
• Completion of at least twenty (20) hours of pre-licensing education as approved by the NMLS which may be offered at any location and by any means, including live classroom instruction, online or by any other means approved by the NMLS
• Successful passage of a written examination with a score of at least 75%
• Proof of coverage under a surety bond in the amount of $50,000.

A license remains in effect until December 31^st of each year, and the licensee must submit his/her application for renewal no later than November 1^st.  In order to renew one’s license, the mortgage loan originator or qualified manager must submit proof that he/she has completed at least eight (8) hours of approved continuing education annually.

An applicant for renewal must also show proof of a surety bond in an amount that reflects the total dollar amount of mortgage loans originated annually in New Mexico by the licensed mortgage loan originator, as follows;

• Zero dollars ($0.00) to three million dollars ($3,000,000), a surety bond of fifty thousand dollars ($50,000)
• More than three million dollars ($3,000,000) and less than ten million dollars ($10,000,000), a surety bond of one hundred thousand dollars ($100,000)
• Ten million dollars ($10,000,000) or more, a surety bond of one hundred fifty thousand dollars ($150,000,000)

This law takes effect on July 31, 2009, and may be viewed in its entirety at http://www.nmlegis.gov/Sessions/09%20Regular/final/SB0342.pdf .