FAQs

Applications for approval to install or relocate ATMs may be made by letter to the Bank and Trust Industry Manager pursuant to § 58-16-1, et seq., NMSA 1978 (Remote Financial Services Units). A statutory fee of $400 for each ATM, payable to the FID, must accompany the application. The application letter should include the following:

a. name of the bank;

b. address where the ATM will be located;

c. brief description of the location;

d. why bank management believes the location is in the public interest; and

e. how bank management believes the ATM will meet the needs and promote
the convenience of the area to be served.

No.  Banks and credit unions can set their own overdraft and NSF fees.

Generally, yes.  The practice is generally called “right of set-off” or “right of off-set” and is disclosed to you at the time you open your account.

Yes.  The Federal Deposit Insurance Corporation insures your funds up to $250,000 (and more, depending upon the circumstances). To calculate your coverage, please visit the FDIC’s Electronic Deposit Insurance Estimator (EDIE) web site at https://edie.fdic.gov/.

Anyone who wants to start a bank chartered in New Mexico must file an application with the FID and the Federal Deposit Insurance Corporation (FDIC). If they wish to be a state member bank, they must also file an application with the Federal Reserve Bank. The interagency application can be obtained by visiting the FDIC web site at www.fdic.gov. The application will include a business plan and the minimum capital requirement will be established by the regulators based on the risk profile of the business plan.

New Mexico state chartered banks are required to limit the total amount of loans to an obligor, typically calculated as 35% of capital and surplus. It is the position of the FID that “obligor” includes guarantor relationships.  To explore the full requirements and exemptions of the legal lending limit in New Mexico, please refer to § 58-1-24 NMSA 1978 (Diversification of Loans and Investments) and Rule 12.16.22 NMAC (Capital and Surplus).

For questions and concerns about New Mexico state chartered banks, please contact the Bank & Trust Industry Manager.

It depends. Pursuant to § 61-18A-2(C)(7)(c) NMSA 1978, the definition of a collection agency does not include a third party servicer of debt of which was not in default at the time the debt was obtained. Based upon the statutory definition, third party mortgage servicers are not required to be licensed in New Mexico as long as any loan serviced by such servicer was not in default upon obtaining it.

Yes.  Collection agencies are required to maintain a surety bond of $5,000 or an amount equal to the proceeds due clients for at least two average collections during the previous year not to exceed $25,000. An additional $5,000 surety bond is required for each branch licensed. To calculate the required bond amount, utilize the Surety Bond Calculator available on the FID’s website.

Yes, collection agencies are required to maintain a New Mexico office to which the licensed Collection Agency Manager must be physically present at least seventy-five percent (75%) of the time during which the office is open for business.

Yes.  Applications are available in the forms and applications section of FID’s website.

Collection agencies in New Mexico must comply with the Collection Agency Regulatory Act (§ 61-18A-1, et seq., NMSA 1978), the Fair Debt Collection Practices Act (15 US Code § 1692e), and rules promulgated thereto.

Yes.  FID staff will administer a test to all new collection agency manager applicants.  The fee for the examination is $100 and is available by appointment only.

A manager applicant must:

1. be a US citizen,
2. be a resident of New Mexico,
3. have reached the age of majority,
4. not have been convicted of a felony or crime involving moral turpitude,
5. be a high school graduate or equivalent high school education,
6. pay the collection agency manager examination fee,
7. pass the collection agency manager examination,
8. have been actively and continuously engaged or employed in the collection of accounts receivable for at least two of the five years preceding the filing of the application, and
9. possess good credit.

No.  A person must obtain a repossessor’s license from FID prior to conducting vehicle repossessions.

Yes.  Repossessors are required to obtain a surety bond of at least $5,000.

For any change of address, these entities must submit a letter requesting permission from FID, accompanied by a fee in the amount of $15.

To surrender a collection agency, branch, manager, or repossessor license, a licensee must submit a letter on company letterhead to the Director of FID and include a copy of the surrendered license. The letter must provide detailed information as to the reason for license surrender. For a collection agency, branch, or manager, the letter must also provide detailed information regarding the collection of any outstanding accounts.

For questions and concerns about New Mexico collection agencies and repossessors, please contact the Consumer Credit & Money Services Industry Manager.

The minimum amount of donated capital required to start a credit union is dependent upon the business plan submitted. The business plan must detail the startup cost of the credit union along with money available for the operations of the credit union until it becomes self-sufficient.

For questions and concerns about New Mexico credit unions, please contact the Credit Union and Endowed Care Cemetery Industry Manager.

State, county, and city laws should be consulted prior to doing this.

The statute does not provide for mandatory cancelation provisions. In most instances, the cemetery will not allow the purchaser to cancel a contract and thus, no refund options are available.

No, there is no price regulation in the cemetery industry.

If the cemetery’s rules and regulations require the use of an outer burial container, you must have one for burial. It is a decision made by the individual cemetery.

A lawn crypt is a subsurface burial container installed in multiple units that has a system for drainage and moisture control. Lawn crypts may only be sold in dedicated lawn crypt gardens.

For questions and concerns about endowed care cemeteries, please contact the Credit Union and Endowed Care Cemetery Industry Manager.

An “escrow company” means any person engaged in the business of receiving escrows for deposit or delivery for compensation that is required to be licensed under the Escrow Company Act.

Not generally.  Title companies typically provide what is referred to as “escrow closing services” by “escrow closing agents,” which is generally a one-time action completed on behalf of a buyer and seller for the purpose of consummating a real estate transaction.  Escrow closing agents are defined in NMAC 12.25.2.7(G) and are specifically exempted from FID’s licensing requirements.  While a few title companies are also engaged in escrow company activities, and therefore hold an escrow company license through FID, they are not required to offer these services and many do not.

Yes. No person shall engage in business as an escrow company unless that person is licensed as an escrow company.  However, escrow closing agents are defined in NMAC 12.25.2.7(G) and are specifically exempted from FID’s licensing requirements.  

An escrow company is required to maintain a bond in the amount of $100,000.

For questions and concerns about escrow companies, please contact the Mortgage and Escrow Industry Manager.

Only a state chartered or federally chartered bank may apply to open a Loan Production Office in New Mexico. This application must be submitted to the Bank and Trust Industry Manager in writing with the information below:

1. 1. the name of the bank and its FDIC Insurance Certificate Number,
   2. the location of the LPO,
   3. the number of officers and other personnel to be employed at each LPO location,
   4. the name and address of the bank at which loans will be approved or denied and disbursements made,
   5. a copy of the Statement of Condition of the sponsoring bank; and
   6. the applicant bank must attest in writing that they will comply with Rule 12.16.75.8 NMAC.

For questions and concerns about LPOs, please contact the Bank and Trust Industry Manager.

Money service businesses are required to complete a license application through the Nationwide Multistate Licensing System (NMLS). Requirements for each specific license type are provided on the new application checklists in the forms and applications section of our website.

Yes, any business engaged in check cashing services whose revenue is less than $2,500 in any given 30 day period may apply for a license exemption with the FID.

Yes. Pursuant to the definitions of “money”, “monetary value”, “money transmission”, ”payment instrument”, “stored value”, and “internet-based money services business” as contained within the Uniform Money Services Act § 58-32-102 NMSA 1978, it is the position of FID that any entity engaged in the business of providing the exchange of virtual currency for money or any other form of monetary value or stored value to persons located in the State of New Mexico must be licensed by the FID as a money transmitter.

Surety bonds are required for money transmitter licenses only. Pursuant to § 58-32-203(A) NMSA 1978, money transmitters must maintain a minimum surety bond of $300,000 or 1% of the total yearly dollar volume of money transmission business within the State of New Mexico, whichever is greater. Surety bonds amounts are capped at $2,000,000. A surety bond requirement calculator is available on the MSB section of our website.

Control persons are defined as direct owners, indirect owners, and executive officers.

Please see the Statutes, Rules, Guidance, Actions, and Hearings page and review the “Regulatory Guidance Regarding Use of the Word Trust in Non-Trust Company Names” issued on July 7, 2023.

The FID does not issue license certificates or license numbers for MSBs. The NMLS ID number assigned to your business will be the New Mexico license identifying number.

All Money Transmitter, Check Casher, and Currency Exchange licenses expire on December 31 of each calendar year.

Yes. FID requires reporting of all authorized agents and/or delegates due within 45 days after the end of each fiscal quarter. The reports must be submitting by utilizing the Uniform Authorized Agent Reporting (UAAR) functionality in the NMLS system.

The New Mexico Attorney General may require additional money laundering reporting for federal currency, recordkeeping, and suspicious transactions. For information, contact the Attorney General’s Office.

MSBs are required to submit an advance change notice through the NMLS system for all direct and indirect proposed control changes. Businesses are required to submit $2,000 non-refundable fee for any control changes of 25% or more for the licensee or parent company. Detailed information regarding any such control change, including a revised organization chart showing ownership percentage changes, is also required.

To surrender an MSB license, a licensee must log into their NMLS account and follow the steps provided. FID requires licensees to provide detailed information as to the reason for license surrender and a surrender effective date.

For questions and concerns about MSBs, please contact the Consumer Credit & Money Services Industry Manager.

Yes.  All mortgage loan companies doing business in New Mexico must obtain a license through the Nationwide Multistate Licensing System (NMLS).

Anyone who is a control person or an employee of a mortgage loan company, so long as they meet the requirements of a qualified manager, which are:

1. 1. they must be a licensed mortgage loan originator; and
   2. they must have verifiable experience in the mortgage lending industry for at least two of the past four years.

Yes, if they are conducting business in New Mexico on residential property.

No.

Yes. It covers all residential mortgage loan products and transactions including chattel.

Yes, the following persons are exempt from all provisions of the Mortgage Loan Company and Loan Broker Act (§ 58-21-1, et seq., NMSA 1978):

1. 1. banks, trust companies, savings and loan associations, credit unions, insurance companies, and real estate investment trusts as defined in 26 US Code § 856;
   2. an attorney licensed to practice law in New Mexico who is not principally engaged in the business of negotiating loans secured by real or personal property, when the person renders services in the course of his practice as an attorney;
   3. a New Mexico-licensed real estate broker rendering service in the performance of his duties as a real estate broker who obtains financing for a real estate transaction involving an actual bona fide sale of real estate or real estate contract handled by the broker and who receives only the customary real estate broker’s commission in connection with the transaction;
   4. a person doing an act under order of a court;
   5. an individual making a single mortgage loan in a calendar year with the individual’s own funds for the individual’s own investment without the intent to resell the mortgage loan;
   6. the United States of America, State of New Mexico, or any of their branches, agencies, departments, boards, instrumentalities, or institutions, and all political subdivisions of the state and their agencies, instrumentalities, and institutions; and
   7. a company licensed as a small business investment company under the federal Small Business Investment Act of 1958.

Any individual who for compensation or gain or in the expectation of compensation or gain takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan.

It depends. Processors or underwriters do not need a license if they perform clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed or exempt from licensing pursuant to the Mortgage Loan Company Act. Processors or underwriters do need a license if they are an independent contractor.

Yes. A mortgage loan originator must:

1. 1. apply for a license through NMLS and obtain a unique identifier number;
   2. take 20 hours of mortgage education, which will include 3 hours of New Mexico specific classes;
   3. pass a national and state specific test;
   4. provide a credit report obtained by the NMLS;
   5. pass a background check with fingerprints; and
   6. have a surety bond or be sponsored by a mortgage loan company that is licensed and bonded in the State of New Mexico.

Yes.  A mortgage loan originator is required to obtain 8 hours of continuing education, which includes 1 hour of New Mexico specific education. The continuing education is not required in the same calendar year that the mortgage loan originator first obtains their license.

Yes. The following are exempt from the provisions of the New Mexico Mortgage Loan Originator Licensing Act:

1. 1. registered mortgage loan originators when acting for an entity defined in § 58-21B-3(P)(1) NMSA 1978 of the New Mexico Mortgage Loan Originator Licensing Act;
   2. an individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual;
   3. an individual who offers or negotiates terms of a real property sale financed in whole or in part by the seller and secured by the seller’s real property; or
   4. a licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client, unless the attorney is compensated by a lender, a mortgage loan company, or other mortgage loan originator or by any agent of such lender, mortgage loan company, or other mortgage loan originator.

Yes.  Each mortgage loan company or mortgage loan originator, if not sponsored by a mortgage loan company, must maintain a corporate surety bond. The bond must be in an initial amount of fifty thousand dollars ($50,000) for the first year. After the first year, the following scale will determine the surety bond necessary based on loans closed in New Mexico:

1. 1. $0 to three million dollars ($3,000,000): fifty thousand dollar ($50,000) bond;
   2. Over three million dollars ($3,000,000) to ten million dollars ($10,000,000): one hundred thousand dollar ($100,000) bond; and
   3. Over ten million dollars ($10,000,000): one hundred fifty thousand dollar ($150,000) bond.

Licenses expire on December 31 of each calendar year.

All licenses expire on December 31 of each year. All license renewal applications will begin being processed on November 1 of each calendar year and are due by December 31.

Licensed mortgage loan companies and originators must submit any changes to their status through the NMLS and pay a fee of $50.

The required retention period is six years pursuant to § 58-21-11 NMSA 1978. These files and records can be kept in physical form or can be stored on any accessible electronic medium.

Yes.  As a licensed mortgage loan company or mortgage loan originator with the State of New Mexico, you or any of your branches are subject to an examination of your mortgage files, books, and records.

No, unless the examination results in an investigation of the mortgage loan company or mortgage loan originator.

Unless specifically exempted in statue, none.

Any lawful residential mortgage loan secured by a dwelling. A “dwelling” means a residential structure that contains one to four units whether or not that structure is attached to real property. “Dwelling” includes an individual condominium unit, an individual cooperative unit, a mobile home, and a trailer if used as a residence.

Yes, if you are conducting business involving New Mexico property.

Table funding is a simultaneous closing where there is a transfer or sale of a property and the note created between the buyer and seller is purchased by an investor at the same closing table where the real estate transaction is taking place.

These are legal determinations to be made by Lenders/Brokers. Forms, applications, and information may be obtained by contacting the New Mexico Secretary of State’s Office at 505-827-3600 or www.sos.state.nm.us.

Yes. There is a mortgage loan summary and a mortgage loan compensation disclosure that are required to be disclosed to the borrower(s) at least two days prior to closing and a Rate Lock disclosure. The requirements for these disclosures are set in Rule 12.19.8.12 NMAC.

If the activities performed by an individual or a business involves the activities contemplated in the definition of a “mortgage loan originator” pursuant to § 58-21B-3(K) (the New Mexico Mortgage Loan Originator Licensing Act), and/or the definition of a “mortgage loan company” pursuant to § 58-21-2(I) (the Mortgage Loan Company Act), the licensure requirement is triggered. FID must comply with the letter of the law in considering whether the activities of any person or  individual requires licensure and must do so apart from of any other activities or services performed. The statutes do not provide a grace period for licensure for this activity.

For questions and concerns about mortgage loan companies and originators, please contact the Mortgage and Escrow Industry Manager.

No, a bond is not required to obtain a Motor Vehicle Sales Finance License.

It is a requirement to send a letter requesting permission from the FID, along with a fee in the amount of $25.

To surrender a Motor Vehicle Sales Finance license, a licensee must submit a letter on company letterhead to the FID along with a copy of the surrendered license.  The letter must provide detailed information as to the reason for license surrender and the collection of any outstanding accounts.

For questions and concerns about motor vehicle sales finance, please contact the Consumer Credit & Money Services Industry Manager.

Yes, small loan companies in New Mexico must comply with the New Mexico Bank Installment Loan Act § 58-7-1, et seq., NMSA 1978, the Small Loan Business Act § 58-15-1, et seq., NMSA 1978, and rules promulgated thereto.

Yes, small loan companies in New Mexico must comply with the New Mexico Bank Installment Loan Act § 58-7-1, et seq., NMSA 1978, the Small Loan Business Act § 58-15-1, et seq., NMSA 1978, and rules promulgated thereto.  Both of these Acts limited the Annual Percentage Rate (APR) that a small loan company can legally charge you.  These laws and associated rules went into effect for loans made beginning on January 1, 2023.

The APR is the cost of your credit as a yearly rate.  APR is a combination of the interest rate plus the fees charged on your loan.  APR is higher than the interest rate because it includes both fees and interest as finance charges.

Your actual terms and the Annual Percentage Rate (APR) will be determined at the time your application is submitted and will be based upon your application and credit information.  Not all applicants will qualify for the lowest rate.

The calculation of APR is mandated pursuant to Federal Law (12 CFR Part 1026 – Truth in Lending Act (“TIL-APR”)).  It is intended to provide a single value for a consumer to compare the cost of credit between one lender and another.  Under New Mexico law, an additional type of annual percentage rate (“NM-APR”) must be disclosed, which may include additional charges that are not included in the TIL-APR.  The NM-APR for a loan in an amount of more than $500 and up to $10,000 made pursuant to the Small Loan Act of 1955 or the Bank Installment Loan Act of 1959 cannot exceed thirty-six percent.  The NM-APR for a loan in an amount of $500 or less made pursuant to the Small Loan Act of 1955 or the Bank Installment Loan Act of 1959 cannot exceed thirty-six percent plus a fee that shall not exceed five percent of the total principal of the loan and shall not be imposed on any borrower more than once per twelve-month period.

Please be aware that foreign (offshore, non-US) companies and Native American lenders who operate on tribal land are not subject to these laws.  Be sure to ask questions about the company’s licensure and your specific rates before signing any paperwork.

It is a requirement to send a letter requesting permission from the FID along with a fee in the amount of $25.

Yes, any licensee that did not originate a single loan in the amount of $10,000 or less within the prior calendar year is required to submit a letter on company letterhead to the FID. Included in the submission, a completed Signature of Certification form attesting that no loans were made in prior calendar year in the amount of $10,000 or less is required.

To surrender a small loan company license, a licensee must submit a letter on company letterhead to the FID along with a copy of the surrendered license. The letter must provide detailed information as to the reason for license surrender and for the collection of any outstanding accounts.  Surrendering a license does not exempt your company from the mandatory annual reporting requirement for loans made prior to surrendering.

For questions and concerns about small loans or lenders, please contact the Consumer Credit & Money Services Industry Manager.

“Trust business” means the holding out by a person, legal entity, or corporation to the public that they are available to act as a “fiduciary” in this state or is accepting and undertaking to perform the duties of a fiduciary in the regular course of its business (even if acting as a fiduciary is not the primary focus of said business).

A fiduciary is an executor, administrator, conservator, or trustee.

The minimum capital requirement shall be in the amount of $500,000, unencumbered, and FDIC insured or issued by the US Treasury.

An application for a certificate shall be in writing and delivered to the Bank and Trust Industry Manager. An application fee applies, as prescribed by §58-9-5 NMSA 1978. The application should include the following sections, at a minimum:

1. 1.  a “Biographical and Financial Report” for every director and officer of the trust company. This report is available under the forms and applications section of our website;
   2. proof of liquid capital, FDIC insured or issued by the US Treasury;
   3. proof of sufficient fidelity bond and insurance;
   4. three to five years pro-forma for the trust company;
   5. strategic and succession plans;
   6. appropriate policies; and
   7.  any other information the applicants believe will aid the Director of the FID in rendering an informed decision.

Also, please review department issued guidance regarding clarification on the requirements of a principal office.

For questions and concerns about trust companies, please contact the Bank and Trust Industry Manager.