us-nm/stat
NMSA 1978, § 7-27-5.3 — Conventional mortgage pass-through securities
A.
The severance tax permanent fund may be invested in conventional mortgage
pass-through securities secured by real estate situated in New Mexico. In the initial
twelve-month period, the aggregate face amount of such securities shall not exceed one
hundred million dollars ($100,000,000), and in no succeeding fiscal year shall the face
amount of pass-through securities authorized by the council in that fiscal year exceed
one hundred million dollars ($100,000,000).
B.
The council shall establish the yield on investments in conventional mortgage
pass-through securities, which yield shall be in effect from the effective date of this act
until July 1, 1986. After that date, the yield shall not be less than one-half of one percent
of the investment below, and shall be determined by reference to, the yield on
comparable term and type government national mortgage association securities. Such
yield shall not be less than one-half of one percent of the investment below, and shall
be determined by reference to, the yield on comparable term and type government
national mortgage association securities.
C.
The council may purchase conventional mortgage pass-through securities
created and issued by a mortgage pooling corporation which has purchased eligible
mortgages from mortgage lenders authorized to originate mortgages in New Mexico and
which maintains a permanent manned office within New Mexico; provided, however, the
council may, in its discretion, purchase such conventional mortgage pass-through
securities directly from such qualified mortgage lenders.
D.
Conventional mortgage pass-through securities eligible for purchase by the
council shall be limited to such securities issued by the federal national mortgage
association or issued by a governmental agency, representing an undivided ownership
interest in a pool of mortgage loans.
E.
The mortgage pooling corporation and the qualified mortgage lender shall be
subject to such regulations as the council may promulgate and shall enter into written
agreements specifying the powers and duties of the respective parties. The council shall
further establish guidelines for mortgage loans eligible for inclusion in the pass-through
security, provided such guidelines do not contradict the eligibility requirements set forth
in Subsection F of this section.
F.
To be eligible for inclusion in a conventional mortgage pass-through security, the
mortgage loan shall:
(1) be originated by a qualified mortgage lender;
(2) be secured by a single-family dwelling to be occupied by the owner;
(3) be a conventional mortgage, deed of trust or other security instrument
creating a first lien against the fee simple in real estate situated in New Mexico upon
which there is constructed a permanent structure;
(4) have a maximum original term not to exceed thirty years;
(5) be made to a person domiciled in New Mexico who is eighteen years of
age or older;
(6) contain no prepayment penalties; and
(7) not exceed the dollar limit for federal national mortgage association
approved mortgages.
G.
To be eligible for purchase by the council, the securities shall be based on
mortgage loans on new construction for at least sixty percent of the dollar amount of the
securities.
Source: official text