A. No licensee shall originate financing that will not need documents and consideration for the customer’s reasonable capacity to repay that loan pursuant to its terms.
B. a customer’s capacity to repay that loan will probably be demonstrated through fairly documentation that is reliable of customer’s earnings, the customer’s month-to-month debt burden, the price of the loan, including major and interest when it comes to complete term of this loan, in addition to consumer’s debt-to-income ratio.»
SECTION 11. a brand new area of the brand brand brand New Mexico Small Loan Act of 1955 is enacted to read through:
» NEW MATERIAL PROHIBITED PRACTICES.–
A. a loan provider shall perhaps maybe not participate in any training whereby the financial institution communicates, through any means, in the form of a direct, targeted solicitation to active borrowers to share with them they own additional credit open to them or that otherwise has got the function or effectation of enhancing the quantity of indebtedness of active borrowers owed into the loan provider by motivating them to improve the quantity of their major financial responsibility obligation within an available loan item or by motivating them to obtain an innovative new loan or even to roll over or refinance a current loan.