An Update on the Laws Associated with Owner Financing in New Mexico

Posted by Ric Thom on January 11th, 2011

At this point in time in New Mexico rules and regulations pertaining to owner financing are the same as they have always been. The State of New Mexico has exempted seller financing from their mortgage loan origination act. You can go to On the left hand side click on Financial Institutions, then click on FAQ. Scroll down to 16. (3) Mortgage Exemptions for Mortgage Loan Originators. (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.

The federal government has passed two different and conflicting laws concerning owner financing. It appears that sometime in the future it will be up to the states to either adopt these new federal laws or stay with current state laws. 14 states have exempted owner financing to some degree from their mortgage loan origination acts. All states have different rules, regulations, case law and statutes. But, as of now, RANM, my attorneys and I are all in agreement that owner financing is exempt from any of these regulations in New Mexico. I am attaching an article that legal counsel for RANM recently released.