Since 1927 ~ Protecting Consumers in Real Estate Transactions


Title Insurance Discounts for Refinance Transactions in NM

Note: The NMAC promulgated discount rates for refinance transactions are now the same as the
New Mexico Statutory discount rates established in 2009 by NMSA 59A-30-6.1

13.14.9.39      SUBSTITUTION RATE ON LOANS TO TAKE UP, RENEW, EXTEND OR SATISFY AN EXISTING INSURED LOAN:

A. On a mortgagee policy issued on a first mortgage loan to fully take up, renew, extend or satisfy an outstanding loan with a remaining balance already covered by a mortgagee policy, the new policy being in the amount of the new mortgage showing title vested in the same borrower and covering the same property, the premium for the new policy shall be as follows:

(1) 40% of the current basic premium rate for the new policy amount but not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed within three (3) years from the date of the original indebtedness;

(2) 50% of the current basic premium rate for the new policy amount but not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed more than three (3) years but less than five (5) years from the date of the original indebtedness;

(3) 60% of the current basic premium rate for the new policy amount but not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed more than five (5) years but less than ten (10) years from the date of the original indebtedness;

(4) 80% of the current basic premium rate for the new policy amount not to exceed the initial principal amount of any original indebtedness as shown on the recorded prior mortgage if renewed more than ten (10) years but less than twenty (20) years from the date of the original indebtedness; and

(5) After the lapse of twenty (20) years from the date of original indebtedness, the applicable rate for original first mortgages shall apply.

B. The reduction in rate as herein prescribed shall not apply in any case where any additional property not covered by the original policy is included in the policy to be issued.

C. The premium for all liability above the initial principal amount of any original indebtedness as shown on the recorded prior mortgage shall be ninety percent (90%) of the current basic premium rates by brackets. In no event shall the premium collected be less than the regular minimum promulgated rate for a mortgagee policy.

D. This rule may not be applied in connection with the issuance of a series of mortgagee policies issued by reason of notes being apportioned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual mortgagee policies must be issued at the original first mortgage rate.

[4-3-95; 13.14.9.39 NMAC - Rn, 13 NMAC 14.9.12.5, 5-15-00; A, 7-1-05; A, 8-15-14]


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1511 University Blvd. NE
Albuquerque, NM 87102
505-999-5804

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