No provision in a home loan or a loan for a mobile home, the evidence of indebtedness of a home loan, a real estate contract or an obligation secured by a real estate mortgage or other purchase contract requiring a penalty or premium for prepayment of an installment payment or prepayment of the balance of the indebtedness is enforceable.
History: Laws 1980, ch. 64, § 9; 2009, ch. 151, § 1.
ANNOTATIONSThe 2009 amendment, effective June 19, 2009, after "home loan", added "or a loan for a mobile home"; after "real estate mortgage", added "or other purchase contract"; and after "prepayment of", added "an installment payment or prepayment of".
Federal preemption. — When applied to federally-chartered thrift institutions and banks federal law preempts 56-8-30 NMSA 1978, which prohibits banks from collecting prepayment penalties on home mortgages. Stoneking v. Bank of Am., N.A., 2002-NMCA-042, 132 N.M. 79, 43 P.3d 1089
A complete prohibition against prepayment is a penalty forbidden by this section. Naumburg v. Pattison, 1985-NMSC-120, 103 N.M. 649, 711 P.2d 1387.
Am. Jur. 2d, A.L.R. and C.J.S. references. — Validity and construction of provision of mortgage or other real-estate financing contract prohibiting prepayment for a fixed period of time, 81 A.L.R.4th 423.