As used in the Municipal Mortgage Finance Act:

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A. “agreement” means a written agreement between two or more municipalities designating one of such municipalities as the “issuer” on behalf of the other participating municipality or municipalities, establishing the issuer’s area of operations for purposes of the program and containing such other terms and conditions as the parties deem appropriate;

B. “area of operation” means, with respect to a municipality, the area within the boundaries of the planning and platting jurisdiction of the municipality, established in accordance with Section 3-19-5 N.M. Stat. Ann.. Upon approval by the governing bodies of two or more municipalities, the area of operation of a municipality acting as an issuer pursuant to an agreement may be enlarged to include all or any part of the areas of operation of the other participating municipalities and such area of operation, as enlarged, shall be deemed the jurisdiction of the issuer for all purposes relating to the issuance of bonds under the law of this state;

C. “available net proceeds” means that portion of the proceeds of bonds issued pursuant to the provisions of the Municipal Mortgage Finance Act available to purchase mortgage loans after deducting any costs related to issuance of bonds and amounts apportioned to capitalized interest, reserves or sinking funds;

D. “bonds” means the single-family mortgage revenue bonds and notes authorized under the Municipal Mortgage Finance Act and includes any other evidence of indebtedness issued hereunder;

E. “municipality” means any incorporated city, town or village, or incorporated county, whether incorporated under a general act, a special act or a special charter;

F. “existing mortgage loan” means a loan to finance the purchase of a single-family residence in the issuer’s area of operation occupied or intended to be occupied by the mortgagor as the mortgagor’s primary place of residence and secured by a mortgage made by a mortgage lender prior to the date the mortgage lender submitted an application to participate in the issuer’s program;

G. “family” means a person or a group of persons consisting of, but not limited to, the head of a household, the spouse, if any, and children or other dependents, if any, who are allowable as personal exemptions for federal income tax purposes;

H. “FHA” means the federal housing administration;

I. “FHLMC” means the federal home loan mortgage corporation; J. “FNMA” means the federal national mortgage association;

K. “forward commitment mortgage loan” means a loan: (1)     secured by a mortgage;

(2)     made to a person of low or moderate income to finance the acquisition or rehabilitation of a single family residence in the issuer’s area of operation, occupied or intended to be occupied by the mortgagor as the mortgagor’s primary place of residence;

(3)     the commitment for which was made by the mortgage lender after the date the mortgage lender submitted an application to participate in the issuer’s program; and

(4)     which shall not include a loan the proceeds of which are used, directly or indirectly, to refinance an existing permanent mortgage loan or loans for the present mortgagor, unless the primary purpose of such forward commitment mortgage loan is to finance the rehabilitation of such single family residence;

L. “governing body” means the city council, the city commission, the board of trustees, the county council or the town council of an issuer;

M. “issuer” means a municipality which has undertaken to issue bonds pursuant to the provisions of the Municipal Mortgage Finance Act;

N. “mortgage” means a deed of trust, mortgage deed, mortgage or other instrument creating a first lien subject to such title exceptions as may be acceptable to the issuer, on either:

(1)     a fee interest in real property located within the issuer’s area of operation;

or

(2)     a leasehold on such a fee interest which has a remaining term at the time of computation that exceeds the maturity of the loan secured thereby;

O. “mortgage lender” means any bank, bank or trust company, trust company, mortgage company, mortgage banker, national banking association, savings bank, savings and loan association, building and loan association and any other financial institution, provided such mortgage lender:

(1)     is qualified to do business in New Mexico;

(2)     operates a business location within the issuer’s area of operations which services loans made within the area; and

(3)     is approved as an FNMA or FHLMC seller and servicer; P. “mortgage loan” means:

(1)     an existing mortgage loan; or

(2)     a forward commitment mortgage loan;

Q. “mortgage purchase agreement” means a written agreement between a mortgage lender and an issuer providing for the purchase by the issuer of mortgage loans originated by the mortgage lender provided that a mortgage purchase agreement shall:

(1)     not permit one person or family to obtain or assume more than one forward commitment mortgage loan or reinvestment mortgage made pursuant to any one issue of bonds; and

(2)     prohibit the assumption of any forward commitment mortgage loan or reinvestment mortgage loan by any person other than a person of low or moderate income as determined by the issuer for a period of two years from the date of such mortgage;

R. “person of low or moderate income” means a person or family which lacks the amount of income, as determined by the issuer undertaking the program, necessary to the purchase, without financial assistance, of decent, safe and sanitary housing. Provided that the amount of the combined annualized income of the mortgagor and the mortgagor’s spouse shall be an amount not to exceed thirty-four thousand dollars ($34,000), as conclusively determined by the mortgage lender in the normal course of its lending activities, upon mortgagor certification, provided such determination is made in accordance with FNMA or FHLMC credit underwriting standards. Each issuer shall establish uniform criteria and rules and regulations to identify the persons of low or moderate income within its area of operation and the determination of the issuer is conclusive;

S. “program” means a mortgage purchase program of an issuer undertaken pursuant to the provisions of the Municipal Mortgage Finance Act;

T. “rehabilitation” or “rehabilitate” means substantial renovation or reconstruction, including an increase in living area, of an existing single family residence necessary to put such single family residence in decent, safe and sanitary condition or to cause such single family residence to comply with applicable building codes, and shall not include routine or ordinary repairs, improvements or maintenance, such as interior decorating, remodeling or exterior painting, except in conjunction with other substantial renovation or reconstruction;

U. “reinvestment mortgage loan” means a loan: (1)     secured by a mortgage;

(2)     made to a person of low or moderate income to finance the acquisition or rehabilitation of a single family residence in the issuer’s area of operation occupied or intended to be occupied by the mortgagor as the mortgagor’s primary place of residence;

(3)     the commitment for which is made by the mortgage lender after the date the mortgage lender submits an application to sell existing mortgage loans to the issuer;

(4)     made in satisfaction of the obligation of the mortgage lender under a mortgage purchase agreement; and

(5)     which shall not include:

(a) a forward commitment mortgage loan; or

(b) a loan the proceeds of which are used, directly or indirectly, to refinance an existing permanent mortgage loan or loans for the present mortgagor, unless the primary purpose of such reinvestment mortgage loan is to finance the rehabilitation of such single family residence;

V. “servicer” means the mortgage lender or its designee servicer which has executed a servicing agreement with an issuer;

W. “servicing agreement” means a written agreement between an issuer and a servicer providing for the servicing of mortgage loans secured by the issuer;

X. “single family residence” means real estate or an interest therein upon which is located or is to be located or constructed a structure or structures, including condominiums, to be used as a residence for one to four families, provided that the owner or owners of such structure or structures occupy such residence, or at least one unit of a structure containing two to four family units, as their principal residence;

Y. “state” means the state of New Mexico; and

Z. “VA” means the veterans administration.