Compliance News: New Mexico Financial Institutions Division Issues Clarification Regarding Freedom to Choose Insurance Company Notice

On January 10, 2024, the New Mexico Financial Institutions Division announced a clarification regarding the Freedom to Choose Insurance Company and Insurance Professional Notice. The announcement details why a natural person’s name (rather than a company’s name) needs to be inserted into the “(individual’s name)” blank in the first sentence of the notice language contained in N.M. Admin. Code 13.7.2.8:

“The undersigned person hereby acknowledges that I have been informed by (individual’s name) on behalf of (name of lender) . . .”

At this time, there is no need for Docutech to update Cx2794 “NM Freedom to Choose Insurance Company” because our document is already programmed to print the natural person’s name if it is passed from the loan origination system. The default print configuration is:

by (individual’s name) Field 6887 Loan Originator Name

or

Field 1051 Loan Closers Name

on behalf of (name of lender) Field 15360 Lender Name and Extension

If you have any questions or concerns, please contact Client Support at 1.800.497.3584.

LEG-1804

The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.