Standard & Poor's Ratings Services has announced that it will rate structured finance transactions that include New Mexico loans governed by the state's predatory lending law (the Home Loan Protection Act), which takes effect Jan. 1.S&P said the law bars certain practices in connection with what it defines as Home Loans, High-Cost Home Loans, Home Improvement Loans, and Manufactured Housing Loans. "Violations of the act can result in monetary liability for the originator and for purchasers and assignees," S&P said. "Although the liability of purchasers and assignees for a loan that violates the act may exceed the unpaid principal balance of the loan, this liability is capped." For deals that include New Mexico loans, S&P will require the issuer to warrant that the loans comply with all applicable laws, and that its compliance procedures can effectively identify Home Loans, High-Cost Home Loans, Home Improvement Loans, and Manufactured Housing Loans and determine that they don't violate the aforementioned act. S&P can be found online at http://www.standardandpoors.com.

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