A poll conducted at the end of 2003 revealed a majority of people oppose the state legislation if it means a reduction in their choices as borrowers.

Seventy-two per cent of those polled believe it is more important for everyone to have access to different loan options than it is for the government to protect certain segments of the population from abusive lending practices.

The poll, commissioned by the AFSA State Government Relations Subcommittee, in conjunction with the New Mexico Financial Services Association, revealed public opinion in New Mexico on the recently enacted Home Loan Protection Act.

The law, which took effect Jan. 1, mainly affects "subprime" borrowers— people with poor credit or who for other reasons cannot qualify for a conventional loan. The law was meant to curtail high-cost loans that lenders sometimes make to these borrowers.

The law, however, went beyond high-cost loans and included manufactured-home loans, home improvement loans and refinancings. The law also attaches liability to any lender who handles one of the loans, including the secondary mortgage market.

More than a dozen lenders have issued notices that they will stop or curtail their business in the state as a result.

The results of the poll show that a strong majority of those surveyed oppose the new legislation if it means a reduction in choices as borrowers. While intervention that leads to a reduction in business is opposed, a strong majority want continued government protections against abusive lending.

Additionally, two-thirds oppose the legislation if it means people with less than perfect credit were no longer able to get a new home loan because it would be too risky for mortgage lenders.

Eighty-three per cent of all those surveyed rated having the option of choosing a lender who has the flexibility of creating a loan package that best suits the individuals needs as very important or important.

Nearly one-third of the respondents found that the biggest issue facing New Mexico is the poor education system in the state. This concern reiterates the industry message addressing the need for financial literacy education.

The poll was conducted in November and December 2003 by the Albuquerque-based firm Research and Polling, Inc. and surveyed 600 individuals statewide with nearly 60 questions which were developed after conducting local focus groups. The margin of error was plus or minus 4 points.