8.2
FORM 5828-1 INSTRUCTIONS FOR FINANCIAL INSTITUTIONS REGARDING PROCESSING LAND TITLE TRUST FUND AND LOW INCOME HOUSING TRUST ACT ACCOUNTS
8.2.1
Pursuant to Section 58-28-4A NMSA 1978 every title company that maintains one or more trust accounts or escrow accounts into which customer funds are deposited for use in the purchase, sale or financing of real property located in New Mexico, may maintain one or more pooled interest-bearing transaction accounts and may deposit the customer funds specified in Section 58-28-4A into those accounts. Pursuant to Section 58-18B-5A NMSA 1978 every real estate broker who maintains a trust or escrow account as required pursuant to the provisions of Subsection H of Section 61-29-12 NMSA 1978 may maintain a pooled interest-bearing escrow account and may deposit the customer funds specified in Section 58-18B-5A into that account. Pursuant to Section 58-18B-5B NMSA 1978 every escrow closing agent that maintains a trust account or escrow account pursuant to the provisions of Section 58-22-20 NMSA 1978 shall maintain a pooled interest-bearing escrow account and shall deposit the customer funds specified in Section 58-18-5B into that account. The interest earned from these programs is forwarded to the Land Title Trust Fund (LTTF). The account agreement between the depositor and the financial institution shall expressly provide for the required remittance of interest. [6-30-98, 2-14-00]
8.2.2
State chartered depository institutions that maintain trust or escrow accounts for customers may establish and make available pooled interest-bearing transaction accounts and pooled interest bearing escrow accounts. [6-30-98]
8.2.3
The interest earned from these programs is forwarded to the Land Title Trust Fund (LTTF). The New Mexico Mortgage Finance Authority is trustee for the LTTF. When the account is opened, the name of the account should be listed on the financial institution’s internal records as New Mexico Mortgage Finance Authority, LTTF of (name of Company) and the taxpayer ID number (TIN) should be that of the New Mexico Mortgage Finance Authority. Since the Internal Revenue Service matches the TIN with the payee, and they do this by checking to see if the first four letters of the payee’s name matches the TIN, your records should reflect the New Mexico Mortgage Finance Authority, LTTF as payee for reporting purposes. The account agreement between the depositor and the financial institution shall expressly provide for the required remittance of interest. [6-30-98, 2-14-00]
8.2.4
Remittances: Interest accrued on LTTF accounts should be remitted monthly or quarterly from the financial institution in which the account is maintained, to the New Mexico Mortgage Finance Authority, trustee, LTTF, either directly or through the company. Any charges the financial institution assesses against the account shall be deducted from the accrued interest of the pooled interest-bearing transaction or escrow account. The principal contained in these accounts are client monies and cannot be used to pay financial institution charges. If the account does not earn enough interest to cover the service charges, it is at the discretion of the bank and company to determine how the fees should be handled. The net amount of the accrued interest should be mailed or wired to the New Mexico Mortgage Finance Authority LTTF at:
State Treasurer’s Office
Att: Local Government Investment Pool
Account #7516 (LTTF Account)
2019 Galisteo, Bldg. K
P.O. Box 608
Santa Fe, NM 87505
or as otherwise directed by the State Treasurer’s Office.
Wire instructions:
Wells Fargo Bank
ABA #107002192
Credit: NM State Treasurer LGIP
Acct. # 601-59406-76
On behalf of: NMMFA LTTF STO #7516
[6-30-98, 2-14-00]
8.2.5
Financial institutions are responsible for transmitting interest income
information to the New Mexico Mortgage Finance Authority and to the depositor. The financial institution should complete Form 5828-3 FINANCIAL INSTITUTION REPORT OF INTEREST REMITTANCE. The report includes the name of the depositor for whom the remittance is sent, the account number, the rate and amount of accrued interest, the amount deducted for any fees or service charge, the earning period and the ending account balance. Form 5828-3 should be sent to the New Mexico Mortgage Finance Authority at:
New Mexico Mortgage Finance Authority, Trustee
Land Title Trust Fund
344 Fourth Street SW
Albuquerque, NM 87102
[6-30-98]
8.2.6
IRS Reports: The New Mexico Mortgage Finance Authority LTTF is a
backup withholding exempt recipient. The financial institution does not need to send out a request for TIN, IRS Form W-9. However, if your data processing procedures require the receipt of a W-9 form, it should list the New Mexico Mortgage Finance Authority LTTF TIN, and the New Mexico Mortgage Finance Authority will sign it. Similarly, the New Mexico Mortgage Finance Authority LTTF is a governmental organization exempt from withholding and reporting, so you do not need to issue Form 1099 on New Mexico Mortgage Finance Authority LTTF accounts. If you must prepare Form 1099, please send the Form 1099 to the New Mexico Mortgage Finance Authority, LTTF, to avoid confusion for the companies. [6-30-98]
Information
Contract Administration Department Manager
Direct: (505) 843-6880
Fax: (505) 242-2766
