License Examination ACTUAL EXAM 2026 |
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Graded
DOMAIN 1: NEW MEXICO MANUFACTURED HOUSING ACT AND REGULATIONS (40 Questions)
Q1: According to the New Mexico Manufactured Housing Act (NMSA 60-14-2), a "manufactured
home" is defined as:
A. Any factory-built dwelling constructed before 1976
B. A factory-built dwelling constructed on or after June 15, 1976, that meets HUD code standards
[CORRECT]
C. Any dwelling built on site
D. A recreational vehicle used for permanent residence
Correct Answer: B
Rationale: NMSA 60-14-2 defines a manufactured home as a factory-built dwelling constructed on
or after June 15, 1976, that meets the HUD code standards. Pre-1976 units are "mobile homes."
On-site built dwellings (C) are site-built homes. RVs (D) are not manufactured homes.
New Mexico Note: The June 15, 1976 date is critical—this is when the HUD Code took effect. Exam
questions frequently test this specific cutoff date.
,Q2: The New Mexico Manufactured Housing Division is authorized to:
A. Issue licenses for dealers and installers [CORRECT]
B. Set construction standards for manufactured homes
C. Lend money for manufactured home purchases
D. Appraise manufactured homes for property tax
Correct Answer: A
Rationale: The Manufactured Housing Division is responsible for licensing dealers, salespersons,
and installers. Construction standards (B) are set by HUD. Lending (C) is private. Property tax
appraisal (D) is county assessor.
Q3: Under NMSA 60-14-3, the primary purpose of the Manufactured Housing Act is to:
A. Protect consumers and ensure fair dealing in manufactured housing transactions [CORRECT]
B. Promote the manufactured housing industry over other housing types
C. Regulate the construction of site-built homes
D. Provide subsidies for manufactured home purchases
Correct Answer: A
Rationale: NMSA 60-14-3 states the purpose is to protect consumers, provide for fair dealing, and
ensure compliance with standards. The Act is regulatory and protective, not promotional (B) or
related to site-built homes (C).
Q4: A "mobile home" under New Mexico law is distinguished from a "manufactured home" by:
A. The manufacturer
B. The date of manufacture (pre-June 15, 1976) [CORRECT]
C. The presence of wheels
D. Whether it is owner-occupied or rented
Correct Answer: B
Rationale: NMSA 60-14-2 distinguishes mobile homes as factory-built dwellings constructed before
June 15, 1976. The presence of wheels (C) is not the legal distinction—many manufactured homes
are transported on wheels but classified by manufacture date.
Q5: The National Manufactured Housing Construction and Safety Standards Act of 1974 (HUD
Code) applies to:
,A. All housing in New Mexico
B. Manufactured homes built on or after June 15, 1976 [CORRECT]
C. Modular homes only
D. Recreational vehicles
Correct Answer: B
Rationale: The HUD Code established federal construction and safety standards effective June 15,
1976. It applies to manufactured homes (not modular homes or RVs) built on or after that date.
Q6: Under NMSA 60-14-7, the Manufactured Housing Division has authority to conduct:
A. Annual safety inspections of all occupied manufactured homes
B. Investigations of complaints and violations of the Act [CORRECT]
C. Criminal prosecutions of dealers
D. Appraisals for financing purposes
Correct Answer: B
Rationale: NMSA 60-14-7 grants the Division authority to investigate complaints, inspect records,
and enforce the Act. Criminal prosecutions (C) are handled by district attorneys. The Division does
not conduct appraisals (D).
Q7: A violation of the New Mexico Manufactured Housing Act can result in:
A. A civil penalty of up to $1,000 per violation [CORRECT]
B. Mandatory imprisonment
C. Automatic license revocation without hearing
D. Federal tax penalties
Correct Answer: A
Rationale: NMSA 60-14-17 provides for civil penalties up to $1,000 per violation. While criminal
penalties may apply in extreme cases, imprisonment (B) is not automatic. License revocation (C)
requires administrative due process.
Q8: The Manufactured Housing Division's rulemaking authority is granted under:
A. NMSA 60-14-4 [CORRECT]
B. Federal Truth in Lending Act
C. New Mexico Motor Vehicle Code
, D. County zoning ordinances
Correct Answer: A
Rationale: NMSA 60-14-4 authorizes the Division to promulgate rules and regulations necessary to
implement the Act. This is specific state authority, not federal (B) or county (D).
Q9: A "dealer" under NMSA 60-14-2 includes any person who:
A. Sells or offers to sell at least one manufactured home in a 12-month period [CORRECT]
B. Only sells manufactured homes they personally own and occupy
C. Manufactures homes but does not sell them
D. Provides repair services only
Correct Answer: A
Rationale: NMSA 60-14-2 defines a dealer as any person engaged in the business of selling or
offering to sell manufactured homes. The threshold can be as few as one home in 12 months.
Manufacturers (C) and service-only providers (D) are distinct categories.
Q10: The "HUD Label" (certification label) on a manufactured home indicates:
A. The home meets state building codes
B. The home was constructed in compliance with HUD standards [CORRECT]
C. The home is eligible for New Mexico property tax exemptions
D. The dealer is licensed
Correct Answer: B
Rationale: The red HUD label certifies compliance with federal construction and safety standards.
State building codes (A) apply to modular homes, not HUD-coded manufactured homes.
Q11: Which of the following is NOT under the jurisdiction of the New Mexico Manufactured Housing
Division?
A. Installation standards and inspections
B. Licensing of installers
C. Construction standards for new manufactured homes [CORRECT]
D. Consumer complaint investigations
Correct Answer: C