[Rev. 11/21/2013 12:56:23
PM--2013]
CHAPTER 645B - MORTGAGE BROKERS AND
MORTGAGE AGENTS
GENERAL PROVISIONS
NRS 645B.010 Definitions.
NRS 645B.0104 “Clerical
or ministerial tasks” defined.
NRS 645B.0105 “Commissioner”
defined.
NRS 645B.0107 “Construction
control” defined.
NRS 645B.0109 “Depository
financial institution” defined.
NRS 645B.0111 “Division”
defined.
NRS 645B.0112 “Dwelling”
defined.
NRS 645B.01125 “Employee”
defined.
NRS 645B.0113 “Escrow
agency” defined.
NRS 645B.0115 “Escrow
agent” defined.
NRS 645B.0117 “Escrow
officer” defined.
NRS 645B.0119 “Financial
services license or registration” defined.
NRS 645B.0121 “Investor”
defined.
NRS 645B.0123 “Licensee”
defined.
NRS 645B.0124 “Loan
processor” defined.
NRS 645B.01245 “Majority
of the investors” defined.
NRS 645B.0125 “Mortgage
agent” defined.
NRS 645B.0127 “Mortgage
broker” defined.
NRS 645B.0128 “Nationwide
Mortgage Licensing System and Registry” and “Registry” defined.
NRS 645B.0129 “Policy
of title insurance” defined.
NRS 645B.01305 “Private
investor” defined.
NRS 645B.0131 “Relative”
defined.
NRS 645B.0132 “Residential
mortgage loan” defined.
NRS 645B.01325 “Residential
mortgage loan originator” defined.
NRS 645B.0133 “Title
agent” defined.
NRS 645B.0135 “Title
insurer” defined.
NRS 645B.0137 Requirements
for initial licensing as mortgage broker or mortgage agent; regulations.
NRS 645B.0138 Courses
of continuing education: Adoption of regulations by Commissioner.
NRS 645B.0145 Statutory
and common-law rights, remedies and punishments unaffected; limitation on
actions against State and its officers and employees.
NRS 645B.0147 Fiduciary
obligation of licensee to client.
EXEMPTIONS
NRS 645B.015 Exemptions
for certain persons and entities.
NRS 645B.016 Certificate
of exemption required for certain persons and entities; application; fee;
automatic expiration; prohibitions; administrative fine; certificate of
exemption for purposes of complying with requirements of Registry;
applicability of chapter to persons filing application for purpose of complying
with requirements of Registry.
NRS 645B.018 Exemptions
for certain loans; application; grounds for granting exemption; powers and
duties of Commissioner.
LICENSING OF MORTGAGE BROKERS
NRS 645B.020 Application
for license; application for branch offices; requirements for issuance of
license; license for office outside Nevada which conducts business in Nevada.
NRS 645B.021 Mortgage
broker who is not natural person to designate natural person as qualified
employee; regulations.
NRS 645B.023 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective until the date of the
repeal of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings.]
NRS 645B.023 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective on the date of the repeal
of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings and expires by limitation 2 years after that date.]
NRS 645B.0243 Grounds
for denial of license: Employing or associating with certain persons who are
ineligible to be mortgage agents.
NRS 645B.0245 Grounds
for denial of license: Control by relative who would be ineligible to be
licensed; act or omission of partner, officer or director.
NRS 645B.0247 Grounds
for denial of license: Authority of Commissioner not limited.
NRS 645B.025 Posting
of license; restrictions on transfer or assignment of license.
NRS 645B.035 Activities
authorized by license; dual licensure as mortgage banker and mortgage broker.
SURETY BONDS
NRS 645B.042 Duty
of mortgage broker to deposit surety bond with Commissioner; mortgage broker
and mortgage agents must be named as principals on bond; form and amount of
bond; Commissioner to determine amount of initial deposit.
NRS 645B.046 Cancellation
of bond: Notices required; revocation of license unless equivalent bond
furnished.
NRS 645B.048 Action
on bond: Procedure; limitation of time; duties of Commissioner; preliminary
payment by surety; action for interpleader; payment.
EXPIRATION AND RENEWAL OF BROKER’S LICENSE OR CERTIFICATE OF
EXEMPTION; FEES
NRS 645B.050 Annual
expiration of license or certificate of exemption; procedure for renewal; fees.
NRS 645B.051 Continuing
education required for renewal of license.
SUPERVISION BY COMMISSIONER
General Provisions
NRS 645B.060 Duties
of Commissioner: Regulations; investigations; annual examinations; periodic and
special audits; hearings; related fees; biennial examinations.
NRS 645B.070 Subpoenas;
oaths; examination of witnesses; penalty; assessment of costs.
NRS 645B.075 Payment
of statutory assessment by mortgage broker; duty of mortgage broker and agents
to cooperate fully with audits and examinations.
Records and Financial Statements
NRS 645B.080 Records
relating to mortgage transactions, financial condition and trust accounts;
monthly report to Commissioner; accounting procedures for trust accounts;
regulations; reports.
NRS 645B.085 Annual
financial statement; audit of trust accounts; regulations.
NRS 645B.090 Records
of Commissioner: General provisions governing public inspection,
confidentiality and disclosure of information relating to investigations,
examinations, disciplinary actions and certain investments in promissory notes
secured by liens on real property.
NRS 645B.092 Records
of Commissioner: Certain records relating to investigation deemed confidential;
certain records relating to disciplinary action and orders imposing discipline
deemed public records; disclosure by Commissioner.
Commingling Money
NRS 645B.093 Commingling
certain money prohibited.
Transfer of Stock
NRS 645B.095 Notification
of certain transfers required; application to Commissioner for approval of
change of control; investigation; waiver.
Net Worth
NRS 645B.115 Minimum
net worth required for certain mortgage brokers; initial and annual
determination of net worth; examination by Commissioner; regulations.
ESCROW AND TRUST ACCOUNTS
NRS 645B.165 Escrow
account required for fee, salary, deposit or money paid in advance; release
from escrow; exceptions; refunds; penalty.
NRS 645B.170 Trust
account required for money deposited to pay taxes or insurance premiums;
fiduciary duty of mortgage broker; accounting to debtor and Commissioner;
additional duties and prohibitions.
NRS 645B.175 Trust
or escrow account required for money received from investor to fund loan; trust
or escrow account required for money received from debtor to repay loan;
release of money; accounting to investor, debtor and Commissioner; additional
conditions, limitations and prohibitions; duties of mortgage broker not
delegable or transferable; immunity from liability.
NRS 645B.180 Limitations
on execution or attachment of money in trust account; commingling of money
prohibited.
DISCLOSURES AND ADVERTISING
NRS 645B.185 Use
of disclosure forms required; release of financial statements; duties of
mortgage broker and agents; prohibitions; powers of Commissioner; regulations.
NRS 645B.186 Disclosure
of certain business and personal relationships required.
NRS 645B.187 Prohibition
on making certain guarantees in advertisements and solicitations; limitations
on payment of premium interest; penalty.
NRS 645B.189 Statements
of disclosure required in certain advertisements; review of advertisements by
Commissioner; advertisements must comply with state and federal laws concerning
deceptive trade practices and deceptive advertising; regulations.
NRS 645B.196 Liability
of advertising spokesperson for mortgage broker for certain damages.
LOAN PAYMENTS AND DEFAULTS
NRS 645B.240 Limitations
on charging late fee, additional amount of interest or other penalty.
NRS 645B.250 Prohibition
on advancing payments to investor on behalf of debtor in default; exceptions.
NRS 645B.260 Monthly
report to Commissioner on delinquencies in payments and defaults; monthly
notice to investors; regulations.
CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS
NRS 645B.300 Written
appraisal of real property required; persons authorized to perform appraisal;
retention and inspection of appraisal; exceptions.
NRS 645B.305 Requirement
that loan include disclosure concerning fees.
NRS 645B.307 Mortgage
broker required to include his or her license number or identifying number with
loan.
NRS 645B.310 Requirements
for mortgage broker to assign interest in loan.
NRS 645B.320 Copy
of recorded deed of trust must be mailed to each investor.
NRS 645B.330 Limitations
on use of power of attorney.
NRS 645B.340 Multiple
holders of beneficial interest in loan: Holders of majority of outstanding
principal balance may act on behalf of all holders for certain matters; notice;
exception.
NRS 645B.350 Mortgage
broker required to provide investors certain options before acquiring ownership
or beneficial interest in loan.
NRS 645B.351 Mortgage
broker prohibited from including in loan document provision which requires
participation in binding arbitration in event of dispute.
NRS 645B.352 Written
servicing agreement required before servicing loan.
NRS 645B.353 Mortgage
broker prohibited from releasing borrower or guarantor from personal liability
without certain approval.
NRS 645B.354 Restrictions
on withholding money from certain investors; loan servicing agreement may
contain provision which provides written consent to withhold money.
NRS 645B.355 Mortgage
broker prohibited from acting as construction control.
NRS 645B.356 Restrictions
on placing private investor into certain entities before foreclosure of real
property securing loan.
NRS 645B.357 Restriction
on collection of fees by mortgage broker; application of fees.
LICENSING AND REGULATION OF MORTGAGE AGENTS
NRS 645B.400 Requirements
to provide services of or engage in activities of mortgage agent.
NRS 645B.405 License
as mortgage agent required for mortgage broker or qualified employee who
engages in or supervises a mortgage agent who engages in activities as
residential mortgage loan originator.
NRS 645B.410 Qualifications
and procedure for issuance of license; fees.
NRS 645B.420 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective until the date of the
repeal of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings.]
NRS 645B.420 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective on the date of the repeal
of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings and expires by limitation 2 years after that date.]
NRS 645B.430 Annual
expiration of license; procedure for renewal; continuing education; fees.
NRS 645B.450 Conditions
and limitations regarding employment of or association with mortgage agent;
duties of mortgage broker, mortgage banker or certain exempt persons upon
termination of mortgage agent.
NRS 645B.460 Supervision
by mortgage broker; requirements; regulations.
RIGHTS OF BROKERS AND AGENTS DURING MILITARY SERVICE
NRS 645B.490 Right
to be placed on inactive status; procedure for reinstatement.
INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL ACTION
NRS 645B.600 Person
may file complaint alleging violation; requirements.
NRS 645B.610 Duties
of Commissioner when complaint is filed.
NRS 645B.620 Duties
of Commissioner when violation is suspected; referral of violations to Attorney
General for criminal prosecution; civil action for injunctive relief.
NRS 645B.630 Duties
of Commissioner when unsafe condition or practice is suspected; seizure of
property and assets of mortgage broker; duties of Attorney General.
NRS 645B.640 Persons
entitled to correct unsafe conditions and practices; effect of failure to
correct; receivership and liquidation of assets.
DISCIPLINARY ACTION
NRS 645B.670 Authorized
disciplinary action; grounds for disciplinary action.
NRS 645B.680 Suspension
of license for failure to pay child support or comply with certain subpoenas or
warrants; reinstatement of license. [Effective until 2 years after the date of
the repeal of 42 U.S.C. § 666, the federal law requiring each state to
establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
NRS 645B.690 Duty
of Commissioner to take disciplinary action for certain violations.
NRS 645B.700 Categorization
of major and minor violations; regulations.
NRS 645B.710 Act
or omission of partner, officer or director deemed act or omission of
partnership, corporation or unincorporated association.
NRS 645B.720 Authority
of Commissioner to order summary suspension of license and take other action to
protect public before conducting hearing.
NRS 645B.740 Disciplinary
proceedings, fines and penalties not affected by expiration, revocation or
voluntary surrender of license.
HEARINGS; APPEALS
NRS 645B.750 Duty
of Commissioner to provide written notice of disciplinary action or denial of
license; right to administrative hearing; entry of final order; appeals.
NRS 645B.760 Effect
of failure to appear at hearing; penalty.
ENFORCEMENT
NRS 645B.800 Attorney
General has primary criminal jurisdiction; duty to provide Attorney General
with information to assist prosecution; penalty.
NRS 645B.810 Attorney
General may bring civil action; recovery of costs in civil action.
NRS 645B.820 Exercise
of jurisdiction over party to civil action; service of summons to confer
jurisdiction.
ADVISORY COUNCIL ON MORTGAGE INVESTMENTS AND MORTGAGE LENDING
NRS 645B.860 Creation;
members; appointment; terms and vacancies; no compensation or per diem
allowance; protections afforded members who are public officers or employees.
NRS 645B.865 Chair
and Vice Chair; meetings; quorum; subcommittees.
NRS 645B.870 Purpose.
UNLAWFUL ACTS; PENALTIES; REMEDIES
NRS 645B.900 Unlawful
to conduct business of mortgage broker or mortgage agent without being licensed
or exempt from licensing.
NRS 645B.910 Unlawful
for foreign corporation, association or business trust to conduct business of
mortgage broker without meeting certain requirements.
NRS 645B.920 Contracts
for mortgage transaction voidable for certain violations.
NRS 645B.930 Civil
action authorized for certain violations.
NRS 645B.950 Penalties
for general violations.
NRS 645B.955 Commissioner
may require licensee to pay restitution.
NRS 645B.960 Penalties
for violations relating to escrow or trust accounts.
_________
GENERAL PROVISIONS
NRS 645B.010 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 645B.0104 to 645B.0135, inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1973, 1536; A 1975, 961; 1977, 1635;
1981, 1785; 1983, 1378, 1700; 1985, 2186; 1987, 498, 1876; 1989, 965; 1995, 1097; 1999, 3779; 2001, 2464; 2003, 3546; 2009, 2677;
2011, 3605;
2013, 113)
NRS 645B.0104 “Clerical or ministerial tasks” defined. “Clerical or ministerial tasks” means
communication with a person to obtain, and the receipt, collection and
distribution of, information necessary for the processing or underwriting of a
mortgage loan.
(Added to NRS by 2009, 2676)
NRS 645B.0105 “Commissioner” defined. “Commissioner”
means the Commissioner of Mortgage Lending.
(Added to NRS by 1999, 3765; A 2003, 3546)
NRS 645B.0107 “Construction control” defined. “Construction
control” has the meaning ascribed to it in NRS
627.050.
(Added to NRS by 1999, 3765)
NRS 645B.0109 “Depository financial institution” defined. “Depository financial institution” means a
bank, savings and loan association, thrift company or credit union.
(Added to NRS by 1999, 3765)
NRS 645B.0111 “Division” defined. “Division”
means the Division of Mortgage Lending of the Department of Business and
Industry.
(Added to NRS by 1999, 3765; A 2003, 3546)
NRS 645B.0112 “Dwelling” defined. “Dwelling”
has the meaning ascribed to it in section 103(v) of the federal Truth in
Lending Act, 15 U.S.C. § 1602(v).
(Added to NRS by 2011, 3603)
NRS 645B.01125 “Employee” defined. “Employee”
means a natural person:
1. Whose manner and means of performance
of work are subject to the right of control of, or are controlled by, another
person; and
2. Whose compensation for federal income
tax purposes is reported, or required to be reported, on Form W-2 issued by the
controlling person.
(Added to NRS by 2013, 113)
NRS 645B.0113 “Escrow agency” defined. “Escrow
agency” has the meaning ascribed to it in NRS
645A.010.
(Added to NRS by 1999, 3765)
NRS 645B.0115 “Escrow agent” defined. “Escrow
agent” has the meaning ascribed to it in NRS
645A.010.
(Added to NRS by 1999, 3765)
NRS 645B.0117 “Escrow officer” defined. “Escrow
officer” has the meaning ascribed to it in NRS
692A.028.
(Added to NRS by 1999, 3765)
NRS 645B.0119 “Financial services license or registration” defined. “Financial services license or registration”
means any license or registration issued in this State or any other state,
district or territory of the United States that authorizes the person who holds
the license or registration to engage in any business or activity described in
the provisions of this chapter, title 55 or 56 of NRS or chapter 604A, 645,
645A, 645C,
645E, 645G
or 649 of NRS.
(Added to NRS by 1999, 3765; A 2005, 1712)
NRS 645B.0121 “Investor” defined. “Investor”
means a person who wants to acquire or who acquires ownership of or a
beneficial interest in a loan secured by a lien on real property.
(Added to NRS by 1999, 3765)
NRS 645B.0123 “Licensee” defined. “Licensee”
means a person who is licensed or required to be licensed as a mortgage broker
pursuant to this chapter. The term does not include a person issued a license
as a mortgage agent pursuant to NRS 645B.410 who
is acting properly within the scope of that license.
(Added to NRS by 1999, 3765; A 2003, 3546; 2013, 114)
NRS 645B.0124 “Loan processor” defined.
1. “Loan processor” means a natural person
who:
(a) Receives, collects, distributes or analyzes
information that is commonly used for the processing of a residential mortgage
loan; and
(b) Communicates with a consumer to obtain the
information necessary for the activities described in paragraph (a).
2. The communication described in
paragraph (b) of subsection 1 does not include communication offering or
negotiating loan rates or terms or counseling consumers about residential
mortgage loan rates or terms.
(Added to NRS by 2011, 3603)
NRS 645B.01245 “Majority of the investors” defined. “Majority
of the investors” means the investors holding 51 percent or more of the
beneficial interests in a loan.
(Added to NRS by 2011, 3603)
NRS 645B.0125 “Mortgage agent” defined.
1. “Mortgage agent” means:
(a) A natural person who:
(1) Is an employee of a mortgage broker or
mortgage banker who is required to be licensed pursuant to this chapter or chapter 645E of NRS; and
(2) Is authorized by the mortgage broker
or mortgage banker to engage in, on behalf of the mortgage broker or mortgage
banker, any activity that would require the person, if the person were not an
employee of the mortgage broker or mortgage banker, to be licensed as a
mortgage broker or mortgage banker pursuant to this chapter or chapter 645E of NRS;
(b) A mortgage broker, qualified employee or
mortgage banker who is required by NRS 645B.405 or
645E.290 to be licensed as a mortgage
agent; or
(c) A loan processor who is an independent
contractor and who is associated with a mortgage broker, mortgage banker or
person who holds a certificate of exemption pursuant to NRS
645B.016.
2. The term includes, but is not limited
to, a residential mortgage loan originator.
3. The term does not include a person who:
(a) Except as otherwise provided in paragraph (b)
of subsection 1, is licensed as a mortgage broker or mortgage banker;
(b) Is an owner, general partner, officer or
director of a mortgage broker or mortgage banker who does not engage in any
activity that would otherwise require a license as a mortgage broker or
mortgage banker;
(c) Except as otherwise provided in paragraph (c)
of subsection 1, performs only clerical or ministerial tasks for a mortgage
broker or mortgage banker; or
(d) Collects payments and performs related
services, including, without limitation, the modification of an existing loan,
in connection with a loan secured by a lien on real property and who does not
undertake any other activity that would otherwise require a license pursuant to
this chapter or chapter 645E or 645F of NRS.
(Added to NRS by 1999, 3765; A 2009, 2677;
2011, 3605)
NRS 645B.0127 “Mortgage broker” defined.
1. “Mortgage broker” means a person who,
directly or indirectly:
(a) Holds himself or herself out for hire to
serve as an agent for any person in an attempt to obtain a loan which will be
secured by a lien on real property;
(b) Holds himself or herself out for hire to
serve as an agent for any person who has money to lend, if the loan is or will
be secured by a lien on real property;
(c) Holds himself or herself out as being able to
make loans secured by liens on real property;
(d) Holds himself or herself out as being able to
buy or sell notes secured by liens on real property; or
(e) Offers for sale in this State any security
which is exempt from registration under state or federal law and purports to
make investments in promissory notes secured by liens on real property.
2. The term does not include a person who
is licensed as a mortgage banker, as defined in NRS 645E.100, unless the person is also
licensed as a mortgage broker pursuant to this chapter.
(Added to NRS by 1999, 3765; A 2003, 3546)
NRS 645B.0128 “Nationwide Mortgage Licensing System and Registry” and
“Registry” defined. “Nationwide
Mortgage Licensing System and Registry” or “Registry” means the mortgage
licensing system developed and maintained by the Conference of State Bank Supervisors
and the American Association of Residential Mortgage Regulators for licensing
and registration of residential mortgage loan originators.
(Added to NRS by 2009, 2676)
NRS 645B.0129 “Policy of title insurance” defined. “Policy
of title insurance” has the meaning ascribed to it in NRS 692A.035.
(Added to NRS by 1999, 3766)
NRS 645B.01305 “Private investor” defined. “Private
investor” means:
1. An investor who is a natural person and
who provides his or her own money for investment in a loan secured by a lien on
real property; and
2. Two or more investors who are relatives
and who jointly provide their own money for investment in a loan secured by a
lien on real property, unless the investors are acting on behalf of a partnership,
a corporation or some other separate legal entity.
(Added to NRS by 2001, 2463)
NRS 645B.0131 “Relative” defined. “Relative”
means a spouse or any other person who is related within the second degree by
blood or marriage.
(Added to NRS by 1999, 3766)
NRS 645B.0132 “Residential mortgage loan” defined. “Residential
mortgage loan” means any loan primarily for personal, family or household use
that is secured by a mortgage, deed of trust or other equivalent consensual
security interest on a dwelling or residential real estate upon which is
constructed or intended to be constructed a dwelling.
(Added to NRS by 2009, 2677;
A 2011,
3606)
NRS 645B.01325 “Residential mortgage loan originator” defined. “Residential mortgage loan originator” means a
natural person who takes a residential mortgage loan application or offers or
negotiates terms of a residential mortgage loan for compensation or other
pecuniary gain. The term does not include:
1. A loan processor, underwriter or other
natural person who performs clerical or ministerial tasks as an employee at the
direction of and subject to the supervision and instruction of a person
licensed or exempt from licensing under this chapter, unless the person who
performs such clerical or ministerial tasks is an independent contractor; or
2. A person solely involved in extensions
of credit relating to timeshare plans, as that term is defined in 11 U.S.C. §
101(53D).
(Added to NRS by 2009, 2677;
A 2013, 114)
NRS 645B.0133 “Title agent” defined. “Title
agent” has the meaning ascribed to it in NRS
692A.060.
(Added to NRS by 1999, 3766)
NRS 645B.0135 “Title insurer” defined. “Title
insurer” has the meaning ascribed to it in NRS
692A.070.
(Added to NRS by 1999, 3766)
NRS 645B.0137 Requirements for initial licensing as mortgage broker or
mortgage agent; regulations.
1. In addition to any other requirements
provided by this chapter, a person who wishes to receive an initial license as
a mortgage broker or mortgage agent must:
(a) Complete education on mortgage lending as
required by this chapter and any regulations adopted thereto; and
(b) Successfully pass a written examination as
provided for by the Division.
2. If the applicant for an initial license
as a mortgage broker is not a natural person, the applicant must designate a
natural person to be the qualified employee of the applicant and meet the
requirements of subsection 1.
3. The Division may hire a testing
organization to create, administer and score a written examination.
4. The Commissioner shall adopt
regulations to carry out the provisions of this section, including, without
limitation:
(a) Regulations relating to the content of a
written examination and the scoring of a written examination; and
(b) Regulations for compliance with the
requirements for registration with the Registry and any other applicable
federal law.
(Added to NRS by 2007, 950; A 2009, 2678)
NRS 645B.0138 Courses of continuing education: Adoption of regulations by
Commissioner.
1. A course of continuing education that
is required pursuant to this chapter must meet the requirements set forth by
the Commissioner by regulation.
2. The Commissioner shall adopt
regulations:
(a) Relating to the requirements for courses of
continuing education, including, without limitation, regulations relating to
the providers and instructors of such courses, records kept for such courses,
approval and revocation of approval of such courses, monitoring of such courses
and disciplinary action taken regarding such courses.
(b) Allowing for the participation of
representatives of the mortgage lending industry pertaining to the creation of
regulations regarding such courses.
(c) Ensuring compliance with the requirements for
registration with the Registry and any other applicable federal law.
3. The regulations adopted by the
Commissioner pursuant to subsection 2 must not require a mortgage agent,
mortgage banker or mortgage broker or an employee of a mortgage banker or
mortgage broker who, pursuant to subsection 1 of NRS 645F.267, is not required to
register or renew with the Registry and who has not voluntarily registered or
renewed with the Registry to complete any continuing education relating to
residential mortgage loans.
(Added to NRS by 2007, 951; A 2009, 2678;
2011, 1389)
NRS 645B.0145 Statutory and common-law rights, remedies and punishments
unaffected; limitation on actions against State and its officers and employees. The provisions of this chapter do not:
1. Limit any statutory or common-law right
of a person to bring a civil action against a mortgage broker or mortgage agent
for any act or omission involved in the transaction of business by or on behalf
of the mortgage broker or mortgage agent;
2. Limit the right of the State to punish
a person for the violation of any law, ordinance or regulation; or
3. Establish a basis for a person to bring
a civil action against the State or its officers or employees for any act or
omission in carrying out the provisions of this chapter, including, without
limitation, any act or omission relating to the disclosure of information or
the failure to disclose information pursuant to the provisions of this chapter.
(Added to NRS by 1973, 1543; A 1999, 3801)
NRS 645B.0147 Fiduciary obligation of licensee to client.
1. In addition to any other duties set
forth in this chapter, any person licensed pursuant to this chapter has a
fiduciary obligation to a client.
2. For the purposes of this section, a
person’s fiduciary obligation does not impose a requirement to offer or obtain
access to loan products or services for a client other than those that are
offered by the person at the time of the transaction.
3. As used in this section, “fiduciary
obligation” means a duty of good faith and fair dealing, including, without
limitation, the duty to:
(a) Act in the client’s best interest;
(b) Conduct only those mortgage transactions
which are suitable for the client’s needs;
(c) Disclose any financial, business, professional
or personal interest the person has in conducting a mortgage transaction for
the client;
(d) Disclose any material fact that the person
knows or should know may affect the client’s rights or interests or the ability
to obtain the intended benefit from the mortgage transaction;
(e) Provide an accounting to the client that
lists all money and property received from the client;
(f) Not accept or collect any fee for services
rendered unless the fee was disclosed to the client before the service is
provided; and
(g) Exercise reasonable care in performing any
other duty relating to a mortgage transaction.
(Added to NRS by 2009, 745)
EXEMPTIONS
NRS 645B.015 Exemptions for certain persons and entities. Except as otherwise provided in NRS 645B.016, the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008, 12 U.S.C. §§ 5101 et seq., and any regulations
adopted pursuant thereto and other applicable law, the provisions of this
chapter do not apply to:
1. Any person doing business under the
laws of this State, any other state or the United States relating to banks,
savings banks, trust companies, savings and loan associations, industrial loan
companies, credit unions, thrift companies or insurance companies, including,
without limitation, a subsidiary or a holding company of such a bank, company,
association or union.
2. A real estate investment trust, as
defined in 26 U.S.C. § 856, unless the business conducted in this State is not
subject to supervision by the regulatory authority of the other jurisdiction,
in which case licensing pursuant to this chapter is required.
3. An employee benefit plan, as defined in
29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the
plan’s trustee.
4. An attorney at law rendering services
in the performance of his or her duties as an attorney at law.
5. A real estate broker rendering services
in the performance of his or her duties as a real estate broker.
6. Any person doing any act under an order
of any court.
7. Any one natural person, or husband and
wife, who provides money for investment in commercial loans secured by a lien
on real property, on his or her own account, unless such a person makes a loan
secured by a lien on real property using his or her own money and assigns all
or a part of his or her interest in the loan to another person, other than his
or her spouse or child, within 3 years after the date on which the loan is made
or the deed of trust is recorded, whichever occurs later.
8. A natural person who only offers or
negotiates terms of a residential mortgage loan:
(a) With or on behalf of an immediate family
member of the person; or
(b) Secured by a dwelling that served as the
person’s residence.
9. Agencies of the United States and of
this State and its political subdivisions, including the Public Employees’
Retirement System.
10. A seller of real property who offers
credit secured by a mortgage of the property sold.
11. A nonprofit agency or organization:
(a) Which provides self-help housing for a
borrower who has provided part of the labor to construct the dwelling securing
the borrower’s loan;
(b) Which does not charge or collect origination
fees in connection with the origination of residential mortgage loans;
(c) Which only makes residential mortgage loans
at an interest rate of 0 percent per annum;
(d) Whose volunteers, if any, do not receive
compensation for their services in the construction of a dwelling;
(e) Which does not profit from the sale of a
dwelling to a borrower; and
(f) Which maintains tax-exempt status under
section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3).
12. A housing counseling agency approved
by the United States Department of Housing and Urban Development.
(Added to NRS by 1973, 1542; A 1975, 962; 1977, 618;
1981, 1791; 1983, 1314, 1381; 1985, 2190; 1987, 499; 1989, 966, 1762; 1993, 494; 1995, 1098; 1999, 3779; 2003, 3546; 2007, 951; 2009, 1554;
2011, 3606;
2013, 114)
NRS 645B.016 Certificate of exemption required for certain persons and
entities; application; fee; automatic expiration; prohibitions; administrative
fine; certificate of exemption for purposes of complying with requirements of
Registry; applicability of chapter to persons filing application for purpose of
complying with requirements of Registry. Except
as otherwise provided in subsection 2 and NRS 645B.690:
1. A person who claims an exemption from
the provisions of this chapter pursuant to subsection 1 of NRS 645B.015 must:
(a) File a written application for a certificate
of exemption with the Office of the Commissioner;
(b) Pay the fee required pursuant to NRS 645B.050;
(c) Include with the written application
satisfactory proof that the person meets the requirements of subsection 1 of NRS 645B.015; and
(d) Provide evidence to the Commissioner that the
person is duly licensed to conduct his or her business, including, if
applicable, the right to transact mortgage loans, and such license is in good
standing pursuant to the laws of this State, any other state or the United
States.
2. The provisions of subsection 1 do not
apply to the extent preempted by federal law.
3. The Commissioner may require a person
who claims an exemption from the provisions of this chapter pursuant to
subsections 2 to 12, inclusive, of NRS 645B.015
to:
(a) File a written application for a certificate
of exemption with the Office of the Commissioner;
(b) Pay the fee required pursuant to NRS 645B.050; and
(c) Include with the written application
satisfactory proof that the person meets the requirements of at least one of
those exemptions.
4. A certificate of exemption expires
automatically if, at any time, the person who claims the exemption no longer
meets the requirements of at least one exemption set forth in the provisions of
NRS 645B.015.
5. If a certificate of exemption expires
automatically pursuant to this section, the person shall not provide any of the
services of a mortgage broker or mortgage agent or otherwise engage in, carry
on or hold himself or herself out as engaging in or carrying on the business of
a mortgage broker or mortgage agent unless the person applies for and is
issued:
(a) A license as a mortgage broker or mortgage
agent, as applicable, pursuant to this chapter; or
(b) Another certificate of exemption.
6. The Commissioner may impose upon a
person who is required to apply for a certificate of exemption or who holds a
certificate of exemption an administrative fine of not more than $10,000 for
each violation that the person commits, if the person:
(a) Has knowingly made or caused to be made to
the Commissioner any false representation of material fact;
(b) Has suppressed or withheld from the
Commissioner any information which the person possesses and which, if submitted
by the person, would have rendered the person ineligible to hold a certificate
of exemption; or
(c) Has violated any provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the Commissioner
that applies to a person who is required to apply for a certificate of
exemption or who holds a certificate of exemption.
7. A person who is exempt from the
requirements of this chapter may file a written application for a certificate
of exemption with the Office of the Commissioner for the purposes of complying
with the requirements of the Registry or enabling a mortgage agent to comply
with the requirements of the Registry.
8. The Commissioner may require an
applicant or person described in subsection 7 to submit the information or pay
the fee directly to the Division or, if the applicant or person is required to
register or voluntarily registers with the Registry, to the Division through
the Registry.
9. An application filed pursuant to
subsection 7 does not affect the applicability of this chapter to such an
applicant or person.
(Added to NRS by 1999, 3767; A 2003, 3547; 2007, 952; 2009, 1554;
2011, 3607)
NRS 645B.018 Exemptions for certain loans; application; grounds for granting
exemption; powers and duties of Commissioner.
1. A person may apply to the Commissioner
for an exemption from the provisions of this chapter governing the making of a
loan of money, except that an exemption may not be issued for the making of a
residential mortgage loan.
2. The Commissioner may grant the
exemption if the Commissioner finds that:
(a) The making of the loan would not be
detrimental to the financial condition of the lender, the debtor or the person
who is providing the money for the loan;
(b) The lender, the debtor or the person who is
providing the money for the loan has established a record of sound performance,
efficient management, financial responsibility and integrity;
(c) The making of the loan is likely to increase
the availability of capital for a sector of the state economy; and
(d) The making of the loan is not detrimental to
the public interest.
3. The Commissioner:
(a) May revoke an exemption unless the loan for
which the exemption was granted has been made; and
(b) Shall issue a written statement setting forth
the reasons for his or her decision to grant, deny or revoke an exemption.
(Added to NRS by 1989, 965; A 1999, 3800; 2009, 2678)
LICENSING OF MORTGAGE BROKERS
NRS 645B.020 Application for license; application for branch offices;
requirements for issuance of license; license for office outside Nevada which
conducts business in Nevada.
1. A person who wishes to be licensed as a
mortgage broker must file a written application for a license with the Office
of the Commissioner and pay the fee required pursuant to NRS 645B.050. The Commissioner may require the
applicant or person to submit the information or pay the fee directly to the
Division or, if the applicant or person is required to register or voluntarily
registers with the Registry, to the Division through the Registry. An
application for a license as a mortgage broker must:
(a) State the name, residence address and
business address of the applicant and the location of each principal office and
branch office at which the mortgage broker will conduct business within this
State, including, without limitation, any office or other place of business
located outside this State from which the mortgage broker will conduct business
in this State and any office or other place of business which the applicant
maintains as a corporate or home office.
(b) State the name under which the applicant will
conduct business as a mortgage broker.
(c) List the name, residence address and business
address of each person who will:
(1) If the applicant is not a natural
person, have an interest in the mortgage broker as a principal, partner,
officer, director or trustee, specifying the capacity and title of each such
person.
(2) Be associated with or employed by the
mortgage broker as a mortgage agent.
(d) Include a general business plan and a
description of the policies and procedures that the mortgage broker and his or
her mortgage agents will follow to arrange and service loans and to conduct
business pursuant to this chapter.
(e) State the length of time the applicant has
been engaged in the business of a mortgage broker.
(f) Include a financial statement of the
applicant and, if applicable, satisfactory proof that the applicant will be
able to maintain continuously the net worth required pursuant to NRS 645B.115.
(g) Include all information required to complete
the application.
(h) Unless fingerprints were submitted to the
Registry for the person, include a complete set of fingerprints for each
natural person who is a principal, partner, officer, director or trustee of the
applicant which the Division may forward to the Central Repository for Nevada
Records of Criminal History for submission to the Federal Bureau of
Investigation for its report.
(i) Include any other information required
pursuant to the regulations adopted by the Commissioner or an order of the
Commissioner.
2. If a mortgage broker will conduct
business in this State at one or more branch offices, the mortgage broker must
apply for a license for each such branch office.
3. Except as otherwise provided by law, the
Commissioner shall issue a license to an applicant as a mortgage broker if:
(a) The application is verified by the
Commissioner and complies with the requirements of this chapter; and
(b) The applicant and each general partner,
officer or director of the applicant, if the applicant is a partnership,
corporation or unincorporated association:
(1) Has demonstrated financial
responsibility, character and general fitness so as to command the confidence
of the community and warrant a determination that the applicant will operate
honestly, fairly and efficiently for the purposes of this chapter.
(2) Has not been convicted of, or entered
or agreed to enter a plea of guilty or nolo contendere to, a felony in a
domestic, foreign or military court within the 7 years immediately preceding
the date of the application, or at any time if such felony involved an act of
fraud, dishonesty or a breach of trust, moral turpitude or money laundering.
(3) Has not made a false statement of
material fact on the application.
(4) Has never had a license or
registration as a mortgage agent, mortgage banker, mortgage broker or
residential mortgage loan originator revoked in this State or any other
jurisdiction or had a financial services license revoked within the immediately
preceding 10 years.
(5) Has not violated any provision of this
chapter or chapter 645E of NRS, a
regulation adopted pursuant thereto or an order of the Commissioner.
4. A person may apply for a license for an
office or other place of business located outside this State from which the
applicant will conduct business in this State if the applicant has a license
issued pursuant to this chapter for an office or other place of business located
in this State, and the applicant submits with the application for a license a
statement signed by the applicant which states that the applicant agrees to:
(a) Make available at a location within this
State the books, accounts, papers, records and files of the office or place of
business located outside this State to the Commissioner or a representative of
the Commissioner; or
(b) Pay the reasonable expenses for travel, meals
and lodging of the Commissioner or a representative of the Commissioner
incurred during any investigation or examination made at the office or place of
business located outside this State.
Ê The
applicant must be allowed to choose between paragraph (a) or (b) in complying
with the provisions of this subsection.
(Added to NRS by 1973, 1536; A 1981, 1786; 1983,
1701; 1985,
2186; 1987,
1877; 1989,
1763; 1993,
495; 1997,
2171; 1999,
3780; 2001,
2464; 2003,
2721; 2005,
2781, 2807,
2816; 2007, 2852; 2009, 2679;
2011, 3608)
NRS 645B.021 Mortgage broker who is not natural person to designate natural
person as qualified employee; regulations.
1. If a mortgage broker is not a natural
person, the mortgage broker must designate a natural person as a qualified
employee to act on behalf of the mortgage broker.
2. The Division shall adopt regulations
regarding a qualified employee, including, without limitation, regulations that
establish:
(a) A definition for the term “qualified
employee”;
(b) Any duties of a qualified employee; and
(c) Any requirements regarding a qualified
employee.
(Added to NRS by 2007, 950)
NRS 645B.023 Payment of child support: Submission of certain information by
applicant; grounds for denial of license; duty of Commissioner. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
1. In addition to any other requirements
set forth in this chapter:
(a) A natural person who applies for the issuance
of a license as a mortgage broker shall include the social security number of
the applicant in the application submitted to the Commissioner.
(b) A natural person who applies for the issuance
or renewal of a license as a mortgage broker shall submit to the Commissioner
the statement prescribed by the Division of Welfare and Supportive Services of
the Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the
Commissioner.
3. A license as a mortgage broker may not
be issued or renewed by the Commissioner if the applicant is a natural person
who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other public
agency enforcing the order to determine the actions that the applicant may take
to satisfy the arrearage.
(Added to NRS by 1997, 2170; A 1999, 3782; 2005, 2783, 2807, 2810)
NRS 645B.023 Payment of child support:
Submission of certain information by applicant; grounds for denial of license;
duty of Commissioner. [Effective on the date of the repeal of 42 U.S.C. § 666,
the federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and recreational
licenses for child support arrearages and for noncompliance with certain
processes relating to paternity or child support proceedings and expires by
limitation 2 years after that date.]
1. In addition to any other requirements
set forth in this chapter, a natural person who applies for the issuance or
renewal of a license as a mortgage broker shall submit to the Commissioner the
statement prescribed by the Division of Welfare and Supportive Services of the
Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the
Commissioner.
3. A license as a mortgage broker may not
be issued or renewed by the Commissioner if the applicant is a natural person
who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2170; A 1999, 3782; 2005, 2783, 2807, 2810,
effective on the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings)
NRS 645B.0243 Grounds for denial of license: Employing or associating with
certain persons who are ineligible to be mortgage agents. The Commissioner may refuse to issue a license
to an applicant if the Commissioner has reasonable cause to believe that the
applicant or any general partner, officer or director of the applicant has,
after October 1, 1999, employed or proposed to employ a person as a mortgage
agent or authorized or proposed to authorize a person to be associated with a
mortgage broker as a mortgage agent at a time when the applicant or the general
partner, officer or director knew or, in light of all the surrounding facts and
circumstances, reasonably should have known that the person has committed any
act or omission that would be cause for refusing to issue a license to a
mortgage agent.
(Added to NRS by 1999, 3768; A 2003, 2723; 2009, 2680)
NRS 645B.0245 Grounds for denial of license: Control by relative who would be
ineligible to be licensed; act or omission of partner, officer or director.
1. If an applicant is a natural person,
the Commissioner may refuse to issue a license to the applicant if the
Commissioner has reasonable cause to believe that the applicant would be
subject to control by a relative who would be ineligible to be licensed
pursuant to this chapter.
2. If an applicant is a partnership,
corporation or unincorporated association, the Commissioner may refuse to issue
a license to the applicant if:
(a) Any member of the partnership or any officer
or director of the corporation or unincorporated association has committed any
act or omission that would be cause for refusing to issue a license to a
natural person; or
(b) The Commissioner has reasonable cause to
believe that any member of the partnership or any officer or director of the
corporation or unincorporated association would be subject to control by a
relative who would be ineligible to be licensed pursuant to this chapter.
(Added to NRS by 1999, 3769)
NRS 645B.0247 Grounds for denial of license: Authority of Commissioner not
limited. The provisions of NRS 645B.0243 and 645B.0245
do not limit the authority of the Commissioner to refuse to issue a license to
an applicant for any other lawful reason or pursuant to any other provision of
law.
(Added to NRS by 1999, 3769)
NRS 645B.025 Posting of license; restrictions on transfer or assignment of
license.
1. A mortgage broker shall post each
license in a conspicuous place in the office to which it pertains.
2. A mortgage broker may not transfer or
assign a license to another person, unless the Commissioner gives written
approval.
(Added to NRS by 1983, 1376; A 1983, 1843; 1987, 1877; 1999, 3782)
NRS 645B.035 Activities authorized by license; dual licensure as mortgage
banker and mortgage broker.
1. A license as a mortgage broker entitles
a licensee to engage only in the activities authorized by this chapter.
2. The provisions of this chapter do not
prohibit a licensee from:
(a) Holding a license as a mortgage banker
pursuant to chapter 645E of NRS; or
(b) Conducting the business of a mortgage banker
and the business of a mortgage broker in the same office or place of business.
(Added to NRS by 1999, 3770; A 2003, 3548)
SURETY BONDS
NRS 645B.042 Duty of mortgage broker to deposit surety bond with
Commissioner; mortgage broker and mortgage agents must be named as principals
on bond; form and amount of bond; Commissioner to determine amount of initial
deposit.
1. As a condition to doing business in
this State, each mortgage broker shall deposit with the Commissioner and keep
in full force and effect a corporate surety bond payable to the State of
Nevada, in the amount set forth in subsection 4, which is executed by a
corporate surety satisfactory to the Commissioner and which names as principals
the mortgage broker and all mortgage agents employed by or associated with the
mortgage broker.
2. At the time of filing an application
for a license as a mortgage agent and at the time of filing an application for
the renewal of a license as a mortgage agent, the applicant shall file with the
Commissioner proof that the applicant is named as a principal on the corporate
surety bond deposited with the Commissioner by the mortgage broker with whom
the applicant is associated or employed.
3. The bond must be in substantially the
following form:
Know All Persons by These
Presents, that ...................., as principal, and ...................., as
surety, are held and firmly bound unto the State of Nevada for the use and
benefit of any person who suffers damages because of a violation of any of the
provisions of chapter 645B of NRS, in the sum of
...................., lawful money of the United States, to be paid to the
State of Nevada for such use and benefit, for which payment well and truly to
be made, and that we bind ourselves, our heirs, executors, administrators,
successors and assigns, jointly and severally, firmly by these presents.
The condition of that
obligation is such that: Whereas, the principal has been issued a license as a
mortgage broker or mortgage agent by the Commissioner of Mortgage Lending and
is required to furnish a bond, which is conditioned as set forth in this bond:
Now, therefore, if the
principal, his or her agents and employees, strictly, honestly and faithfully
comply with the provisions of chapter 645B of NRS, and
pay all damages suffered by any person because of a violation of any of the
provisions of chapter 645B of NRS, or by reason of any
fraud, dishonesty, misrepresentation or concealment of material facts growing
out of any transaction governed by the provisions of chapter
645B of NRS, then this obligation is void; otherwise it remains in full
force.
This bond becomes effective
on the .......... (day) of .......... (month) of .......... (year), and remains
in force until the surety is released from liability by the Commissioner of
Mortgage Lending or until this bond is cancelled by the surety. The surety may
cancel this bond and be relieved of further liability hereunder by giving 60
days’ written notice to the principal and to the Commissioner of Mortgage
Lending.
In Witness Whereof, the seal
and signature of the principal hereto is affixed, and the corporate seal and
the name of the surety hereto is affixed and attested by its authorized
officers at ...................., Nevada, this .......... (day) of ..........
(month) of .......... (year).
(Seal)
Principal
(Seal)
Surety
By
Attorney-in-fact
Nevada Licensed Insurance
Agent
4. Each mortgage broker shall deposit a
corporate surety bond that complies with the provisions of this section in the
following amounts:
(a) For an annual loan production of $20,000,000
or less, $50,000.
(b) For an annual loan production of more than
$20,000,000, $75,000.
5. Except as otherwise required by federal
law or regulation, for the purposes of subsection 4, the Commissioner shall determine
the appropriate amount of the surety bond that must be deposited initially by a
mortgage broker based upon the expected annual loan production amount and shall
determine the appropriate amount of the surety bond annually based upon the
actual annual loan production.
(Added to NRS by 2009, 743;
A 2011,
3610)
NRS 645B.046 Cancellation of bond: Notices required; revocation of license
unless equivalent bond furnished.
1. The surety may cancel a bond upon
giving 60 days’ notice to the Commissioner by certified mail. Upon receipt by
the Commissioner of such a notice, the Commissioner immediately shall notify
the licensee who is the principal on the bond of the effective date of
cancellation of the bond, and that his or her license will be revoked unless
the licensee furnishes an equivalent bond before the effective date of the
cancellation. The notice must be sent to the licensee by certified mail to his
or her last address of record filed in the office of the Division.
2. If the licensee does not comply with
the requirements set out in the notice from the Commissioner, the license must
be revoked on the date the bond is cancelled.
(Added to NRS by 2009, 745;
A 2011,
3611)
NRS 645B.048 Action on bond: Procedure; limitation of time; duties of
Commissioner; preliminary payment by surety; action for interpleader; payment.
1. Any person claiming against a bond may
bring an action in a court of competent jurisdiction on the bond for damages to
the extent covered by the bond. A person who brings an action on a bond shall
notify the Commissioner in writing upon filing the action. An action may not be
commenced after the expiration of 3 years following the commission of the act
on which the action is based.
2. Upon receiving a request from a person
for whose benefit a bond is required, the Commissioner shall notify the person:
(a) That a bond is in effect and of the amount of
the bond; and
(b) If there is an action against the bond, the
title, court and case number of the action and the amount sought by the
plaintiff.
3. If a surety wishes to make payment
without awaiting action by a court, the amount of the bond must be reduced to
the extent of any payment made by the surety in good faith under the bond. Any
payment must be based on written claims received by the surety before any
action is taken by a court.
4. The surety may bring an action for
interpleader against all claimants upon the bond. If it does so, it shall
publish notice of the action at least once each week for 2 weeks in every issue
of a newspaper of general circulation in the county where the mortgage broker
has its principal place of business. The surety may deduct its costs of the
action, including attorney’s fees and publication, from its liability under the
bond.
5. Claims against a bond have equal
priority, and if the bond is insufficient to pay all claims in full, they must
be paid on a pro rata basis. Partial payment of claims is not full payment, and
any claimant may bring an action against the mortgage broker for the unpaid
balance.
(Added to NRS by 2009, 745)
EXPIRATION AND RENEWAL OF BROKER’S LICENSE OR CERTIFICATE
OF EXEMPTION; FEES
NRS 645B.050 Annual expiration of license or certificate of exemption;
procedure for renewal; fees.
1. A license as a mortgage broker issued
pursuant to this chapter expires each year on December 31, unless it is
renewed. To renew such a license, the licensee must submit to the Commissioner
on or after November 1 and on or before December 31 of each year, or on a date
otherwise specified by the Commissioner by regulation:
(a) An application for renewal;
(b) The fee required to renew the license
pursuant to this section;
(c) The information required pursuant to NRS 645B.051; and
(d) All information required by the Commissioner
or, if applicable, required by the Registry to complete the renewal.
2. If the licensee fails to submit any
item required pursuant to subsection 1 to the Commissioner on or after November
1 and on or before December 31 of any year, unless a different date is
specified by the Commissioner by regulation, the license is cancelled as of
December 31 of that year. The Commissioner may reinstate a cancelled license if
the licensee submits to the Commissioner on or before February 28 of the
following year:
(a) An application for renewal;
(b) The fee required to renew the license
pursuant to this section;
(c) The information required pursuant to NRS 645B.051;
(d) Except as otherwise provided in this section,
a reinstatement fee of not more than $200; and
(e) All information required to complete the
reinstatement.
3. Except as otherwise provided in NRS 645B.016, a certificate of exemption issued
pursuant to this chapter expires each year on December 31, unless it is
renewed. To renew a certificate of exemption, a person must submit to the
Commissioner on or after November 1 and on or before December 31 of each year
or on a date otherwise specified by the Commissioner by regulation:
(a) An application for renewal that includes
satisfactory proof that the person meets the requirements for an exemption from
the provisions of this chapter; and
(b) The fee required to renew the certificate of
exemption.
4. If the person fails to submit any item
required pursuant to subsection 3 to the Commissioner on or after November 1
and on or before December 31 of any year, unless a different date is specified
by the Commissioner by regulation, the certificate of exemption is cancelled as
of December 31 of that year. Except as otherwise provided in NRS 645B.016, the Commissioner may reinstate a
cancelled certificate of exemption if the person submits to the Commissioner on
or before February 28 of the following year:
(a) An application for renewal that includes
satisfactory proof that the person meets the requirements for an exemption from
the provisions of this chapter;
(b) The fee required to renew the certificate of
exemption; and
(c) Except as otherwise provided in this section,
a reinstatement fee of not more than $100.
5. Except as otherwise provided in this
section, a person must pay the following fees to apply for, to be issued or to
renew a license as a mortgage broker pursuant to this chapter:
(a) To file an original application for a
license, not more than $1,500 for the principal office and not more than $40
for each branch office. The person must also pay such additional expenses
incurred in the process of investigation as the Commissioner deems necessary.
(b) To be issued a license, not more than $1,000
for the principal office and not more than $60 for each branch office.
(c) To renew a license, not more than $500 for
the principal office and not more than $100 for each branch office.
6. Except as otherwise provided in this
section, a person must pay the following fees to apply for or to renew a
certificate of exemption pursuant to this chapter:
(a) To file an application for a certificate of
exemption, not more than $200.
(b) To renew a certificate of exemption, not more
than $100.
7. To be issued a duplicate copy of any
license or certificate of exemption, a person must make a satisfactory showing
of its loss and pay a fee of not more than $10.
8. Except as otherwise provided in this
chapter, all fees received pursuant to this chapter are in addition to any fee
required to be paid to the Registry and must be deposited in the Account for
Mortgage Lending created by NRS 645F.270.
9. The Commissioner may, by regulation,
adjust any fee or date set forth in this section if the Commissioner determines
that such an adjustment is necessary for the Commissioner to carry out his or
her duties pursuant to this chapter. The amount of any adjustment in a fee
pursuant to this subsection must not exceed the amount determined to be
necessary for the Commissioner to carry out his or her duties pursuant to this
chapter.
10. The Commissioner may require a
licensee to submit an item or pay a fee required by this section directly to
the Commissioner or, if the licensee is required to register or voluntarily
registers with the Registry, to the Commissioner through the Registry.
(Added to NRS by 1973, 1538; A 1975, 814; 1977, 1636;
1979, 120, 1094; 1981, 1788; 1983, 1320, 1379, 1702; 1985, 2187; 1987, 86, 1878; 1989, 1764; 1991, 177, 1803, 1825; 1993, 496; 1997, 2172; 1999, 3782; 2001, 2465; 2003, 3229, 3548; 2003,
20th Special Session, 265; 2005, 2784, 2807, 2817; 2007, 953; 2009, 2680;
2011, 3612)
NRS 645B.051 Continuing education required for renewal of license.
1. Except as otherwise provided in
subsection 2, in addition to the requirements set forth in NRS 645B.050, to renew a license as a mortgage
broker:
(a) If the licensee is a natural person, the
licensee must submit to the Commissioner satisfactory proof that the licensee
attended at least 10 hours of certified courses of continuing education during
the 12 months immediately preceding the date on which the license expires.
(b) If the licensee is not a natural person, the
licensee must submit to the Commissioner satisfactory proof that each natural
person who supervises the daily business of the licensee attended at least 10
hours of certified courses of continuing education during the 12 months
immediately preceding the date on which the license expires.
2. In lieu of the continuing education
requirements set forth in paragraph (a) or (b) of subsection 1, a licensee or
any natural person who supervises the daily business of the licensee who,
pursuant to subsection 1 of NRS 645F.267,
is not required to register or renew with the Registry and who has not
voluntarily registered or renewed with the Registry must submit to the
Commissioner satisfactory proof that he or she attended at least 5 hours of
certified courses of continuing education during the 12 months immediately
preceding the date on which the license expires. The hours of continuing
education required by this subsection must include:
(a) At least 3 hours relating to the laws and
regulations of this State; and
(b) At least 2 hours relating to ethics.
3. As used in this section, “certified
course of continuing education” means a course of continuing education which
relates to the mortgage industry or mortgage transactions and which meets the
requirements set forth by the Commissioner by regulation pursuant to NRS 645B.0138.
(Added to NRS by 2001, 2464; A 2003, 3551; 2007, 954; 2009, 1852;
2011, 1389)
SUPERVISION BY COMMISSIONER
General Provisions
NRS 645B.060 Duties of Commissioner: Regulations; investigations; annual
examinations; periodic and special audits; hearings; related fees; biennial
examinations.
1. Subject to the administrative control
of the Director of the Department of Business and Industry, the Commissioner
shall exercise general supervision and control over mortgage brokers and
mortgage agents doing business in this State.
2. In addition to the other duties imposed
upon him or her by law, the Commissioner shall:
(a) Adopt regulations:
(1) Setting forth the requirements for an
investor to acquire ownership of or a beneficial interest in a loan secured by
a lien on real property. The regulations must include, without limitation, the
minimum financial conditions that the investor must comply with before becoming
an investor.
(2) Establishing reasonable limitations
and guidelines on loans made by a mortgage broker to a director, officer,
mortgage agent or employee of the mortgage broker.
(b) Adopt any other regulations that are necessary
to carry out the provisions of this chapter, except as to loan brokerage fees.
(c) Conduct such investigations as may be
necessary to determine whether any person has violated any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner.
(d) Except as otherwise provided in subsection 4,
conduct an annual examination of each mortgage broker doing business in this
State. The annual examination must include, without limitation, a formal exit
review with the mortgage broker. The Commissioner shall adopt regulations
prescribing:
(1) Standards for determining the rating
of each mortgage broker based upon the results of the annual examination; and
(2) Procedures for resolving any
objections made by the mortgage broker to the results of the annual
examination. The results of the annual examination may not be opened to public
inspection pursuant to NRS 645B.090 until after a
period of time set by the Commissioner to determine any objections made by the
mortgage broker.
(e) Conduct such other examinations, periodic or
special audits, investigations and hearings as may be necessary for the
efficient administration of the laws of this State regarding mortgage brokers
and mortgage agents. The Commissioner shall adopt regulations specifying the
general guidelines that will be followed when a periodic or special audit of a
mortgage broker is conducted pursuant to this chapter.
(f) Classify as confidential certain records and
information obtained by the Division when those matters are obtained from a
governmental agency upon the express condition that they remain confidential.
This paragraph does not limit examination by:
(1) The Legislative Auditor; or
(2) The Department of Taxation if
necessary to carry out the provisions of chapter
363A of NRS.
(g) Conduct such examinations and investigations
as are necessary to ensure that mortgage brokers and mortgage agents meet the
requirements of this chapter for obtaining a license, both at the time of the
application for a license and thereafter on a continuing basis.
3. For each special audit, investigation
or examination, a mortgage broker or mortgage agent shall pay a fee based on
the rate established pursuant to NRS
645F.280.
4. The Commissioner may conduct
examinations of a mortgage broker, as described in paragraph (d) of subsection
2, on a biennial instead of an annual basis if the mortgage broker:
(a) Received a rating in the last annual
examination that meets a threshold determined by the Commissioner;
(b) Has not had any adverse change in financial
condition since the last annual examination, as shown by financial statements
of the mortgage broker;
(c) Has not had any complaints received by the
Division that resulted in any administrative action by the Division; and
(d) Does not maintain any trust accounts pursuant
to NRS 645B.170 or 645B.175
or arrange loans funded by private investors.
(Added to NRS by 1973, 1538; A 1973, 1669; 1981,
1789; 1983, 1380, 1703; 1987, 1878, 2224; 1993, 497, 1893; 1995, 526; 1999, 3784; 2001, 2467; 2003, 3552; 2003,
20th Special Session, 220; 2007, 955; 2009, 1448)
NRS 645B.070 Subpoenas; oaths; examination of witnesses; penalty; assessment
of costs.
1. In the conduct of any examination,
periodic or special audit, investigation or hearing, the Commissioner may:
(a) Compel the attendance of any person by
subpoena.
(b) Compel the production of any document by
subpoena.
(c) Administer oaths.
(d) Examine any person under oath concerning the
business and conduct of affairs of any person subject to the provisions of this
chapter and in connection therewith require the production of any books,
records or papers relevant to the inquiry.
2. Any person subpoenaed under the
provisions of this section who willfully refuses or willfully neglects to
appear at the time and place named in the subpoena or to produce books, records
or papers required by the Commissioner, or who refuses to be sworn or answer as
a witness, is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.
3. In addition to the authority to recover
attorney’s fees and costs pursuant to any other statute, the Commissioner may
assess against and collect from a person all costs, including, without
limitation, reasonable attorney’s fees, that are attributable to any examination,
periodic or special audit, investigation or hearing that is conducted to
examine or investigate the conduct, activities or business of the person
pursuant to this chapter.
(Added to NRS by 1973, 1538; A 1981, 1789; 1983,
1703; 1987,
1879; 1999,
3785; 2003,
3468; 2009,
1555)
NRS 645B.075 Payment of statutory assessment by mortgage broker; duty of
mortgage broker and agents to cooperate fully with audits and examinations. Each mortgage broker shall pay the assessment
levied pursuant to NRS 645F.180. Each
mortgage broker and mortgage agent shall cooperate fully with the audits and
examinations performed pursuant thereto.
(Added to NRS by 1987, 826; A 1999, 3799; 2003, 3552)
Records and Financial Statements
NRS 645B.080 Records relating to mortgage transactions, financial condition
and trust accounts; monthly report to Commissioner; accounting procedures for
trust accounts; regulations; reports.
1. Each mortgage broker shall keep and
maintain at all times at each location where the mortgage broker conducts business
in this state complete and suitable records of all mortgage transactions made
by the mortgage broker at that location. Each mortgage broker shall also keep
and maintain at all times at each such location all original books, papers and
data, or copies thereof, clearly reflecting the financial condition of the
business of the mortgage broker.
2. Each mortgage broker shall submit to
the Commissioner each month a report of the mortgage broker’s activity for the
previous month. The report must:
(a) Specify the volume of loans arranged by the
mortgage broker for the month or state that no loans were arranged in that
month;
(b) Include any information required pursuant to NRS 645B.260 or pursuant to the regulations adopted
by the Commissioner; and
(c) Be submitted to the Commissioner by the 15th
day of the month following the month for which the report is made.
3. The Commissioner may adopt regulations
prescribing accounting procedures for mortgage brokers handling trust accounts
and the requirements for keeping records relating to such accounts.
4. Each mortgage broker who is required to
register or voluntarily registers with the Registry shall submit to the
Registry and the Commissioner a report of condition or any other report
required by the Registry in the form and at the time required by the Registry.
(Added to NRS by 1973, 1538; A 1981, 1789; 1985, 2187; 1987, 1879; 1989, 1765; 1995, 136; 1999, 3786; 2011, 3613)
NRS 645B.085 Annual financial statement; audit of trust accounts;
regulations.
1. Except as otherwise provided in this
section, not later than 90 days after the last day of each fiscal year for a
mortgage broker, the mortgage broker shall submit to the Commissioner a
financial statement that:
(a) Is dated not earlier than the last day of the
fiscal year; and
(b) Has been prepared from the books and records
of the mortgage broker by an independent certified public accountant who holds
a license to practice in this State or in any other state that has not been
revoked or suspended.
2. Unless otherwise prohibited by the
Registry, the Commissioner may grant a reasonable extension for the submission
of a financial statement pursuant to this section if a mortgage broker requests
such an extension before the date on which the financial statement is due.
3. If a mortgage broker maintains any
accounts described in subsection 1 of NRS 645B.175,
the financial statement submitted pursuant to this section must be audited. If
a mortgage broker maintains any accounts described in subsection 1 or 4 of NRS 645B.175, those accounts must be audited.
4. The Commissioner shall adopt
regulations prescribing the scope of an audit conducted pursuant to subsection
3.
(Added to NRS by 1999, 3772; A 2001, 2467; 2007, 956; 2011, 3614)
NRS 645B.090 Records of Commissioner: General provisions governing public
inspection, confidentiality and disclosure of information relating to
investigations, examinations, disciplinary actions and certain investments in
promissory notes secured by liens on real property.
1. Except as otherwise provided in this
section or by specific statute, all papers, documents, reports and other
written instruments filed with the Commissioner pursuant to this chapter are
open to public inspection.
2. Except as otherwise provided in
subsection 3, the Commissioner may withhold from public inspection or refuse to
disclose to a person, for such time as the Commissioner considers necessary,
any information that, in the Commissioner’s judgment, would:
(a) Impede or otherwise interfere with an
investigation or examination that is currently pending against a mortgage
broker;
(b) Have an undesirable effect on the welfare of
the public; or
(c) Reveal personal information in violation of NRS 239B.030.
3. Except as otherwise provided in NRS 645B.092, the Commissioner shall disclose the
following information concerning a mortgage broker to any person who requests
it:
(a) The findings and results of any investigation
which has been completed during the immediately preceding 5 years against the
mortgage broker pursuant to the provisions of this chapter and which has
resulted in a finding by the Commissioner that the mortgage broker committed a
violation of a provision of this chapter, a regulation adopted pursuant to this
chapter or an order of the Commissioner;
(b) The nature of any disciplinary action that
has been taken during the immediately preceding 5 years against the mortgage
broker pursuant to the provisions of this chapter; and
(c) If the mortgage broker makes or offers for
sale in this State any investments in promissory notes secured by liens on real
property:
(1) Any information in the possession of
the Commissioner regarding the present and past ownership and management
structure of the mortgage broker; and
(2) The findings and results of:
(I) All examinations or
investigations of the mortgage broker conducted pursuant to NRS 645B.060 during the immediately preceding 5
years, including, without limitation, annual or biennial examinations of the
mortgage broker conducted pursuant to NRS 645B.060,
including, without limitation, the rating for each annual or biennial
examination and an explanation of the standards for determining that rating;
and
(II) Any other examination or audit,
investigation or hearing which has been completed during the immediately
preceding 3 years against the mortgage broker pursuant to the provisions of
this chapter.
(Added to NRS by 1973, 1543; A 1983, 1704; 1987, 1880; 1999, 3786; 2003, 3469; 2009, 1450)
NRS 645B.092 Records of Commissioner: Certain records relating to
investigation deemed confidential; certain records relating to disciplinary
action and orders imposing discipline deemed public records; disclosure by
Commissioner.
1. Except as otherwise provided in this
section and NRS 239.0115, a complaint
filed with the Commissioner, all documents and other information filed with the
complaint and all documents and other information compiled as a result of an
investigation conducted to determine whether to initiate disciplinary action
are confidential.
2. The complaint or other document filed
by the Commissioner to initiate disciplinary action and all documents and
information considered by the Commissioner when determining whether to impose
discipline are public records.
3. An order that imposes discipline and
the findings of fact and conclusions of law supporting that order are public
records.
4. The Commissioner may disclose any
document or information made confidential under subsection 1 to the party
against whom the complaint is made, a licensing board or agency, the Registry
or any other governmental agency, including, without limitation, a law
enforcement agency.
(Added to NRS by 2003, 3468; A 2007, 2147; 2011, 3614)
Commingling Money
NRS 645B.093 Commingling certain money prohibited.
1. A mortgage broker who is a
broker-dealer or a sales representative licensed pursuant to NRS 90.310 or who is exempt from licensure
pursuant to NRS 90.320:
(a) Shall not commingle money received for
mortgage transactions and money received for securities transactions; and
(b) Shall ensure that all money received for
mortgage transactions is accounted for separately from all money received for
securities transactions.
2. A mortgage broker who is an investment
adviser or a representative of an investment adviser licensed pursuant to NRS 90.330 or exempt from licensure
pursuant to NRS 90.340:
(a) Shall not commingle money received for
mortgage transactions and money received for securities transactions; and
(b) Shall ensure that all money received for
mortgage transactions is accounted for separately from all money received for
securities transactions.
(Added to NRS by 2007, 951)
Transfer of Stock
NRS 645B.095 Notification of certain transfers required; application to
Commissioner for approval of change of control; investigation; waiver.
1. As used in this section, “change of
control” means:
(a) A transfer of voting stock which results in
giving a person, directly or indirectly, the power to direct the management and
policy of a mortgage broker; or
(b) A transfer of at least 25 percent of the
outstanding voting stock of a mortgage broker.
2. The Commissioner must be notified in
writing of a transfer of 10 percent or more of the outstanding voting stock of
a mortgage broker at least 15 days before such a transfer and must approve a transfer
of voting stock of a mortgage broker which constitutes a change of control.
3. The person who acquires stock resulting
in a change of control of the mortgage broker shall apply to the Commissioner
for approval of the transfer. The application must contain information which
shows that the requirements of this chapter and the Registry, if applicable,
for obtaining a license will be satisfied after the change of control. Except
as otherwise provided in subsection 4, the Commissioner shall conduct an investigation
to determine whether those requirements will be satisfied. If, after the
investigation, the Commissioner denies the application, the Commissioner may
forbid the applicant from participating in the business of the mortgage broker.
4. A mortgage broker may submit a written
request to the Commissioner to waive an investigation pursuant to subsection 3.
The Commissioner may grant a waiver if the applicant has undergone a similar
investigation by a state or federal agency in connection with the licensing of
or his or her employment with a financial institution.
(Added to NRS by 1983, 1376; A 1983, 1843; 1985, 1344; 1987, 1880; 1999, 3787; 2011, 3615)
Net Worth
NRS 645B.115 Minimum net worth required for certain mortgage brokers; initial
and annual determination of net worth; examination by Commissioner;
regulations.
1. If a mortgage broker maintains any
accounts described in NRS 645B.175, the mortgage
broker and his or her mortgage agents shall not engage in any activity that is
authorized pursuant to this chapter, unless the mortgage broker maintains
continuously a minimum net worth in the following amount based upon the average
monthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175:
AVERAGE MONTHLY BALANCE MINIMUM
NET
WORTH
REQUIRED
$100,000 or less.............................................................................................. $25,000
More than $100,000 but not more than
$250,000.................................... 50,000
More than $250,000 but not more than
$500,000.................................. 100,000
More than $500,000 but not more than
$1,000,000............................... 200,000
More than $1,000,000................................................................................... 250,000
The Commissioner shall determine the appropriate initial
minimum net worth that must be maintained by the mortgage broker pursuant to
this section based upon the expected average monthly balance of the accounts
maintained by the mortgage broker pursuant to NRS
645B.175. After determining the initial minimum net worth that must be
maintained by the mortgage broker, the Commissioner shall, on an annual basis,
determine the appropriate minimum net worth that must be maintained by the
mortgage broker pursuant to this section based upon the average monthly balance
of the accounts maintained by the mortgage broker pursuant to NRS 645B.175.
2. If requested by the Commissioner, a
mortgage broker who is subject to the provisions of this section and his or her
mortgage agents shall submit to the Commissioner or allow the Commissioner to
examine any documentation or other evidence that is related to determining the
net worth of the mortgage broker.
3. The Commissioner:
(a) Shall adopt regulations prescribing standards
for determining the net worth of a mortgage broker; and
(b) May adopt any other regulations that are
necessary to carry out the provisions of this section.
(Added to NRS by 1999, 3771)
ESCROW AND TRUST ACCOUNTS
NRS 645B.165 Escrow account required for fee, salary, deposit or money paid
in advance; release from escrow; exceptions; refunds; penalty.
1. Except as otherwise permitted by law
and as otherwise provided in subsection 3, the amount of any advance fee,
salary, deposit or money paid to a mortgage broker and his or her mortgage
agents or any other person to obtain a loan which will be secured by a lien on
real property must be placed in escrow pending completion of the loan or a
commitment for the loan.
2. The amount held in escrow pursuant to
subsection 1 must be released:
(a) Upon completion of the loan or commitment for
the loan, to the mortgage broker or other person to whom the advance fee,
salary, deposit or money was paid.
(b) If the loan or commitment for the loan fails,
to the person who made the payment.
3. Advance payments to cover reasonably
estimated costs paid to third persons are excluded from the provisions of
subsections 1 and 2 if the person making them first signs a written agreement
which specifies the estimated costs by item and the estimated aggregate cost,
and which recites that money advanced for costs will not be refunded. If an
itemized service is not performed and the estimated cost thereof is not
refunded, the recipient of the advance payment is subject to the penalties
provided in NRS 645B.960.
(Added to NRS by 1977, 618; A 1979, 1397; 1989, 1442; 1991, 178; 1995, 1313; 1999, 3793; 2011, 3615)
NRS 645B.170 Trust account required for money deposited to pay taxes or
insurance premiums; fiduciary duty of mortgage broker; accounting to debtor and
Commissioner; additional duties and prohibitions.
1. All money paid to a mortgage broker and
his or her mortgage agents for payment of taxes or insurance premiums on real
property which secures any loan arranged by the mortgage broker must be
deposited in an insured depository financial institution and kept separate,
distinct and apart from money belonging to the mortgage broker. Such money,
when deposited, is to be designated as an “impound trust account” or under some
other appropriate name indicating that the accounts are not the money of the
mortgage broker.
2. The mortgage broker has a fiduciary
duty to each debtor with respect to the money in an impound trust account.
3. The mortgage broker shall, upon
reasonable notice, account to any debtor whose real property secures a loan
arranged by the mortgage broker for any money which that person has paid to the
mortgage broker for the payment of taxes or insurance premiums on the real
property.
4. The mortgage broker shall, upon
reasonable notice, account to the Commissioner for all money in an impound
trust account.
5. A mortgage broker shall:
(a) Require contributions to an impound trust
account in an amount reasonably necessary to pay the obligations as they become
due.
(b) Undertake an annual review of an impound
trust account.
(c) Within 30 days after the completion of the
annual review of an impound trust account, notify the debtor:
(1) Of the amount by which the
contributions exceed the amount reasonably necessary to pay the annual
obligations due from the account; and
(2) That the debtor may specify the
disposition of the excess money within 20 days after receipt of the notice. If
the debtor fails to specify such a disposition within that time, the mortgage
broker shall maintain the excess money in the account.
Ê This
subsection does not prohibit a mortgage broker from requiring additional
amounts to be paid into an impound trust account to recover a deficiency that
exists in the account.
6. A mortgage broker shall not make
payments from an impound trust account in a manner that causes a policy of
insurance to be cancelled or causes property taxes or similar payments to
become delinquent.
(Added to NRS by 1973, 1543; A 1983, 1708; 1987, 1884; 1989, 1765; 1999, 1539, 3793; 2011, 3616)
NRS 645B.175 Trust or escrow account required for money received from
investor to fund loan; trust or escrow account required for money received from
debtor to repay loan; release of money; accounting to investor, debtor and
Commissioner; additional conditions, limitations and prohibitions; duties of
mortgage broker not delegable or transferable; immunity from liability.
1. Except as otherwise provided in this
section, all money received by a mortgage broker and his or her mortgage agents
from an investor to acquire ownership of or a beneficial interest in a loan
secured by a lien on real property must:
(a) Be deposited in:
(1) An insured depository financial
institution; or
(2) An escrow account which is controlled
by a person who is independent of the parties and subject to instructions
regarding the account which are approved by the parties.
(b) Be kept separate from money:
(1) Belonging to the mortgage broker in an
account appropriately named to indicate that the money does not belong to the
mortgage broker.
(2) Received pursuant to subsection 4.
2. Except as otherwise provided in this
section, the amount held in trust pursuant to subsection 1 must be released:
(a) Upon completion of the loan, including proper
recordation of the respective interests or release, or upon completion of the
transfer of the ownership or beneficial interest therein, to the debtor or the
debtor’s designee less the amount due the mortgage broker for the payment of
any fee or service charge;
(b) If the loan or the transfer thereof is not
consummated, to each investor who furnished the money held in trust; or
(c) Pursuant to any instructions regarding the
escrow account.
3. The amount held in trust pursuant to
subsection 1 must not be released to the debtor or the debtor’s designee
unless:
(a) The amount released is equal to the total
amount of money which is being loaned to the debtor for that loan, less the
amount due the mortgage broker for the payment of any fee or service charge;
and
(b) The mortgage broker has provided a written
instruction to a title agent or title insurer requiring that a lender’s policy
of title insurance or appropriate title endorsement, which names as an insured
each investor who owns a beneficial interest in the loan, be issued for the
real property securing the loan.
4. Except as otherwise provided in this
section, all money paid to a mortgage broker and his or her mortgage agents by
a person in full or in partial payment of a loan secured by a lien on real
property, must:
(a) Be deposited in:
(1) An insured depository financial
institution; or
(2) An escrow account which is controlled
by a person who is subject to instructions regarding the account which are
approved by the parties.
(b) Be kept separate from money:
(1) Belonging to the mortgage broker in an
account appropriately named to indicate that it does not belong to the mortgage
broker.
(2) Received pursuant to subsection 1.
5. Except as otherwise provided in this
section, the amount held in trust pursuant to subsection 4:
(a) Must be released, upon the deduction and
payment of any fee or service charge due the mortgage broker, to each investor
who owns a beneficial interest in the loan in exact proportion to the
beneficial interest that the investor owns in the loan; and
(b) Must not be released, in any proportion, to
an investor who owns a beneficial interest in the loan, unless the amount
described in paragraph (a) is also released to every other investor who owns a
beneficial interest in the loan.
6. An investor may waive, in writing, the
right to receive one or more payments, or portions thereof, that are released
to other investors in the manner set forth in subsection 5. A mortgage broker
or mortgage agent shall not act as the attorney-in-fact or the agent of an
investor with respect to the giving of a written waiver pursuant to this
subsection. Any such written waiver applies only to the payment or payments, or
portions thereof, that are included in the written waiver and does not affect
the right of the investor to:
(a) Receive the waived payment or payments, or
portions thereof, at a later date; or
(b) Receive all other payments in full and in
accordance with the provisions of subsection 5.
7. Upon reasonable notice, any mortgage
broker described in this section shall:
(a) Account to any investor or debtor who has
paid to the mortgage broker or his or her mortgage agents money that is
required to be deposited in a trust account pursuant to this section; and
(b) Account to the Commissioner for all money
which the mortgage broker and his or her mortgage agents have received from
each investor or debtor and which the mortgage broker is required to deposit in
a trust account pursuant to this section.
8. Money received by a mortgage broker and
his or her mortgage agents pursuant to this section from a person who is not
associated with the mortgage broker may be held in trust for not more than 45
days before an escrow account must be opened in connection with the loan. If,
within this 45-day period, the loan or the transfer therefor is not
consummated, the money must be returned within 24 hours. If the money is so
returned, it may not be reinvested with the mortgage broker for at least 15
days.
9. If a mortgage broker or a mortgage
agent receives any money pursuant to this section, the mortgage broker or
mortgage agent, after the deduction and payment of any fee or service charge
due the mortgage broker, shall not release the money to:
(a) Any person who does not have a contractual or
legal right to receive the money; or
(b) Any person who has a contractual right to
receive the money if the mortgage broker or mortgage agent knows or, in light
of all the surrounding facts and circumstances, reasonably should know that the
person’s contractual right to receive the money violates any provision of this
chapter or a regulation adopted pursuant to this chapter.
10. If a mortgage broker maintains any
accounts described in subsection 1 or 4, the mortgage broker shall, in addition
to the annual financial statement audited pursuant to NRS
645B.085, submit to the Commissioner each 6 calendar months a financial
statement concerning those trust accounts.
11. The Commissioner shall adopt
regulations concerning the form and content required for financial statements
submitted pursuant to subsection 10.
12. Any duty, responsibility or obligation
of a mortgage broker pursuant to this chapter is not delegable or transferable
to an investor, and, if an investor only provides money to acquire ownership of
or a beneficial interest in a loan secured by a lien on real property, no
criminal or civil liability may be imposed on the investor for any act or
omission of a mortgage broker.
(Added to NRS by 1981, 1784; A 1983, 1708; 1985, 2189; 1987, 1885; 1999, 3794; 2007, 956; 2011, 1390)
NRS 645B.180 Limitations on execution or attachment of money in trust
account; commingling of money prohibited.
1. Money in an impound trust account is
not subject to execution or attachment on any claim against the mortgage broker
or his or her mortgage agents.
2. It is unlawful for a mortgage broker or
his or her mortgage agents knowingly to keep or cause to be kept any money in a
depository financial institution under the heading of “impound trust account”
or any other name designating such money as belonging to the investors or
debtors of the mortgage broker, unless the money has been paid to the mortgage
broker or his or her mortgage agents by an investor or debtor and is being held
in trust by the mortgage broker pursuant to NRS
645B.170 or 645B.175.
(Added to NRS by 1973, 1543; A 1989, 1766; 1999, 1540, 3796)
DISCLOSURES AND ADVERTISING
NRS 645B.185 Use of disclosure forms required; release of financial
statements; duties of mortgage broker and agents; prohibitions; powers of
Commissioner; regulations.
1. A mortgage broker or mortgage agent
shall not accept money from a private investor to acquire ownership of or a
beneficial interest in a loan secured by a lien on real property unless:
(a) The private investor and the mortgage broker
or mortgage agent sign and date a disclosure form that complies with the
provisions of this section; and
(b) The mortgage broker or mortgage agent gives
the private investor the original disclosure form that has been signed and
dated.
2. A private investor and a mortgage
broker or mortgage agent must sign and date a separate disclosure form pursuant
to subsection 1 for each loan in which the private investor invests his or her
money. A mortgage broker or mortgage agent shall not act as the
attorney-in-fact or the agent of a private investor with respect to the signing
or dating of any disclosure form.
3. In addition to the requirements of
subsections 1 and 2, a mortgage broker or mortgage agent shall not accept money
from a private investor to acquire ownership of or a beneficial interest in a
loan secured by a lien on real property, unless the mortgage broker or mortgage
agent gives the private investor a written form by which the private investor
may request that the mortgage broker authorize the Commissioner to release the
mortgage broker’s financial statement to the private investor. Such a form must
be given to the private investor for each loan. If the private investor, before
giving money to the mortgage broker for the loan, requests that the mortgage
broker authorize the release of a financial statement pursuant to this
subsection, the mortgage broker and his or her mortgage agents shall not accept
money from the private investor for that loan until the mortgage broker
receives notice from the Commissioner that the financial statement has been
released to the private investor.
4. A private investor and a mortgage
broker or mortgage agent may not agree to alter or waive the provisions of this
section by contract or other agreement. Any such contract or agreement is void
and must not be given effect to the extent that it violates the provisions of
this section.
5. A mortgage broker shall retain a copy
of each disclosure form that is signed and dated pursuant to subsection 1 for
the period that is prescribed in the regulations adopted by the Commissioner.
6. The standard provisions for each such
disclosure form must include, without limitation, statements:
(a) Explaining the risks of investing through the
mortgage broker, including, without limitation:
(1) The possibility that the debtor may
default on the loan;
(2) The nature of the losses that may
result through foreclosure;
(3) The fact that payments of principal
and interest are not guaranteed and that the private investor may lose the
entire amount of principal that he or she has invested;
(4) The fact that the mortgage broker is
not a depository financial institution and that the investment is not insured
by any depository insurance and is not otherwise insured or guaranteed by the
Federal or State Government; and
(5) Any other information required
pursuant to the regulations adopted by the Commissioner; and
(b) Disclosing to the private investor the
following information if the information is known or, in light of all the
surrounding facts and circumstances, reasonably should be known to the mortgage
broker:
(1) Whether the real property that will
secure the loan is encumbered by any other liens and, if so, the priority of
each such lien, the amount of debt secured by each such lien and the current
status of that debt, including, without limitation, whether the debt is being
paid or is in default;
(2) Whether the mortgage broker or any
general partner, officer, director or mortgage agent of the mortgage broker has
any direct or indirect interest in the debtor;
(3) Whether any disciplinary action has
been taken by the Commissioner against the mortgage broker or any general
partner, officer or director of the mortgage broker within the immediately
preceding 12 months, and the nature of any such disciplinary action;
(4) Whether the mortgage broker or any
general partner, officer or director of the mortgage broker has been convicted
within the immediately preceding 12 months for violating any law, ordinance or
regulation that involves fraud, misrepresentation or a deceitful, fraudulent or
dishonest business practice; and
(5) Any other information required
pursuant to the regulations adopted by the Commissioner.
7. Whether or not a mortgage broker is
required to disclose any information to private investors through a disclosure
form that complies with the provisions of this section, the Commissioner may
order the mortgage broker to disclose to private investors and other investors
or to the general public any information concerning the mortgage broker, any
general partner, officer, director or mortgage agent of the mortgage broker or
any loan in which the mortgage broker is or has been involved, if the
Commissioner, in his or her judgment, believes that the information:
(a) Would be of material interest to a reasonable
investor who is deciding whether to invest money with the mortgage broker; or
(b) Is necessary to protect the welfare of the
public.
8. In carrying out the provisions of
subsection 7, the Commissioner may, without limitation, order a mortgage broker
to include statements of disclosure prescribed by the Commissioner:
(a) In the disclosure form that must be given to
private investors pursuant to subsection 1;
(b) In additional disclosure forms that must be given
to private investors and other investors before or after they have invested
money through the mortgage broker; or
(c) In any advertisement that the mortgage broker
uses in carrying on his or her business.
9. The Commissioner:
(a) Shall adopt regulations prescribing the
period for which a mortgage broker must retain a copy of each disclosure form
that is given to private investors; and
(b) May adopt any other regulations that are
necessary to carry out the provisions of this section, including, without
limitation, regulations specifying the size of print and any required
formatting or typesetting that a mortgage broker must use in any form that is
given to private investors.
(Added to NRS by 1985, 2185; A 1987, 1886; 1999, 3796; 2001, 2468)
NRS 645B.186 Disclosure of certain business and personal relationships
required.
1. If a licensee or a relative of the
licensee is licensed as, conducts business as or holds a controlling interest
or position in:
(a) A construction control;
(b) An escrow agency or escrow agent; or
(c) A title agent, a title insurer or an escrow
officer of a title agent or title insurer,
Ê the licensee
shall fully disclose his or her status as, connection to or relationship with
the construction control, escrow agency, escrow agent, title agent, title
insurer or escrow officer to each investor, and the licensee shall not require,
as a condition to an investor acquiring ownership of or a beneficial interest
in a loan secured by a lien on real property, that the investor transact
business with or use the services of the construction control, escrow agency,
escrow agent, title agent, title insurer or escrow officer or that the investor
authorize the licensee to transact business with or use the services of the
construction control, escrow agency, escrow agent, title agent, title insurer
or escrow officer on behalf of the investor.
2. For the purposes of this section, a
person shall be deemed to hold a controlling interest or position if the
person:
(a) Owns or controls a majority of the voting
stock or holds any other controlling interest, directly or indirectly, that
gives the person the power to direct management or determine policy; or
(b) Is a partner, officer, director or trustee.
3. As used in this section, “licensee”
means:
(a) A person who is licensed as a mortgage broker
or mortgage agent pursuant to this chapter; and
(b) Any general partner, officer or director of
such a person.
(Added to NRS by 1999, 3770; A 2011, 3616)
NRS 645B.187 Prohibition on making certain guarantees in advertisements and
solicitations; limitations on payment of premium interest; penalty.
1. If a mortgage broker or mortgage agent
solicits or receives money from an investor, the mortgage broker or mortgage
agent shall not:
(a) In any advertisement; or
(b) Before, during or after solicitation or
receipt of money from the investor,
Ê make, or
cause or encourage to be made, any explicit or implicit statement,
representation or promise, oral or written, which a reasonable person would
construe as a guarantee that the investor will be repaid the principal amount
of money he or she invests or will earn a specific rate of return or a specific
rate of interest on the principal amount of money he or she invests.
2. If a mortgage broker offers to pay or
pays premium interest on money that the mortgage broker receives from a person
to acquire ownership of or a beneficial interest in a loan secured by a lien on
real property or in full or partial payment of such a loan:
(a) The premium interest must be paid from the
assets or income of the mortgage broker; and
(b) The mortgage broker or a mortgage agent shall
not:
(1) In any advertisement; or
(2) Before, during or after receipt of
money from such a person,
Ê make, or
cause or encourage to be made, any explicit or implicit statement,
representation or promise, oral or written, which a reasonable person would
construe as a guarantee that the mortgage broker will pay the premium interest.
3. A person who violates any provision of
this section is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.
4. As used in this section, “premium
interest” means that amount of interest a mortgage broker pays to a person
which exceeds the amount which is being obtained from the insured depository
financial institution.
(Added to NRS by 1985, 2185; A 1999, 3799)
NRS 645B.189 Statements of disclosure required in certain advertisements;
review of advertisements by Commissioner; advertisements must comply with state
and federal laws concerning deceptive trade practices and deceptive
advertising; regulations.
1. If, in carrying on his or her business,
a mortgage broker uses an advertisement that is designed, intended or
reasonably likely to solicit money from private investors, the mortgage broker
shall include in each such advertisement a statement of disclosure in substantially
the following form:
Money invested through a mortgage
broker is not guaranteed to earn any interest or return and is not insured.
2. A mortgage broker shall include in each
advertisement that the mortgage broker uses in carrying on his or her business
any statements of disclosure required pursuant to the regulations adopted by
the Commissioner or required pursuant to an order of the Commissioner entered
in accordance with subsections 7 and 8 of NRS 645B.185.
3. Each mortgage broker who has received
an initial license within the past 12 months shall submit any proposed
advertisement that the mortgage broker intends to use in carrying on his or her
business to the Commissioner for approval.
4. In addition to the requirements set
forth in this chapter, each advertisement that a mortgage broker uses in
carrying on his or her business must comply with the requirements of:
(a) NRS
598.0903 to 598.0999, inclusive,
concerning deceptive trade practices; and
(b) Any applicable federal statute or regulation
concerning deceptive advertising and the advertising of interest rates.
5. If a mortgage broker violates any
provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptive
trade practices or any federal statute or regulation concerning deceptive
advertising or the advertising of interest rates, in addition to any sanction
or penalty imposed by state or federal law upon the mortgage broker for the
violation, the Commissioner may take any disciplinary action set forth in
paragraph (b) of subsection 1 of NRS 645B.670
against the mortgage broker.
6. The Commissioner may adopt any
regulations that are necessary to carry out the provisions of this section.
(Added to NRS by 1985, 2185; A 1987, 1886; 1999, 3799; 2001, 2470; 2007, 958; 2013, 115)
NRS 645B.196 Liability of advertising spokesperson for mortgage broker for
certain damages.
1. An advertising spokesperson for a
mortgage broker is jointly and severally liable with the mortgage broker for
damages caused by the mortgage broker by fraud, embezzlement, misappropriation
of property, a violation of the provisions of this chapter or the regulations
adopted pursuant thereto, or an action of the mortgage broker that is grounds
for disciplinary action, if:
(a) The advertising spokesperson knew or should
have known of the fraud, embezzlement, misappropriation of property, violation
of the provisions of this chapter or the regulations adopted pursuant thereto,
or action of the mortgage broker that is grounds for disciplinary action; or
(b) In advertising for the mortgage broker, the
advertising spokesperson knew or should have known that:
(1) The conduct of the advertising
spokesperson was likely to deceive, defraud or harm the public or any person
who engaged in business with the mortgage broker; or
(2) The advertising spokesperson was
disseminating material information concerning the mortgage broker or the
business, products or services of the mortgage broker which was false or
misleading.
2. As used in this section:
(a) “Advertising for a mortgage broker” means
advertising or otherwise promoting a mortgage broker or the business, products
or services of the mortgage broker using any medium of communication.
(b) “Advertising spokesperson for a mortgage
broker” or “advertising spokesperson” means a person who consents to and
receives compensation for using his or her name or likeness in advertising for
a mortgage broker.
(Added to NRS by 2003, 3543)
LOAN PAYMENTS AND DEFAULTS
NRS 645B.240 Limitations on charging late fee, additional amount of interest
or other penalty.
1. If a person is required to make a
payment to a mortgage broker pursuant to the terms of a loan secured by a lien
on real property, the mortgage broker may not charge the person a late fee, an
additional amount of interest or any other penalty in connection with that
payment if the payment is delivered to the mortgage broker before 5 p.m. on:
(a) The day that the payment is due pursuant to
the terms of the loan, if an office of the mortgage broker is open to customers
until 5 p.m. on that day; or
(b) The next day that an office of the mortgage
broker is open to customers until 5 p.m., if the provisions of paragraph (a) do
not otherwise apply.
2. A person and a mortgage broker or
mortgage agent may not agree to alter or waive the provisions of this section
by contract or other agreement, and any such contract or agreement is void and
must not be given effect to the extent that it violates the provisions of this
section.
(Added to NRS by 1999, 3773)
NRS 645B.250 Prohibition on advancing payments to investor on behalf of
debtor in default; exceptions. Except
pursuant to a contract for the collection or servicing of a loan which is
governed by the requirements established by the Government National Mortgage
Association, Federal Home Loan Mortgage Corporation or Federal National
Mortgage Association, a mortgage broker or mortgage agent shall not advance
payments to an investor on behalf of a person who has obtained a loan secured
by a lien on real property and who has defaulted in his or her payments.
(Added to NRS by 1985, 2185; A 1989, 966; 1999, 3800)
NRS 645B.260 Monthly report to Commissioner on delinquencies in payments and
defaults; monthly notice to investors; regulations.
1. If a mortgage broker maintains any
accounts described in subsection 4 of NRS 645B.175
in which the mortgage broker deposits payments from a debtor on a loan secured
by a lien on real property and, on the last day of any month, the debtor has
failed to make two or more consecutive payments in accordance with the terms of
the loan, the mortgage broker shall:
(a) Include in the report that the mortgage
broker submits to the Commissioner pursuant to subsection 2 of NRS 645B.080 the information relating to
delinquencies in payments and defaults that is required by the regulations
adopted pursuant to subsection 2;
(b) Not later than 15 days after the last day of
each such month, mail to the last known address of each investor who owns a
beneficial interest in the loan a notice containing the information relating to
delinquencies in payments and defaults that is required by the regulations
adopted pursuant to subsection 2; and
(c) Comply with the provisions of this section
each month on a continuing basis until:
(1) The debtor or the debtor’s designee
remedies the delinquency in payments and any default; or
(2) The lien securing the loan is
extinguished.
2. The Commissioner:
(a) Shall adopt regulations prescribing the
information relating to delinquencies in payments and defaults that a mortgage
broker must include in his or her report to the Commissioner and in the notice
mailed to investors pursuant to subsection 1. Such regulations may provide for
variations between the information that a mortgage broker must include in his
or her report to the Commissioner and the information that a mortgage broker
must include in the notice mailed to investors.
(b) May adopt any other regulations that are
necessary to carry out the provisions of this section.
(Added to NRS by 1999, 3773)
CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS
NRS 645B.300 Written appraisal of real property required; persons authorized
to perform appraisal; retention and inspection of appraisal; exceptions.
1. Except as otherwise provided in
subsection 4, a mortgage broker or mortgage agent shall not accept money from
an investor to acquire ownership of or a beneficial interest in a loan secured
by a lien on real property, unless the mortgage broker has obtained a written
appraisal of the real property securing the loan.
2. The written appraisal of the real
property:
(a) Must be completed not more than 6 months
before the mortgage broker’s first solicitation for the loan;
(b) Must meet the standards set forth in the
Uniform Standards of Professional Appraisal Practice as adopted by the
Appraisal Standards Board of The Appraisal Foundation;
(c) Must be performed by an appraiser who is
authorized to perform appraisals in this State or in the state where the real
property securing the loan is located; and
(d) Must not be performed by the mortgage broker
or a mortgage agent, unless the mortgage broker or mortgage agent is certified
or licensed to perform such an appraisal pursuant to chapter 645C of NRS.
3. A copy of the written appraisal of the
real property must be:
(a) Maintained at each office of the mortgage
broker where money is accepted from an investor to acquire ownership of or a
beneficial interest in a loan secured by a lien on the real property; and
(b) Made available during normal business hours
for inspection by each such investor and the Commissioner.
4. A mortgage broker is not required to
obtain a written appraisal of the real property pursuant to this section if the
mortgage broker obtains a written waiver of the appraisal from each investor
who acquires ownership of or a beneficial interest in a loan secured by a lien
on the real property. A mortgage broker or mortgage agent shall not act as the
attorney-in-fact or the agent of an investor with respect to the giving of a
written waiver pursuant to this subsection.
5. If the mortgage broker obtains a written
waiver of the appraisal as provided in subsection 4, the mortgage broker shall
provide to each investor before accepting any money from the investor a
separate written disclosure which contains the information analyzed, the
valuation methods and techniques employed and the reasoning for any opinion
regarding value provided by or on behalf of the mortgage broker.
6. As used in this section, “appraisal”
has the meaning ascribed to it in NRS
645C.030.
(Added to NRS by 1999, 3772; A 2009, 1451)
NRS 645B.305 Requirement that loan include disclosure concerning fees. A mortgage broker shall ensure that each loan
secured by a lien on real property for which he or she engages in activity as a
mortgage broker includes a disclosure:
1. Describing, in a specific dollar
amount, all fees earned by the mortgage broker;
2. Explaining which party is responsible
for the payment of the fees described in subsection 1; and
3. Explaining the probable impact the fees
described in subsection 1 may have on the terms of the loan, including, without
limitation, the interest rates.
(Added to NRS by 2007, 951; A 2009, 1556;
2011, 3617)
NRS 645B.307 Mortgage broker required to include his or her license number or
identifying number with loan. A
mortgage broker shall ensure that each loan secured by a lien on real property
for which he or she engages in activity as a mortgage broker includes:
1. If the mortgage broker is not
registered with the Registry, the license number of the mortgage broker; or
2. Any identifying number issued by the Registry.
(Added to NRS by 2009, 1453;
A 2011,
3617)
NRS 645B.310 Requirements for mortgage broker to assign interest in loan. A mortgage broker shall not assign all or a
part of his or her interest in a loan secured by a lien on real property,
unless the mortgage broker:
1. Obtains a policy of title insurance for
the real property;
2. Obtains the approval of the assignment
from each investor who has acquired ownership of or a beneficial interest in
the loan if, at the time of the assignment, the debtor on the loan has
defaulted in making a payment required for the loan or any portion of the loan;
and
3. Records the assignment in the office of
the county recorder of the county in which the real property is located.
(Added to NRS by 1985, 2185; A 1999, 3800; 2007, 959)
NRS 645B.320 Copy of recorded deed of trust must be mailed to each investor. If money from an investor is released to a
debtor or the debtor’s designee pursuant to subsection 2 of NRS 645B.175 upon completion of a loan secured by a
lien on real property, the mortgage broker that arranged the loan shall, not
later than 3 business days after the date on which the mortgage broker receives
a copy of the recorded deed of trust, mail to the last known address of each
investor who owns a beneficial interest in the loan a copy of the recorded deed
of trust.
(Added to NRS by 1999, 3773)
NRS 645B.330 Limitations on use of power of attorney.
1. A mortgage broker or mortgage agent
shall not engage in any act or transaction on behalf of a private investor
pursuant to a power of attorney unless:
(a) The power of attorney is executed for the
sole purpose of providing services for not more than one specific loan in which
the private investor owns a beneficial interest; and
(b) The provisions of the power of attorney:
(1) Have been approved by the
Commissioner;
(2) Expressly prohibit the mortgage broker
and his or her mortgage agents from engaging in any act or transaction that
subordinates the priority of a recorded deed of trust unless, before such an
act or transaction, the mortgage broker obtains written approval for the
subordination from the private investor;
(3) Expressly prohibit the mortgage broker
and his or her mortgage agents from using or releasing any money in which the
private investor owns a beneficial interest with regard to the specific loan
for a purpose that is not directly related to providing services for the loan
unless, before any such money is used or released for another purpose, the
mortgage broker obtains written approval from the private investor to use or
release the money for the other purpose; and
(4) Expressly provide that the power of
attorney is effective only for the term of the specific loan unless the
mortgage broker obtains written approval from the private investor to extend
the term of the power of attorney to provide services for not more than one
other loan and the written approval:
(I) Identifies the loan for which
the power of attorney was executed; and
(II) Identifies the loan for which
the written approval is being given.
2. A mortgage broker or mortgage agent
shall not act as the attorney-in-fact or the agent of a private investor with
respect to the giving of written approval pursuant to paragraph (b) of
subsection 1. A private investor and a mortgage broker or mortgage agent may
not agree to alter or waive the provisions of this section by contract or other
agreement. Any such contract or agreement is void and must not be given effect
to the extent that it violates the provisions of this section.
3. Except as otherwise provided in
subsection 4, a power of attorney which designates a mortgage broker or
mortgage agent as the attorney-in-fact or the agent of a private investor and
which violates the provisions of this section is void and must not be given
effect with regard to any act or transaction that occurs on or after October 1,
1999, whether or not the power of attorney is or has been executed by the
private investor before, on or after October 1, 1999.
4. The provisions of subsection 3 do not
apply to a power of attorney that designates a mortgage broker or mortgage
agent as the attorney-in-fact or the agent of a private investor if the power
of attorney:
(a) Was executed before July 1, 2001; and
(b) Complied with the provisions of this section
that were in effect on October 1, 1999.
5. The provisions of this section do not
limit the right of a private investor to include provisions in a power of
attorney that are more restrictive than the provisions set forth in subsection
1.
(Added to NRS by 1999, 3774; A 2001, 2471)
NRS 645B.340 Multiple holders of beneficial interest in loan: Holders of
majority of outstanding principal balance may act on behalf of all holders for
certain matters; notice; exception.
1. Except as otherwise provided by law or
by agreement between the parties and regardless of the date the interests were
created, if the beneficial interest in a loan or the ownership interest in the
real property previously securing the loan belongs to more than one person, the
holders of the beneficial interest in a loan whose interests represent 51
percent or more of the outstanding principal balance of the loan or the holders
of 51 percent or more of the ownership interest in the real property, as
indicated on a trustee’s deed upon sale recorded pursuant to subsection 9 of NRS 107.080, a deed recorded pursuant to
subsection 5 of NRS 40.430 or a deed in
lieu of foreclosure, and any subsequent deed selling, transferring or assigning
an ownership interest, may act on behalf of all the holders of the beneficial
interests or ownership interests of record on matters which require the action
of the holders of the beneficial interests in the loan or the ownership
interests in the real property, including, without limitation:
(a) The designation of a mortgage broker or
mortgage agent, servicing agent or any other person to act on behalf of all the
holders of the beneficial interests or ownership interests of record;
(b) The foreclosure of the property for which the
loan was made;
(c) The subsequent sale, transfer, encumbrance or
lease of real property owned by the holders resulting from a foreclosure or the
receipt of a deed in lieu of a foreclosure in full satisfaction of a loan, to a
bona fide purchaser or encumbrancer for value;
(d) The release of any obligation under a loan in
return for an interest in equity in the real property or, if the loan was made
to a person other than a natural person, an interest in equity of that entity;
and
(e) The modification or restructuring of any term
of the loan, deed of trust or other document relating to the loan, including,
without limitation, changes to the maturity date, interest rate and the
acceptance of payment of less than the full amount of the loan and any accrued
interest in full satisfaction of the loan.
2. A person designated to act pursuant to
subsection 1 on behalf of the holders of the beneficial interest in a loan or
the ownership interest in real property shall, not later than 30 days before
the date on which the holders will determine whether or not to act pursuant to
subsection 1, send a written notice of the action to each holder of a
beneficial interest or ownership interest at the holder’s last known address,
by a delivery service that provides proof of delivery or evidence that the
notice was sent. The written notice must state:
(a) The actions that will be taken on behalf of
the holders who consent to an action pursuant to this section, if the holders
of the beneficial interest in a loan whose interests represent 51 percent or
more of the outstanding principal balance of the loan or the holders of 51
percent or more of the ownership interest in the real property act pursuant to
subsection 1;
(b) The actions that will be taken on behalf of
the holders who do not consent to an action pursuant to this section, if the
holders of the beneficial interest in a loan whose interests represent 51
percent or more of the outstanding principal balance of the loan or the holders
of 51 percent or more of the ownership interest in the real property act
pursuant to subsection 1; and
(c) The amount of the costs or, if an amount is
unknown, an estimate of the amount of the costs that will be allocated to, or
due from, the holder and deducted from any proceeds owed to the holder.
3. If real property is sold, transferred,
encumbered or leased pursuant to paragraph (c) of subsection 1, any beneficial
interest in the loan or ownership interest in the real property of a holder who
does not consent to the sale, transfer, encumbrance or lease, including,
without limitation, any interest of a tenant in common who does not consent to
the sale, transfer, encumbrance or lease, must be sold, transferred, encumbered
or leased by a reference to this section and by the signatures on the necessary
documents of the holders consenting to the sale, transfer, encumbrance or lease
of the real property. The holders consenting to the sale, transfer, encumbrance
or lease of the real property shall designate a representative to sign any
necessary documents on behalf of the holders who do not consent to the sale,
transfer, encumbrance or lease and, if the representative maintains written
evidence of the consent of the number of holders described in subsection 1, the
representative is not liable for any action taken pursuant to this subsection.
4. Any action which is taken pursuant to
subsection 1 must be in writing.
5. The provisions of this section do not
apply to a transaction involving two investors with equal interests.
(Added to NRS by 2009, 1553;
A 2013,
2167)
NRS 645B.350 Mortgage broker required to provide investors certain options
before acquiring ownership or beneficial interest in loan. A mortgage broker shall not accept money from
an investor to acquire ownership of or a beneficial interest in a loan which
has more than one investor at the time of origination unless the mortgage
broker provides to each investor a form which allows the investor to choose one
of the following options:
1. That, upon receipt of a written request
submitted by another investor who owns or has a beneficial interest in the
loan, the mortgage broker may provide to that other investor the name, address,
telephone number and electronic mail address of the investor;
2. That, upon receipt of a written request
submitted by another investor who owns or has a beneficial interest in the
loan, the mortgage broker may provide to that other investor the name, address,
telephone number and electronic mail address of the investor only if the loan
is in default; or
3. That the address, telephone number and
electronic mail address of the investor must remain confidential and that the
mortgage broker may not provide that information to any other investor unless
the investor provides the mortgage broker with subsequent written permission to
provide such information to other investors.
(Added to NRS by 2011, 3603)
NRS 645B.351 Mortgage broker prohibited from including in loan document
provision which requires participation in binding arbitration in event of
dispute.
1. A mortgage broker who makes or arranges
a loan shall not include in any loan document a provision which requires a
private investor to participate in binding arbitration of disputes relating to
the loan.
2. The provisions of this section may not
be varied by agreement, and the rights conferred by this section may not be
waived. Any provision included in a loan document agreement that conflicts with
this section is void.
(Added to NRS by 2011, 3603)
NRS 645B.352 Written servicing agreement required before servicing loan.
1. Before servicing a loan in which a
private investor has acquired a beneficial interest, a mortgage broker must
enter into a written servicing agreement with each investor which describes
specifically the services which the mortgage broker will provide and the
compensation the mortgage broker will receive for those services. The
compensation of the mortgage broker must include an amount reasonably necessary
to pay the cost of servicing the loan.
2. A mortgage broker shall include in each
servicing agreement provisions which:
(a) Require the mortgage broker to:
(1) Deposit in a trust account all money
paid to the mortgage broker in full or partial payment of a loan, unless a
provision of law authorizes the mortgage broker to deposit such money in a
different manner;
(2) Release to the investors, pursuant to
paragraph (a) of subsection 5 of NRS 645B.175,
within 15 days after receipt of all money paid to the mortgage broker in full
or partial payment of a loan;
(3) Record a request for special notice
and notice of default for any encumbrance on the real property which has
priority over the lien securing the loan or any other real property securing
the loan;
(4) Provide to each investor prompt
written notice of:
(I) Any lis pendens, mechanic’s lien
or other lien recorded against the real property securing the loan after the
origination of the loan if the mortgage broker has become aware that such an
instrument has been recorded; and
(II) Any delinquent taxes or
insurance premiums;
(5) Upon receiving a written request from
an investor for a tally of any vote of the investors, provide to the investor a
statement of the number of investors voting in favor of an action and the
number of investors voting against the action and the percentage of beneficial
interest represented by each such vote; and
(6) Respond within a reasonable time under
the circumstances to the request of the borrower or investor to correct any
errors relating to the loan.
(b) Prohibit the mortgage broker from:
(1) Commingling with the assets of the
mortgage broker any money paid to the mortgage broker in full or partial
payment of a loan, unless a provision of law authorizes such commingling;
(2) Using money paid to the mortgage
broker in full or partial payment of a loan for any transaction other than the
servicing transaction for which the money was paid, unless a provision of law
authorizes such use; or
(3) Requiring an investor to participate
in binding arbitration of disputes relating to the loan.
(c) Allow the majority of investors or the
mortgage broker to transfer the servicing agreement to another entity
authorized to service loans or terminate the servicing agreement for any
reason, upon providing written notice at least 30 days before the effective
date of the transfer or termination.
(Added to NRS by 2011, 3603)
NRS 645B.353 Mortgage broker prohibited from releasing borrower or guarantor
from personal liability without certain approval. Except
as otherwise permitted by law, a mortgage broker shall not release a borrower
or guarantor from personal liability for a loan unless a majority of the
investors approve such a release.
(Added to NRS by 2011, 3604)
NRS 645B.354 Restrictions on withholding money from certain investors; loan
servicing agreement may contain provision which provides written consent to
withhold money.
1. If an investor owes money to the
mortgage broker who is servicing a loan or to other investors, the mortgage
broker shall not withhold money due the investor in order to offset the money
owed to the mortgage broker or to another investor, unless:
(a) The mortgage broker obtains the written
consent of the investor who owes the money; or
(b) A court order requires the mortgage broker to
withhold the money.
2. A mortgage broker may include in a loan
servicing agreement a provision which provides written consent to withhold
money due an investor in order to offset money owed by the investor to the
mortgage broker or other investors.
(Added to NRS by 2011, 3604)
NRS 645B.355 Mortgage broker prohibited from acting as construction control. A mortgage broker shall not act as a
construction control with respect to money belonging to a borrower or investor.
If a borrower or investor wishes to utilize a construction control for money
belonging to the borrower or investor, a mortgage broker must place the money
with a person who is independent of the mortgage broker and is licensed or
authorized to accept such money. The money must be subject to the control of a
construction control which is in compliance with, or exempt from, the
provisions of NRS 627.180 or 627.183.
(Added to NRS by 2011, 3605)
NRS 645B.356 Restrictions on placing private investor into certain entities
before foreclosure of real property securing loan.
1. A mortgage broker shall not place or
arrange to place a private investor into a limited-liability company, business
trust or other entity before or after foreclosure of the real property securing
the loan, or receipt of a deed in lieu of foreclosure in full satisfaction of a
loan secured by the real property, unless the mortgage broker:
(a) Provides a copy of the organizational
documents of the limited-liability company, business trust or other entity to
each investor not later than 5 days before the transfer of the interest in the
loan or the interest in the real property;
(b) Obtains the written authorization of a
sufficient number of the investors to act on behalf of all the investors
pursuant to NRS 645B.340; and
(c) Obtains the written authorization of each
investor consenting to the transfer of his or her interest in the loan or in
the real property to the limited-liability company, business trust or other
entity.
2. If a private investor is placed into a
limited-liability company, business trust or other entity pursuant to
subsection 1, any beneficial interest in a loan or ownership interest in real
property of the private investor who does not consent to the placement,
including, without limitation, any interest of a tenant in common who does not
consent to the placement, must be placed in the limited-liability company,
business trust or other entity by a reference to this section and by the
signatures on the necessary documents of the investors consenting to the
placement. The investors who consent to an action pursuant to subsection 1
shall designate a representative to sign any necessary documents on behalf of
the investors who do not consent to the action, and if the representative maintains
written evidence of the consent of the number of investors described in
paragraph (b) of subsection 1, the representative is not liable for any action
taken pursuant to this subsection.
3. The documents provided to each investor
pursuant to paragraph (a) of subsection 1 must clearly and concisely state any
fees which will be paid to the mortgage broker by the limited-liability
company, business trust or other entity, and the sections of the documents that
state fees must be initialed by the investor and any representative designated
pursuant to subsection 2.
4. A mortgage broker or mortgage agent
shall not act as the attorney-in-fact or the agent of a private investor for
the signing or dating of the written authorization.
5. Any term of a contract or other
agreement that attempts to alter or waive the requirements of this section is
void.
(Added to NRS by 2011, 3605;
A 2013,
2169)
NRS 645B.357 Restriction on collection of fees by mortgage broker;
application of fees.
1. A mortgage broker shall not assess or
collect any fee which is not:
(a) Authorized by the loan documents or loan
servicing agreement; and
(b) Assessed or collected in exchange for bona
fide services rendered or costs incurred.
2. A mortgage broker shall apply all fees
collected in the manner set forth in the loan documents or loan servicing
agreement.
(Added to NRS by 2011, 3605)
LICENSING AND REGULATION OF MORTGAGE AGENTS
NRS 645B.400 Requirements to provide services of or engage in activities of
mortgage agent. A person shall not
act as or provide any of the services of a mortgage agent or otherwise engage
in, carry on or hold himself or herself out as engaging in or carrying on the
activities of a mortgage agent unless the person:
1. Has a license as a mortgage agent
issued pursuant to NRS 645B.410.
2. Is:
(a) If the person is not a loan processor who is
an independent contractor, an employee of a mortgage broker or mortgage banker;
or
(b) An employee of or associated with a person
who holds a certificate of exemption pursuant to NRS
645B.016.
3. If the person is required to register
with the Registry:
(a) Is an employee of and whose sponsorship has
been entered with the Registry by a mortgage broker, mortgage banker or person
who holds a certificate of exemption pursuant to NRS
645B.016 as required by subsection 2 of NRS
645B.450; and
(b) Is registered with and provides any
identifying number issued by the Registry.
(Added to NRS by 2003, 3543; A 2011, 3617;
2013, 116)
NRS 645B.405 License as mortgage agent required for mortgage broker or
qualified employee who engages in or supervises a mortgage agent who engages in
activities as residential mortgage loan originator. A
mortgage broker or qualified employee who wishes to engage in activities as a
residential mortgage loan originator or to supervise a mortgage agent who
engages in activities as a residential mortgage loan originator must obtain and
maintain a license as a mortgage agent pursuant to the provisions of NRS 645B.400 to 645B.460,
inclusive.
(Added to NRS by 2009, 2677)
NRS 645B.410 Qualifications and procedure for issuance of license; fees.
1. To obtain a license as a mortgage
agent, a person must:
(a) Be a natural person;
(b) File a written application for a license as a
mortgage agent with the Office of the Commissioner;
(c) Comply with the applicable requirements of
this chapter;
(d) Pay an application fee set by the
Commissioner of not more than $185; and
(e) Be:
(1) Employed by, or have received an offer
of employment from, a mortgage broker;
(2) Employed by, or have received an offer
of employment from, a mortgage banker;
(3) Associated with or employed by, or
have received an offer of a contract with or an offer of employment from, a
person who holds a certificate of exemption pursuant to NRS
645B.016; or
(4) A loan processor who is not an
employee and who is associated with, or has received an offer of a contract
with, a mortgage broker, mortgage banker or person who holds a certificate of
exemption pursuant to NRS 645B.016.
2. An application for a license as a
mortgage agent must:
(a) State the name and residence address of the
applicant;
(b) Include a provision by which the applicant
gives written consent to the Division and, if applicable, the Registry for an
investigation of his or her credit history, criminal history and background;
(c) Unless fingerprints were submitted to the
Registry, include a complete set of fingerprints which the Division may forward
to the Central Repository for Nevada Records of Criminal History for submission
to the Federal Bureau of Investigation for its report;
(d) Include a verified statement from the
mortgage broker, mortgage banker or person who holds a certificate of exemption
pursuant to NRS 645B.016 with whom the applicant
will be associated or employed that expresses the intent of that mortgage
broker, mortgage banker or exempt person to employ or associate the applicant
with the mortgage broker, mortgage banker or exempt person and to be
responsible for the activities of the applicant as a mortgage agent; and
(e) Include any other information or supporting
materials required pursuant to the regulations adopted by the Commissioner, by
an order of the Commissioner or, if applicable, by the Registry. Such information
or supporting materials may include, without limitation, other forms of
identification of the person.
3. Except as otherwise provided by law,
the Commissioner shall issue a license as a mortgage agent to an applicant if:
(a) The application is verified by the
Commissioner and complies with the applicable requirements of this chapter,
other applicable law and, if applicable, the Registry; and
(b) The applicant:
(1) Has not been convicted of, or entered
or agreed to enter a plea of guilty or nolo contendere to, a felony in a
domestic, foreign or military court within the 7 years immediately preceding
the date of the application, or at any time if such felony involved an act of
fraud, dishonesty or a breach of trust, money laundering or moral turpitude;
(2) Has never had a license or
registration as a mortgage agent, mortgage banker, mortgage broker or
residential mortgage loan originator revoked in this State or any other
jurisdiction, or had a financial services license revoked within the immediately
preceding 10 years;
(3) Has not made a false statement of
material fact on his or her application;
(4) Has not violated any provision of this
chapter or chapter 645E of NRS, a
regulation adopted pursuant thereto or an order of the Commissioner; and
(5) Has demonstrated financial
responsibility, character and general fitness so as to command the confidence
of the community and warrant a determination that the applicant will operate
honestly, fairly and efficiently for the purposes of this chapter.
4. Money received by the Commissioner
pursuant to this section is in addition to any fee required to be paid to the
Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.
5. The Commissioner may require the
submission of an item or the payment of a fee required by this section directly
to the Commissioner or, if the person submitting the item or fee is required to
register or voluntarily registers with the Registry, to the Commissioner
through the Registry.
(Added to NRS by 2003, 3543; A 2007, 2853; 2009, 2682;
2011, 3617)
NRS 645B.420 Payment of child support: Submission of certain information by
applicant; grounds for denial of license; duty of Commissioner. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
1. In addition to any other requirements
set forth in this chapter:
(a) An applicant for the issuance of a license as
a mortgage agent pursuant to this chapter shall include the social security
number of the applicant in the application submitted to the Commissioner.
(b) An applicant for the issuance or renewal of a
license as a mortgage agent pursuant to this chapter shall submit to the
Commissioner the statement prescribed by the Division of Welfare and Supportive
Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of a license as a mortgage agent; or
(b) A separate form prescribed by the
Commissioner.
3. The license as a mortgage agent may not
be issued or renewed by the Commissioner if the applicant:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the district
attorney or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 2003, 3545; A 2005, 2785, 2817)
NRS 645B.420 Payment of child support:
Submission of certain information by applicant; grounds for denial of license;
duty of Commissioner. [Effective on the date of the repeal of 42 U.S.C. § 666,
the federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and recreational
licenses for child support arrearages and for noncompliance with certain
processes relating to paternity or child support proceedings and expires by
limitation 2 years after that date.]
1. In addition to any other requirements
set forth in this chapter, an applicant for the issuance or renewal of a
license as a mortgage agent pursuant to this chapter shall submit to the
Commissioner the statement prescribed by the Division of Welfare and Supportive
Services of the Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of a license as a mortgage agent; or
(b) A separate form prescribed by the
Commissioner.
3. The license as a mortgage agent may not
be issued or renewed by the Commissioner if the applicant:
(a) Fails to submit the statement required pursuant
to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 2003, 3545; A 2005, 2785, 2786, 2817,
effective on the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings)
NRS 645B.430 Annual expiration of license; procedure for renewal; continuing
education; fees.
1. A license as a mortgage agent issued
pursuant to NRS 645B.410 expires each year on
December 31, unless it is renewed. To renew a license as a mortgage agent, the
holder of the license must continue to meet the requirements of subsection 3 of
NRS 645B.410 and must submit to the Commissioner
on or after November 1 and on or before December 31 of each year, or on a date
otherwise specified by the Commissioner by regulation:
(a) An application for renewal;
(b) Except as otherwise provided in this section,
satisfactory proof that the holder of the license as a mortgage agent attended
at least 10 hours of certified courses of continuing education during the 12
months immediately preceding the date on which the license expires; and
(c) A renewal fee set by the Commissioner of not
more than $170.
2. In lieu of the continuing education
requirement set forth in paragraph (b) of subsection 1, the holder of a license
as a mortgage agent who, pursuant to subsection 1 of NRS 645F.267, is not required to
register or renew with the Registry and who has not voluntarily registered or
renewed with the Registry must submit to the Commissioner satisfactory proof
that he or she attended at least 5 hours of certified courses of continuing
education during the 12 months immediately preceding the date on which the
license expires. The hours of continuing education required by this subsection
must include:
(a) At least 3 hours relating to the laws and
regulations of this State; and
(b) At least 2 hours relating to ethics.
3. If the holder of the license as a
mortgage agent fails to submit any item required pursuant to subsection 1 or 2
to the Commissioner on or after November 1 and on or before December 31 of any
year, unless a different date is specified by the Commissioner by regulation,
the license is cancelled as of December 31 of that year. The Commissioner may
reinstate a cancelled license if the holder of the license submits to the
Commissioner on or before February 28 of the following year:
(a) An application for renewal;
(b) The fee required to renew the license
pursuant to this section; and
(c) A reinstatement fee of $75.
4. To change the mortgage broker with whom
the mortgage agent is associated, a person must pay a fee of $10.
5. Money received by the Commissioner
pursuant to this section is in addition to any fee that must be paid to the
Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.
6. The Commissioner may require a licensee
to submit an item or pay a fee required by this section directly to the
Division or, if the licensee is required to register or voluntarily registers
with the Registry, to the Division through the Registry.
7. Nothing in this section shall be
construed as preventing the Commissioner from renewing the license of a
mortgage agent who does not satisfy the criteria set forth in paragraph (e) of
subsection 1 of NRS 645B.410 at the time of the
application for renewal.
8. As used in this section, “certified
course of continuing education” has the meaning ascribed to it in NRS 645B.051.
(Added to NRS by 2003, 3544; A 2009, 2683;
2011, 1392,
3619; 2013, 116)
NRS 645B.450 Conditions and limitations regarding employment of or
association with mortgage agent; duties of mortgage broker, mortgage banker or
certain exempt persons upon termination of mortgage agent.
1. A person licensed as a mortgage agent
pursuant to the provisions of NRS 645B.410 may not
be associated with or employed by more than one licensed or registered mortgage
broker or mortgage banker or person who holds a certificate of exemption
pursuant to NRS 645B.016 at the same time.
2. A mortgage broker, mortgage banker or
person who holds a certificate of exemption pursuant to NRS
645B.016 shall not associate with or employ a person as a mortgage agent or
authorize a person to be associated with the mortgage broker, mortgage banker
or exempt person who holds a certificate of exemption pursuant to NRS 645B.016 as a mortgage agent if the mortgage
agent is not licensed with the Division pursuant to NRS
645B.410. Before allowing a mortgage agent to act on its behalf, a mortgage
broker, mortgage banker or person who holds a certificate of exemption pursuant
to NRS 645B.016, must:
(a) Enter its sponsorship of the mortgage agent
with the Registry; or
(b) If the mortgage agent is not required to be
registered with the Registry, notify the Division of its sponsorship of the
mortgage agent.
3. If a mortgage agent terminates his or
her association or employment with a mortgage broker, mortgage banker or exempt
person who holds a certificate of exemption pursuant to NRS
645B.016 for any reason, the mortgage broker, mortgage banker or person who
holds a certificate of exemption pursuant to NRS
645B.016 shall, not later than the third business day following the date of
termination:
(a) Remove its sponsorship of the mortgage agent
from the Registry; or
(b) If the mortgage agent is not required to be
registered with the Registry, deliver to the Division and to the mortgage agent
at the last known residence address of the mortgage agent a written statement
which includes the name, address and license number of the mortgage agent and a
statement of the circumstances of the termination.
(Added to NRS by 1999, 3769; A 2001, 2472; 2003, 2723, 2863, 3552; 2011, 1393,
3620)
NRS 645B.460 Supervision by mortgage broker; requirements; regulations.
1. A mortgage broker shall exercise
reasonable supervision and control over the activities of his or her mortgage
agents and must also be licensed as a mortgage agent if required pursuant to NRS 645B.405. Such reasonable supervision and control
must include, as appropriate:
(a) The establishment of written policies and
procedures for the mortgage agents;
(b) The establishment of a system to review,
oversee and inspect the activities of the mortgage agents, including, without
limitation:
(1) Transactions handled by the mortgage
agents pursuant to this chapter;
(2) Communications between the mortgage
agents and a party to such a transaction;
(3) Documents prepared by the mortgage
agents that may have a material effect upon the rights or obligations of a
party to such a transaction; and
(4) The handling by the mortgage agents of
any fee, deposit or money paid to the mortgage broker or the mortgage agents or
held in trust by the mortgage broker or the mortgage agents pursuant to this
chapter; and
(c) The establishment of a system of reporting to
the Division of any fraudulent activity engaged in by any of the mortgage
agents.
2. The Commissioner shall allow a mortgage
broker to take into consideration the total number of mortgage agents
associated with or employed by the mortgage broker when the mortgage broker
determines the form and extent of the policies and procedures for those
mortgage agents and the system to review, oversee and inspect the activities of
those mortgage agents.
3. The Commissioner may adopt regulations
prescribing standards for determining whether a mortgage broker has exercised
reasonable supervision and control over the activities of a mortgage agent
pursuant to this section.
(Added to NRS by 1999, 3769; A 2001, 2473; 2009, 2684;
2013, 117)
RIGHTS OF BROKERS AND AGENTS DURING MILITARY SERVICE
NRS 645B.490 Right to be placed on inactive status; procedure for reinstatement. Except as otherwise required by the Registry
for persons who are required to register or voluntarily register with the
Registry:
1. Any mortgage broker or mortgage agent
licensed under the provisions of this chapter who is called into the military
service of the United States shall, at his or her request, be relieved from
compliance with the provisions of this chapter and placed on inactive status
for the period of such military service and for a period of 6 months after
discharge therefrom.
2. At any time within 6 months after
termination of such service, if the mortgage broker or mortgage agent complies
with the provisions of subsection 1, the mortgage broker or mortgage agent may
be reinstated, without having to meet any qualification or requirement other
than the payment of the reinstatement fee, as provided in NRS 645B.050 or 645B.430,
and the mortgage broker or mortgage agent is not required to make payment of
the renewal fee for the current year.
3. Any mortgage broker or mortgage agent
seeking to qualify for reinstatement, as provided in subsections 1 and 2, must
present a certified copy of his or her honorable discharge or certificate of
satisfactory service to the Commissioner.
(Added to NRS by 2003, 3545; A 2011, 3620)
INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL
ACTION
NRS 645B.600 Person may file complaint alleging violation; requirements.
1. A person may file with the Commissioner
a complaint alleging that another person has violated a provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner.
2. A complaint filed pursuant to this
section must:
(a) Be in writing;
(b) Be signed by the person filing the complaint
or the designee of the person filing the complaint;
(c) Contain an address and a telephone number for
the person filing the complaint or the designee of the person filing the
complaint;
(d) Describe the nature of the alleged violation
in as much detail as possible;
(e) Include as exhibits copies of all
documentation supporting the complaint; and
(f) Include any other information or supporting
materials required by the regulations adopted by the Commissioner or by an
order of the Commissioner.
(Added to NRS by 1999, 3775; A 2001, 2474; 2011, 3621)
NRS 645B.610 Duties of Commissioner when complaint is filed.
1. If a person properly files a complaint
with the Commissioner pursuant to NRS 645B.600,
the Commissioner shall investigate each violation alleged in the complaint,
unless the Commissioner has previously investigated the alleged violation.
2. Except as otherwise provided in
subsection 2 of NRS 645B.090, if the Commissioner
does not conduct an investigation of an alleged violation pursuant to
subsection 1 because he or she previously has investigated the alleged
violation, the Commissioner shall provide to the person who filed the complaint
a written summary of the previous investigation and the nature of any
disciplinary action that was taken as a result of the previous investigation.
3. If the Commissioner conducts an
investigation of an alleged violation pursuant to subsection 1, the
Commissioner shall determine from the investigation whether there is reasonable
cause to believe that the person committed the alleged violation.
4. If, upon investigation, the
Commissioner determines that there is not reasonable cause to believe that the
person committed the alleged violation, the Commissioner shall provide the
reason for the determination, in writing, to the person who filed the complaint
and to the person alleged to have committed the violation.
5. Except as otherwise provided in
subsection 6, if, upon investigation, the Commissioner determines that there is
reasonable cause to believe that the person committed the alleged violation,
the Commissioner shall:
(a) Schedule a hearing concerning the alleged
violation;
(b) Mail to the last known address of the person
who filed the complaint written notice that must include, without limitation:
(1) The date, time and place of the
hearing; and
(2) A statement of each alleged violation
that will be considered at the hearing; and
(c) By personal service in accordance with the
Nevada Rules of Civil Procedure and any applicable provision of NRS, serve
written notice of the hearing to the person alleged to have committed the
violation. The written notice that is served pursuant to this paragraph must
include, without limitation:
(1) The date, time and place of the
hearing;
(2) A copy of the complaint and a
statement of each alleged violation that will be considered at the hearing; and
(3) A statement informing the person that,
pursuant to NRS 645B.760, if he or she fails to
appear, without reasonable cause, at the hearing:
(I) The person is guilty of a
misdemeanor; and
(II) The Commissioner is authorized
to conduct the hearing in the person’s absence, draw any conclusions that the
Commissioner deems appropriate from his or her failure to appear and render a
decision concerning each alleged violation.
6. If the Commissioner enters into a
written consent agreement settling or resolving the alleged violation, the
Commissioner shall provide a copy of the written consent agreement to the
person who filed the complaint.
7. The Commissioner may:
(a) Investigate and conduct a hearing concerning
any alleged violation, whether or not a complaint has been filed.
(b) Hear and consider more than one alleged
violation against a person at the same hearing.
(Added to NRS by 1999, 3775; A 2003, 3469)
NRS 645B.620 Duties of Commissioner when violation is suspected; referral of
violations to Attorney General for criminal prosecution; civil action for
injunctive relief.
1. Whether or not a complaint has been
filed, the Commissioner shall investigate a mortgage broker, mortgage agent or
other person if, for any reason, it appears that:
(a) The mortgage broker or mortgage agent is
conducting business in an unsafe and injurious manner or in violation of any
provision of this chapter, a regulation adopted pursuant to this chapter or an
order of the Commissioner;
(b) The person is offering or providing any of
the services of a mortgage broker or mortgage agent or otherwise engaging in,
carrying on or holding himself or herself out as engaging in or carrying on the
business of a mortgage broker or mortgage agent without being appropriately
licensed or exempt from licensing pursuant to the provisions of this chapter;
or
(c) The person is violating any other provision
of this chapter, a regulation adopted pursuant to this chapter or an order of
the Commissioner.
2. If, upon investigation, the
Commissioner has reasonable cause to believe that the mortgage broker, mortgage
agent or other person has engaged in any conduct or committed any violation
described in subsection 1:
(a) The Commissioner shall notify the Attorney
General of the conduct or violation and, if applicable, the Commissioner shall
immediately take possession of the property of the mortgage broker pursuant to NRS 645B.630; and
(b) The Attorney General shall, if appropriate:
(1) Investigate and prosecute the mortgage
broker, mortgage agent or other person pursuant to NRS
645B.800; and
(2) Bring a civil action to:
(I) Enjoin the mortgage broker,
mortgage agent or other person from engaging in the conduct, operating the
business or committing the violation; and
(II) Enjoin any other person who has
encouraged, facilitated, aided or participated in the conduct, the operation of
the business or the commission of the violation, or who is likely to engage in
such acts, from engaging in or continuing to engage in such acts.
3. If the Attorney General brings a civil
action pursuant to subsection 2, the district court of any county of this State
is hereby vested with the jurisdiction in equity to enjoin the conduct, the
operation of the business or the commission of the violation and may grant any
injunctions that are necessary to prevent and restrain the conduct, the
operation of the business or the commission of the violation. During the
pendency of the proceedings before the district court:
(a) The court may issue any temporary restraining
orders as may appear to be just and proper;
(b) The findings of the Commissioner shall be
deemed to be prima facie evidence and sufficient grounds, in the discretion of
the court, for the ex parte issuance of a temporary restraining order; and
(c) The Attorney General may apply for and on due
showing is entitled to have issued the court’s subpoena requiring forthwith the
appearance of any person to:
(1) Produce any documents, books and
records as may appear necessary for the hearing of the petition; and
(2) Testify and give evidence concerning
the conduct complained of in the petition.
(Added to NRS by 1973, 1540; A 1983, 1705; 1987, 1882; 1999, 3790; 2003, 3554)
NRS 645B.630 Duties of Commissioner when unsafe condition or practice is
suspected; seizure of property and assets of mortgage broker; duties of
Attorney General.
1. In addition to any other action that is
required or permitted pursuant to this chapter, if the Commissioner has
reasonable cause to believe that:
(a) The assets or capital of a mortgage broker
are impaired; or
(b) A mortgage broker is conducting business in
an unsafe and injurious manner that may result in danger to the public,
Ê the
Commissioner shall immediately take possession of all the property, business
and assets of the mortgage broker that are located in this State and shall
retain possession of them pending further proceedings provided for in this
chapter.
2. If the licensee, the board of directors
or any officer or person in charge of the offices of the mortgage broker
refuses to permit the Commissioner to take possession of the property of the
mortgage broker pursuant to subsection 1:
(a) The Commissioner shall notify the Attorney General;
and
(b) The Attorney General shall immediately bring
such proceedings as may be necessary to place the Commissioner in immediate
possession of the property of the mortgage broker.
3. If the Commissioner takes possession of
the property of the mortgage broker, the Commissioner shall:
(a) Make or have made an inventory of the assets
and known liabilities of the mortgage broker;
(b) File one copy of the inventory in the office
of the Commissioner and one copy in the office of the clerk of the district
court of the county in which the principal office of the mortgage broker is
located and shall mail one copy to each stockholder, partner, officer, director
or associate of the mortgage broker at his or her last known address; and
(c) If the mortgage broker maintains any accounts
described in NRS 645B.175, not later than 5
business days after the date on which the Commissioner takes possession of the
property of the mortgage broker, mail notice of the possession to the last
known address of each person whose money is deposited in such an account or
whose money was or should have been deposited in such an account during the
preceding 12 months.
4. The clerk of the court with which the
copy of the inventory is filed shall file it as any other case or proceeding
pending in the court and shall give it a docket number.
(Added to NRS by 1973, 1541; A 1981, 1790; 1983,
1707; 1987,
1883; 1999,
3791)
NRS 645B.640 Persons entitled to correct unsafe conditions and practices;
effect of failure to correct; receivership and liquidation of assets.
1. If the Commissioner takes possession of
the property of a mortgage broker pursuant to NRS
645B.630, the licensee, officers, directors, partners, associates or
stockholders of the mortgage broker may, within 60 days after the date on which
the Commissioner takes possession of the property, make good any deficit in the
assets or capital of the mortgage broker or remedy any unsafe and injurious
conditions or practices of the mortgage broker.
2. At the expiration of the 60-day period,
if the deficiency in assets or capital has not been made good or the unsafe and
injurious conditions or practices remedied, the Commissioner may apply to the
court to be appointed receiver and proceed to liquidate the assets of the
mortgage broker which are located in this State in the same manner as now
provided by law for liquidation of a private corporation in receivership.
3. No other person may be appointed
receiver by any court without first giving the Commissioner ample notice of his
or her application.
4. The inventory made by the Commissioner
and all claims filed by creditors are open at all reasonable times for
inspection, and any action taken by the receiver upon any of the claims is
subject to the approval of the court before which the cause is pending.
5. The expenses of the receiver and
compensation of counsel, as well as all expenditures required in the
liquidation proceedings, must be fixed by the Commissioner subject to the
approval of the court and, upon certification of the Commissioner, must be paid
out of the money in his or her hands as the receiver.
(Added to NRS by 1973, 1542; A 1983, 1707; 1987, 1884; 1999, 3792)
DISCIPLINARY ACTION
NRS 645B.670 Authorized disciplinary action; grounds for disciplinary action.
1. Except as otherwise provided in NRS 645B.690:
(a) For each violation committed by an applicant
for a license issued pursuant to this chapter, whether or not the applicant is
issued a license, the Commissioner may impose upon the applicant an
administrative fine of not more than $25,000 if the applicant:
(1) Has knowingly made or caused to be
made to the Commissioner any false representation of material fact;
(2) Has suppressed or withheld from the
Commissioner any information which the applicant possesses and which, if submitted
by the applicant, would have rendered the applicant ineligible to be licensed
pursuant to the provisions of this chapter; or
(3) Has violated any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner in completing and filing his or her application for a license or
during the course of the investigation of his or her application for a license.
(b) For each violation committed by a mortgage
broker, the Commissioner may impose upon the mortgage broker an administrative
fine of not more than $25,000, may suspend, revoke or place conditions upon the
mortgage broker’s license, or may do both, if the mortgage broker, whether or
not acting as such:
(1) Is insolvent;
(2) Is grossly negligent or incompetent in
performing any act for which the mortgage broker is required to be licensed
pursuant to the provisions of this chapter;
(3) Does not conduct his or her business
in accordance with law or has violated any provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the Commissioner;
(4) Is in such financial condition that
the mortgage broker cannot continue in business with safety to his or her
customers;
(5) Has made a material misrepresentation
in connection with any transaction governed by this chapter;
(6) Has suppressed or withheld from a
client any material facts, data or other information relating to any
transaction governed by the provisions of this chapter which the mortgage
broker knew or, by the exercise of reasonable diligence, should have known;
(7) Has knowingly made or caused to be
made to the Commissioner any false representation of material fact or has
suppressed or withheld from the Commissioner any information which the mortgage
broker possesses and which, if submitted by the mortgage broker, would have
rendered the mortgage broker ineligible to be licensed pursuant to the
provisions of this chapter;
(8) Has failed to account to persons
interested for all money received for a trust account;
(9) Has refused to permit an examination
by the Commissioner of his or her books and affairs or has refused or failed,
within a reasonable time, to furnish any information or make any report that
may be required by the Commissioner pursuant to the provisions of this chapter
or a regulation adopted pursuant to this chapter;
(10) Has been convicted of, or entered or
agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic,
foreign or military court within the 7 years immediately preceding the date of
the application, or at any time if such felony involved an act of fraud,
dishonesty or a breach of trust, moral turpitude or money laundering;
(11) Has refused or failed to pay, within
a reasonable time, any fees, assessments, costs or expenses that the mortgage
broker is required to pay pursuant to this chapter or a regulation adopted
pursuant to this chapter;
(12) Has failed to satisfy a claim made by
a client which has been reduced to judgment;
(13) Has failed to account for or to remit
any money of a client within a reasonable time after a request for an
accounting or remittal;
(14) Has commingled the money or other
property of a client with his or her own or has converted the money or property
of others to his or her own use;
(15) Has engaged in any other conduct
constituting a deceitful, fraudulent or dishonest business practice;
(16) Has repeatedly violated the policies
and procedures of the mortgage broker;
(17) Has failed to exercise reasonable
supervision and control over the activities of a mortgage agent as required by NRS 645B.460;
(18) Has instructed a mortgage agent to
commit an act that would be cause for the revocation of the license of the
mortgage broker, whether or not the mortgage agent commits the act;
(19) Has employed a person as a mortgage
agent or authorized a person to be associated with the mortgage broker as a
mortgage agent at a time when the mortgage broker knew or, in light of all the
surrounding facts and circumstances, reasonably should have known that the
person:
(I) Had been convicted of, or
entered or agreed to enter a plea of guilty or nolo contendere to, a felony in
a domestic, foreign or military court within the 7 years immediately preceding
the date of application, or at any time if such felony involved an act of
fraud, dishonesty or a breach of trust, moral turpitude or money laundering; or
(II) Had a license or registration
as a mortgage agent, mortgage banker, mortgage broker or residential mortgage
loan originator revoked in this State or any other jurisdiction or had a
financial services license or registration revoked within the immediately
preceding 10 years;
(20) Has violated NRS 645C.557;
(21) Has failed to pay a tax as required
pursuant to the provisions of chapter 363A
of NRS; or
(22) Has, directly or indirectly, paid any
commission, fees, points or any other compensation as remuneration for the
services of a mortgage agent to a person other than a mortgage agent who:
(I) Is an employee of or associated
with the mortgage broker; or
(II) If the mortgage agent is
required to register with the Registry, is an employee of and whose sponsorship
has been entered with the Registry by the mortgage broker as required by
subsection 2 of NRS 645B.450.
(c) For each violation committed by a mortgage
agent, the Commissioner may impose upon the mortgage agent an administrative
fine of not more than $25,000, may suspend, revoke or place conditions upon the
mortgage agent’s license, or may do both, if the mortgage agent, whether or not
acting as such:
(1) Is grossly negligent or incompetent in
performing any act for which the mortgage agent is required to be licensed
pursuant to the provisions of this chapter;
(2) Has made a material misrepresentation
in connection with any transaction governed by this chapter;
(3) Has suppressed or withheld from a
client any material facts, data or other information relating to any
transaction governed by the provisions of this chapter which the mortgage agent
knew or, by the exercise of reasonable diligence, should have known;
(4) Has knowingly made or caused to be
made to the Commissioner any false representation of material fact or has
suppressed or withheld from the Commissioner any information which the mortgage
agent possesses and which, if submitted by the mortgage agent, would have
rendered the mortgage agent ineligible to be licensed pursuant to the
provisions of this chapter;
(5) Has been convicted of, or entered or
agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic,
foreign or military court within the 7 years immediately preceding the date of
the application, or at any time if such felony involved an act of fraud,
dishonesty or a breach of trust, moral turpitude or money laundering;
(6) Has failed to account for or to remit
any money of a client within a reasonable time after a request for an
accounting or remittal;
(7) Has commingled the money or other
property of a client with his or her own or has converted the money or property
of others to his or her own use;
(8) Has engaged in any other conduct
constituting a deceitful, fraudulent or dishonest business practice;
(9) Has violated NRS 645C.557;
(10) Has repeatedly violated the policies
and procedures of the mortgage broker with whom the mortgage agent is
associated or by whom he or she is employed;
(11) Has, directly or indirectly, received
any commission, fees, points or any other compensation as remuneration for his
or her services as a mortgage agent:
(I) From a person other than the
mortgage broker with whom the mortgage agent is associated or by whom he or she
is employed; or
(II) If the mortgage agent is
required to be registered with the Registry, from a person other than the
mortgage broker by whom the mortgage agent is employed and on whose behalf
sponsorship was entered as required by subsection 2 of NRS
645B.450; or
(12) Has violated any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner or has assisted or offered to assist another person to commit such
a violation.
2. This section does not prohibit the
co-brokering of a commercial loan through the cooperation of two or more
mortgage brokers so long as such a transaction is not inconsistent with any
other provision of this chapter.
(Added to NRS by 1973, 1539; A 1977, 93; 1981, 1790;
1983, 1380, 1704; 1985, 2188; 1987, 1880; 1993, 498; 1999, 3787; 2001, 2474; 2003, 2724, 3555; 2003,
20th Special Session, 221, 258; 2009, 1510,
2684; 2011, 3621;
2013, 117)
NRS 645B.680 Suspension of license for failure to pay child support or comply
with certain subpoenas or warrants; reinstatement of license. [Effective until
2 years after the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings.]
1. If the Commissioner receives a copy of
a court order issued pursuant to NRS
425.540 that provides for the suspension of all professional, occupational
and recreational licenses, certificates and permits issued to a person who is
the holder of a license as a mortgage broker or mortgage agent, the
Commissioner shall deem the license issued to that person to be suspended at
the end of the 30th day after the date on which the court order was issued
unless the Commissioner receives a letter issued to the holder of the license
by the district attorney or other public agency pursuant to NRS 425.550 stating that the holder of the
license has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560.
2. The Commissioner shall reinstate a
license as a mortgage broker or mortgage agent that has been suspended by a
district court pursuant to NRS 425.540
if the Commissioner receives a letter issued by the district attorney or other
public agency pursuant to NRS 425.550
to the person whose license was suspended stating that the person whose license
was suspended has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560.
(Added to NRS by 1997, 2171; A 1999, 3789; 2003, 3556; 2005, 2807, 2810, 2817)
NRS 645B.690 Duty of Commissioner to take disciplinary action for certain
violations.
1. If a person offers or provides any of
the services of a mortgage broker or mortgage agent or otherwise engages in,
carries on or holds himself or herself out as engaging in or carrying on the
business of a mortgage broker or mortgage agent and, at the time:
(a) The person was required to have a license
pursuant to this chapter and the person did not have such a license;
(b) The person was required to be registered with
the Registry and the person was not so registered; or
(c) The person’s license was suspended or revoked
pursuant to this chapter,
Ê the
Commissioner shall impose upon the person an administrative fine of not more
than $50,000 for each violation and, if the person has a license, the
Commissioner may suspend or revoke it.
2. If a mortgage broker violates any
provision of subsection 1 of NRS 645B.080 and the
mortgage broker fails, without reasonable cause, to remedy the violation within
20 business days after being ordered by the Commissioner to do so or within
such later time as prescribed by the Commissioner, or if the Commissioner
orders a mortgage broker to provide information, make a report or permit an
examination of his or her books or affairs pursuant to this chapter and the
mortgage broker fails, without reasonable cause, to comply with the order
within 20 business days or within such later time as prescribed by the
Commissioner, the Commissioner shall:
(a) Impose upon the mortgage broker an
administrative fine of not more than $25,000 for each violation;
(b) Suspend or revoke the license of the mortgage
broker; and
(c) Conduct a hearing to determine whether the
mortgage broker is conducting business in an unsafe and injurious manner that
may result in danger to the public and whether it is necessary for the
Commissioner to take possession of the property of the mortgage broker pursuant
to NRS 645B.630.
3. If a mortgage broker:
(a) Makes or offers for sale in this State any
investments in promissory notes secured by liens on real property; and
(b) Receives the lowest possible rating on two
consecutive annual or biennial examinations pursuant to NRS
645B.060,
Ê the
Commissioner shall suspend or revoke the license of the mortgage broker.
(Added to NRS by 1999, 3776; A 2003, 3557; 2009, 747, 1451, 1556; 2011, 3624)
NRS 645B.700 Categorization of major and minor violations; regulations.
1. Except as otherwise provided in
subsection 2, for each violation that may be committed by a person pursuant to
this chapter or the regulations adopted pursuant to this chapter, the
Commissioner may adopt regulations:
(a) Categorizing the violation as a major
violation or a minor violation; and
(b) Specifying the disciplinary action that will
be taken by the Commissioner pursuant to this chapter against a person who
commits:
(1) A major violation. The disciplinary
action taken by the Commissioner for a major violation may include, without
limitation, suspension or revocation of the person’s license.
(2) More than two minor violations. The
Commissioner may establish graduated sanctions for a person who commits more
than two minor violations based upon the number, the frequency and the severity
of the minor violations and whether the person previously has committed any
major violations.
2. The provisions of this section do not
apply to a violation for which the Commissioner is required to take
disciplinary action in accordance with NRS 645B.690.
(Added to NRS by 1999, 3777; A 2001, 2476)
NRS 645B.710 Act or omission of partner, officer or director deemed act or
omission of partnership, corporation or unincorporated association. If a person is a partnership, corporation or
unincorporated association, the Commissioner shall take any disciplinary action
required pursuant to NRS 645B.690 and may take any
other disciplinary action set forth in this chapter against the person if any
member of the partnership or any officer or director of the corporation or
unincorporated association has committed any act or omission that would be
cause for taking such disciplinary action against a natural person.
(Added to NRS by 1999, 3777)
NRS 645B.720 Authority of Commissioner to order summary suspension of license
and take other action to protect public before conducting hearing. Before conducting a hearing, the Commissioner
may, to the fullest extent permitted by the Constitution of the United States
and the Constitution of this State:
1. Order a summary suspension of a license
pursuant to subsection 3 of NRS 233B.127;
and
2. Take any other action against a
licensee or other person that is necessary to protect the health, safety or
welfare of the public.
(Added to NRS by 1999, 3777)
NRS 645B.740 Disciplinary proceedings, fines and penalties not affected by
expiration, revocation or voluntary surrender of license. The expiration or revocation of a license of a
mortgage broker or mortgage agent by operation of law or by order or decision
of the Commissioner or a court of competent jurisdiction, or the voluntary
surrender of a license, does not:
1. Prohibit the Commissioner from
initiating or continuing an investigation of, or action or disciplinary
proceeding against, the mortgage broker or mortgage agent as authorized
pursuant to the provisions of this chapter or the regulations adopted pursuant
thereto; or
2. Prevent the imposition or collection of
any fine or penalty authorized pursuant to the provisions of this chapter or
the regulations adopted pursuant thereto against the mortgage broker or
mortgage agent.
(Added to NRS by 2009, 1553)
HEARINGS; APPEALS
NRS 645B.750 Duty of Commissioner to provide written notice of disciplinary
action or denial of license; right to administrative hearing; entry of final
order; appeals.
1. If the Commissioner enters an order
taking any disciplinary action against a person or denying a person’s
application for a license, the Commissioner shall cause a written notice of the
order to be served personally or sent by certified mail or telegram to the
person.
2. Unless a hearing has already been
conducted concerning the matter, the person, upon application, is entitled to a
hearing. If the person does not make such an application within 20 days after
the date of the initial order, the Commissioner shall enter a final order
concerning the matter.
3. A person may appeal a final order of
the Commissioner in accordance with the provisions of chapter 233B of NRS that apply to a contested
case.
(Added to NRS by 1973, 1539; A 1983, 1705; 1987, 1881; 1999, 3789; 2003, 984)
NRS 645B.760 Effect of failure to appear at hearing; penalty. If a person is alleged to have engaged in any
conduct or committed any violation that is described in NRS
645B.620, 645B.630 or 645B.670
or is alleged to have committed a violation of any other provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner, and the person fails to appear, without reasonable cause, at a
hearing before the Commissioner concerning the alleged conduct or violation:
1. The Commissioner shall notify the
Attorney General that the person failed to appear;
2. The person is guilty of a misdemeanor
and shall be punished as provided in NRS 645B.950;
and
3. The Commissioner may conduct the
hearing in the person’s absence, draw any conclusions that the Commissioner
deems appropriate from the person’s failure to appear and render a decision
concerning the alleged conduct or violation.
(Added to NRS by 1999, 3777)
ENFORCEMENT
NRS 645B.800 Attorney General has primary criminal jurisdiction; duty to
provide Attorney General with information to assist prosecution; penalty.
1. The Attorney General has primary
jurisdiction for the enforcement of this chapter. The Attorney General shall,
if appropriate, investigate and prosecute a person who violates:
(a) Any provision of this chapter, a regulation
adopted pursuant to this chapter or an order of the Commissioner, including,
without limitation, a violation of any provision of NRS
645B.620 or 645B.670; or
(b) Any other law or regulation if the violation
is committed by the person in the course of committing a violation described in
paragraph (a).
2. The Attorney General shall, if
appropriate, investigate and prosecute a person who is alleged to have
committed a violation described in subsection 1 whether or not:
(a) The Commissioner notifies the Attorney
General of the alleged violation;
(b) The Commissioner takes any disciplinary
action against the person alleged to have committed the violation;
(c) Any other person files a complaint against
the person alleged to have committed the violation; or
(d) A civil action is commenced against the
person alleged to have committed the violation.
3. When acting pursuant to this section,
the Attorney General may commence an investigation and file a criminal action
without leave of court, and the Attorney General has exclusive charge of the
conduct of the prosecution.
4. Except as otherwise provided by the
Constitution of the United States, the Constitution of this State or a specific
statute, a person shall, if requested, provide the Attorney General with
information that would assist in the prosecution of any other person who is
alleged to have committed a violation described in subsection 1. If a person
fails, without reasonable cause, to provide the Attorney General with such
information upon request, the person is guilty of a misdemeanor and shall be
punished as provided in NRS 645B.950.
(Added to NRS by 1999, 3778)
NRS 645B.810 Attorney General may bring civil action; recovery of costs in
civil action.
1. The Attorney General may bring any
appropriate civil action against a person to enforce any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner, including, without limitation, an order of the Commissioner:
(a) Imposing an administrative fine; or
(b) Suspending, revoking or placing conditions
upon a license.
2. If the Attorney General prevails in any
civil action brought pursuant to this chapter, the court shall order the person
against whom the civil action was brought to pay:
(a) Court costs; and
(b) Reasonable costs of the investigation and
prosecution of the civil action.
3. Whether or not the Attorney General
brings a civil action against a person pursuant to this chapter, the Attorney
General may prosecute the person for a criminal violation pursuant to this
chapter.
(Added to NRS by 1999, 3778)
NRS 645B.820 Exercise of jurisdiction over party to civil action; service of
summons to confer jurisdiction.
1. A court of this State may exercise
jurisdiction over a party to a civil action arising under the provisions of
this chapter on any basis not inconsistent with the Constitution of the State
of Nevada or the Constitution of the United States.
2. Personal service of summons upon a
party outside this State is sufficient to confer upon a court of this State
jurisdiction over the party so served if the service is made by delivering a
copy of the summons, together with a copy of the complaint, to the party served
in the manner provided by statute or rule of court for service upon a person of
like kind within this State.
3. In all cases of such service, the
defendant has 40 days, exclusive of the day of service, within which to answer
or plead.
4. This section provides an additional
manner of serving process and does not invalidate any other service.
(Added to NRS by 2009, 746)
ADVISORY COUNCIL ON MORTGAGE INVESTMENTS AND MORTGAGE
LENDING
NRS 645B.860 Creation; members; appointment; terms and vacancies; no
compensation or per diem allowance; protections afforded members who are public
officers or employees.
1. The Advisory Council on Mortgage
Investments and Mortgage Lending is hereby created.
2. The Advisory Council consists of five
members appointed by the Legislative Commission from a list of persons provided
by the Commissioner.
3. The members of the Advisory Council:
(a) Must be persons who have experience with, an
interest in or a knowledge of issues relating to mortgage investments or
mortgage lending. Such persons may include, without limitation, investors,
public officers and employees, licensees and persons who have engaged in or
been involved with any business, profession or occupation relating to mortgage
investments or mortgage lending.
(b) Serve terms of 2 years and at the pleasure of
the Legislative Commission.
(c) May be reappointed.
(d) Serve without compensation and may not
receive a per diem allowance or travel expenses.
4. Any vacancy in the membership of the
Advisory Council must be filled for the remainder of the unexpired term in the
same manner as the original appointment.
5. A member of the Advisory Council who is
an officer or employee of this State or a political subdivision of this State
must be relieved from his or her duties without loss of his or her regular
compensation so that the member may prepare for and attend meetings of the
Advisory Council and perform any work necessary to carry out the duties of the
Advisory Council in the most timely manner practicable. A state agency or
political subdivision of this State shall not require an officer or employee
who is a member of the Advisory Council to make up the time the officer or
employee is absent from work to carry out his or her duties as a member of the
Advisory Council or use annual vacation or compensatory time for the absence.
6. Notwithstanding any other provision of
law, a member of the Advisory Council:
(a) Is not disqualified from public employment or
holding a public office because of his or her membership on the Advisory
Council; and
(b) Does not forfeit his or her public office or
public employment because of his or her membership on the Advisory Council.
(Added to NRS by 1999, 3766)
NRS 645B.865 Chair and Vice Chair; meetings; quorum; subcommittees.
1. The members of the Advisory Council on
Mortgage Investments and Mortgage Lending shall elect a Chair and a Vice Chair
from among their membership. The Vice Chair shall perform the duties of the
Chair during any absence of the Chair.
2. The Advisory Council may meet at least
once each calendar quarter and at other times on the call of the Chair or a
majority of its members.
3. The meetings of the Advisory Council
may be held at any location designated by the Chair or a majority of its
members.
4. A majority of the members of the
Advisory Council constitutes a quorum for the transaction of all business.
5. The Chair may appoint subcommittees of
the members of the Advisory Council to consider specific problems relating to
mortgage investments or mortgage lending.
(Added to NRS by 1999, 3767)
NRS 645B.870 Purpose. The
purpose of the Advisory Council on Mortgage Investments and Mortgage Lending is
to:
1. Consult with, advise and make
recommendations to the Commissioner in all matters relating to mortgage
investments and mortgage lending.
2. Make recommendations to the Legislature
concerning the enactment of any legislation relating to mortgage investments
and mortgage lending.
3. Make recommendations to the Legislature
and the Commissioner concerning educational requirements and other
qualifications for persons who are engaged in any business, profession or
occupation relating to mortgage investments and mortgage lending.
4. Conduct hearings, conferences and
special studies on all matters relating to mortgage investments and mortgage
lending.
5. Provide a forum for the consideration
and discussion of all matters relating to mortgage investments and mortgage
lending.
6. Gather and disseminate information
relating to mortgage investments and mortgage lending.
7. Engage in other activities that are
designed to promote, improve and protect the reliability and stability of
mortgage investments and mortgage lending in this State.
(Added to NRS by 1999, 3767)
UNLAWFUL ACTS; PENALTIES; REMEDIES
NRS 645B.900 Unlawful to conduct business of mortgage broker or mortgage
agent without being licensed or exempt from licensing. It
is unlawful for any person to offer or provide any of the services of a
mortgage broker or mortgage agent or otherwise to engage in, carry on or hold
himself or herself out as engaging in or carrying on the business of a mortgage
broker or mortgage agent without first obtaining the applicable license issued
pursuant to this chapter, unless the person:
1. Is exempt from the provisions of this
chapter; and
2. Complies with the requirements for that
exemption.
(Added to NRS by 1973, 1536; A 1981, 1792; 1999, 3801; 2003, 3558)
NRS 645B.910 Unlawful for foreign corporation, association or business trust
to conduct business of mortgage broker without meeting certain requirements. It is unlawful for any foreign corporation,
association or business trust to conduct any business as a mortgage broker
within this State, unless it:
1. Qualifies under chapter 80 of NRS; and
2. Complies with the provisions of this
chapter or, if it claims an exemption from the provisions of this chapter,
complies with the requirements for that exemption.
(Added to NRS by 1973, 1542; A 1999, 3801)
NRS 645B.920 Contracts for mortgage transaction voidable for certain
violations. If a person, or any
general partner, director, officer, agent or employee of a person violates the
provisions of NRS 645B.900 or 645B.910, any contracts entered into by that person
for the mortgage transaction are voidable by the other party to the contract.
(Added to NRS by 2009, 746)
NRS 645B.930 Civil action authorized for certain violations. In addition to any other remedy or penalty, if
a person violates the provisions of NRS 645B.900
or 645B.910, the client may bring a civil action
against the person for:
1. Actual and consequential damages;
2. Punitive damages, which are subject to
the provisions of NRS 42.005;
3. Reasonable attorney’s fees and costs;
and
4. Any other legal or equitable relief
that the court deems appropriate.
(Added to NRS by 2009, 746)
NRS 645B.950 Penalties for general violations.
1. Except as otherwise provided in NRS 645B.960, a person, or any general partner,
director, officer, agent or employee of a person, who violates any provision of
this chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner is guilty of a misdemeanor.
2. In addition to any other penalty, if a
person is convicted of or enters a plea of nolo contendere to a violation
described in subsection 1, the court shall order the person to pay:
(a) Court costs; and
(b) Reasonable costs of the investigation and
prosecution of the violation.
(Added to NRS by 1973, 1543; A 1981, 1792; 1999, 3802)
NRS 645B.955 Commissioner may require licensee to pay restitution.
1. A person who engages in an activity for
which a license as a mortgage broker or mortgage agent is required pursuant to
this chapter, without regard to whether such a person is licensed pursuant to
this chapter, may be required by the Commissioner to pay restitution to any
person who has suffered an economic loss as a result of a violation of the
provisions of this chapter or any regulation adopted pursuant thereto.
2. Notwithstanding the provision of
paragraph (m) of subsection 1 of NRS
622A.120, payment of restitution pursuant to subsection 1 shall be done in
a manner consistent with the provisions of chapter
622A of NRS.
(Added to NRS by 2009, 746;
A 2011,
3624)
NRS 645B.960 Penalties for violations relating to escrow or trust accounts.
1. A person, or any general partner,
director, officer, agent or employee of a person, who violates any provision of
NRS 645B.165 to 645B.180,
inclusive, is guilty of:
(a) A misdemeanor if the amount involved is less
than $650;
(b) A gross misdemeanor if the amount involved is
$650 or more but less than $1,000; or
(c) A category D felony if the amount involved is
$1,000 or more, and shall be punished as provided in NRS 193.130.
2. In addition to any other penalty, if a
person is convicted of or enters a plea of nolo contendere to a violation
described in subsection 1, the court shall order the person to pay:
(a) Court costs; and
(b) Reasonable costs of the investigation and
prosecution of the violation.
(Added to NRS by 1981, 1785; A 1985, 2191; 1989, 1442; 1995, 1313; 1999, 3801; 2011, 179)
