[Rev. 11/22/2013 10:14:37 AM--2013]

[NAC-645B Revised Date: 3-12]

CHAPTER 645B - MORTGAGE BROKERS AND MORTGAGE AGENTS

GENERAL PROVISIONS

645B.001         Definitions.

645B.002         “Affiliated business” defined.

645B.0025       “Approved course” defined.

645B.003         “Loan processor or underwriter” defined.

645B.004         “Major violation” defined.

645B.006         “Minor violation” defined.

645B.0065       “Nontraditional mortgage product” defined.

645B.007         “Provider” defined.

645B.008         “Qualified employee” defined.

645B.0082       “S.A.F.E. Mortgage Licensing Act” defined.

645B.0084       “Unique identifer” defined.

645B.0086       “Insolvent” interpreted.

645B.0087       “Mobile home” interpreted.

645B.009         Deposits, disclosures and appraisals: Interpretation of certain statutory terms.

645B.011         Qualifications of applicant for licensure: Compliance with federal and state law; licensure through Registry.

645B.0115       Change of electronic mail address.

LICENSING AND OPERATION OF MORTGAGE BROKERS

645B.016         Qualifications of applicant: Required experience.

645B.0165       Qualifications of applicant: Requirements for licensure pursuant to NRS 645B.020.

645B.017         Activity not constituting services as mortgage broker.

645B.020         Documentation required with application for license; conditional approval; effect of failure to respond to written request for information.

645B.030         Branch office: Prerequisites and name for issuance of license; display of license; responsibilities of mortgage broker; conditional approval; effect of failure to respond to written request for information.

645B.031         Corporate office: Filing of application with Office of Commissioner to fulfill requirements of S.A.F.E. Mortgage Licensing Act.

645B.032         Sharing office space with another business.

645B.035         Use of fictitious name.

645B.037         Use of same name, confusingly similar name or name not approved by Division.

645B.038         Insider loans: Limitations and conditions.

EXEMPTIONS

645B.043         Application for certificate of exemption for purpose of fulfilling requirements of S.A.F.E. Mortgage Licensing Act.

645B.044         Provision of certain information to Commissioner by regulating entity or agency.

645B.045         Unexpired certificate of exemption.

SUPERVISION BY COMMISSIONER

General Provisions

645B.055         Qualified employee: Designation and approval.

645B.057         Change in ownership, control, management, principal employees or principal or branch office.

645B.060         Fee for supervision and related activities: Amount; collection; failure to pay; accounting of time billed.

645B.061         Grounds for denial of renewal of license.

645B.062         Surety bonds.

645B.063         Submission of information or payment of fees by applicant or licensee.

Examinations, Audits and Investigations

645B.064         Assessment for costs related to audits and examinations.

645B.066         Authority of examiner, auditor or investigator.

645B.0665       Proof of adverse change in financial condition.

645B.067         Rating of mortgage broker upon completion of examination.

645B.068         Results of examination: Preparation and review of draft report; final report; confidentiality; action by Commissioner.

Records and Reports

645B.070         Monthly reports.

645B.072         “Complete and suitable records” interpreted for purposes of NRS 645B.080.

645B.073         Documentation for action on behalf of investors when beneficial interest belongs to more than one natural person.

645B.077         Retention and maintenance of certain records.

645B.080         Provision and retention of certain documents.

Net Worth

645B.095         Determination by Commissioner.

ESCROW AND TRUST ACCOUNTS

645B.150         Money received to acquire loans: Required statements and ledgers.

645B.160         Money received to repay loans: Required statements and records.

645B.165         Money received to acquire or repay loans: Required financial statements.

645B.170         Money received to acquire or repay loans: Period for retention of records.

DISCLOSURES AND ADVERTISING

645B.210         Disclosure of involvement.

645B.215         Disclosures to purchaser of note secured by deed of trust; retention of documents.

645B.220         Disclosure form.

645B.230         Provision to Division of financial statement for investors.

645B.235         Disclosures to borrowers by certain persons acting in dual capacity.

645B.240         Representation of activity as licensed; advertisements; disclosure to investors; Internet links.

CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS

645B.250         Prohibition against acting as trustee or substitute trustee under certain circumstances; exception.

645B.255         Minimum financial requirement for certain investors.

645B.260         Decisions regarding investments.

645B.270         Standards for appraisals.

645B.280         Power of attorney: Submission to and action by Commissioner; maintenance of written communications; extension of term; inclusion of date of approval.

645B.290         Power of attorney: Form.

LICENSING AND REGULATION OF MORTGAGE AGENTS

645B.300         Application for licensing; association with or employment by mortgage broker or mortgage banker; investigation of background; confidentiality of certain documents; termination of association or employment.

645B.305         Qualifications of applicant: Requirements for licensure pursuant to NRS 645B.410.

645B.310         Determination by Commissioner of adequate supervision of mortgage agent by mortgage broker.

645B.315         Exemption from licensing requirements for certain loan processors and underwriters.

645B.317         Requirements for reinstatement of license.

EDUCATIONAL REQUIREMENTS FOR LICENSURE

645B.360         Designation of Registry to certify approved courses.

645B.363         Course material for initial licensure and continuing education: Approved subjects.

645B.367         Requirements for initial licensure.

645B.370         Qualified written test required for initial licensure.

645B.373         Requirements for continuing education.

RESIDENTIAL MORTGAGE LOANS

645B.400         “Residential mortgage loan originator” interpreted.

645B.405         Unique identifier.

645B.410         Prohibited acts of independent contractor not licensed as mortgage agent.

ENFORCEMENT

645B.500         Complaint alleging violation.

645B.505         Referral of certain suspected violations for investigation and action; grounds for disciplinary action.

645B.510         Reporting of violations to Registry; procedure for challenging report.

645B.515         Orders to cease and desist from certain activities.

645B.520         Suspension or revocation of license for major violation.

645B.525         Hearings: Coordination and notice of time and location.

645B.530         Hearings: Continuances.

645B.535         Hearings: Representation of respondent.

645B.540         Hearings: Disclosure of exhibits and list of witnesses; limitations on discovery.

645B.545         Hearings: Motions.

645B.550         Hearings: Procedure.

645B.555         Hearings: Burden and standard of proof.

645B.560         Hearings: Rules of evidence; informality of proceedings.

645B.565         Hearings: Decision of hearing officer.

645B.570         Posthearing motions.

645B.575         Informal disposition of contested cases; consent and settlement agreements.

645B.580         Immunity from civil liability.

 

 

 

GENERAL PROVISIONS

      NAC 645B.001  Definitions. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645B.0104 to 645B.0135, inclusive, and NAC 645B.002 to 645B.0084, inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R093-09, 10-27-2009; R035-10, 7-22-2010)

      NAC 645B.002  “Affiliated business” defined. (NRS 645B.060)

     1.  “Affiliated business” means a business which a mortgage broker or any general partner, officer, director or employee of the mortgage broker:

     (a) Directly or indirectly owns or controls a controlling interest of the business;

     (b) Is a partner, officer, director or trustee of the business; or

     (c) Conducts the operation of the business.

     2.  As used in this section, “controlling interest” means a majority of the voting stock of a business or any other interest in a business that gives the holder of the interest the power to direct the management or to determine the policy of the business.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)

      NAC 645B.0025  “Approved course” defined. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)

     1.  “Approved course” means a course of education that has been reviewed and approved by the Registry.

     2.  For the purposes of this section, “reviewed and approved by the Registry” includes, without limitation, the review and approval by the Registry of the provider of the course.

     (Added to NAC by Comm’r of Mortgage Lending by R093-09, eff. 10-27-2009; A by R035-10, 7-22-2010)

      NAC 645B.003  “Loan processor or underwriter” defined. (NRS 645B.060, 645F.292, 645F.293)

     1.  “Loan processor or underwriter” means a natural person who performs clerical or support duties at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing, under chapter 645B or 645E of NRS.

     2.  As used in this section, “clerical or support duties” has the meaning ascribed to it in section 1503(4)(B) of the S.A.F.E. Mortgage Licensing Act.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.004  “Major violation” defined. (NRS 645B.060, 645B.700)  “Major violation” means a violation of the provisions of this chapter or chapter 645B of NRS:

     1.  Which causes substantial loss or harm to any person or which, in the opinion of the Commissioner, could have caused substantial loss or harm to any person;

     2.  For which the Commissioner has taken disciplinary action repeatedly, except a violation for the late filing of required reports, financial statements or fees that the Commissioner considers to be a minor violation; or

     3.  Which, in the opinion of the Commissioner, was the result of willful misconduct or indifference to the obligations of the mortgage broker pursuant to this chapter or chapter 645B of NRS.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)

      NAC 645B.006  “Minor violation” defined. (NRS 645B.060, 645B.700)  “Minor violation” means any violation that is not a major violation.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)

      NAC 645B.0065  “Nontraditional mortgage product” defined. (NRS 645B.060)  “Nontraditional mortgage product’’ means any mortgage product other than a 30-year fixed rate mortgage.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.007  “Provider” defined. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)  “Provider” means any person or entity approved by the Registry to provide an approved course.

     (Added to NAC by Comm’r of Mortgage Lending by R093-09, eff. 10-27-2009; A by R035-10, 7-22-2010)

      NAC 645B.008  “Qualified employee” defined. (NRS 645B.021, 645B.060)  “Qualified employee” means a natural person who is designated by a mortgage broker to act on behalf of the mortgage broker and who is approved by the Commissioner pursuant to NAC 645B.055.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Div. of Mortgage Lending by R123-08, 4-23-2009)

      NAC 645B.0082  “S.A.F.E. Mortgage Licensing Act” defined. (NRS 645B.060, 645F.292, 645F.293)  “S.A.F.E. Mortgage Licensing Act” means the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, Public Law 110-289, 122 Stat. 2654, Title V, July 30, 2008.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.0084  “Unique identifier” defined. (NRS 645B.060, 645F.292, 645F.293)  “Unique identifier” means a number or other identifier assigned by protocols established by the Registry.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.0086  “Insolvent” interpreted. (NRS 645B.060)  For the purposes of paragraph (a) of subsection 2 of NRS 645B.670, “insolvent” is interpreted to mean that the liabilities of a mortgage broker exceed his or her assets, as calculated by the Commissioner in accordance with generally accepted accounting principles, and the calculation:

     1.  Must exclude any intangible and any amount receivable by the mortgage broker that is related to the intangible; and

     2.  May exclude any shareholder debt that is subordinated.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.0087  “Mobile home” interpreted. (NRS 645B.060, 645F.292, 645F.293)  For the purposes of NRS 645B.0132, the term “mobile home,” as used in the definition of “dwelling” in 15 U.S.C. § 1602(v), is interpreted to include a manufactured home or a trailer if that trailer is used or expected to be used as a residence.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.009  Deposits, disclosures and appraisals: Interpretation of certain statutory terms. (NRS 645B.060, 645B.175, 645B.185, 645B.300)

     1.  The Commissioner will not consider escrow instructions to have been “approved by the parties” within the meaning of subparagraph (2) of paragraph (a) of subsection 1 of NRS 645B.175 if the instructions:

     (a) Are signed by the mortgage broker as attorney-in-fact for any investor with an interest in the loan; and

     (b) Direct that all money relating to the transaction, except money for charges or fees due the mortgage broker, be paid to an owner, partner, director, officer, manager, member or employee of the mortgage broker or a relative of an owner, partner, director, officer, manager, member or employee of the mortgage broker.

     2.  The Commissioner will consider “money paid to a mortgage broker and his or her mortgage agents by a person in full or in partial payment of a loan” within the meaning of subsection 4 of NRS 645B.175 to include money paid to a mortgage broker or his or her mortgage agents by a person pursuant to written escrow instructions if the payment represents money paid in full or in partial repayment of a loan secured by a lien on real property.

     3.  The Commissioner will consider a mortgage broker or mortgage agent to “accept money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property” within the meaning of NRS 645B.185 and 645B.300 if the mortgage broker or mortgage agent:

     (a) Receives money from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property; or

     (b) Arranges for the investor to pay money to a third party to invest in a loan secured by a lien on real property.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004)—(Substituted in revision for part of NAC 645B.220)

      NAC 645B.011  Qualifications of applicant for licensure: Compliance with federal and state law; licensure through Registry. (NRS 645B.060, 645F.292, 645F.293)  Each applicant for a license issued pursuant to chapter 645B of NRS:

     1.  Shall comply with any applicable federal or state law or regulation, including, without limitation:

     (a) The provisions of the S.A.F.E. Mortgage Licensing Act and any regulation adopted pursuant thereto; and

     (b) Any applicable requirement pursuant to chapter 645B, 645E or 645F of NRS or any regulation adopted pursuant thereto, including, without limitation, any applicable requirement relating to:

          (1) A bond; or

          (2) A license for a loan processor or underwriter who is an independent contractor; and

     2.  Must be licensed with the Division through the Registry.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.0115  Change of electronic mail address. (NRS 645B.060, 645F.292, 645F.293)  If a person licensed pursuant to chapter 645B of NRS who provided an electronic mail address to the Division wishes to change that address, the person shall make the change and notify the Division through the Registry.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

LICENSING AND OPERATION OF MORTGAGE BROKERS

      NAC 645B.016  Qualifications of applicant: Required experience. (NRS 645B.020, 645B.060)  An applicant for a license as a mortgage broker must have, within the 5 years immediately preceding the date of his or her application, at least 2 years of verifiable experience in lending money for real estate or mortgages.

     [Comm’r of Savings Associations, Mortgage Reg. § 1, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions, 9-1-94; R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R058-08, 4-23-2009)—(Substituted in revision for NAC 645B.010)

      NAC 645B.0165  Qualifications of applicant: Requirements for licensure pursuant to NRS 645B.020. (NRS 645B.060)

     1.  Pursuant to subsection 3 of NRS 645B.020, the Commissioner will not issue a license as a mortgage broker unless the requirements of that subsection have been fulfilled.

     2.  For the purposes of subparagraph (1) of paragraph (b) of subsection 3 of NRS 645B.020, factors considered in determining whether a person has demonstrated financial responsibility include, without limitation:

     (a) Whether the person’s personal credit history indicates any adverse material items, including, without limitation, liens, judgments, disciplinary action, bankruptcies, foreclosures or failures to comply with court-approved payment plans;

     (b) The circumstances surrounding any adverse material items in the person’s personal credit history; and

     (c) Any instance of fraud, misrepresentation, dishonest business practices, the mishandling of trust funds or other types of comparable behavior.

     3.  For the purposes of subparagraph (2) of paragraph (b) of subsection 3 of NRS 645B.020, the Commissioner will not consider a person to have been convicted or entered a plea of guilty or nolo contendere if the conviction or plea has been pardoned or vacated.

     4.  For the purposes of subparagraph (4) of paragraph (b) of subsection 3 of NRS 645B.020, a license shall not be considered to be revoked or suspended if the revocation or suspension was subsequently vacated.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.017  Activity not constituting services as mortgage broker. (NRS 645B.060, 645F.292, 645F.293)  A person does not hold himself or herself out as being able to perform the services described in NRS 645B.0127 if the person:

     1.  Is in compliance with the S.A.F.E. Mortgage Licensing Act and any regulations adopted pursuant thereto; and

     2.  Only offers to provide money to invest in loans secured by an interest in real property to:

     (a) A mortgage broker licensed pursuant to chapter 645B of NRS; or

     (b) A person exempt from the provisions of chapter 645B of NRS.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R035-10, 7-22-2010)

      NAC 645B.020  Documentation required with application for license; conditional approval; effect of failure to respond to written request for information. (NRS 645B.020, 645B.060, 645F.292, 645F.293)

     1.  An applicant must submit with his or her application for a license pursuant to chapter 645B of NRS:

     (a) A copy of his or her business license, when applicable, or his or her application for such a license if he or she has not obtained one.

     (b) A copy of the certificate filed by the mortgage broker pursuant to chapter 602 of NRS indicating the fictitious name of the mortgage broker, if any.

     (c) If the applicant is a corporation, a copy of:

          (1) Its articles of incorporation and its bylaws;

          (2) Its balance sheet and a statement of the profit and loss of the corporation for the 2 years immediately preceding the year of the application; and

          (3) The most recent list of its officers and registered agent that is filed with the Secretary of State.

     (d) If the applicant is a partnership or joint venture, a copy of the agreement of partnership or joint venture and the financial statements of the general partners for the 2 years immediately preceding the year of the application.

     (e) If the applicant is a corporation being organized, a copy of its proposed articles of incorporation and its bylaws.

     (f) If the applicant is a limited-liability company, a copy of:

          (1) Its articles of organization and operating agreement;

          (2) A statement of the profit and loss of the limited-liability company for the 2 years immediately preceding the year of the application; and

          (3) The most recent list of its members or managers, and registered agent, that is filed with the Secretary of State.

     (g) Evidence that the applicant has met the requirements imposed by the S.A.F.E. Mortgage Licensing Act.

     (h) A current electronic mail address.

     2.  If an applicant has received a letter of conditional approval of his or her application from the Division which imposes additional requirements that the applicant must satisfy to obtain a license, the applicant must comply with those requirements within 30 days after the date on which the letter was issued by the Division. If the applicant does not satisfy all additional requirements set forth in the letter within the period prescribed in this subsection, the conditional approval of the application will be deemed to have expired and the applicant must reapply to obtain a license. The Commissioner may, for good cause, extend the 30-day period prescribed in this subsection.

     3.  An application shall be deemed abandoned if the applicant fails to respond to any written request for information by the Division within 30 days after the date of the request.

     [Comm’r of Savings Associations, Mortgage Reg. § 2, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009; R035-10, 7-22-2010)

      NAC 645B.030  Branch office: Prerequisites and name for issuance of license; display of license; responsibilities of mortgage broker; conditional approval; effect of failure to respond to written request for information. (NRS 645B.020, 645B.060, 645F.292, 645F.293)

     1.  An applicant must submit with his or her application for a branch license:

     (a) The name, residence address and telephone number of the qualified employee designated to manage the branch office;

     (b) The name of each mortgage agent who intends to work at the branch office; and

     (c) Evidence that the applicant has met the requirements imposed by the S.A.F.E. Mortgage Licensing Act.

     2.  The Commissioner will approve an application for a branch office if:

     (a) The principal office of the mortgage broker has been examined by the Commissioner and has received at least a satisfactory rating during the preceding 12 months; and

     (b) The Commissioner approves a qualified employee to manage the branch office. The Commissioner will not approve a qualified employee to manage a branch office if the qualified employee manages or has been designated and approved to manage another office.

     3.  The Commissioner may waive the requirements of subsection 2 upon good cause shown.

     4.  A license for a branch office may be issued only in the name in which the mortgage broker is licensed to conduct business at his or her principal office.

     5.  Each branch office must conspicuously display its license at the branch office.

     6.  A mortgage broker is responsible for and shall supervise:

     (a) Each branch office of the mortgage broker; and

     (b) Each qualified employee and mortgage agent authorized to conduct mortgage lending activity at a branch office of the mortgage broker.

     7.  If an applicant has received from the Division a letter of conditional approval of his or her application for a branch license which imposes additional requirements that the applicant must satisfy to obtain a branch license, the applicant must comply with those requirements within 30 days after the date on which the Division issued the letter. If the applicant does not satisfy all additional requirements set forth in the letter within the period prescribed in this subsection, the conditional approval of the application shall be deemed to have expired and the applicant must reapply to obtain a branch license. The Commissioner may, for good cause, extend the 30-day period prescribed in this subsection.

 

 

     8.  An application for a branch license shall be deemed abandoned if the applicant fails to respond to any written request for information by the Division within 30 days after the date of the request.

     [Comm’r of Savings Associations, Mortgage Reg. § 3, eff. 6-29-82]—(NAC A by Admstr. of Financial Institutions, 6-29-84; A by Comm’r of Financial Institutions by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009; R035-10, 7-22-2010)

      NAC 645B.031  Corporate office: Filing of application with Office of Commissioner to fulfill requirements of S.A.F.E. Mortgage Licensing Act. (NRS 645B.060, 645F.292, 645F.293)

     1.  Unless otherwise specifically prohibited by federal law and pursuant to the S.A.F.E. Mortgage Licensing Act, a corporate office which is not licensed under chapter 645B of NRS, but has an office which is licensed under 645B of NRS, may file an application with the Office of the Commissioner solely for the purpose of fulfilling the requirements of the S.A.F.E. Mortgage Licensing Act, including, without limitation, for the purposes of registering with the Registry.

     2.  An application submitted pursuant to subsection 1:

     (a) Does not affect the unlicensed status of the corporate office; and

     (b) Does not allow the corporate office to conduct business within this State.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.032  Sharing office space with another business. (NRS 645B.060)

     1.  Except as otherwise provided in subsection 2, a mortgage broker may share office space with any other business if each business has a designated space within the office space and each business is separately identifiable by a sign or other method of identification within the office space.

     2.  A mortgage broker may share office space with a business licensed pursuant to chapter 645 of NRS if:

     (a) Each business has separate and distinct office space and signs such that a reasonable customer would understand which business he or she is transacting with at all times;

     (b) Each business operates as a separate legal entity;

     (c) Each business maintains separate accounts, books and records;

     (d) Each business maintains separate licenses; and

     (e) The businesses are subsidiaries of the same parent corporation or are otherwise affiliated businesses.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)

      NAC 645B.035  Use of fictitious name. (NRS 645B.020, 645B.060)

     1.  A mortgage broker shall not conduct business using a fictitious name unless the mortgage broker:

     (a) Complies with chapter 602 of NRS;

     (b) Files with the Division a certified copy, issued by the appropriate county clerk, of the certificate filed by the mortgage broker pursuant to chapter 602 of NRS; and

     (c) Receives from the Division a license or certificate of exemption indicating the fictitious name.

     2.  If a mortgage broker conducts business using a fictitious name pursuant to this section, the mortgage broker may conduct business using a new fictitious name only if the mortgage broker:

     (a) Obtains a certified copy, issued by the appropriate county clerk, of the certificate filed by the mortgage broker pursuant to chapter 602 of NRS indicating the new fictitious name;

     (b) Files with the Division, not later than 10 calendar days after obtaining the certified copy pursuant to paragraph (a):

 

          (1) The certified copy obtained pursuant to paragraph (a); and

          (2) The current license or certificate of exemption of the mortgage broker; and

     (c) Receives from the Division an amended license or certificate of exemption indicating the new fictitious name.

     3.  A mortgage broker may conduct business using more than one fictitious name only if the mortgage broker obtains a separate license issued pursuant to chapter 645B of NRS for each fictitious name under which he or she intends to do business. A mortgage broker who conducts business in this State using more than one fictitious name is responsible for the conduct of each qualified employee, mortgage agent and other employee associated with the mortgage broker regardless of the license or name under which the conduct takes place.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004)

      NAC 645B.037  Use of same name, confusingly similar name or name not approved by Division. (NRS 645B.060)

     1.  The Division shall not issue a license or certificate of exemption with a name that is the same as or confusingly similar to a name on a license or certificate of exemption previously issued by the Division.

     2.  A mortgage broker shall not conduct business using a name other than the name approved by the Division and indicated on the license or certificate of exemption issued by the Division to the mortgage broker.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)

      NAC 645B.038  Insider loans: Limitations and conditions. (NRS 645B.060)

     1.  Insider loans made or arranged by a mortgage broker are subject to the following limitations and conditions:

     (a) The lending limit must not exceed 25 percent of the total dollar amount of the outstanding balances of investor-funded loans which were made or arranged by the mortgage broker or 100 percent of the mortgage broker’s net worth as described in NAC 645B.095, whichever is greater.

     (b) An investor, other than a financial or institutional investor, who funds an insider loan may not waive the provisions of subsection 1 of NAC 645B.080.

     (c) If the investor is a company, the information required by subsection 1 of NAC 645B.080 must be provided to the investor for distribution to any person who has control of the company. For purposes of this paragraph, a person shall be deemed to have control of the company if the person:

          (1) Is an executive officer or director of the company;

          (2) Directly or indirectly owns or controls more than 25 percent of any voting shares; or

          (3) Exercises a controlling influence over the management or policies of the company.

     (d) The mortgage broker shall specifically identify on each monthly report required by NRS 645B.080 any insider loan made by the mortgage broker.

     2.  As used in this section:

     (a) “Company” means any form of business entity other than a natural person.

     (b) “Financial or institutional investor” has the meaning ascribed to it in NRS 90.240.

     (c) “Insider” means a director, officer, mortgage agent or employee of a mortgage broker.

     (d) “Insider loan” means an extension of credit to an insider. For purposes of this paragraph, “extension of credit” includes, without limitation, a new loan or a loan renewal, a line of credit or any other financial right structured in any manner and arranged by a mortgage broker as a means for the borrower to defer payment on an existing debt or to incur a debt and defer immediate payment.

     (e) “Lending limit” means the maximum dollar amount permitted for the aggregate of insider loans arranged by a mortgage broker.

     (Added to NAC by Comm’r of Mortgage Lending by R056-08, eff. 4-23-2009)

EXEMPTIONS

      NAC 645B.043  Application for certificate of exemption for purpose of fulfilling requirements of S.A.F.E. Mortgage Licensing Act. (NRS 645B.060, 645F.292, 645F.293)  Unless otherwise specifically prohibited by federal law and pursuant to the S.A.F.E. Mortgage Licensing Act, any person exempt from licensing pursuant to the provisions of chapter 645B of NRS may file a written application for a certificate of exemption with the Office of the Commissioner for the purposes of fulfilling the requirements of the S.A.F.E. Mortgage Licensing Act, including, without limitation, for the purposes of:

     1.  Registering with the Registry, but such registration does not affect the exempt status of the person;

     2.  Sponsoring a mortgage agent;

     3.  Fulfilling any bonding requirements related to an associated mortgage agent; or

     4.  Fulfilling reports of condition requirements.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.044  Provision of certain information to Commissioner by regulating entity or agency. (NRS 645B.016, 645B.060, 645F.292, 645F.293)  In addition to the requirements of subsection 1 of NRS 645B.016, a person who claims an exemption from the provisions of chapter 645B of NRS pursuant to subsection 1 of NRS 645B.015 must ensure that the entity or agency which regulates the conduct of the person’s business provides to the Commissioner written notification that:

     1.  The license of the person provides the right to make or broker mortgage loans;

     2.  The entity or agency will investigate complaints arising from or relating to consumers in this State; and

     3.  If the person conducts activity as a residential mortgage loan originator, the person is in compliance with the requirements of the S.A.F.E. Mortgage Licensing Act and any regulation adopted pursuant thereto.

     (Added to NAC by Comm’r of Mortgage Lending by R058-08, eff. 4-23-2009; A by R035-10, 7-22-2010)

      NAC 645B.045  Unexpired certificate of exemption. (NRS 645B.060)  A person who has an unexpired certificate of exemption issued pursuant to chapter 645B of NRS shall be deemed to have an unexpired certificate of exemption issued pursuant to chapter 645E of NRS.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)

SUPERVISION BY COMMISSIONER

General Provisions

      NAC 645B.055  Qualified employee: Designation and approval. (NRS 645B.021, 645B.060, 645F.292, 645F.293)

     1.  Every person, other than a natural person, doing business as a mortgage broker in this State shall designate a natural person as a qualified employee who may, upon approval of the Commissioner, act on behalf of the mortgage broker.

     2.  The Commissioner will approve the qualified employee designated pursuant to subsection 1 if the qualified employee is a natural person who:

     (a) Is licensed in good standing as a mortgage agent;

     (b) Is designated by a mortgage broker to act on behalf of the mortgage broker and to supervise the conduct of the business of the mortgage broker and the mortgage agents associated with or employed by the mortgage broker;

     (c) Will be present at the licensed office location for which he or she is the qualified employee the majority of the time that the office is open to the public;

     (d) Is a resident of this State or is a border state employee; and

     (e) Has met the requirements of the S.A.F.E. Mortgage Licensing Act.

     3.  If the qualified employee designated pursuant to subsection 1 is not approved by the Commissioner pursuant to subsection 2 or ceases to be a qualified employee as defined in NAC 645B.008, the mortgage broker shall designate another qualified employee pursuant to subsection 1 not later than:

     (a) Thirty calendar days after the date that:

          (1) The Commissioner notifies the mortgage broker that the initial qualified employee designated pursuant to subsection 1 is not approved; or

          (2) The qualified employee ceases to be a qualified employee as defined in NAC 645B.008; or

     (b) A date after the date described in paragraph (a) if agreed to by the Commissioner.

     4.  As used in this section, “border state employee” has the meaning ascribed to it in NRS 482.012.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Div. of Mortgage Lending by R123-08, 4-23-2009; A by Comm’r of Mortgage Lending by R035-10, 7-22-2010)

      NAC 645B.057  Change in ownership, control, management, principal employees or principal or branch office. (NRS 645B.060, 645B.095, 645F.292, 645F.293)

     1.  Any material change in the management or principal employees of a mortgage broker at his or her principal office or a branch office must be reported to the Commissioner within 30 calendar days after the change.

     2.  Any material change in the ownership or any change of control of a mortgage broker at his or her principal office or a branch office must be approved by the Commissioner. An application for approval of a change of ownership or a change of control must be submitted to the Commissioner on a form prescribed by the Division not later than 30 days before the proposed change.

     3.  If a person acquires stock or ownership in a mortgage broker as a result of a transfer that constitutes a change of control pursuant to NRS 645B.095:

     (a) A financial statement or a personal interrogatory, or both, of the prospective owner, partner, corporate shareholder, manager or employee must be submitted to the Commissioner for his or her consideration;

     (b) The person may not participate in the management of the mortgage broker until the Commissioner has approved the transfer; and

     (c) The mortgage broker may not change the location of his or her principal office or branch office until the Commissioner has approved the transfer.

     4.  A mortgage broker may not close his or her principal office or a branch office until:

     (a) The mortgage broker has returned his or her license; and

     (b) The Commissioner has approved the closure.

     5.  The request for approval of the closure of the principal office of the mortgage broker or a branch office must contain the following information:

     (a) The status of any incomplete applications for mortgage loans and the manner in which the loans will be finalized;

     (b) An accounting of any trust account maintained by the mortgage broker and the plan for distribution of money in the account;

     (c) If any mortgage agent associated with or employed by the mortgage broker has been terminated pursuant to subsection 3 of NRS 645B.450, evidence of the termination; and

     (d) In regard to the records of the mortgage broker maintained pursuant to subsection 1 of NRS 645B.080 and subsection 5 of NAC 645B.080:

          (1) The address where the records will be maintained; and

          (2) The name, telephone number and mailing address of the person who will be responsible for the maintenance of the records.

     6.  The Commissioner may require the person acquiring stock or ownership in a mortgage broker pursuant to subsection 2 to meet the requirements of the S.A.F.E. Mortgage Licensing Act, including, without limitation, submitting information to the Registry.

     7.  As used in this section, “change of control” has the meaning ascribed to it in NRS 645B.095.

     [Comm’r of Savings Associations, Mortgage Reg. § 4, eff. 6-29-82]—(NAC A by Admstr. of Financial Institutions, 6-29-84; A by Comm’r of Financial Institutions by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R058-08, 4-23-2009; R035-10, 7-22-2010)

      NAC 645B.060  Fee for supervision and related activities: Amount; collection; failure to pay; accounting of time billed. (NRS 645B.050, 645B.060, 645F.280)

     1.  Except as otherwise provided in this subsection, the Commissioner will charge and collect a fee of $60 per hour from each mortgage broker for any supervision, examination, audit, investigation or hearing conducted pursuant to chapter 645B of NRS. The Commissioner may charge a fee equivalent to the estimated or actual fee charged to the Division for the time of an attorney required in any examination, investigation or hearing conducted pursuant to chapter 645B of NRS.

     2.  The Commissioner will bill each mortgage broker upon the completion of the activity for the fee established in subsection 1. The fee must be paid within 30 calendar days after the date of the invoice. Except as otherwise provided in this subsection, any payment received after that date must include a penalty of 10 percent of the fee plus an additional 1 percent of the fee for each complete month, or portion of the last month, that the fee is not paid. The Commissioner may waive the penalty for good cause.

     3.  Failure of a mortgage broker to pay the fee required in subsection 1 as provided in this section constitutes grounds for the imposition of any discipline authorized pursuant to NRS 645B.670, including, without limitation, the revocation of his or her license.

     4.  Upon written request by a mortgage broker, the Division will provide an accounting of the time billed to the mortgage broker pursuant to this section.

     [Comm’r of Savings Associations, Mortgage Reg. § 6, eff. 6-29-82]—(NAC A by Admstr. of Financial Institutions, 6-29-84; A by Comm’r of Financial Institutions, 4-20-88; 11-27-89, eff. 7-1-89; R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R035-10, 7-22-2010)

      NAC 645B.061  Grounds for denial of renewal of license. (NRS 645B.060, 645F.292, 645F.293)  The Commissioner will not renew the license of a mortgage broker or mortgage agent if the mortgage broker or mortgage agent:

     1.  Has not paid all fees, fines and assessments owed to the Division or the Registry;

     2.  Is not properly registered with the Registry;

     3.  Fails to provide any required annual financial statements or reports of condition to the Division or Registry; or

     4.  Fails to provide any other item required by federal or state law or regulation, including, without limitation, the S.A.F.E. Mortgage Licensing Act.

     (Added to NAC by Comm’r of Mortgage Lending by R058-08, eff. 4-23-2009; A by R035-10, 7-22-2010)

      NAC 645B.062  Surety bonds. (NRS 645B.060, 645F.275, 645F.292, 645F.293)

     1.  Except as otherwise provided in this section, a mortgage agent or mortgage broker shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada which is in the amount set forth in this section and is executed by a corporate surety satisfactory to the Commissioner.

     2.  If a mortgage agent is an employee of, or is associated with, a mortgage broker subject to the provisions of chapter 645B of NRS or a mortgage banker subject to the provisions of chapter 645E of NRS, the surety bond of the mortgage broker or mortgage banker may be used to fulfill the mortgage agent’s individual surety bond requirement so long as the surety bond of the mortgage broker or mortgage banker:

     (a) Expressly covers the mortgage agent as a principal; and

     (b) Names the mortgage broker or mortgage banker as a principal and names all mortgage agents employed by or associated with the mortgage broker or mortgage banker as principals, either by individual name or as a group, such as “All Employed or Associated Mortgage Agents.”

     3.  A bond deposited pursuant to this section 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 provision of chapter 645B, 645E or 645F of NRS or any regulation adopted pursuant thereto, 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 agent, mortgage broker or mortgage banker 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, and the principal’s agents and employees, strictly, honestly and faithfully comply with the provisions of chapters 645B, 645E and 645F of NRS and any regulation adopted pursuant thereto, and pay all damages suffered by any person because of a violation of any provision of chapter 645B, 645E or 645F of NRS or any regulation adopted pursuant thereto 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, 645E or 645F of NRS or any regulation adopted pursuant thereto, 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

.........................................

Licensed registered agent

 

     4.  The required amount of the surety bond that complies with the provisions of this section is calculated by the Commissioner by determining the annual loan production amount for the person or persons covered under the bond, and:

     (a) In the case of an initial surety bond, the expected annual loan production is determined by an estimate of the Commissioner; and

     (b) After the deposit of an initial surety bond, the expected annual loan production is based upon the annual loan production in the previous year.

     5.  The surety bond amounts will be set and adjusted as necessary annually by the Division in accordance with the following scale:

 

Annual Loan Production                             Bond Amount Required

$20,000,000 or less..................................... $50,000

Greater than $20,000,000........................... $75,000

 

     6.  The procedure regarding cancellation of a bond is as follows:

     (a) A surety may cancel a bond upon giving 60 days’ notice to the Commissioner by certified mail;

     (b) Upon receipt by the Commissioner of notice, the Commissioner will immediately notify the mortgage agent or mortgage broker who deposited the bond:

          (1) Of the effective date of the cancellation; and

          (2) That the license of the mortgage agent or mortgage broker will be revoked unless the mortgage agent or mortgage broker furnishes an equivalent bond before the effective date of the cancellation;

     (c) The notification by the Commissioner must be sent to the mortgage agent or mortgage broker by certified mail to the last address of record filed in the office of the Division; and

     (d) If the mortgage agent or mortgage broker does not comply with any requirements set out in the notification from the Commissioner, the license of the mortgage agent or mortgage broker must be revoked on the date the bond is cancelled.

     7.  Any person:

     (a) May claim against a bond by bringing an action in a court of competent jurisdiction on the bond for damages to the extent covered by the bond, but an action may not be commenced after the expiration of 3 years following the commission of the act on which the action is based; and

     (b) Who claims against a bond shall notify the Commissioner in writing by certified mail upon filing the action.

     8.  Upon receiving a request from a person for whose benefit a bond is required, the Commissioner will notify the person:

     (a) That a bond is in effect and the amount of the bond; and

     (b) If there is an action against the bond, of the title of, the court and case number of, and the amount sought in that action.

     9.  If a surety wishes to make payment without awaiting action by a court:

     (a) The amount of the bond must be reduced to the extent of any payment made by the surety in good faith under the bond; and

     (b) Any payment must be based on written claims received by the surety before any action is taken by a court.

     10.  A surety may bring an action for interpleader against all claimants upon the bond, and if the surety brings an action, the surety:

     (a) 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 of the principal place of business of the mortgage agent or mortgage broker; and

     (b) May deduct its costs of the action, including attorney’s fees and publication, from its liability under the bond.

 

 

 

     11.  Claims against a bond:

     (a) Have equal priority;

     (b) If the bond is insufficient to pay all claims in full, must be paid on a pro rata basis, but partial payment of claims is not full payment; and

     (c) Do not preclude a claimant from bringing an action against a mortgage agent or mortgage broker for an unpaid balance.

     12.  A bond used to fulfill the requirements of NRS 645B.042 may be used to fulfill, wholly or partially, the bond requirement of this section, provided that:

     (a) If used to fulfill wholly the bond requirement of this section, the amount of the bond used pursuant to NRS 645B.042 is equal to or greater than the amount of the bond required pursuant to this section; and

     (b) If used to fulfill partially the bond requirement of this section, the remaining difference is made up by another bond that meets the requirements of this section and is in an amount equal to or greater than the difference between the two bonds.

     13.  A substitute for a surety bond required by NRS 645B.042, as provided for in NRS 645B.044, may not be used to fulfill, wholly or partially, the bond requirement of this section.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.063  Submission of information or payment of fees by applicant or licensee. (NRS 645B.060, 645F.292, 645F.293)  When an applicant or person licensed pursuant to chapter 645B of NRS is required to submit information or pay fees to the Division, the Commissioner may:

     1.  Require the applicant or person to submit the information or pay the fees directly to the Division or to the Division through the Registry; and

     2.  Require the applicant or person to submit extra copies of the information, including, without limitation, a set of the applicant’s or person’s fingerprints and written consent to an investigation of his or her credit history.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

Examinations, Audits and Investigations

      NAC 645B.064  Assessment for costs related to audits and examinations. (NRS 645B.060)

     1.  Each mortgage broker shall pay to the Division an annual assessment as required pursuant to NRS 645F.180 to cover the costs related to the employment of a certified public accountant and the performance of audits and examinations conducted by the Division.

     2.  The Division will bill each mortgage broker for the assessment. The assessment must be paid within 30 calendar days after the date the bill is received.

     3.  A charge of 10 percent of the assessment will be imposed on any mortgage broker whose assessment is received by the Division after the date on which the assessment is due. The Commissioner may waive the penalty for good cause.

     (Added to NAC by Comm’r of Financial Institutions, eff. 12-17-87; A 5-27-92; R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004)

      NAC 645B.066  Authority of examiner, auditor or investigator. (NRS 645B.060)  An examiner, auditor or investigator conducting an examination, periodic or special audit, or investigation of a mortgage broker pursuant to paragraph (c), (d) or (e) of subsection 2 of NRS 645B.060 may:

     1.  Require the mortgage broker to produce, for the purposes of the examination, audit or investigation, all documents:

     (a) Relating to business conducted by the mortgage broker pursuant to this chapter or chapter 645B of NRS;

 

     (b) Required to be kept by the mortgage broker pursuant to any federal or state law or regulation; or

     (c) Related to the operation of the business of the mortgage broker or any affiliated business that conducts business activities which are directly related to the business of the mortgage broker.

     2.  Inspect and copy any documents which are in the possession, control or custody of the mortgage broker and which are related to business conducted pursuant to this chapter or chapter 645B of NRS.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)

      NAC 645B.0665  Proof of adverse change in financial condition. (NRS 645B.060)  For the purposes of paragraph (b) of subsection 4 of NRS 645B.060, an adverse change in financial condition:

     1.  Is not proven solely by a decrease in income from any previous period if the mortgage broker remains profitable; and

     2.  May be shown by material receivables or payables to related parties, material off-balance sheet commitments, contingent liabilities or other identified concerns related to the deterioration of net worth or liquidity.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.067  Rating of mortgage broker upon completion of examination. (NRS 645B.060)  Upon completion of an examination of a mortgage broker, the examiner shall rate the mortgage broker on a scale of “1” to “5,” as follows:

     1.  A rating of “1” indicates that the mortgage broker and the management of the mortgage broker have demonstrated a high degree of compliance with applicable laws and regulations. A rating of “1” may be given if there is a minor violation or deficiency, but only if the mortgage broker acted to correct the violation or deficiency immediately and the action taken by the mortgage broker is likely to prevent future violations or deficiencies.

     2.  A rating of “2” indicates that the mortgage broker and the management of the mortgage broker have demonstrated substantial compliance with applicable laws and regulations and that any deficiencies noted in the report made by the examiner pursuant to NAC 645B.068 can be corrected by the mortgage broker with a minimum of regulatory supervision. A rating of “2” may be given if there is more than one minor violation or deficiency, but only if the mortgage broker acted to correct the violations or deficiencies immediately and the action taken by the mortgage broker is likely to prevent future violations or deficiencies.

     3.  A rating of “3” indicates that the mortgage broker and the management of the mortgage broker have demonstrated less than satisfactory compliance with applicable laws and regulations and that regulatory supervision is required for the correction of the violations and deficiencies noted in the report made by the examiner pursuant to NAC 645B.068. A rating of “3” may be given if there were minor violations or deficiencies from a previous examination that were not corrected.

     4.  A rating of “4” indicates that the mortgage broker and the management of the mortgage broker have demonstrated substantial lack of compliance with applicable laws and regulations and that immediate remedial action is required for the correction of the violations and deficiencies noted in the report made by the examiner pursuant to NAC 645B.068. The mortgage broker will be subject to close regulatory supervision, and the examiner will recommend disciplinary action against the mortgage broker to the Commissioner.

     5.  A rating of “5” indicates that the mortgage broker and the management of the mortgage broker have demonstrated unsatisfactory compliance with applicable laws and regulations and that immediate remedial action is required for the correction of the violations and deficiencies noted in the report made by the examiner pursuant to NAC 645B.068 and may include action by the Commissioner to take possession of the business and assets of the mortgage broker. The examiner will recommend disciplinary action against the mortgage broker to the Commissioner.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)

      NAC 645B.068  Results of examination: Preparation and review of draft report; final report; confidentiality; action by Commissioner. (NRS 645B.060, 645B.090)

     1.  Not more than 30 days after the completion of an examination of a mortgage broker, the examiner that performed the examination shall prepare a draft report of the examination and provide the draft report to appropriate personnel of the Division. The draft report must include only:

     (a) Facts that are contained in the files, books, records or other documents of the mortgage broker that were examined by the examiner;

     (b) Facts that are contained in statements made by officers or agents of the mortgage broker or other persons that the examiner interviewed concerning the mortgage broker; and

     (c) Conclusions and recommendations that are reasonably supported by the facts that are included in the draft report, including, but not limited to, the rating given to the mortgage broker pursuant to NAC 645B.067.

     2.  Not more than 15 days after the draft report of an examination is received by the Division, the Commissioner or his or her designee will deliver to the mortgage broker who was examined:

     (a) A copy of the draft report; and

     (b) Notice that the mortgage broker has not more than 30 days, unless the Commissioner, for good cause, allows a longer period, to review the draft report and submit to the Commissioner, in writing, any comments regarding or objections to matters contained in the draft report.

     3.  If a mortgage broker received a rating of “3,” “4” or “5” and submitted written comments or objections within the period specified in subsection 2, the Commissioner or his or her designee will:

     (a) Not more than 15 days after the last day on which the mortgage broker could submit written comments or objections pursuant to subsection 2, hold an informal meeting with the mortgage broker regarding the draft report; and

     (b) Review the draft report, together with the written submissions or objections made by the mortgage broker and any relevant portions of the working papers of the examiner, and, not more than 15 days after the date on which the informal meeting was held pursuant to paragraph (a):

          (1) Adopt the draft report as filed;

          (2) Adopt the draft report with modifications;

          (3) Provide the mortgage broker with an opportunity for a formal hearing; or

          (4) Direct the examiner to reopen the examination to obtain additional data, documents or information and, if necessary, file a new draft report pursuant to subsection 1. If the findings of the initial draft report are supported by the findings of the examiner after completion of the reopened examination, the mortgage broker is responsible for the costs attributable to the reopened examination pursuant to NRS 645B.060.

     4.  If a mortgage broker:

     (a) Received a rating of “1” or “2” on an examination pursuant to NAC 645B.067 and submitted written comments or objections within the period specified in subsection 2; or

     (b) Did not file a written comment or objection to a draft report within the period specified in subsection 2,

Ê the draft report will be deemed to be the final report of the examination.

     5.  Pursuant to NRS 645B.060, the results of an examination are not open to public inspection until the requirements set forth in subsection 3 are completed.

     6.  If the examination and report reveal that a mortgage broker is operating in violation of this chapter, chapter 645B of NRS or a previous order of the Commissioner, the Commissioner may order the mortgage broker to take any action the Commissioner deems necessary or appropriate to correct the violation. The Commissioner may also take disciplinary action pursuant to NRS 645B.670.

     7.  The Commissioner may, for good cause, extend any period specified in this section that is applicable to an examiner, the Commissioner or his designee for an additional period of not more than 15 days.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)

Records and Reports

      NAC 645B.070  Monthly reports. (NRS 645B.060, 645B.080)

     1.  Each mortgage broker shall submit, for each month, on a form approved by the Commissioner, a report on the volume of loans arranged in that month. If the mortgage broker is performing loan servicing and maintains any accounts described in subsection 4 of NRS 645B.175, the monthly report must include the information required pursuant to subsections 2 and 3. The monthly report must be submitted to the Commissioner by the 15th day of the month following the month for which the report was made. If no loans were arranged in that month, the report must state that fact.

     2.  If, on the last day of any month, a debtor has failed to make two or more consecutive payments in accordance with the terms of the loan, a mortgage broker who is performing loan servicing and maintains any accounts described in subsection 4 of NRS 645B.175 shall:

     (a) Include in his or her report to the Commissioner:

          (1) The name, address and telephone number of the debtor;

          (2) The total number and amount of any payments made on the current delinquency;

          (3) The outstanding balance of the loan and any accrued interest on the last day of the month for which the report is submitted;

          (4) A statement of whether the loan has been declared to be in default and, if so, the nature of any actions that have been taken because of the default;

          (5) The date on which the mortgage broker sent the notice to investors required pursuant to paragraph (b) of this subsection and paragraph (b) of subsection 1 of NRS 645B.260; and

          (6) If the loan is an insider loan, a statement disclosing that fact.

     (b) Mail a notice containing the following information to the last known address of each investor who owns a beneficial interest in the loan not later than 15 days after the last day of each such month:

          (1) The name, address and telephone number of the debtor;

          (2) The total number of months and days that the debtor has failed to make a payment;

          (3) The outstanding balance of the loan and any accrued interest on the last day of the month for which the notice is submitted; and

          (4) A statement of whether the loan has been declared to be in default and, if so, the nature of any actions that have been taken because of the default.

     3.  If the mortgage broker is not servicing any loans in which a debtor has failed to make two or more consecutive payments in accordance with the terms of the loan, the monthly report required pursuant to subsection 1 must state that fact.

     4.  The mortgage broker must comply with the provisions of subsection 2 each month until:

     (a) The debtor or his or her designee remedies the delinquency in payments and any default; or

     (b) The lien securing the loan is extinguished.

     5.  The Commissioner may refuse to renew the license of a mortgage broker who has not submitted a monthly report required by subsection 1 for 1 or more of the preceding 12 months.

     6.  As used in this section, “insider loan” has the meaning ascribed to it in NAC 645B.038.

     [Comm’r of Savings Associations, Mortgage Reg. § 7, eff. 6-29-82]—(NAC A by Admstr. of Financial Institutions, 6-29-84; A by Comm’r of Financial Institutions by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R056-08, 4-23-2009)

      NAC 645B.072  “Complete and suitable records” interpreted for purposes of NRS 645B.080. (NRS 645B.060, 645B.080)  As used in NRS 645B.080, the Commissioner interprets “complete and suitable records” to mean:

     1.  A file that includes, but is not limited to, the following documents, if applicable to the type and purpose of the loan:

     (a) The real estate sales contract;

     (b) Escrow instructions;

     (c) The preliminary title report;

     (d) The loan application, including, but not limited to, any attachments or supplements;

     (e) An appraisal report or any other independent assessment of the value of the mortgaged property;

     (f) Any verification of representations made by the consumer on the application for a mortgage;

     (g) A credit report;

     (h) A good faith estimate of closing costs, including any additional estimates if there is a material change to the original estimate, and any disclosures required pursuant to the federal Truth in Lending Act, 15 U.S.C. §§ 1601 et seq.;

     (i) The Uniform Settlement Statement, as described pursuant to 12 U.S.C. § 2603;

     (j) Any commitments made by the lender to the consumer, including, but not limited to, a commitment to guarantee the consumer a certain interest rate and a commitment to fund the loan; and

     (k) Any additional disclosures required by state or federal law.

     2.  For loans brokered to private investors, a file that must include all the items required pursuant to subsection 1, if applicable, and any additional documents or disclosures required pursuant to this chapter, chapter 645B of NRS or federal law, including, but not limited to:

     (a) The original documents subject to the provisions of NAC 645B.080 or 645B.215;

     (b) All disclosures required pursuant to NRS 645B.185 and 645B.186, and NAC 645B.073, 645B.210 and 645B.220; and

     (c) If the mortgage broker maintains any account pursuant to NRS 645B.175, the mortgage broker must include records that demonstrate compliance with the provisions of NRS 645B.115 and NAC 645B.150 and 645B.160 and any other applicable law.

     3.  For loans funded by the mortgage broker, a file that must include all the items required pursuant to subsection 1 and all closing documentation, including, but not limited to, a recorded or confirmed deed of trust, the title insurance policy, the note, the hazard insurance policy and any subsequent assignment to additional investors. Assignments to private investors must comply with all documentation requirements of this chapter and chapter 645B of NRS.

     4.  Any additional books and records that must be maintained or readily accessible at each place of business of the mortgage broker, including, but not limited to, any branch office as applicable to the operations of the mortgage broker, including:

     (a) Any book or record that evidences compliance with applicable federal and state laws and regulations;

     (b) A copy of each item of advertising material that was published or distributed by or on behalf of the mortgage broker in the format in which the material was published or distributed;

     (c) A copy of any written complaint against the mortgage broker, together with all correspondence, notes, responses and other documentation related to the disposition of the complaint;

     (d) All checkbooks, check registers, bank statements, deposit slips, withdrawal slips, cancelled checks and other records that relate to the business of the mortgage broker;

     (e) Copies of all federal tax withholding forms, reports of income for federal taxation and evidence of payments to all employees, independent contractors and other persons that worked for the mortgage broker;

     (f) Copies of all documents evidencing a contractual relationship between the mortgage broker and any third-party provider of services related to mortgages, including, but not limited to, contracts, invoices, billings and remittances to the provider by or on behalf of the mortgage broker;

     (g) Copies of all material correspondence related to the business of the mortgage broker, including, but not limited to, electronic messages; and

     (h) Copies of all reports, audits, examinations, inspections, reviews, investigations or other similar activities relating to the business of the mortgage broker performed by any third party, including, but not limited to, any regulatory or supervisory authority.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004; A by R058-08, 4-23-2009)

      NAC 645B.073  Documentation for action on behalf of investors when beneficial interest belongs to more than one natural person. (NRS 645B.060, 645B.080)

     1.  Except as otherwise provided in subsection 3, if a mortgage broker acts on behalf of investors on a matter related to a mortgage loan, and if the beneficial interest in the loan belongs to more than one natural person, the documentation of the matter must include provisions to allow the holders of 51 percent or a greater specified percentage of the beneficial interests of record, calculated by dollar amount, to act on behalf of all the holders of the beneficial interests of record in the event of a default or foreclosure for matters that require the direction or approval of the holders of the beneficial interests in the loan, including, without limitation:

     (a) The designation of the mortgage broker, servicing agent or other person to act on the behalf of the holders of the beneficial interests in the loan; and

     (b) The sale, 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.

     2.  The provisions required by this section may be included in the deed of trust, the assignment of interest or any other documentation that binds the mortgage broker and the investors.

     3.  The provisions of this section do not apply to a transaction involving two investors with equal interests.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R058-08, 4-23-2009)

      NAC 645B.077  Retention and maintenance of certain records. (NRS 645B.060, 645B.080)

     1.  The mortgage broker shall retain records of all his or her completed mortgage transactions for a period of at least 4 years after the date of the last activity relating to the transaction. Except as otherwise provided in this subsection, after a record has been retained 1 year or longer, the mortgage broker may cause the record to be reproduced by the microphotographic process, optical disc imaging or any other equivalent technique designed to ensure an accurate reproduction of the original record. The Commissioner may, for good cause, allow the mortgage broker to reproduce and store a record by electronic means at any time so long as the mortgage broker retains a hard copy that is accessible by the Commissioner for 1 year after the closing date of the loan. A record reproduced as authorized by this section must be considered by the Commissioner to be the same as the original record. Upon completion of the reproduction of a record as authorized by this section, the original of the record may be destroyed.

     2.  The mortgage broker shall retain applications for mortgages that were denied or withdrawn for a period of at least 1 year or as otherwise required by federal law.

     3.  The mortgage broker shall maintain the records of completed mortgage transactions at the location at which the loan was made for at least 1 year after the date of closing of the loan. After the expiration of the 1-year period required pursuant to this subsection, any such record may be maintained for the minimum period prescribed in subsection 1 at another location if the record can be provided not later than 24 hours after a request for the record. The Commissioner may, for good cause shown, allow a longer period to provide records.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009)

      NAC 645B.080  Provision and retention of certain documents. (NRS 645B.060, 645B.080)

     1.  Except as otherwise provided in NAC 645B.038, before an investor who is a natural person makes a loan for which a licensed mortgage broker is acting as a broker, the mortgage broker must provide, unless specifically waived in writing, to the investor:

 

 

     (a) A written application for the loan which is signed by the prospective borrower and which contains the borrower’s address, a history of his or her employment and income, details of monthly payments he or she is obliged to pay and any other information requested by the investor.

     (b) Evidence of the history of employment of the prospective borrower and income, such as a tax return or an employer’s statement of the borrower’s past yearly income.

     (c) A report on the history of credit of the prospective borrower issued by a credit reporting agency, including an explanation by the borrower of any material derogatory item in the report and evidence that the report has been compared for accuracy to the borrower’s application for the loan.

     (d) An analysis by the mortgage broker of the ability of the prospective borrower to pay his or her monthly debts.

     (e) A preliminary report on the status of the title of the property which is proposed as security for the loan.

     2.  A mortgage broker shall retain a copy of the documents described in subsection 1 and shall retain in his or her files a statement from the investor, on a form provided by the Division, acknowledging that:

     (a) The investor received the documents, or that the investor waived in writing the right to receive the documents;

     (b) The decision to make the loan was made after the investor had the opportunity to receive and review the documents; and

     (c) The investor continues to meet the minimum financial requirement set forth in NAC 645B.255.

     3.  If the loan is made, the mortgage broker shall retain in his or her files and provide to the investor:

     (a) A copy of the promissory note;

     (b) A recorded copy of the deed of trust securing the loan; and

     (c) A copy of the policy of title insurance on the property securing the loan.

Ê The mortgage broker shall retain in his or her files a statement, on a form provided by the Division, acknowledging that the documents were provided to the investor.

     4.  If the loan is made, the mortgage broker shall retain in his or her files:

     (a) A copy of a policy of fire insurance which is adequate to cover the replacement costs of all improvements on the property securing the loan, including an endorsement naming the investor as the insured, when applicable;

     (b) If the investor is not a natural person, a copy of its statement authorizing the loan; and

     (c) If the borrower is not a natural person, a copy of its statement authorizing the loan.

     5.  The mortgage broker shall store his or her original notes, if retained, in a fireproof container or room.

     6.  If the mortgage broker has obtained an appraisal or any other independent assessment of the value of the mortgage property, the mortgage broker shall provide a copy of the appraisal or independent assessment to the:

     (a) Investor, upon request; and

     (b) Borrower, upon request, if the borrower has paid for the appraisal or independent assessment.

     [Comm’r of Savings Associations, Mortgage Reg. § 8, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions, 5-19-88; R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R056-08, R057-08 & R058-08, 4-23-2009)

Net Worth

      NAC 645B.095  Determination by Commissioner. (NRS 645B.060, 645B.115)  For the purpose of determining the net worth of a mortgage broker pursuant to NRS 645B.115, the Commissioner will interpret the term “net worth” to mean the amount by which the assets of a mortgage broker exceed his or her liabilities, as calculated by the Commissioner in accordance with generally accepted accounting principles. The calculation:

     1.  Must exclude any intangible and any amount receivable by the mortgage broker that is related to the intangible; and

     2.  May exclude any shareholder debt that is subordinated.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R035-10, 7-22-2010)

ESCROW AND TRUST ACCOUNTS

      NAC 645B.150  Money received to acquire loans: Required statements and ledgers. (NRS 645B.060, 645B.080, 645B.085, 645B.175)  A licensed mortgage broker maintaining any accounts described in subsection 1 of NRS 645B.175 shall:

     1.  Provide to the Commissioner a financial statement of the account or accounts in accordance with NAC 645B.165.

     2.  Maintain a subsidiary ledger for each investor which must include:

     (a) The name and address of the investor;

     (b) The amount of the initial investment and the amount of any subsequent investment;

     (c) The date of any investment placed with the licensee by the investor;

     (d) Each specific loan invested in, including:

          (1) The number of the loan;

          (2) The name of the borrower;

          (3) The closing date of the loan; and

          (4) The percentage of the loan owned by the investor, if the loan is owned by more than one person;

     (e) The date of the investment;

     (f) The amount of money invested;

     (g) The maturity date of the loan or loans made;

     (h) Any change in the investment made on behalf of the investor; and

     (i) The status of each loan, including whether the loan is current or delinquent, and if the loan is delinquent, the number of months it is past due.

     3.  At least annually, provide each investor with a statement which details:

     (a) The total amount he or she has invested with the mortgage broker;

     (b) The amount he or she has invested in a loan or loans; and

     (c) The current status of the loan or loans.

Ê The statement, if annual, must be provided to the investor not later than 120 days after the end of the fiscal year of the mortgage broker.

     4.  At the discretion of the Commissioner, for each loan, maintain the account or accounts separate and apart from any other money held in trust by the mortgage broker.

     (Added to NAC by Comm’r of Financial Institutions, eff. 5-27-92; A by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R055-08 & R058-08, 4-23-2009)

      NAC 645B.160  Money received to repay loans: Required statements and records. (NRS 645B.060, 645B.080, 645B.085, 645B.175)  A licensed mortgage broker maintaining any accounts described in subsection 4 of NRS 645B.175 shall:

     1.  Provide to the Commissioner a statement of the account or accounts in accordance with NAC 645B.165.

     2.  Keep monthly records reconciling all payments received on loans made by investors to such accounts and any subsequent disbursement to the investors.

     3.  At least annually, provide to each investor:

     (a) A statement indicating all money collected and disbursed; and

     (b) The amortized balance of each loan in which the investor has an interest.

Ê The statement, if annual, must be provided to the investor not later than 120 days after the end of the licensee’s fiscal year.

     4.  At the discretion of the Commissioner, for each loan, maintain the account or accounts separate and apart from any other money held in trust by the mortgage broker.

     (Added to NAC by Comm’r of Financial Institutions, eff. 5-27-92; A by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R055-08 & R058-08, 4-23-2009)

      NAC 645B.165  Money received to acquire or repay loans: Required financial statements. (NRS 645B.060, 645B.080, 645B.085, 645B.175)

     1.  A licensed mortgage broker maintaining any accounts described in subsection 1 or 4 of NRS 645B.175 shall, not later than 120 days after the end of the fiscal year for the mortgage broker, provide to the Commissioner an annual financial statement of the account or accounts, which has been:

     (a) Prepared from the books and records of the mortgage broker by an independent public accountant who holds an active permit to engage in the practice of public accounting in this State; and

     (b) Audited in accordance with generally accepted auditing standards.

     2.  A financial statement of the account or accounts required pursuant to this section must include, if applicable:

     (a) A statement of the balance and liabilities of each trust account;

     (b) A statement of all receipts for, disbursements from and changes in cash balances of each trust account;

     (c) A supplementary schedule of the liabilities of each trust account; and

     (d) A reconciliation of cash balance of each trust account to the supplementary schedule of the liabilities of each trust account.

     3.  The Commissioner will make available an approved format and sample content for the statements required pursuant to this section. Mortgage brokers shall submit the statements in substantially the same format as the approved forms.

     4.  In addition to the annual financial statement of the account or accounts required pursuant to subsection 1, not later than 60 days after the last day of each fiscal year for a mortgage broker, and every 6 months thereafter, the mortgage broker shall submit to the Commissioner an unaudited financial statement of the account or accounts. The financial statement required pursuant to this subsection may be self-prepared.

     5.  Except as otherwise provided in this subsection, the Commissioner may grant a reasonable extension, not to exceed 30 days, for the submission of a financial statement of the account or accounts pursuant to this section if a mortgage broker requests such an extension in writing before the date on which the financial statement is due. Upon written request, the Commissioner may, for good cause, grant in writing an additional extension, not to exceed 30 days, of the period for the submission of a financial statement.

     (Added to NAC by Comm’r of Mortgage Lending by R055-08, eff. 4-23-2009)

      NAC 645B.170  Money received to acquire or repay loans: Period for retention of records. (NRS 645B.060, 645B.080, 645B.175)  A licensed mortgage broker shall retain all records of accounts maintained pursuant to subsections 1 and 4 of NRS 645B.175 for at least 2 years after the date of the last transaction with the investor.

     (Added to NAC by Comm’r of Financial Institutions, eff. 5-27-92; A by R045-00, 9-5-2000)

DISCLOSURES AND ADVERTISING

      NAC 645B.210  Disclosure of involvement. (NRS 645B.060, 645B.185, 645B.186)

     1.  If an owner, partner, director, officer, manager, member or employee of a licensed mortgage broker, or a relative of an owner, partner, director, officer, manager, member or employee of a licensed mortgage broker:

     (a) Has any personal involvement in a lending or borrowing transaction of the mortgage broker which is authorized under chapter 645B of NRS; or

     (b) Is licensed as, conducts business as or holds a controlling interest or position in:

          (1) A construction control;

          (2) An escrow agency or escrow agent; or

          (3) A title agent, a title insurer or an escrow officer of a title agent or title insurer,

Ê the involvement must be disclosed to the borrower and the investor before the date that the loan is consummated. Such a disclosure must be separate from the documents of the transaction and must clearly and concisely state the nature of the involvement. The statement of disclosure must be signed by the borrower and the investor as an acknowledgment of the involvement. The mortgage broker shall not act as the attorney in fact or the agent of an investor with respect to signing the acknowledgment.

     2.  If a mortgage broker is owned by a corporation in which one owner, director, manager or employee owns an interest of 10 percent or more, and that person has any personal involvement in a licensed transaction of the mortgage broker, the involvement must be disclosed to the borrower and the investor pursuant to subsection 1.

     [Comm’r of Savings Associations, Mortgage Reg. § 13, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions by R045-00, 9-5-2000)—(Substituted in revision for NAC 645B.130)

      NAC 645B.215  Disclosures to purchaser of note secured by deed of trust; retention of documents. (NRS 645B.060, 645B.080)

     1.  Before a person purchases an existing note secured by a deed of trust or an interest therein for which a licensed mortgage broker is acting as a broker or as an investor selling his or her interest, the mortgage broker must provide to the purchaser, unless specifically waived in writing by that person:

     (a) A copy of the promissory note;

     (b) A record of the history of payments on the note or a document signed by the seller and borrower stating the existing balance of the note;

     (c) The policy of title insurance for the original beneficiaries of the note; and

     (d) The original appraisal or any other independent assessment of the value of the mortgaged property securing the note, if available.

     2.  A mortgage broker shall retain a copy of the materials provided to the purchaser pursuant to subsection 1.

     3.  If the purchase is made, the mortgage broker shall retain in his or her files the original or a copy and provide to the purchaser, respectively, the copy or original of the following documents:

     (a) The promissory note and the assignment of the note.

     (b) The recorded deed of trust and recorded assignment of the beneficial interest.

     (c) The endorsement to the policy of title insurance or a new policy of title insurance for the assignment.

     (d) A policy of fire insurance indicating coverage in an amount sufficient to cover the replacement costs of all improvements on the property, including, if applicable, an endorsement naming the purchaser as a payee in case of loss.

     (e) A statement signed by the purchaser acknowledging that:

          (1) The decision to purchase the note secured by a deed of trust was made after the purchaser was provided with and reviewed the material required in subsection 1; and

          (2) The purchaser meets the minimum financial requirement set forth in NAC 645B.255.

     (Added to NAC by Admstr. of Financial Institutions, eff. 12-15-86; A by Comm’r of Financial Institutions by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R057-08, 4-23-2009)—(Substituted in revision for NAC 645B.140)

      NAC 645B.220  Disclosure form. (NRS 645B.185)

     1.  The disclosure form given to an investor pursuant to NRS 645B.185 must be the form prescribed by the Commissioner.

     2.  If the investor is a corporation, the disclosure form required pursuant to NRS 645B.185 may be signed by any person authorized to sign the form on behalf of the corporation, except a mortgage broker or mortgage agent.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009)

      NAC 645B.230  Provision to Division of financial statement for investors. (NRS 645B.060, 645B.185)

     1.  A mortgage broker may submit to the Division a financial statement to be provided to an investor pursuant to subsection 3 of NRS 645B.185 that:

     (a) Is dated not earlier than the last day of the most recently completed fiscal year; and

     (b) Has been prepared from the books and records of the mortgage broker by an independent public accountant who holds a permit to engage in the practice of public accounting in this State that has not been revoked or suspended.

     2.  A financial statement submitted to the Division by a mortgage broker pursuant to this section:

     (a) Must contain a notation indicating that it is a financial statement to be provided to investors pursuant to subsection 3 of NRS 645B.185.

     (b) Need not be audited, but the provisions of this section do not affect any obligation of the mortgage broker to submit an audited financial statement to the Division pursuant to subsection 3 of NRS 645B.085.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)

      NAC 645B.235  Disclosures to borrowers by certain persons acting in dual capacity. (NRS 645B.060)

     1.  A mortgage broker, mortgage agent or qualified employee who is also licensed as a real estate broker or real estate salesperson and who acts in both capacities in a single transaction must make to the borrower the disclosures set forth on the form prescribed by the Division pursuant to subsection 2, including, but not limited to:

     (a) Whether the mortgage broker, mortgage agent or qualified employee will be receiving compensation for acting as a mortgage broker, mortgage agent or qualified employee and as a real estate broker or real estate salesperson in the same transaction;

     (b) That the borrower is under no obligation to allow the real estate broker or real estate salesperson to submit the loan package of the borrower to a mortgage broker, mortgage agent or qualified employee; and

     (c) That the borrower may contact other mortgage brokers or mortgage agents to determine if the borrower is receiving the best services related to the loan and the best prices for those services.

     2.  The mortgage broker, mortgage agent or qualified employee shall provide the disclosures required pursuant to subsection 1 to the borrower at the time of application for a loan and in the following format:

(At least 14-point font)

BORROWER(S)

ACKNOWLEDGMENT AND AGREEMENT CONCERNING

DUAL CAPACITY AS REAL ESTATE SALES AGENT AND MORTGAGE LOAN AGENT

 

(At least 12-point bold font)

Borrower(s) are under no obligation whatsoever to allow their real estate sales agent to initiate or submit the borrower(s) loan package to any mortgage lender, broker, banker or investor. Mortgage brokers and other loan originators cannot offer loans from all funding sources and cannot guarantee the lowest price or best terms available in the market.

 

There may be other mortgage loan providers available with similar services and lower rates and/or fees. You are free and encouraged to contact various lenders to determine that you are receiving the best service and rates and lowest fees for those services. A comparative analysis of providers’ services, rates and fees is recommended prior to making a decision on which lender to use.

 

(At least 10-point font)

Borrower(s) are hereby informed and expressly acknowledge the following:

 

·       Real estate sales agent _________________, hereinafter referred to as “agent,” is also associated with _____________________ (mortgage broker/banker) and is acting in the dual capacity as both mortgage loan agent and real estate sales agent and shall receive compensation from the real estate sales transaction and separate compensation for arranging the mortgage loan.

 

·       Real estate company _____________________________ (check one of the following):

 

_________Does have a business relationship with the licensed mortgage broker/banker or exempt company to which your loan is referred. Because of this relationship, this referral may provide the real estate company named above a financial or other benefit.

Describe the nature of the relationship, including percentage of ownership interest, if applicable.__________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

·       _________Does not have a business relationship with the licensed mortgage broker/banker or exempt company to which your loan is referred.

 

The mortgage broker/banker must provide you with a good faith estimate disclosing all estimated costs of the loan, including the yield spread premium (YSP.) The YSP is income paid to a mortgage broker upon delivery of a mortgage loan to a lender at a premium interest rate.

 

By signing I/we confirm my/our understanding of the information provided herein.

 

BORROWER                                                                                       BORROWER

_________________________________________                 _________________________________________

 

By signing this form, the mortgage loan agent agrees that any fees paid to the mortgage broker/banker/agent as referred to above will not increase the cost of borrower(s) loan beyond the normal and customary charges typically collected by mortgage lenders, brokers or investors.

 

MORTGAGE BROKER/QUALIFIED EMPLOYEE/AGENT

_________________________________________

 

If you have any questions regarding your mortgage loan agent or loan, please visit the Division of Mortgage Lending website at http://www.mld.nv.gov or call (702) 486-0780 in Las Vegas or (775) 684-7060 in Northern Nevada.

     3.  As used in this section:

     (a) “Real estate broker” has the meaning ascribed to it in NRS 645.030; and

     (b) “Real estate salesperson” has the meaning ascribed to it in NRS 645.040.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)

      NAC 645B.240  Representation of activity as licensed; advertisements; disclosure to investors; Internet links. (NRS 645B.060, 645B.189, 645F.292, 645F.293)

     1.  A licensed mortgage broker or mortgage agent shall not represent an activity which is not licensed pursuant to chapter 645B of NRS as being licensed pursuant to that chapter.

     2.  Except as otherwise provided in subsection 3, an advertisement for an activity which is licensed pursuant to chapter 645B of NRS must be separate and distinct from an advertisement for an activity which is not licensed pursuant to that chapter.

 

     3.  A mortgage broker or mortgage agent may advertise jointly with a company licensed pursuant to chapter 624 or 645 of NRS if each business is disclosed separately in the advertisement and each business incurs a pro rata share of the cost associated with the advertisement.

     4.  A licensed mortgage broker or mortgage agent must include in his or her advertisements, including any advertising material available on the Internet:

     (a) The complete name of the mortgage broker or mortgage agent and the complete name under which the mortgage broker or mortgage agent does business. Any advertisement for a mortgage agent must also include the name of the mortgage broker or mortgage banker, with whom the mortgage agent is associated.

     (b) The address, telephone number and either the license number or unique identifier that the mortgage broker or mortgage agent has on file with the Division. Additional telephone or cellular phone numbers of the mortgage broker or mortgage agent may also be included.

     (c) A description of any licensed activity mentioned in the advertisement, written in nontechnical terms.

     5.  A mortgage broker or mortgage agent shall not use advertising material that simulates the appearance of a check or a communication from a governmental entity, or an envelope containing a check or a communication from a governmental entity, unless:

     (a) The words “THIS IS NOT A CHECK,” “NOT NEGOTIABLE” or “THIS IS NOT A GOVERNMENTAL ENTITY,” as appropriate, appear prominently on the envelope and any material that simulates the appearance of a check or a communication from a governmental entity; and

     (b) If the material simulates the appearance of a check, the material does not contain an American Bankers Association number, microencoding or any other marks intended to create the appearance that the material is a negotiable check.

     6.  A mortgage broker or mortgage agent shall not refer to an existing lender or financial institution, other than the mortgage broker or mortgage agent himself or herself, on any advertising material without the written consent of the lender or financial institution.

     7.  Provided the representation of interest rates in advertisements complies with Regulation Z, 12 C.F.R. Part 226, and the content will continue to comply with this chapter and chapter 645B of NRS regarding advertising, a mortgage broker or mortgage agent may make nonsubstantive changes to his or her advertisements without additional approval from the Commissioner. For the purposes of this subsection, “nonsubstantive changes” means:

     (a) Interest rates that are quoted in the advertisement and any corresponding annual percentage rates;

     (b) Promoting another mortgage agent in the same format of advertisement;

     (c) Promoting other branch locations in the same format of advertisement;

     (d) Placing links on websites that direct the user to noncommercial or consumer education websites;

     (e) Telephone or cellular phone numbers other than the phone number that the mortgage broker or mortgage agent has on file with the Division; and

     (f) Changes to words used in the advertisement that do not alter the content of the advertisement.

     8.  Approvals for advertising must be maintained at the location of the mortgage broker or mortgage agent and must be available for inspection for at least 1 year after the last day that the advertisement is used.

     9.  For the purposes of NRS 645B.189, disclosures in advertisements and distributions to investors must include the following language:

 

Prior to investing in a loan, investors must be provided applicable disclosure documents.

 

 

     10.  The mortgage broker or mortgage agent is not required to obtain approval from the Division for white-page listings, employment recruiting announcements, office signs, banners, magnetic car signs and letterhead which contain only the name, address, unique identifier and telephone number of the mortgage broker or mortgage agent, whether together or separate, and which are used for the purpose of identification only.

     11.  An Internet link on a website of the mortgage broker or mortgage agent that links the user to the website of another commercial enterprise must provide notification to the user that the user is leaving the website of the mortgage broker or mortgage agent.

     12.  For the purposes of this section, “advertising” includes commercial messages that promote the availability of mortgage products or investments offered by the mortgage broker or mortgage agent. Commercial messages include, but are not limited to:

     (a) Print media;

     (b) Sales literature;

     (c) Sales brochures or flyers;

     (d) Billboards;

     (e) Yellow-page listings if more than a line listing;

     (f) Radio and television advertisements;

     (g) Mass mailings distributed by the United States Postal Service or another such delivery service or by electronic mail;

     (h) Telephone or seminar scripts;

     (i) Websites or other Internet sites that promote or accept loan applications; and

     (j) Business cards.

     [Comm’r of Savings Associations, Mortgage Reg. § 11, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions, 5-19-88; R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009; R035-10, 7-22-2010)

CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS

      NAC 645B.250  Prohibition against acting as trustee or substitute trustee under certain circumstances; exception. (NRS 645B.060)

     1.  Except as otherwise provided in subsection 3, a mortgage broker and any partnership, corporation or limited-liability company in which the mortgage broker or any officer, director, employee or relative of the mortgage broker has a controlling interest shall not act as a trustee or substitute trustee for any deed of trust for which the mortgage broker acted at any time as an investor, mortgage broker or holder of a beneficial interest if the loan for which the deed of trust was executed was funded in whole or in part by a person other than the mortgage broker or has been assigned in whole or in part to one or more natural persons.

     2.  Except as otherwise provided in subsection 3, an officer, director or employee of a mortgage broker, a relative of any officer, director or employee of a mortgage broker, or an officer, director or employee of any corporation, partnership or limited-liability company that has a controlling interest in a mortgage broker shall not act as a trustee or substitute trustee for any deed of trust for which the mortgage broker acted at any time as an investor, mortgage broker or holder of a beneficial interest if the loan for which the deed of trust was executed was funded in whole or in part by a person other than the mortgage broker or has been assigned in whole or in part to one or more natural persons.

     3.  A mortgage broker may act as substitute trustee in a deed of trust for the purpose of reconveying title to the trustor upon payment in full of the note if the mortgage broker receives a signed and notarized statement from each person holding a beneficial interest in the note, or the agent of that person, authorizing the mortgage broker to so act and directing the disposition of the share of the money received for that person to pay the loan in full. The statement must be executed within 45 days before the execution of the deed of reconveyance. The mortgage broker and his or her officers, directors and employees shall not act as the agent for that person for the purpose of executing the statement required by this section.

     (Added to NAC by Comm’r of Financial Institutions, eff. 6-20-97; A by R045-00, 9-5-2000)—(Substituted in revision for NAC 645B.145)

      NAC 645B.255  Minimum financial requirement for certain investors. (NRS 645B.060)

     1.  Except as otherwise provided in subsection 5, before an investor, other than a financial or institutional investor, enters into a transaction with a mortgage broker or mortgage agent to acquire ownership of or a beneficial interest in a loan secured by a lien on real property by investing money, the investor must provide a statement on a form prescribed by the Division which verifies that the investor meets one or more of the following financial requirements:

     (a) The investor’s household net worth is more than $250,000, excluding any equity in any real property used as the investor’s primary residence at the time of the investment; or

     (b) The investor’s household net annual income was more than $70,000 for each of the previous 2 tax years, and there is a reasonable expectation of attaining or exceeding the same income for the current year.

     2.  Except as otherwise provided in this subsection, an investor must also verify on the form prescribed by the Division that the investor’s total investments in loans secured by a lien on real property transacted by a mortgage broker or mortgage agent are not valued at more than 50 percent of the investor’s household net worth or household net annual income, whichever is greater. The Division may waive this requirement in writing.

     3.  In the absence of knowledge to the contrary, a mortgage broker or mortgage agent is not responsible for determining the validity of an investor’s stated financial information and may rely on such information submitted by the investor.

     4.  An investor shall verify on a form prescribed by the Division that the investor continues to meet the minimum financial requirement set forth in subsection 1 for each transaction subsequent to the first transaction.

     5.  The provisions of this section do not apply to transactions of a mortgage broker or mortgage agent investing on his or her own behalf.

     6.  As used in this section, “financial or institutional investor” has the meaning ascribed to it in NRS 90.240.

     (Added to NAC by Comm’r of Mortgage Lending by R057-08, eff. 4-23-2009)

      NAC 645B.260  Decisions regarding investments. (NRS 645B.060)  All decisions regarding the funding of investments in mortgages must be made by the investor.

     [Comm’r of Savings Associations, Mortgage Reg. § 10, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions by R045-00, 9-5-2000)—(Substituted in revision for NAC 645B.100)

      NAC 645B.270  Standards for appraisals. (NRS 645B.060, 645B.300)  An appraisal submitted to an investor pursuant to NAC 645B.080 must meet, at a minimum, the standards set forth in the Uniform Standards of Professional Appraisal Practice adopted pursuant to NAC 645C.400 and:

     1.  If the appraised property is located in this State, be prepared by an appraiser who holds the appropriate license, certificate or permit issued by the Real Estate Division of the Department of Business and Industry; or

     2.  If the appraised property is located outside the State, be prepared by an appraiser who is authorized to perform the appraisal by the appropriate agency of the state in which the property is located.

     [Comm’r of Savings Associations, Mortgage Reg. § 12, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions by R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R058-08, 4-23-2009)

      NAC 645B.280  Power of attorney: Submission to and action by Commissioner; maintenance of written communications; extension of term; inclusion of date of approval. (NRS 645B.060, 645B.330)

     1.  Before a mortgage broker or mortgage agent engages in any act or transaction on behalf of an investor pursuant to a power of attorney, the power of attorney must first be submitted to the Commissioner for approval. The Commissioner will, within 15 business days after receiving a request for approval of a power of attorney:

     (a) Approve the power of attorney;

     (b) Approve the power of attorney on the condition that the mortgage broker amend the power of attorney as directed by the Commissioner;

     (c) Reject the power of attorney; or

     (d) Provide notice in writing to the person who requested the power of attorney that an additional period of time, not to exceed 15 business days, is needed by the Commissioner to act on the request for approval of the power of attorney.

     2.  The mortgage broker shall maintain in his or her file all written communications relating to the request for approval of the power of attorney.

     3.  Any writing executed or issued by a person extending the term of a power of attorney must be dated, and the mortgage broker shall maintain a copy of the extension in the file of the mortgage broker.

     4.  A power of attorney approved by the Commissioner pursuant to this section must state the date that the Commissioner approved the power of attorney. If the mortgage broker materially changes the power of attorney, the mortgage broker must resubmit the power of attorney to the Commissioner for approval before the mortgage broker uses the power of attorney.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004)

      NAC 645B.290  Power of attorney: Form. (NRS 645B.060, 645B.330)  The power of attorney required pursuant to NRS 645B.330 must be in substantially the following form:

 

Special Power of Attorney

 

     The undersigned, ________________________, does hereby appoint (name of mortgage broker) my true and lawful attorney, to perform services related to the following loan in which I own a beneficial interest: _______________________. The services to be performed are described below:

 

(Describe services here)

 

     This power of attorney shall not be effective to authorize any transaction that subordinates the priority of the recorded deed of trust that secures this loan unless accompanied by a writing issued by the undersigned that consents to such subordination.

 

     This power of attorney shall not be effective to authorize the use or release of money in which the undersigned owns a beneficial interest for any purpose except for the provision of the services described above relating to the loan described above unless accompanied by written authorization by the undersigned for the use or release of money for the other purpose.

 

     This power of attorney is effective only for the term of the specific loan described above unless the mortgage broker obtains written approval from the undersigned to extend the term of the power of attorney to provide services for not more than one other loan. The written approval must identify the loan for which the power of attorney was executed and the loan for which the power of attorney is being given.

 

     I give and grant to my said attorney full power to execute in my name contracts, escrow instructions, conveyances, mortgages, deeds of trust, and all other documents necessary to carry out the services described herein as fully to all intents and purposes as the undersigned might or could do if personally present, hereby ratifying and confirming all that my said attorney shall lawfully do, or cause to be done, by virtue of these presents.

 

     Witness my hand this _______ day of _____________________, ________.

 

 

 

                                                                                    ____________________________________

 

     State of ______________

 

     County of ____________

 

          This instrument was acknowledged before me on      (date)               , by    (name(s) of person(s)             

 

                                                                                    ____________________________________

                                                                                                (Signature of notarial officer)

 

          (Seal if any)

 

 

 

 

                                                                                    ____________________________________

                                                                                                (Title and rank (optional))

                                                                                    (My commission expires (optional) )

 

Approved by the Commissioner of Mortgage Lending on _________________.

 

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004)

LICENSING AND REGULATION OF MORTGAGE AGENTS

      NAC 645B.300  Application for licensing; association with or employment by mortgage broker or mortgage banker; investigation of background; confidentiality of certain documents; termination of association or employment. (NRS 645B.060, 645B.410, 645B.450, 645F.292, 645F.293)

     1.  In addition to the requirements set forth in NRS 645B.410, an applicant for a license as a mortgage agent must include with the application for a license:

     (a) Evidence that the applicant is 18 years of age or older;

     (b) Evidence that the applicant has satisfied the educational and examination requirements set forth in applicable federal or state law or regulation, including, without limitation, the S.A.F.E. Mortgage Licensing Act and any regulation adopted pursuant thereto; and

     (c) A record of personal history and experience in a form prescribed by the Division.

 

 

     2.  A mortgage broker or mortgage banker, and any mortgage agent, must sign the application for licensing required pursuant to NRS 645B.410.

     3.  As regards the conduct of business within this State, a mortgage agent:

     (a) May associate with or be employed by a mortgage broker or mortgage banker at only one licensed office location of the mortgage broker or mortgage banker; and

     (b) While the mortgage agent associates with or is employed by a mortgage broker or mortgage banker, may not associate with or be employed by another mortgage broker or mortgage banker, an escrow agency licensed pursuant to chapter 645A of NRS, or any other entity that is exempt from the provisions of chapter 645B of NRS or whose office is located outside this State.

     4.  Upon request of a mortgage broker or mortgage banker, the Commissioner may waive the requirement of an investigation of the credit history, criminal history and background of a mortgage agent if such an investigation has been conducted within the 6 months immediately preceding the date the application is submitted.

     5.  An applicant for a license as a mortgage agent shall not be deemed to be licensed as a mortgage agent until the Commissioner has verified the information submitted by the applicant pursuant to applicable federal or state law or regulation and has notified the applicant that the information has been verified and that the records of the Division reflect activation of the license.

     6.  The report of an investigation of the credit history, criminal history and background of a mortgage agent is confidential, and the Commissioner will release the report only pursuant to a valid subpoena or court order.

     7.  The written statement of the circumstances surrounding the termination of a mortgage agent required by paragraph (b) of subsection 3 of NRS 645B.450 will be considered a public record.

     8.  If a mortgage broker or mortgage banker terminates the association or employment of a mortgage agent for any reason, the mortgage broker or mortgage banker shall provide written notification of the termination to the mortgage agent not later than the third business day following the date of termination.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009; R035-10, 7-22-2010)

      NAC 645B.305  Qualifications of applicant: Requirements for licensure pursuant to NRS 645B.410. (NRS 645B.060)

     1.  Pursuant to subsection 3 of NRS 645B.410, the Commissioner is not required to and will not issue a license as a mortgage agent unless the requirements of that subsection have been fulfilled.

     2.  For the purposes of subparagraph (1) of paragraph (b) of subsection 3 of NRS 645B.410, a person shall not be considered to have been convicted or entered a plea of guilty or nolo contendere if the conviction or plea has been pardoned or vacated.

     3.  For the purposes of subparagraph (2) of paragraph (b) of subsection 3 of NRS 645B.410, a license shall not be considered to be revoked or suspended if the revocation or suspension was subsequently vacated.

     4.  For the purposes of subparagraph (5) of paragraph (b) of subsection 3 of NRS 645B.410, a person has not demonstrated financial responsibility if the person’s personal credit history indicates any lien, judgment or disciplinary action which results from fraud, misrepresentation, dishonest business practices or the mishandling of trust funds.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

 

 

      NAC 645B.310  Determination by Commissioner of adequate supervision of mortgage agent by mortgage broker. (NRS 645B.060, 645B.460)  In determining whether a mortgage broker has maintained adequate supervision of a mortgage agent, the Commissioner will consider whether:

     1.  The mortgage broker has made a reasonable effort to investigate the background and experience of a prospective mortgage agent and hire only a mortgage agent whose background and experience indicate that the person is trustworthy and competent to conduct the business of a mortgage agent;

     2.  The mortgage broker has adopted and followed any policies and procedures, written or oral, relating to the supervision and training of mortgage agents;

     3.  The mortgage agent has followed the policies and procedures of the mortgage broker, written or oral, governing his or her activities;

     4.  The mortgage broker has established and followed a system of review for compliance with his or her written or oral policies and procedures;

     5.  The policies and procedures of the mortgage broker require regular review of the work of a mortgage agent;

     6.  The mortgage broker reviewed the work of the mortgage agent in the case under examination by the Commissioner;

     7.  The policies and procedures of the mortgage broker include training in the requirements of this chapter and chapter 645B of NRS;

     8.  The mortgage broker makes copies of this chapter and chapter 645B of NRS available to mortgage agents;

     9.  The policies and procedures of the mortgage broker include a provision for continuing education for mortgage agents;

     10.  The mortgage broker spends a sufficient amount of time in the office where the mortgage agent is working;

     11.  The mortgage broker has received or acted on previous reports of alleged misconduct by the mortgage agent; and

     12.  Review of the previous work of the mortgage agent would have disclosed a problem with the conduct or issue being examined by the Commissioner.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)

      NAC 645B.315  Exemption from licensing requirements for certain loan processors and underwriters. (NRS 645B.060, 645F.292, 645F.293)

     1.  Except if the natural person is an independent contractor who complies with the requirements of NAC 645B.410, a natural person who is a loan processor or underwriter and who does not represent to the public, through advertising or other means of communicating or providing information, that the natural person can or will perform any of the activities of a loan originator is not required to be licensed as a mortgage agent. 

     2.  For the purposes of this section, “represent to the public” means to communicate through:

     (a) Advertising, including, without limitation, a promotional item or business card; or

     (b) Other means of providing information, including, without limitation, the use of stationery, brochures, signs or rate lists.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.317  Requirements for reinstatement of license. (NRS 645B.060)  The Commissioner may only reinstate a mortgage agent’s license pursuant to subsection 3 of NRS 645B.430 if, within 2 months after the date on which the license expired, the mortgage agent:

     1.  Submits the items described in subsection 3 of NRS 645B.430; and

     2.  Completes any unfulfilled requirements related to the license.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

 

EDUCATIONAL REQUIREMENTS FOR LICENSURE

      NAC 645B.360  Designation of Registry to certify approved courses. (NRS 645B.0137, 645B.0138, 645B.051, 645B.060, 645B.430, 645F.292, 645F.293)  The Commissioner hereby designates the Registry to certify approved courses for the purposes of an initial license or renewal of a license as a mortgage broker or mortgage agent.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004; A by R093-09, 10-27-2009; R035-10, 7-22-2010)

      NAC 645B.363  Course material for initial licensure and continuing education: Approved subjects. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)  The following subjects are approved as course material for initial licensing and continuing education:

     1.  Federal laws and regulations relating to mortgage lending;

     2.  The provisions of Nevada laws and regulations, including, without limitation:

     (a) Chapter 645B of NRS governing mortgage brokers and mortgage agents;

     (b) Chapter 598D of NRS governing unfair lending practices;

     (c) Chapter 645A of NRS governing escrow agencies and agents;

     (d) Chapter 645F of NRS governing mortgage lending and related professions;

     (e) Chapter 107 of NRS governing deeds of trust; and

     (f) Chapter 645E of NRS governing mortgage bankers;

     3.  Mortgage industry practices and information;

     4.  Ethics, including, without limitation, instruction on fraud, consumer protection and fair lending issues;

     5.  Lending standards for the nontraditional mortgage product marketplace; and

     6.  Any other subject approved by the Registry.

     (Added to NAC by Comm’r of Mortgage Lending by R093-09, eff. 10-27-2009; A by R035-10, 7-22-2010)

      NAC 645B.367  Requirements for initial licensure. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)

     1.  A natural person who is an applicant for an initial license as a mortgage broker or mortgage agent must complete at least 30 hours of instruction in approved courses from the subjects set forth in NAC 645B.363.

     2.  The 30 hours of instruction required pursuant to subsection 1 must include:

     (a) Three hours of ethics, which must include instruction on fraud, consumer protection and fair lending issues;

     (b) Three hours of federal law and regulations relating to mortgage lending;

     (c) Two hours of training relating to lending standards for the nontraditional mortgage product marketplace;

     (d) Four hours of Nevada law and regulations relating to mortgage lending; and

     (e) Eighteen hours of electives.

     3.  Nothing in this section precludes any approved course that is provided by the employer of the applicant, an entity which is affiliated with the applicant by an agency contract or any subsidiary or affiliate of such employer or entity.

     4.  The Commissioner may accept any hours of training completed in fulfillment of the requirements for a license for another state as hours of training for an initial license in this State if the Commissioner determines that those hours of training meet the requirements of this State.

     (Added to NAC by Comm’r of Mortgage Lending by R093-09, eff. 10-27-2009; A by R035-10, 7-22-2010)

 

REVISER’S NOTE.

      The regulation of the Commissioner of Mortgage Lending filed with the Secretary of State on July 22, 2010 (LCB File No. R035-10), which amended this section, contains the following provision not included in NAC:

      “Notwithstanding any other provision of this regulation, any natural person who completed the requirements of section 6 of LCB File No. R093-09 [NAC 645B.367], which was adopted by the Commissioner of Mortgage Lending and filed with the Secretary of State on October 27, 2009, before July 22, 2010, through courses approved by the Division of Mortgage Lending of the Department of Business and Industry or the Nationwide Mortgage Licensing System and Registry does not have to complete those requirements again. The Division shall certify to the Registry that the natural person previously met those requirements.”

 

      NAC 645B.370  Qualified written test required for initial licensure. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)

     1.  To satisfy the requirement prescribed in NRS 645B.0137, a natural person must pass, in accordance with the standards established under this section, a qualified written test pursuant to and in the manner provided for in section 1505(b)(5) of the S.A.F.E. Mortgage Licensing Act, including, without limitation, with regard to the taking of a test four times.

     2.  Nothing in this section prohibits a provider approved by the Registry from providing a test at the location of the employer of the applicant, the location of any subsidiary or affiliate of the employer of the applicant, or the location of any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage agent.

     3.  Pursuant to section 1505(d)(3)(D) of the S.A.F.E. Mortgage Licensing Act, a licensed mortgage agent who fails to maintain a valid license for a period of 5 consecutive years or more must retake the test specified in subsection 1, not taking into account any time during which such person may be a registered loan originator, as defined in section 1503(7) of the S.A.F.E. Mortgage Licensing Act.

     (Added to NAC by Comm’r of Mortgage Lending by R093-09, eff. 10-27-2009; A by R035-10, 7-22-2010)

REVISER’S NOTE.

      The regulation of the Commissioner of Mortgage Lending filed with the Secretary of State on July 22, 2010 (LCB File No. R035-10), which amended this section, contains the following provision not included in NAC:

      “Notwithstanding any other provision of this regulation, any natural person who completed, before July 22, 2010, an examination approved by the Division of Mortgage Lending of the Department of Business and Industry regarding Nevada laws and regulations does not have to retake the equivalent Nevada laws and regulations portion of the examination provided for in section 7 of LCB File No. R093-09 [NAC 645B.370], which was adopted by the Commissioner of Mortgage Lending and filed with the Secretary of State on October 27, 2009. The Division shall certify to the Nationwide Mortgage Licensing System and Registry that the natural person previously passed the examination on Nevada laws and regulations, but the natural person must, after July 22, 2010, pass the other subject matter portions of the examination provided for in section 7 of LCB File No. R093-09 [NAC 645B.370].”

 

      NAC 645B.373  Requirements for continuing education. (NRS 645B.0137, 645B.0138, 645B.060, 645F.292, 645F.293)

     1.  To satisfy the requirements for continuing education provided for in NRS 645B.051 or 645B.430, a mortgage agent or mortgage broker must complete at least 10 hours of approved courses of continuing education during the 12 months immediately preceding the date on which the license expires. The 10 hours of approved courses must be comprised of:

     (a) Three hours of federal laws and regulations relating to mortgage lending;

     (b) Two hours of ethics, which must include, without limitation, instruction on fraud, consumer protection and fair lending issues;

     (c) Two hours of training relating to lending standards for nontraditional mortgage products; and

     (d) Three hours of Nevada laws and regulations, as set forth in NAC 645B.363.

     2.  The Commissioner may accept any hours of training completed in fulfillment of the requirements for a license for another state as hours of training for continuing education in this State if the Commissioner determines that those hours of training meet the requirements of this State.

 

     3.  Nothing in this section precludes any approved course that is provided by the employer of the mortgage agent or mortgage broker, an entity which is affiliated with the mortgage agent or mortgage broker by an agency contract, or any subsidiary or affiliate of such employer or entity.

     4.  A licensed mortgage agent or mortgage broker may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.

     5.  A licensed mortgage agent or mortgage broker who is an approved instructor of an approved course may receive credit for the licensed mortgage agent’s or mortgage broker’s own annual continuing education requirement at the rate of 2 hours of credit for every 1 hour taught.

     (Added to NAC by Comm’r of Mortgage Lending by R093-09, eff. 10-27-2009; A by R035-10, 7-22-2010)

RESIDENTIAL MORTGAGE LOANS

      NAC 645B.400  “Residential mortgage loan originator” interpreted. (NRS 645B.060, 645F.292, 645F.293)

     1.  As used in NRS 645B.01325, the term “residential mortgage loan originator” is interpreted not to include a person or entity which only performs real estate brokerage activity and which is licensed or registered in accordance with Nevada law, unless the person or entity is compensated by a lender, mortgage broker, mortgage banker or other residential mortgage loan originator or by any agent of such lender, mortgage broker, mortgage banker or other residential mortgage loan originator.

     2.  As used in this section, “real estate brokerage activity” has the meaning ascribed to it in section 1503(3)(D) of the S.A.F.E. Mortgage Licensing Act.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

REVISER’S NOTE.

      The language in this section is taken from Section 1503 of the S.A.F.E. Mortgage Licensing Act, 12 U.S.C. § 5102(3)(A)(iii).

 

      NAC 645B.405  Unique identifier. (NRS 645B.060, 645F.292, 645F.293)  The unique identifier of any person originating a residential mortgage loan must be clearly shown on all residential mortgage loan application forms, solicitations or advertisements, including, without limitation, a website or a business card, and any other documents as established by law, regulation or order of the Commissioner.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.410  Prohibited acts of independent contractor not licensed as mortgage agent. (NRS 645B.060, 645F.292, 645F.293)  Unless otherwise specifically prohibited by federal law and pursuant to section 1504(b)(2) of the S.A.F.E. Mortgage Licensing Act, an independent contractor may not engage in the activities of a residential mortgage loan originator as a loan processor or underwriter unless such independent contractor is licensed as a mortgage agent.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

ENFORCEMENT

      NAC 645B.500  Complaint alleging violation. (NRS 645B.060, 645B.600)

     1.  A complaint filed pursuant to NRS 645B.600 must:

     (a) Be in writing;

     (b) Be signed by the person filing the complaint or the authorized representative of the person filing the complaint;

     (c) Contain the address and telephone number of the person filing the complaint or the authorized representative of the person filing the complaint;

     (d) Describe the nature of the complaint in as much detail as possible; and

     (e) Include as exhibits copies of any documentation supporting the complaint.

     2.  If the Commissioner determines that a complaint filed pursuant to subsection 1 contains an alleged action which, if true, violates a provision of this chapter or chapter 645B of NRS or an order of the Commissioner, the Commissioner will investigate each such violation alleged in the complaint, unless the Commissioner has previously investigated the alleged violation.

     3.  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 2 because the Commissioner determines that the alleged action, if true, does not violate a provision of this chapter or chapter 645B of NRS or an order of the Commissioner, the Commissioner will provide to the person who filed the complaint a written summary of the reasons for his or her decision.

     4.  The Commissioner will provide a copy of the written complaint to the person against whom the complaint is filed pursuant to NRS 645B.600 and may order the person to respond in writing to the written complaint within a period of time specified by the Commissioner.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)—(Substituted in revision for NAC 645B.320)

      NAC 645B.505  Referral of certain suspected violations for investigation and action; grounds for disciplinary action. (NRS 645B.060, 645B.670, 645F.292, 645F.293)

     1.  The Commissioner may refer to, cooperate with and share information with the appropriate federal or state agency for investigation and appropriate action each suspected violation of:

     (a) The Truth in Lending Act, 15 U.S.C. §§ 1601 to 1667f, inclusive, including, without limitation, the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, or Regulation Z, 12 C.F.R. Part 226.

     (b) The Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 to 1691f, inclusive, or Regulation B, 12 C.F.R. Part 202.

     (c) The Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 to 2617, inclusive, or Regulation X, 24 C.F.R. Part 3500.

     (d) The S.A.F.E. Mortgage Licensing Act.

     (e) Any other applicable federal or state law or regulation related to mortgage transactions.

     2.  For the purposes of NRS 645B.670, a mortgage broker or mortgage agent commits a violation if the mortgage broker or a mortgage agent associated with the mortgage broker:

     (a) Engages in a deceptive trade practice as defined in chapter 598 of NRS;

     (b) Fails to refund any fees collected in excess of the actual cost the mortgage broker incurs or pays for any appraisal, credit report or any other product or service provided by a third party in connection with the making of a loan;

     (c) Improperly influences or attempts to improperly influence the proper development, reporting, result or review of a real estate appraisal with respect to the making of a mortgage loan; or

     (d) Violates a provision of:

          (1) The Truth in Lending Act, 15 U.S.C. §§ 1601 to 1667f, inclusive, including, without limitation, the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, or Regulation Z, 12 C.F.R. Part 226.

          (2) The Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 to 1691f, inclusive, or Regulation B, 12 C.F.R. Part 202.

          (3) The Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 to 2617, inclusive, or Regulation X, 24 C.F.R. Part 3500.

          (4) The S.A.F.E. Mortgage Licensing Act, including, without limitation, section 1505(e) of the Act regarding the submission of reports of condition to the Registry.

          (5) Any other applicable federal or state law or regulation related to mortgage transactions.

     3.  For the purposes of NRS 645B.670, a mortgage agent commits a violation if the mortgage agent:

     (a) Engages in a deceptive trade practice as defined in chapter 598 of NRS;

     (b) Fails to refund any fees collected in excess of the actual cost the mortgage agent incurs or pays for any appraisal, credit report or any other product or service provided by a third party in connection with the making of a loan; or

     (c) Violates a provision of:

          (1) The Truth in Lending Act, 15 U.S.C. §§ 1601 to 1667f, inclusive, including, without limitation, the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, or Regulation Z, 12 C.F.R. Part 226.

          (2) The Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 to 1691f, inclusive, or Regulation B, 12 C.F.R. Part 202.

          (3) The Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 to 2617, inclusive, or Regulation X, 24 C.F.R. Part 3500.

          (4) The S.A.F.E. Mortgage Licensing Act, including, without limitation, section 1505(e) of the Act regarding the submission of reports of condition to the Registry.

          (5) Any other applicable federal or state law or regulation related to mortgage transaction.

     (d) Does any of the following:

          (1) Is convicted of, or enters a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court;

          (2) Has 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 has a financial services license suspended or revoked;

          (3) Makes a false statement of material fact to the Division;

          (4) Violates any provision of this chapter or chapter 645E of NRS, a regulation adopted pursuant thereto or an order of the Commissioner; or

          (5) Demonstrates a lack of financial responsibility, character and general fitness so as to lose the confidence of the community and warrant a determination that the mortgage agent will not operate honestly, fairly and efficiently for the purposes of chapter 645B of NRS.

     4.  Nothing in this section shall be construed to prohibit a mortgage broker from requesting an appraiser of real estate to do one or more of the following:

     (a) Consider any appropriate information relating to the property;

     (b) Provide additional details, substantiations or explanations in support of the appraiser’s valuation of the property; or

     (c) Correct errors in the appraisal report.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009; R035-10, 7-22-2010)—(Substituted in revision for NAC 645B.330)

      NAC 645B.510  Reporting of violations to Registry; procedure for challenging report. (NRS 645B.060, 645F.292, 645F.293)

     1.  The Division shall regularly report violations of this chapter and chapter 645B of NRS, enforcement actions and other relevant information, including, without limitation, violations of any applicable federal law or regulation, to the Registry pursuant to the protocols of the Registry.

     2.  A person may challenge information provided by the Division to the Registry.

     3.  A challenge must be sent in writing by regular mail to the Division and addressed to the Office of the Commissioner.

     4.  Once received, the Division shall consider the merits of a challenge and provide the person with a written reply which must be sent by regular mail to the person within 30 days after receipt of the challenge.

     5.  The person may send a written rebuttal within 30 days after receipt of the Division’s reply by regular mail to the Division and addressed to the Office of the Commissioner.

     6.  Upon receipt of the written rebuttal, the Commissioner will make a written final decision concerning the written rebuttal and underlying challenge and send the final decision by regular mail to the person within 30 days.

     7.  If, pursuant to subsection 6, the Commissioner upholds a challenge, the Commissioner will promptly take action to correct the information submitted to the Registry.

     8.  The Commissioner will not submit a challenge, reply, rebuttal or final decision described in this section to the Registry unless otherwise required by law.

     (Added to NAC by Comm’r of Mortgage Lending by R035-10, eff. 7-22-2010)

      NAC 645B.515  Orders to cease and desist from certain activities. (NRS 645B.060, 645B.720)

     1.  If a person engages in an activity in violation of the provisions of this chapter or chapter 645B of NRS, the Commissioner may issue an order to the person directing the person to cease and desist from engaging in the activity.

     2.  The order to cease and desist must be in writing and must state that, in the opinion of the Commissioner, the person has engaged in an activity:

     (a) For which the person has not received a license or certificate of exemption as required by chapter 645B of NRS; or

     (b) In a manner that violates the provisions of this chapter or chapter 645B of NRS.

     3.  A person who receives an order to cease and desist pursuant to this section shall not engage in any activity governed by chapter 645B of NRS after receiving the order unless the order is suspended or rescinded.

     4.  Not later than 30 calendar days after receiving an order pursuant to this section, the person who receives the order may file a verified petition with the Commissioner to request a hearing. Upon receipt of the verified petition, the Commissioner may, for good cause shown, suspend the order pending the hearing. The Commissioner will hold the hearing on a date not later than 30 calendar days after the date the petition is filed unless the Commissioner and the person agree to another date. The order to cease and desist is rescinded if the Commissioner fails to:

     (a) Hold a hearing:

          (1) Not later than 30 calendar days after the date the petition is filed; or

          (2) On a date agreed to by the Commissioner and the person; or

     (b) Render a written decision within 45 days after the date the hearing is concluded.

     5.  The decision of the Commissioner after a hearing is a final decision of the Division for the purposes of judicial review.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)—(Substituted in revision for NAC 645B.340)

      NAC 645B.520  Suspension or revocation of license for major violation. (NRS 645B.060, 645B.700)  The Commissioner will suspend or revoke the license of a person who commits a major violation.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 9-5-2000)—(Substituted in revision for NAC 645B.350)

      NAC 645B.525  Hearings: Coordination and notice of time and location. (NRS 645B.060)  The hearing officer shall:

     1.  Attempt to coordinate the time and location of the hearing with the parties before setting the matter; and

     2.  Advise the Commissioner or his or her designee in writing of the time and location of the hearing in such a manner as to allow the Division to comply with the notice requirements of NRS 233B.121.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

 

      NAC 645B.530  Hearings: Continuances. (NRS 645B.060)

     1.  The time of a hearing may be continued by the hearing officer upon the written petition of a party only for good cause shown.

     2.  The party requesting a continuance must serve the written petition upon the opposing party at the time that the request is made, and the opposing party may file an objection to the request for a continuance within 3 days after receipt of the written petition.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.535  Hearings: Representation of respondent. (NRS 645B.060)  A respondent may represent himself or herself at the hearing or be represented by an attorney.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.540  Hearings: Disclosure of exhibits and list of witnesses; limitations on discovery. (NRS 645B.060)

     1.  If a hearing has been requested pursuant to NRS 645B.750 in a timely manner, each party must provide to the opposing party, not less than 10 days before a hearing, a copy of all papers, records, data or documents expected to be used as exhibits at the hearing and a list of witnesses expected to testify at the hearing. Nothing herein prohibits a party from calling a rebuttal witness or offering other rebuttal evidence which has not been disclosed if allowed by the hearing officer. The filing of a motion does not toll the time for providing information to an opposing party.

     2.  Not less than 5 days before a hearing, each party must provide to the hearing officer a copy of all papers, records, data or documents expected to be used as exhibits at the hearing and a list of witnesses expected to testify at the hearing.

     3.  If a party fails to provide any document required to be provided by the provisions of this section, the hearing officer may exclude the document.

     4.  Neither party may serve interrogatories on the other party or conduct depositions, and neither party may engage in any other discovery unless otherwise required by law and permitted by the hearing officer.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.545  Hearings: Motions. (NRS 645B.060)

     1.  All motions, unless made to exclude a witness, must be in writing.

     2.  A written motion must be served on the opposing party and the hearing officer at least 15 days before the time set for the hearing on the motion unless good cause is shown to the hearing officer.

     3.  An opposing party may file a written response to a motion at least 7 days before the time set for the hearing on the motion by serving the written response on all parties and the hearing officer.

     4.  No motion for summary judgment will be allowed.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.550  Hearings: Procedure. (NRS 645B.060)

     1.  The hearing officer shall:

     (a) Ascertain whether all persons ordered to appear under subpoena are present and whether all documents, books, records and other evidence under subpoena are present in the hearing room.

     (b) Administer the oath to the reporter as follows:

 

Do you solemnly swear or affirm that you will report this hearing to the best of your stenographic ability?

 

 

 

     (c) Administer the oath to all persons whose testimony will be taken as follows:

 

Do you and each of you solemnly swear or affirm to tell the truth and nothing but the truth in these proceedings?

 

     (d) Ascertain whether either party desires to have a witness excluded from the hearing room until he or she is called. A witness may be excluded upon the motion of the hearing officer or upon the motion of either party. If a witness is excluded, he or she will be instructed not to discuss the case during the pendency of the proceeding. The respondent will be allowed to remain present at the hearing. The Division may designate a person who is a member of the staff of the Division and who may also be a witness to act as its representative. Such a representative will be allowed to remain present at the hearing.

     (e) Ascertain whether a copy of the complaint or decision to deny has been filed and whether an answer has been filed as part of the record in the proceedings.

     (f) Hear any preliminary motions, stipulations or orders upon which the parties agree and address any administrative details.

     (g) Request the Division to proceed with the presentation of its case.

     2.  Parties may waive opening and closing statements.

     3.  The respondent may cross-examine witnesses in the order that the Division presents them.

     4.  Witnesses or counsel may be questioned by the hearing officer at any time during the proceeding.

     5.  Evidence which will be introduced or which is used by a witness:

     (a) Must first be marked for identification; and

     (b) May be received by the hearing officer at any point during the proceeding.

     6.  When the Division has completed its presentation, the hearing officer shall request the respondent to proceed with the introduction of evidence and calling of witnesses on his or her behalf.

     7.  The Division may cross-examine witnesses in the order that the respondent presents them.

     8.  When the respondent has completed his or her presentation, the Division may call any rebuttal witnesses.

     9.  When all testimony for the Division and respondent has been given and all evidence has been submitted, the hearing officer may request the Division and the respondent to summarize their presentations.

     10.  The hearing officer may, in his or her discretion, waive or modify any provision of this section if necessary to expedite or ensure the fairness of the hearing.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.555  Hearings: Burden and standard of proof. (NRS 645B.060)  The Division has the burden of proof in any hearing pursuant to this chapter. The standard of proof in such a hearing is substantial evidence.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.560  Hearings: Rules of evidence; informality of proceedings. (NRS 645B.060)

     1.  In conducting any hearing, the hearing officer is not bound by the technical rules of evidence, and any informality in any proceeding or in the manner of taking testimony does not invalidate any order or decision of the hearing officer. The rules of evidence of courts of this State will be followed generally but may be relaxed at the discretion of the hearing officer if deviation from the technical rules of evidence will aid in determining the facts.

 

 

     2.  Any evidence offered at a hearing must be material and relevant to the issues of the hearing.

     3.  Sworn declarations may be introduced in lieu of testimony if a witness resides outside the State of Nevada.

     4.  The hearing officer may exclude inadmissible, incompetent, repetitious or irrelevant evidence or order that the presentation of that evidence be discontinued.

     5.  A party who objects to the introduction of evidence shall briefly state the grounds of the objection at the time the evidence is offered. The party who offers the evidence may present a rebuttal argument to the objection.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.565  Hearings: Decision of hearing officer. (NRS 645B.060)  The hearing officer shall issue and serve upon all parties a written decision meeting the requirements of NRS 233B.125 within 30 days after the close of the hearing.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.570  Posthearing motions. (NRS 645B.060)

     1.  A party may file a posthearing motion only to request a rehearing or to request a modification of the discipline, fine, costs or attorney’s fees imposed against a respondent.

     2.  Any posthearing motion must be filed within 15 days after service of the decision by the hearing officer.

     3.  The opposing party may file an opposition within 10 days after a posthearing motion is filed, and the moving party may file a final reply within 5 days after an opposition is filed.

     4.  The hearing officer shall issue and serve upon all parties a written decision on any posthearing motion within 30 days after the posthearing motion is filed.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.575  Informal disposition of contested cases; consent and settlement agreements. (NRS 645B.060)

     1.  The provisions of this chapter do not affect or limit the authority of the Commissioner or his or her designee, at any stage of a contested case, to make an informal disposition of the contested case pursuant to subsection 5 of NRS 233B.121 or to enter into a consent or settlement agreement pursuant to NRS 622.330.

     2.  Any action taken by the Commissioner or his or her designee pursuant to subsection 1:

     (a) Is not subject to approval by the hearing officer; and

     (b) May have its terms placed into the record at the discretion of the Commissioner or his or her designee.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)

      NAC 645B.580  Immunity from civil liability. (NRS 645B.060)

     1.  A person who provides a governmental entity, officer or employee with any information relating to a contested case is immune from any civil liability for providing that information if the person acted in good faith and without malicious intent.

     2.  A governmental entity, officer or employee is immune from any civil liability for:

     (a) Any decision or action taken in good faith and without malicious intent in carrying out the provisions of this chapter or any law or regulation governing occupational licensing; or

     (b) Communicating or cooperating with or providing any documents or other information to any other governmental entity, officer or employee conducting an investigation, disciplinary proceeding or civil or criminal prosecution.

     (Added to NAC by Comm’r of Mortgage Lending by R069-08, eff. 4-23-2009)