NRS: CHAPTER 645F - MORTGAGE LENDING AND RELATED PROFESSIONS

[Rev. 6/29/2024 4:51:57 PM--2023]

CHAPTER 645F - MORTGAGE LENDING AND RELATED PROFESSIONS

GENERAL PROVISIONS

NRS 645F.010 Definitions.

NRS 645F.020 “Commissioner” defined.

NRS 645F.030 “Division” defined.

NRS 645F.040 “Escrow agency” defined.

NRS 645F.060 “Mortgage company” defined.

NRS 645F.063 “Mortgage servicer” defined.

NRS 645F.065 “Nationwide Mortgage Licensing System and Registry” or “Registry” defined.

NRS 645F.090 Inapplicability of chapter to participants in Regulatory Experimentation Program for Product Innovation; exception.

COMMISSIONER OF MORTGAGE LENDING; STAFF

NRS 645F.150 Commissioner: Qualifications; restrictions on other employment or offices.

NRS 645F.160 Commissioner: Prohibition on having interest in regulated entity or engaging in business as personal loan broker.

NRS 645F.170 Commissioner: Oath.

NRS 645F.180 Appointment of deputy commissioners and other employees; use of certified public accountant for audits and examinations; assessments paid by regulated entities for audits and examinations.

NRS 645F.190 Oath of deputy commissioners.

REGULATION AND SUPERVISION

NRS 645F.250 Commissioner and Division required to administer chapters governing mortgage lending and related professions.

NRS 645F.255 Regulations: Generally.

NRS 645F.260 State Board of Finance required to act in advisory capacity.

NRS 645F.267 Certain persons not required to register or renew with or provide reports of financial condition to Registry; certain persons required to comply with Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

NRS 645F.270 Account for Mortgage Lending: Creation; use; no reversion to State General Fund; administration; interest and income; payment of claims.

NRS 645F.275 Adoption of regulations establishing minimum net worth or surety bonding requirements for loans by residential mortgage loan originators, percentage of fees from licensing to be deposited in mortgage recovery fund and methods to make claim against fund.

NRS 645F.277 Adoption of regulations establishing guidelines and limitations for servicing or arranging certain loans.

NRS 645F.280 Adoption of regulations establishing rates paid by persons licensed by Commissioner for supervision and examination by Commissioner or Division.

NRS 645F.290 Assessments paid by persons licensed by Commissioner or Division for legal services provided by Attorney General to Commissioner and Division.

NRS 645F.291 Subpoenas; oaths; examination of witnesses; penalty; assessment of costs.

NRS 645F.292 Secure and Fair Enforcement for Mortgage Licensing Act of 2008: Adoption of regulations to comply with requirements.

NRS 645F.293 Secure and Fair Enforcement for Mortgage Licensing Act of 2008: Adoption of regulations to carry out provisions.

NRS 645F.294 Confidentiality and privilege of information and material provided to Registry: Generally; exception.

NRS 645F.295 Confidentiality and privilege of information and material provided to Registry: Commissioner authorized to enter into agreements with other entities.

NRS 645F.296 Certain residential mortgage loan originators required to obtain and maintain license as mortgage loan originator.

FORECLOSURE CONSULTANTS, FORECLOSURE PURCHASERS, LOAN MODIFICATION CONSULTANTS AND PERSONS PERFORMING COVERED SERVICES FOR COMPENSATION

General Provisions

NRS 645F.300 Definitions.

NRS 645F.310 “Covered service” defined.

NRS 645F.320 “Foreclosure consultant” defined.

NRS 645F.330 “Foreclosure purchaser” defined.

NRS 645F.340 “Foreclosure reconveyance” defined.

NRS 645F.350 “Foreclosure sale” defined.

NRS 645F.360 “Homeowner” defined.

NRS 645F.365 “Loan modification consultant” defined.

NRS 645F.367 “Residence” defined.

NRS 645F.370 “Residence in foreclosure” defined.

NRS 645F.380 Applicability.

Licenses and Regulation

NRS 645F.390 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Licenses; fingerprints; regulations.

NRS 645F.392 Persons performing covered services for compensation: Written contracts for covered services; regulations.

NRS 645F.396 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Records; duties; inspection and audit of records by Commissioner.

NRS 645F.397 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Disclosures.

NRS 645F.398 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Notice requirements.

Prohibited Acts; Penalties; Remedies

NRS 645F.400 Persons performing covered services for compensation: Prohibited acts; penalty.

NRS 645F.410 Administrative penalties for violation of chapter, regulation or other applicable law; disposition of money collected as administrative penalties; appointment of hearing officers or panels by Commissioner; claims for attorney’s fees and investigative costs.

NRS 645F.420 Homeowner may bring action to recover damages.

NRS 645F.430 Foreclosure purchasers: Criminal penalty for fraud or deceit against homeowner.

NRS 645F.440 Foreclosure purchasers: Transaction rescinded due to fraud or deceit upon homeowner.

NRS 645F.450 Cumulative nature of rights, remedies and penalties.

MORTGAGE SERVICERS

NRS 645F.500 Applicability.

NRS 645F.510 License required.

NRS 645F.520 Regulations.

NRS 645F.530 Compliance with other laws, regulations and orders of Commissioner; authority of Commissioner to conduct examination or investigation of and to take disciplinary action against mortgage servicer or applicant for license.

NRS 645F.540 Duty to submit certain documents, fees, fines and costs through Registry; deposit of fees and costs.

_________

GENERAL PROVISIONS

NRS 645F.010 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 645F.020 to 645F.065, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2003, 3537; A 2009, 2689; 2015, 2808)

NRS 645F.020 “Commissioner” defined. “Commissioner” means the Commissioner of Mortgage Lending.

(Added to NRS by 2003, 3537)

NRS 645F.030 “Division” defined. “Division” means the Division of Mortgage Lending of the Department of Business and Industry.

(Added to NRS by 2003, 3537)

NRS 645F.040 “Escrow agency” defined. “Escrow agency” has the meaning ascribed to it in NRS 645A.010.

(Added to NRS by 2003, 3537)

NRS 645F.060 “Mortgage company” defined. “Mortgage company” has the meaning ascribed to it in NRS 645B.0127.

(Added to NRS by 2003, 3537; A 2017, 3080)

NRS 645F.063 “Mortgage servicer” defined. “Mortgage servicer” means a person who directly services a mortgage loan, or who is responsible for interacting with a borrower, managing a loan account on a daily basis, including, without limitation, collecting and crediting periodic loan payments, managing any escrow account or enforcing the note and security instrument, either as the current owner of the promissory note or as the authorized agent of the current owner of the promissory note. The term includes a person providing such services by contract as a subservicing agent to a master servicer by contract. The term does not include a trustee under a deed of trust, or the trustee’s authorized agent, acting under a power of sale pursuant to a deed of trust.

(Added to NRS by 2015, 2806)

NRS 645F.065 “Nationwide Mortgage Licensing System and Registry” or “Registry” defined. “Nationwide Mortgage Licensing System and Registry” or “Registry” have the meanings ascribed to them in NRS 645B.0128.

(Added to NRS by 2009, 2688)

NRS 645F.090 Inapplicability of chapter to participants in Regulatory Experimentation Program for Product Innovation; exception. Except as otherwise required by the Director of the Department of Business and Industry pursuant to NRS 657A.430 or 657A.620, the provisions of this chapter do not apply to a participant in the Regulatory Experimentation Program for Product Innovation established and administered pursuant to chapter 657A of NRS.

(Added to NRS by 2019, 3996)

COMMISSIONER OF MORTGAGE LENDING; STAFF

NRS 645F.150 Commissioner: Qualifications; restrictions on other employment or offices. The Commissioner:

1. Must be a person who has had practical experience in the financial services industry or the business of making loans secured by an interest in real property.

2. Except as otherwise provided in NRS 284.143, shall devote his or her entire time and attention to the business of his or her office and shall not pursue any other business or occupation or hold any other office of profit.

(Added to NRS by 2003, 3537)

NRS 645F.160 Commissioner: Prohibition on having interest in regulated entity or engaging in business as personal loan broker. The Commissioner shall not, either directly or indirectly, be interested in any mortgage servicer, escrow agency or mortgage company to which this chapter and chapters 645A and 645B of NRS apply, nor engage in business as a personal loan broker.

(Added to NRS by 2003, 3538; A 2015, 2808; 2017, 3080)

NRS 645F.170 Commissioner: Oath. After appointment and before entering upon the discharge of the duties of the office, the Commissioner shall take and subscribe to an official oath.

(Added to NRS by 2003, 3538)

1. The Commissioner may appoint deputy commissioners of mortgage lending, examiners, assistants, clerks, stenographers and other employees necessary to assist the Commissioner in the performance of his or her duties pursuant to this chapter, chapters 645A and 645B of NRS or any other law. These employees shall perform such duties as are assigned to them by the Commissioner.

2. The Commissioner may employ or contract with a certified public accountant to review and conduct independent audits and examinations of escrow agencies, mortgage companies and mortgage servicers. The Commissioner shall levy an assessment upon each licensed escrow agency, mortgage company and mortgage servicer to cover all the costs related to the employment of or the contract with the certified public accountant and the performance of the audits and examinations.

3. Assessments collected by the Commissioner pursuant to subsection 2 must be deposited in the State Treasury for deposit to the Account for Mortgage Lending created by NRS 645F.270 and accounted for separately. The Commissioner shall use the money for the purposes specified in subsection 2.

(Added to NRS by 2003, 3538; A 2015, 2808; 2017, 3081)

NRS 645F.190 Oath of deputy commissioners. Each deputy commissioner of mortgage lending shall, before entering upon the discharge of his or her duties, take and subscribe to the constitutional oath of office.

(Added to NRS by 2003, 3538)

REGULATION AND SUPERVISION

NRS 645F.250 Commissioner and Division required to administer chapters governing mortgage lending and related professions. The Commissioner and the Division shall administer the provisions of this chapter and chapters 645A and 645B of NRS, subject to administrative supervision by the Director of the Department of Business and Industry.

(Added to NRS by 2003, 3537; A 2017, 3081)

NRS 645F.255 Regulations: Generally. In addition to the other duties imposed upon him or her by law, the Commissioner shall adopt any regulations that are necessary to carry out the provisions of this chapter.

(Added to NRS by 2009, 748)

NRS 645F.260 State Board of Finance required to act in advisory capacity. The State Board of Finance shall act in an advisory capacity to the Division in the administration of this chapter and chapters 645A and 645B of NRS.

(Added to NRS by 2003, 3538; A 2017, 3081)

1. A mortgage loan originator, mortgage company or mortgage servicer or an employee of a mortgage company or mortgage servicer is not required to register or renew with the Registry, or provide reports of financial condition to the Registry, if the mortgage loan originator, mortgage company or mortgage servicer or employee:

(a) Is not a residential mortgage loan originator or the supervisor of a residential mortgage loan originator; and

(b) Is not required to register pursuant to the provisions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

2. A mortgage loan originator, mortgage company or mortgage servicer or an employee of a mortgage company or mortgage servicer who, pursuant to subsection 1, is not required to register or renew with the Registry and who voluntarily registers or renews with the Registry shall comply with all requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, and any regulations adopted pursuant thereto.

3. As used in this section, “residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.01325.

(Added to NRS by 2011, 1394; A 2015, 2809; 2017, 3081)

NRS 645F.270 Account for Mortgage Lending: Creation; use; no reversion to State General Fund; administration; interest and income; payment of claims.

1. The Account for Mortgage Lending is hereby created in the State General Fund.

2. Except as otherwise provided by law, any money collected by the Commissioner or Division pursuant to law:

(a) Must be deposited in the Account for Mortgage Lending; and

(b) May only be used to:

(1) Carry out the programs and laws administered by the Commissioner and the Division; and

(2) Pay the expenses related to the operations of the Commissioner and the Division.

3. Except as otherwise provided by law, any money that remains in the Account for Mortgage Lending at the end of the fiscal year does not revert to the State General Fund, and the balance of the Account for Mortgage Lending must be carried forward to the next fiscal year.

4. The Commissioner shall administer the Account for Mortgage Lending. Any interest or income earned on the money in the Account must be credited to the Account after deducting any applicable charges. Any claims against the Account must be paid as other claims against the State are paid.

(Added to NRS by 2003, 3539; A 2011, 451)

1. Establishing minimum net worth or surety bonding requirements that reflect the dollar amount of loans originated by a residential mortgage loan originator, as defined in NRS 645B.01325; or

2. Requiring a percentage of the fees collected for the issuance or renewal of a license pursuant to chapter 645B of NRS to be deposited in a mortgage recovery fund, and setting forth the methods by which a person may make a claim against and be paid from the fund.

(Added to NRS by 2009, 2688; A 2017, 3082)

NRS 645F.277 Adoption of regulations establishing guidelines and limitations for servicing or arranging certain loans. The Commissioner shall adopt regulations establishing guidelines and limitations for the servicing or arranging of loans of which an investor has ownership or in which an investor has a beneficial interest.

(Added to NRS by 2009, 1559)

NRS 645F.280 Adoption of regulations establishing rates paid by persons licensed by Commissioner for supervision and examination by Commissioner or Division.

1. The Commissioner shall establish by regulation rates to be paid by all persons licensed by the Commissioner for supervision and examinations by the Commissioner or the Division.

2. In establishing a rate for examinations pursuant to subsection 1, the Commissioner shall consider:

(a) The complexity of the various examinations to which the rate applies;

(b) The skill required to conduct the examinations;

(d) Any other factors the Commissioner deems relevant.

(Added to NRS by 2003, 3538; A 2009, 1459; 2011, 3637; 2015, 2809)

NRS 645F.290 Assessments paid by persons licensed by Commissioner or Division for legal services provided by Attorney General to Commissioner and Division.

1. The Commissioner shall collect an assessment pursuant to this section from each person licensed by the Commissioner or the Division.

2. The Commissioner shall determine the total amount of all assessments to be collected from the persons identified in subsection 1, but that amount must not exceed the amount necessary to recover the cost of legal services provided by the Attorney General to the Commissioner and to the Division. The total amount of all assessments collected must be reduced by any amounts collected by the Commissioner from a person for the recovery of the costs of legal services provided by the Attorney General in a specific case.

3. The Commissioner shall collect from each person identified in subsection 1 an assessment that is based on:

(a) An equal basis; or

(b) Any other reasonable basis adopted by the Commissioner.

4. The assessment required by this section is in addition to any other assessment, fee or cost required by law to be paid by a person identified in subsection 1.

5. Money collected by the Commissioner pursuant to this section must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

(Added to NRS by 2003, 3538; A 2003, 20th Special Session, 258; 2009, 1459, 2689; 2011, 3637)

NRS 645F.291 Subpoenas; oaths; examination of witnesses; penalty; assessment of costs.

1. In the conduct of any examination, periodic or special audit, investigation or hearing, the Commissioner may:

(a) Compel the attendance of any person by subpoena.

(b) Compel the production of any books, records or papers by subpoena.

(d) Examine any person under oath concerning the business and conduct of affairs of any person subject to the provisions of this chapter and in connection therewith require the production of any books, records or papers relevant to the inquiry.

2. Any person subpoenaed under the provisions of this section who willfully refuses or willfully neglects to appear at the time and place named in the subpoena or to produce books, records or papers required by the Commissioner, or who refuses to be sworn or answer as a witness, is guilty of a misdemeanor.

3. In addition to the authority to recover attorney’s fees and costs pursuant to any other statute, the Commissioner may assess against and collect from a person all costs, including, without limitation, reasonable attorney’s fees, that are attributable to any examination, periodic or special audit, investigation or hearing that is conducted to examine or investigate the conduct, activities or business of the person pursuant to this chapter.

(Added to NRS by 2009, 1458; A 2011, 3638)

NRS 645F.292 Secure and Fair Enforcement for Mortgage Licensing Act of 2008: Adoption of regulations to comply with requirements. The Commissioner shall adopt such regulations as necessary to comply with the requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

(Added to NRS by 2009, 2688)

NRS 645F.293 Secure and Fair Enforcement for Mortgage Licensing Act of 2008: Adoption of regulations to carry out provisions.

1. The Commissioner shall adopt regulations to carry out the provisions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.

2. The regulations must include, without limitation:

(a) A method by which to allow for reporting regularly violations of the relevant provisions of chapter 645B of NRS, enforcement actions and other relevant information to the Registry; and

(b) A process whereby a person may challenge information reported to the Registry by the Commissioner.

3. The regulations must not require a mortgage loan originator, mortgage company or mortgage servicer or an employee of a mortgage company or mortgage servicer to register with the Registry if the mortgage loan originator, mortgage company, mortgage servicer or employee is exempt from registration pursuant to subsection 1 of NRS 645F.267.

(Added to NRS by 2009, 2689; A 2011, 1394; 2015, 2809; 2017, 3082)

NRS 645F.294 Confidentiality and privilege of information and material provided to Registry: Generally; exception.

1. Except as otherwise provided in section 1512 of Public Law 110-289, 12 U.S.C. § 5111, the requirements under any federal law or NRS 645B.060 and 645B.092 regarding the confidentiality of any information or material provided to the Registry, and any privilege arising under federal law or the laws of this State with respect to such information or material, continue to apply to such information or material after it has been disclosed to the Registry. Such information and material may be shared with federal and state regulatory officials with mortgage industry oversight without the loss of privilege or the loss of confidentiality protections provided by federal law or the provisions of NRS 645B.060 and 645B.092.

2. Information or material that is subject to a privilege or confidentiality under subsection 1 is not subject to:

(a) Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or agency of the Federal Government or the State of Nevada; and

(b) Subpoena or discovery, or admission into evidence, in any private civil action or administrative process, unless with respect to any privilege held by the Registry with respect to such information or material, the person to whom such information or material waives, in whole or in part, that privilege.

3. This section does not apply to information or material relating to:

(a) The employment history of; and

(b) Publicly adjudicated disciplinary and enforcement actions against,

Ê residential mortgage loan originators included in the Registry for access by the public.

(Added to NRS by 2009, 2689; A 2011, 3638)

NRS 645F.295 Confidentiality and privilege of information and material provided to Registry: Commissioner authorized to enter into agreements with other entities. For the purpose of carrying out the provisions of NRS 645F.294, the Commissioner may by regulation or order enter into agreements with other governmental agencies, the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators or other associations representing governmental agencies.

(Added to NRS by 2009, 2689)

NRS 645F.296 Certain residential mortgage loan originators required to obtain and maintain license as mortgage loan originator.

1. Any person authorized to engage in activities as a residential mortgage loan originator on behalf of an installment loan lender licensed under chapter 675 of NRS shall obtain and maintain a license as a mortgage loan originator.

2. As used in this section:

(a) “Mortgage loan originator” has the meaning ascribed to in NRS 645B.0125; and

(b) “Residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.01325.

(Added to NRS by 2011, 3637; A 2017, 3082)

FORECLOSURE CONSULTANTS, FORECLOSURE PURCHASERS, LOAN MODIFICATION CONSULTANTS AND PERSONS PERFORMING COVERED SERVICES FOR COMPENSATION

General Provisions

NRS 645F.300 Definitions. As used in NRS 645F.300 to 645F.450, inclusive, unless the context otherwise requires, the words and terms defined in NRS 645F.310 to 645F.370, inclusive, have the meanings ascribed to them in those sections.

(Added to NRS by 2007, 2854; A 2009, 1460; 2011, 1577, 3639)

NRS 645F.310 “Covered service” defined. “Covered service” includes, without limitation:

1. Financial counseling to a homeowner, including, without limitation, debt counseling and budget counseling.

2. Receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a mortgage or other lien on a residence in foreclosure.

3. Contacting a creditor on behalf of a homeowner.

4. Arranging or attempting to arrange for an extension of the period within which a homeowner may cure a default and reinstate an obligation pursuant to a note, mortgage or deed of trust.

5. Arranging or attempting to arrange for any delay or postponement of the time of a foreclosure sale of a residence in foreclosure.

6. Advising a homeowner regarding the filing of any document or assisting in any manner in the preparation of any document for filing with a bankruptcy court.

7. Giving any advice, explanation or instruction to a homeowner which in any manner relates to the cure of a default in or the reinstatement of an obligation secured by a mortgage or other lien on a residence, the full satisfaction of the obligation, or the postponement or avoidance of a foreclosure sale.

8. Arranging or conducting, or attempting to arrange or conduct, for a homeowner any forensic loan audit or review or other audit or review of loan documents.

9. Arranging or attempting to arrange for a homeowner the purchase by a third party of the homeowner’s mortgage loan.

10. Arranging or attempting to arrange for a homeowner a reduction of the principal of the homeowner’s mortgage loan when such a mortgage loan is held by or serviced by a third party.

11. Providing the services of a loan modification consultant.

12. Providing the services of a foreclosure consultant.

(Added to NRS by 2007, 2854; A 2011, 3639)

NRS 645F.320 “Foreclosure consultant” defined. “Foreclosure consultant” means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation, or who, for compensation, performs any covered service that the person represents will do any of the following:

1. Prevent or postpone a foreclosure sale;

2. Obtain any forbearance from any mortgagee or beneficiary of a deed of trust;

3. Assist the homeowner to exercise the right of reinstatement provided in the legal documents;

4. Obtain any extension of the period within which the homeowner may reinstate the homeowner’s obligation;

5. Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in foreclosure or included in the mortgage or deed of trust;

6. Assist the homeowner in foreclosure or loan default to obtain a loan or advance of money;

7. Avoid or ameliorate the impairment of the homeowner’s credit resulting from the recording of a notice of default or the conduct of a foreclosure sale;

8. Save the homeowner’s residence from foreclosure; or

9. Assist the homeowner to obtain a foreclosure reconveyance.

(Added to NRS by 2007, 2854)

NRS 645F.330 “Foreclosure purchaser” defined. “Foreclosure purchaser” means a person who, in the course of his or her business, vocation or occupation, acquires or attempts to acquire title to a residence in foreclosure from a homeowner.

(Added to NRS by 2007, 2855)

NRS 645F.340 “Foreclosure reconveyance” defined.

1. “Foreclosure reconveyance” means a transaction that involves:

(a) The transfer of title to a residence in foreclosure by a homeowner during a foreclosure proceeding by:

(1) The transfer of an interest in the residence in foreclosure from the homeowner; or

(2) The creation of a mortgage or other lien during the foreclosure process that allows the acquirer to obtain title to the residence in foreclosure by redeeming the property as a junior lien holder; and

(b) The subsequent conveyance, or promise of a subsequent conveyance, of an interest in the residence to the former homeowner by the acquirer, or a person acting in concert with the acquirer, that allows the former homeowner to remain in possession of the residence following the completion of the foreclosure proceeding.

2. As used in this section, “interest in the residence” includes, without limitation, an interest in a contract for a deed, a purchase agreement, and an option to purchase or lease.

(Added to NRS by 2007, 2855)

NRS 645F.350 “Foreclosure sale” defined. “Foreclosure sale” means the sale of real property to enforce an obligation secured by a mortgage or lien on the property, including the exercise of a trustee’s power of sale pursuant to NRS 107.080.

(Added to NRS by 2007, 2855)

NRS 645F.360 “Homeowner” defined. “Homeowner” means the record owner of a residence, including, without limitation, the record owner of a residence in foreclosure at the time the notice of the pendency of an action for foreclosure is recorded pursuant to NRS 14.010 or the notice of default and election to sell is recorded pursuant to NRS 107.080.

(Added to NRS by 2007, 2855; A 2009, 1460)

NRS 645F.365 “Loan modification consultant” defined. “Loan modification consultant” means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation, or who, for compensation, performs any act that the person represents will adjust the terms of a mortgage loan in a manner not provided for in the original or previously modified mortgage loan. Such an adjustment includes, without limitation:

1. A change in the payment amount;

2. A change in the loan amount;

3. A loan forbearance;

4. A change in the loan maturity; and

5. A change in the interest rate.

(Added to NRS by 2009, 1457)

NRS 645F.367 “Residence” defined. “Residence” means a structure that contains not more than four individual units designed or intended for occupancy regardless of whether such a structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home or trailer used for occupancy.

(Added to NRS by 2011, 3637)

NRS 645F.370 “Residence in foreclosure” defined. “Residence in foreclosure” means residential real property consisting of not more than four family dwelling units and against which there is an outstanding notice of the pendency of an action for foreclosure recorded pursuant to NRS 14.010 or notice of default and election to sell recorded pursuant to NRS 107.080.

(Added to NRS by 2007, 2855; A 2011, 3639)

NRS 645F.380 Applicability. The provisions of NRS 645F.300 to 645F.450, inclusive, do not apply to, and the terms “foreclosure consultant” and “foreclosure purchaser” do not include:

1. An attorney at law licensed to practice in this State rendering services in the performance of his or her duties as an attorney at law, unless the attorney at law is rendering those services in the course and scope of his or her employment by or other affiliation with a person who is licensed or required to be licensed pursuant to NRS 645F.390 or is otherwise engaging in a practice that is comprised primarily of providing a covered service to his or her clients;

2. A provider of debt-management services registered pursuant to chapter 676A of NRS while providing debt-management services pursuant to chapter 676A of NRS;

3. A person or the authorized agent of a person acting under the provisions of a program sponsored by the Federal Government, this State or a local government, including, without limitation, the Department of Housing and Urban Development, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association or the Federal Home Loan Bank System;

4. A person who holds or is owed an obligation secured by a mortgage or other lien on a residence in foreclosure if the person performs services in connection with this obligation or lien and the obligation or lien did not arise as the result of or as part of a proposed foreclosure reconveyance;

5. Any person doing business under the laws of this State or of the United States relating to banks, trust companies, savings and loan associations, savings banks, industrial loan and thrift companies, regulated lenders, credit unions, insurance companies, or a mortgagee which is a United States Department of Housing and Urban Development approved mortgagee and any subsidiary or affiliate of those persons, and any agent or employee of those persons while engaged in the business of those persons;

6. A person, other than a person who is licensed pursuant to NRS 645F.390, who is licensed pursuant to chapter 692A or any chapter of title 54 of NRS while acting under the authority of the license;

7. A nonprofit agency or organization that offers credit counseling or advice to a homeowner of a residence in foreclosure or a person in default on a loan and which maintains tax-exempt status under section 501(c)(3) of the Internal Revenue Code of 1986, 26 U.S.C. § 501(c)(3); or

8. A judgment creditor of the homeowner whose claim accrued before the recording of the notice of the pendency of an action for foreclosure against the homeowner pursuant to NRS 14.010 or the recording of the notice of default and election to sell pursuant to NRS 107.080.

(Added to NRS by 2007, 2855; A 2009, 1460, 1999; 2011, 1577, 3639; 2013, 121)

Licenses and Regulation

NRS 645F.390 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Licenses; fingerprints; regulations.

1. The Commissioner shall adopt regulations for the licensing of:

(a) A person who performs any covered service for compensation;

(b) A foreclosure consultant; and

2. The regulations must prescribe, without limitation:

(a) The method and form of application for a license;

(b) The method and form of the issuance, denial or renewal of a license;

(d) The imposition of reasonable fees for application and licensure; and

(e) Any provisions necessary to comply with the provisions of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, Public Law 110-289, 12 U.S.C. §§ 5101 et seq., including registration with the Registry, and the Mortgage Assistance Relief Services Rule, 16 C.F.R. Part 322, as promulgated by the Federal Trade Commission.

3. An application for a license pursuant to this section must include a complete set of the fingerprints of the applicant or, if the applicant is not a natural person, a complete set of the fingerprints of each person who will have an interest in the person who performs any covered service as a principal, partner, officer, director or trustee, and written permission authorizing the Division to forward the fingerprints to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report.

(Added to NRS by 2009, 1457; A 2011, 3640)

NRS 645F.392 Persons performing covered services for compensation: Written contracts for covered services; regulations.

1. A person who performs any covered service for compensation shall execute a written contract with a homeowner before providing any covered service.

2. The Commissioner shall adopt regulations describing the information that must be contained in a written contract for covered services.

(Added to NRS by 2009, 1457; A 2011, 3641)

NRS 645F.396 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Records; duties; inspection and audit of records by Commissioner.

1. A person who performs any covered service for compensation, a foreclosure consultant and a loan modification consultant shall keep each of the following records for a period of not less than 24 months after the date the record is created:

(a) Each contract or other agreement between the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant and a homeowner.

(b) A copy of each written communication between the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant and a homeowner which occurred before the date on which the homeowner entered into a contract for covered services.

(d) The file of each homeowner, which must include, without limitation, the name of the homeowner, his or her telephone number, the amount of money paid by the homeowner and a description of the covered services purchased by the homeowner.

(e) For each covered service, a copy of every materially different sales script, training material, commercial communication or any other marketing material, including, without limitation, any material published on an Internet website.

(f) A copy of each disclosure provided to a homeowner pursuant to NRS 645F.398.

2. A person who performs any covered service for compensation, a foreclosure consultant and a loan modification consultant shall:

(a) Take reasonable steps to ensure that all employees and independent contractors of the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant comply with the provisions of NRS 645F.300 to 645F.450, inclusive, and any regulations adopted pursuant thereto.

(b) If the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant is engaged in the telemarketing of covered services, perform random, blind recording and testing of the oral representations made by persons engaged in sales or other customer service functions.

(d) Record the number and nature of complaints of homeowners regarding transactions involving an employee or independent contractor of the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant.

(e) Investigate promptly and fully each complaint received from a homeowner.

(f) Take corrective action with respect to any employee or independent contractor whom the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant determines is not complying with the provisions of NRS 645F.300 to 645F.450, inclusive, and any regulations adopted pursuant thereto.

(g) Maintain any information necessary to demonstrate compliance with the requirements of this subsection.

3. All records kept pursuant to this section are subject to inspection and audit by the Commissioner and authorized representatives of the Commissioner.

(Added to NRS by 2011, 1573)

NRS 645F.397 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Disclosures.

1. A person who performs any covered service for compensation, a foreclosure consultant and a loan modification consultant shall:

(a) Include with each general commercial communication for any covered service the following disclosures printed in at least 12-point type:

(1) “[Name of company] is not associated with the government, and our service is not approved by the government or your lender.”

(2) In any case in which the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant makes an express or implied representation that homeowners will receive covered services:

“Even if you accept this offer and use our service, your lender may not agree to change your loan.”

(b) Include with each commercial communication which is specific to a homeowner the following disclosures printed in at least 12-point type:

(1) “You may stop doing business with us at any time. You may accept or reject the offer we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us [insert total amount or method of calculating the total amount] for our services.”

(2) “[Name of company] is not associated with the government, and our service is not approved by the government or your lender.”

(3) In any case in which the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant makes an express or implied representation that the homeowner will receive covered services:

“Even if you accept this offer and use our service, your lender may not agree to change your loan.”

(c) Include with any commercial communication relating to a covered service in which the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant represents expressly or by implication that a homeowner should temporarily or permanently discontinue payments, in whole or in part, on any mortgage or lien on a residence in foreclosure a clear and prominent statement, in close proximity to the express or implied representation and printed in at least 12-point type, which provides that:

“If you stop paying your mortgage, you could lose your home and damage your credit rating.”

2. The disclosures required by paragraphs (a) and (b) of subsection 1 must be made in a clear and prominent manner and:

(a) In a written communication, the disclosures must appear together and be preceded by the heading “IMPORTANT NOTICE,” printed in at least 14-point bold type; and

(b) In an oral communication, the audio component of the required disclosures must be preceded by the statement “Before using this service, consider the following information” and, if the oral communication is made by telephone, must be made at the beginning of the communication.

3. As used in this section, “total amount” means all amounts the homeowner must pay to purchase, receive and use all covered services that are subject to the contract for covered services, including, without limitation, all fees and charges.

(Added to NRS by 2011, 1574)

NRS 645F.398 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation: Notice requirements.

1. A person who performs any covered service for compensation, a foreclosure consultant and a loan modification consultant shall, at the time the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant provides a homeowner with a written agreement between the homeowner and the homeowner’s lender or servicer incorporating the offer of mortgage assistance obtained from the homeowner’s lender or servicer:

(a) Provide the following notice printed in at least 12-point type to the homeowner:

“This is an offer of mortgage assistance we obtained from your lender [or servicer]. You may accept or reject the offer. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us [insert total amount or method of calculating the total amount] for our services.”

Ê The notice must be made in a clear and prominent manner on a separate written page and be preceded by the heading “IMPORTANT NOTICE: BEFORE BUYING THIS SERVICE, CONSIDER THE FOLLOWING INFORMATION” printed in at least 14-point bold type.

(b) Provide the homeowner with a notice printed in at least 12-point type from the homeowner’s lender or servicer which includes a complete description of all material differences between the terms, conditions and limitations which apply to the homeowner’s current mortgage loan and the terms, conditions and limitations which will apply to the homeowner’s mortgage loan if he or she accepts the offer of the lender or servicer, including, without limitation, the differences between the mortgage loans with regard to the:

(1) Principal balance;

(2) Contract interest rate, including the maximum rate and any adjustable rates;

(3) Amount and number of scheduled periodic payments;

(4) Monthly amounts owed for principal, interest, taxes and mortgage insurance;

(5) Amount of any delinquent payments owing or outstanding; and

(6) Term.

Ê The notice required by this paragraph must be made in a clear and prominent manner on a separate written page and be preceded by the heading “IMPORTANT INFORMATION FROM [name of lender or servicer] ABOUT THIS OFFER” printed in at least 14-point bold type.

2. If the offer obtained from the lender or servicer by the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant is a trial mortgage loan modification, the notice required by paragraph (b) of subsection 1 must include notice to the homeowner:

(a) That the homeowner may not qualify for a permanent mortgage loan modification; and

(b) Setting forth the likely amount of scheduled periodic payments and arrears, payments and fees the homeowner would owe if the homeowner failed to qualify for a permanent mortgage loan modification.

3. As used in this section, “total amount” has the meaning ascribed to it in NRS 645F.397.

(Added to NRS by 2011, 1575)

Prohibited Acts; Penalties; Remedies

NRS 645F.400 Persons performing covered services for compensation: Prohibited acts; penalty.

1. A person who performs any covered service shall not:

(a) Claim, demand, charge, collect or receive any compensation except in accordance with the terms of a contract for covered services.

(b) Claim, demand, charge, collect or receive any fee, interest or other compensation for any reason which is not fully disclosed to the homeowner.

(c) Take or acquire, directly or indirectly, any wage assignment, lien on real or personal property, assignment of a homeowner’s equity, any interest in a residence or other security for the payment of compensation. Any such assignment or security is void and unenforceable.

(d) Receive any consideration from any third party in connection with a covered service provided to a homeowner unless the consideration is first fully disclosed to the homeowner.

(e) Accept a power of attorney from a homeowner for any purpose, other than to inspect documents as provided by law.

(f) Make any representation, express or implied, that a homeowner cannot or should not contact or communicate with his or her lender or servicer.

(g) Misrepresent any aspect of any covered service.

(h) Make any representation, express or implied, that a covered service is affiliated with, associated with or endorsed or approved by:

(1) The Federal Government, the State of Nevada or any department, agency or political subdivision thereof;

(2) Any governmental plan for homeowner assistance;

(3) Any nonprofit housing counselor agency or program;

(4) The maker, holder or servicer of a homeowner’s mortgage loan; or

(5) Any other person, entity or program.

(i) Make any representation, express or implied, about the benefits, performance or efficacy of any covered service unless, at the time the representation is made, the person who performs any covered service, the foreclosure consultant or the loan modification consultant possesses and relies upon competent and reliable evidence which substantiates that the representation is true. As used in this paragraph, “competent and reliable evidence” means tests, analyses, research, studies or other evidence based on the expertise of professionals in the relevant area that have been conducted and evaluated in an objective manner by persons qualified to do so using procedures generally accepted in the profession to yield accurate and reliable results.

(j) Obtain or attempt to obtain any waiver of the provisions of NRS 645F.300 to 645F.450, inclusive, or any regulations adopted pursuant thereto. Any such waiver is void and unenforceable.

2. In addition to any other penalty, a violation of any provision of this section shall be deemed to constitute mortgage lending fraud for the purposes of NRS 205.372.

(Added to NRS by 2007, 2856; A 2009, 1461; 2011, 1577, 3642)

NRS 645F.405 Foreclosure consultants, loan modification consultants and persons performing covered services for compensation prohibited from claiming or receiving compensation before homeowner executes written agreement. A person who performs any covered service for compensation, a foreclosure consultant and a loan modification consultant shall not claim, demand, charge, collect or receive any compensation before a homeowner has executed a written agreement with the lender or servicer incorporating the offer of mortgage assistance obtained from the lender or servicer by the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant.

(Added to NRS by 2011, 1573)

1. In addition to any other remedy or penalty, the Commissioner may, after giving notice and opportunity to be heard, impose an administrative penalty of not more than $25,000 on any person licensed or required to be licensed pursuant to NRS 645F.390 who violates any provision of this chapter or any regulation adopted pursuant thereto or any other applicable law.

2. Except as otherwise provided in this section, all money collected from administrative penalties imposed pursuant to this section must be deposited in the State General Fund.

3. The money collected from an administrative penalty may be deposited with the State Treasurer for credit to the Account for Mortgage Lending created by NRS 645F.270 if:

(a) The person pays the administrative penalty without exercising the right to a hearing to contest the penalty; or

(b) The administrative penalty is imposed in a hearing conducted by a hearing officer or panel appointed by the Commissioner.

4. The Commissioner may appoint one or more hearing officers or panels and may delegate to those hearing officers or panels the power of the Commissioner to conduct hearings, determine violations and impose the penalties authorized by this section.

5. If money collected from an administrative penalty is deposited in the State General Fund, the Commissioner may present a claim to the State Board of Examiners for recommendation to the Interim Finance Committee if money is needed to pay attorney’s fees or the costs of an investigation, or both.

(Added to NRS by 2007, 2856; A 2011, 3642)

NRS 645F.420 Homeowner may bring action to recover damages.

1. A homeowner who is injured as a result of a person’s violation of a provision of NRS 645F.400 may bring an action against the person to recover damages caused by the violation, together with reasonable attorney’s fees and costs.

2. If the homeowner prevails in the action, the court may award such punitive damages as may be determined by a jury, or by a court sitting without a jury, but in no case may the punitive damages be less than one and one-half times the amount awarded to the homeowner as actual damages.

(Added to NRS by 2007, 2857; A 2011, 3643)

NRS 645F.430 Foreclosure purchasers: Criminal penalty for fraud or deceit against homeowner. A foreclosure purchaser who engages in any conduct that operates as a fraud or deceit upon a homeowner in connection with a transaction that is subject to the provisions of NRS 645F.300 to 645F.450, inclusive, including, without limitation, a foreclosure reconveyance, is guilty of a gross misdemeanor and shall be punished by imprisonment in the county jail for not more than 364 days, or by a fine of not more than $50,000, or by both fine and imprisonment.

(Added to NRS by 2007, 2857; A 2009, 1461; 2011, 1578; 2013, 992)

NRS 645F.440 Foreclosure purchasers: Transaction rescinded due to fraud or deceit upon homeowner.

1. In addition to the penalty provided in NRS 645F.430 and except as otherwise provided in subsection 5, if a foreclosure purchaser engages in any conduct that operates as a fraud or deceit upon a homeowner in connection with a transaction that is subject to the provisions of NRS 645F.300 to 645F.450, inclusive, including, without limitation, a foreclosure reconveyance, the transaction in which the foreclosure purchaser acquired title to the residence in foreclosure may be rescinded by the homeowner within 2 years after the date of the recording of the conveyance.

2. To rescind a transaction pursuant to subsection 1, the homeowner must give written notice to the foreclosure purchaser and a successor in interest to the foreclosure purchaser, if the successor in interest is not a bona fide purchaser, and record that notice with the recorder of the county in which the property is located. The notice of rescission must contain:

(a) The name of the homeowner, the foreclosure purchaser and any successor in interest who holds title to the property; and

(b) A description of the property.

3. Within 20 days after receiving notice pursuant to subsection 2:

(a) The foreclosure purchaser and the successor in interest, if the successor in interest is not a bona fide purchaser, shall reconvey to the homeowner title to the property free and clear of encumbrances which were created subsequent to the rescinded transaction and which are due to the actions of the foreclosure purchaser; and

(b) The homeowner shall return to the foreclosure purchaser any consideration received from the foreclosure purchaser in exchange for the property.

4. If the foreclosure purchaser has not reconveyed to the homeowner title to the property within the period described in subsection 3, the homeowner may bring an action to enforce the rescission in the district court of the county in which the property is located.

5. A transaction may not be rescinded pursuant to this section if the foreclosure purchaser has transferred the property to a bona fide purchaser.

6. As used in this section, “bona fide purchaser” means any person who purchases an interest in a residence in foreclosure from a foreclosure purchaser in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the foreclosure purchaser engaged in conduct which violates subsection 1.

(Added to NRS by 2007, 2857; A 2009, 1461; 2011, 1579)

NRS 645F.445 Person with knowledge of violation prohibited from providing assistance or support to violating foreclosure consultant, loan modification consultant or person performing covered service for compensation. A person who knows or reasonably should know that another person who performs any covered service for compensation, a foreclosure consultant or a loan modification consultant is in violation of any provision of NRS 645F.300 to 645F.450, inclusive, and any regulations adopted pursuant thereto shall not provide substantial assistance or support to the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant.

(Added to NRS by 2011, 1576)

NRS 645F.450 Cumulative nature of rights, remedies and penalties. The rights, remedies and penalties provided pursuant to the provisions of NRS 645F.300 to 645F.450, inclusive, are cumulative and do not abrogate and are in addition to any other rights, remedies and penalties that may exist at law or in equity, including, without limitation, any criminal penalty that may be imposed pursuant to NRS 645F.430.

(Added to NRS by 2007, 2858; A 2009, 1462; 2011, 1579)

MORTGAGE SERVICERS

NRS 645F.500 Applicability. The provisions of NRS 645F.500 to 645F.540, inclusive, do not apply to:

1. A depository financial institution, as that term is defined in NRS 645B.0109, or any subsidiary or holding company of a depository financial institution if such entity maintains its principal place of business or a branch office in this State.

2. A real estate investment trust, as that term is defined in 26 U.S.C. § 856(a), unless the business conducted by the trust in this State is not subject to supervision by the appropriate regulatory body of a jurisdiction outside of this State.

3. Any trustee of an employee benefit plan, as that term is defined in 29 U.S.C. § 1002(3), who makes a residential mortgage loan directly from money in the plan.

4. An attorney who is licensed in this State and who does not engage in the business of, or otherwise hold himself or herself out as being able to provide services related to, a mortgage servicer, if the activities of the attorney are directly incidental to the representation of a client.

5. A person performing any act pursuant to a court order.

6. A federal or state agency or a political subdivision of this State, including, without limitation, the Public Employees’ Retirement System.

7. A nonprofit organization that is recognized as exempt under section 501(c)(3) of the Internal Revenue Code, 26 U.S.C. § 501(c)(3).

8. A mortgage servicer that, in the aggregate with any affiliates, services not more than 10 residential mortgage loans in this State during a calendar year.

9. A person licensed pursuant to the provisions of chapter 645B or 675 of NRS who is collecting payments on a mortgage loan or servicing one or more mortgage loans made or arranged by the person under his or her license.

(Added to NRS by 2015, 2807; A 2017, 3082)

NRS 645F.510 License required. Except as otherwise provided in NRS 645F.500, a person shall not engage in the business of a mortgage servicer or hold himself or herself out as a mortgage servicer in this State without a license issued pursuant to this chapter.

(Added to NRS by 2015, 2806)

NRS 645F.520 Regulations.

1. The Commissioner:

(a) Shall adopt regulations establishing the requirements for the licensure and supervision of mortgage servicers in this State.

(b) May adopt any other regulations necessary to carry out the provisions of NRS 645F.500 to 645F.540, inclusive.

2. The regulations adopted pursuant to subsection 1 must:

(a) Prescribe the form and contents of an application for the initial issuance and renewal of a license as a mortgage servicer.

(b) Prescribe the manner in which an application may be approved or denied.

(d) Establish reasonable fees for an application, the initial issuance of a license and the renewal of a license.

(e) Establish the manner in which the Commissioner may take appropriate disciplinary action, including, without limitation, the imposition of an administrative fine, against any person for a violation of any regulation adopted pursuant to subsection 1 or any provision of NRS 645F.500 to 645F.540, inclusive.

(Added to NRS by 2015, 2806)

1. A mortgage servicer shall comply with:

(a) The relevant provisions of 12 C.F.R. Part 1024, commonly known as Regulation X, and 12 C.F.R. Part 1026, commonly known as Regulation Z, as those regulations are amended by the Final Servicing Rules issued by the Consumer Financial Protection Bureau in 78 Federal Register 10696 and 10902 on February 14, 2013, and any amendments thereto.

(b) Any other applicable federal or state law or regulation or any order of the Commissioner.

2. The Commissioner shall conduct any examination or investigation of a mortgage servicer or applicant for the issuance of a license as a mortgage servicer as may be necessary to ensure compliance with the provisions of NRS 645F.500 to 645F.540, inclusive, and any regulations adopted pursuant thereto.

3. If the Commissioner, upon examination or investigation of a mortgage servicer or applicant for the issuance of a license as a mortgage servicer, determines that the mortgage servicer or applicant has violated any applicable provision of NRS 645F.500 to 645F.540, inclusive, or any regulations adopted pursuant thereto, the Commissioner may take such disciplinary action against the mortgage servicer or applicant as may be authorized by regulation of the Commissioner.

(Added to NRS by 2015, 2807)

NRS 645F.540 Duty to submit certain documents, fees, fines and costs through Registry; deposit of fees and costs.

1. Except as otherwise provided in NRS 645F.267 and 645F.293, the Commissioner shall require a person to submit to the Commissioner through the Registry:

(a) An application for the initial issuance or the renewal of a license as a mortgage servicer, including any fees related to the issuance or renewal of a license.

(b) Any form or filing that a mortgage servicer is otherwise required to submit to the Commissioner.

(d) Any costs associated with the submittal of any document, information, fee or fine through the Registry.

2. Any fees and costs received pursuant to subsection 1 are nonrefundable.

3. Except as otherwise provided in this chapter, all fees and costs received pursuant to NRS 645F.500 to 645F.540, inclusive, are in addition to any fee or cost required to be paid to the Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

(Added to NRS by 2015, 2807)