2005 Nevada Revised Statutes - Chapter 598D — Unfair Lending Practices
CHAPTER 598D - UNFAIR LENDING PRACTICES
NRS 598D.010 Definitions.
NRS 598D.020 Borrowerdefined.
NRS 598D.030 Homedefined.
NRS 598D.040 Homeloan defined.
NRS 598D.050 Lenderdefined.
NRS 598D.100 Unfairlending practices.
NRS 598D.110 Criminaland civil penalties; borrowers defense against unpaid obligation.
NRS 598D.120 Repurchaseof home loan by lender who sold home loan.
NRS 598D.130 Requiredprovisions in instrument that secures home loan.
NRS 598D.150 Enforcementby Attorney General; local regulation prohibited.
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1. A dwelling on a farm.
2. A dwelling unit of a cooperative housingcorporation.
3. A mobile home, as defined in
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1. Is secured by a mortgage loan which involves realproperty located within this state; and
2. Constitutes a mortgage under 152 of the HomeOwnership and Equity Protection Act of 1994, 15 U.S.C. 1602(aa), and theregulations adopted by the Board of Governors of the Federal Reserve Systempursuant thereto, including, without limitation, 12 C.F.R. 226.32.
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1. It is an unfair lending practice for a lender to:
(a) Require a borrower, as a condition of obtaining ormaintaining a home loan secured by home property, to provide property insuranceon improvements to home property in an amount that exceeds the reasonablereplacement value of the improvements.
(b) Knowingly or intentionally make a home loan to aborrower based solely upon the equity of the borrower in the home property andwithout determining that the borrower has the ability to repay the home loanfrom other assets, including, without limitation, income.
(c) Finance a prepayment fee or penalty in connectionwith the refinancing by the original borrower of a home loan owned by thelender or an affiliate of the lender.
(d) Finance, directly or indirectly in connection witha home loan, any credit insurance.
2. As used in this section:
(a) Credit insurance has the meaning ascribed to itin NRS 690A.015.
(b) Prepayment fee or penalty means any fee orpenalty imposed by a lender if a borrower repays the balance of a loan orotherwise makes a payment on a loan before the regularly scheduled time forrepayment.
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1. A lender who willfully engages in an unfair lendingpractice described in this chapter is guilty of a misdemeanor.
2. If a lender willfully engages in any unfair lendingpractice described in this chapter in connection with a home loan, the lenderis liable to the borrower in an amount equal to the sum of:
(a) Three times the amount of any actual damagessustained by the borrower; and
(b) If the borrower brings an action and is successfulin enforcing the liability imposed by paragraph (a) in the action, the costs ofbringing the action and reasonable attorneys fees as determined by the court.
3. The borrower has a defense against the unpaidobligation of the home loan to the extent of any amount awarded by a courtpursuant to paragraph (a) of subsection 2, and the court, in addition to anyother legal or equitable remedy, may cure any existing default of the home loanand cancel any pending foreclosure sale, trustees sale or other sale toenforce the home loan.
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1. If an action has been filed in a court of competentjurisdiction claiming an unfair lending practice in connection with a homeloan, the lender who holds the home loan may sell the home loan and recoverdamages and costs as provided in this section if the lender did not:
(a) Originate the home loan; and
(b) Willfully engage in any unfair lending practicedescribed in this chapter in connection with the home loan.
2. The lender described in subsection 1 may requirethe person from whom the lender purchased the home loan described in subsection1 to:
(a) Repurchase the home loan for the amount the lenderpaid for the home loan; and
(b) Pay to the lender all damages and reasonable costsincurred by the lender that are related to:
(1) The purchase of the home loan by the lenderfrom the person;
(2) Any damages awarded in the action describedin subsection 1;
(3) Any costs related to the action described insubsection 1;
(4) The repurchase of the home loan by thelender if the lender was required to repurchase the home loan from anotherlender pursuant to this section; and
(5) The repurchase of the home loan from thelender by the person pursuant to this section.
3. The person described in subsection 2:
(a) Shall repurchase the home loan and pay the damagesand costs as described in subsection 2; and
(b) After repurchasing the home loan, may sell the homeloan and recover damages and costs as provided in this section if he is alender described in subsection 1.
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1. The Attorney General has primary jurisdiction toinvestigate and prosecute violations of this chapter.
2. When acting pursuant to this section, the AttorneyGeneral may commence his investigation and file a criminal action without leaveof court, and he has exclusive charge of the conduct of the prosecution.
3. A local government shall not regulate anyactivity to which the provisions of this chapter apply.
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