2005 Nevada Revised Statutes - Chapter 645B — Mortgage Brokers and Mortgage Agents

CHAPTER 645B - MORTGAGE BROKERS ANDMORTGAGE AGENTS

GENERAL PROVISIONS

NRS 645B.010 Definitions.

NRS 645B.0105 Commissionerdefined.

NRS 645B.0107 Constructioncontrol defined.

NRS 645B.0109 Depositoryfinancial institution defined.

NRS 645B.0111 Divisiondefined.

NRS 645B.0113 Escrowagency defined.

NRS 645B.0115 Escrowagent defined.

NRS 645B.0117 Escrowofficer defined.

NRS 645B.0119 Financialservices license or registration defined.

NRS 645B.0121 Investordefined.

NRS 645B.0123 Licenseedefined.

NRS 645B.0125 Mortgageagent defined.

NRS 645B.0127 Mortgagebroker defined.

NRS 645B.0129 Policyof title insurance defined.

NRS 645B.01305 Privateinvestor defined.

NRS 645B.0131 Relativedefined.

NRS 645B.0133 Titleagent defined.

NRS 645B.0135 Titleinsurer defined.

NRS 645B.0145 Statutoryand common-law rights, remedies and punishments unaffected; limitation onactions against State and its officers and employees.

EXEMPTIONS

NRS 645B.015 Exemptionsfor certain persons and entities.

NRS 645B.016 Certificateof exemption required for certain persons and entities; application; fee;automatic expiration; prohibitions; administrative fine.

NRS 645B.018 Exemptionsfor certain loans; application; grounds for granting exemption; powers andduties of Commissioner.

LICENSING OF MORTGAGE BROKERS

NRS 645B.020 Applicationfor license; application for branch offices; requirements for issuance oflicense.

NRS 645B.023 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Commissioner. [Effective until the date of therepeal of the federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

NRS 645B.023 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Commissioner. [Effective on the date of the repealof the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings andexpires by limitation 2 years after that date.]

NRS 645B.0243 Groundsfor denial of license: Employing or associating with certain persons who areineligible to be mortgage agents.

NRS 645B.0245 Groundsfor denial of license: Control by relative who would be ineligible to belicensed; act or omission of partner, officer or director.

NRS 645B.0247 Groundsfor denial of license: Authority of Commissioner not limited.

NRS 645B.025 Postingof license; restrictions on transfer or assignment of license.

NRS 645B.035 Activitiesauthorized by license; dual licensure as mortgage banker and mortgage broker.

EXPIRATION AND RENEWAL OF BROKERS LICENSE OR CERTIFICATE OF EXEMPTION;FEES

NRS 645B.050 Annualexpiration of license or certificate of exemption; procedure for renewal; fees.

NRS 645B.051 Continuingeducation required for renewal of license.

SUPERVISION BY COMMISSIONER

General Provisions

NRS 645B.060 Dutiesof Commissioner: Regulations; investigations; annual examinations; periodic andspecial audits; hearings; related fees.

NRS 645B.070 Subpoenas;oaths; examination of witnesses; penalty; assessment of costs.

NRS 645B.075 Paymentof statutory assessment by mortgage broker; duty of mortgage broker and agentsto cooperate fully with audits and examinations.

 

Records and Financial Statements

NRS 645B.080 Recordsrelating to mortgage transactions, financial condition and trust accounts;monthly report to Commissioner; accounting procedures for trust accounts;regulations.

NRS 645B.085 Annualfinancial statement; audit of trust accounts; regulations.

NRS 645B.090 Recordsof Commissioner: General provisions governing public inspection, confidentialityand disclosure of information relating to investigations and disciplinaryaction.

NRS 645B.092 Recordsof Commissioner: Certain records relating to investigation deemed confidential;certain records relating to disciplinary action and orders imposing disciplinedeemed public records.

 

Transfer of Stock

NRS 645B.095 Notificationof certain transfers required; application to Commissioner for approval ofchange of control; investigation; waiver.

 

Net Worth

NRS 645B.115 Minimumnet worth required for certain mortgage brokers; initial and annual determinationof net worth; examination by Commissioner; regulations.

ESCROW AND TRUST ACCOUNTS

NRS 645B.165 Escrowaccount required for fee, salary, deposit or money paid in advance; release fromescrow; exceptions; refunds; penalty.

NRS 645B.170 Trustaccount required for money deposited to pay taxes or insurance premiums;fiduciary duty of mortgage broker; accounting to debtor and Commissioner;additional duties and prohibitions.

NRS 645B.175 Trustor escrow account required for money received from investor to fund loan; trustor escrow account required for money received from debtor to repay loan;release of money; accounting to investor, debtor and Commissioner; additionalconditions, limitations and prohibitions.

NRS 645B.180 Limitationson execution or attachment of money in trust account; commingling of moneyprohibited.

DISCLOSURES AND ADVERTISING

NRS 645B.185 Useof disclosure forms required; release of financial statements; duties ofmortgage broker and agents; prohibitions; powers of Commissioner; regulations.

NRS 645B.186 Disclosureof certain business and personal relationships required.

NRS 645B.187 Prohibitionon making certain guarantees in advertisements and solicitations; limitationson payment of premium interest; penalty.

NRS 645B.189 Statementsof disclosure required in certain advertisements; review of advertisements byCommissioner; advertisements must comply with state and federal laws concerningdeceptive trade practices and deceptive advertising; regulations.

NRS 645B.196 Liabilityof advertising spokesperson for mortgage broker for certain damages.

LOAN PAYMENTS AND DEFAULTS

NRS 645B.240 Limitationson charging late fee, additional amount of interest or other penalty.

NRS 645B.250 Prohibitionon advancing payments to investor on behalf of debtor in default; exceptions.

NRS 645B.260 Monthlyreport to Commissioner on delinquencies in payments and defaults; monthlynotice to investors; regulations.

CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS

NRS 645B.300 Writtenappraisal of real property required; persons authorized to perform appraisal;retention and inspection of appraisal; exceptions.

NRS 645B.310 Requirementsfor mortgage broker to assign interest in loan.

NRS 645B.320 Copyof recorded deed of trust must be mailed to each investor.

NRS 645B.330 Limitationson use of power of attorney.

LICENSING AND REGULATION OF MORTGAGE AGENTS

NRS 645B.400 Licenserequired.

NRS 645B.410 Qualificationsand procedure for issuance of license; fees.

NRS 645B.420 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Commissioner. [Effective until the date of therepeal of the federal law requiring each state to establish procedures for withholding,suspending and restricting the professional, occupational and recreationallicenses for child support arrearages and for noncompliance with certainprocesses relating to paternity or child support proceedings.]

NRS 645B.420 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Commissioner. [Effective on the date of the repealof the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings andexpires by limitation 2 years after that date.]

NRS 645B.430 Annualexpiration of license; procedure for renewal; continuing education; fees.

NRS 645B.450 Conditionsand limitations regarding employment of or association with mortgage agent;duties of mortgage broker upon termination of mortgage agent.

NRS 645B.460 Supervisionby mortgage broker; requirements; regulations.

RIGHTS OF BROKERS AND AGENTS DURING MILITARY SERVICE

NRS 645B.490 Rightto be placed on inactive status; procedure for reinstatement.

INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIALACTION

NRS 645B.600 Personmay file complaint alleging violation; requirements.

NRS 645B.610 Dutiesof Commissioner when complaint is filed.

NRS 645B.620 Dutiesof Commissioner when violation is suspected; referral of violations to AttorneyGeneral for criminal prosecution; civil action for injunctive relief.

NRS 645B.630 Dutiesof Commissioner when unsafe condition or practice is suspected; seizure ofproperty and assets of mortgage broker; duties of Attorney General.

NRS 645B.640 Personsentitled to correct unsafe conditions and practices; effect of failure tocorrect; receivership and liquidation of assets.

DISCIPLINARY ACTION

NRS 645B.670 Authorizeddisciplinary action; grounds for disciplinary action.

NRS 645B.680 Suspensionof license for failure to pay child support or comply with certain subpoenas orwarrants; reinstatement of license. [Expires by limitation 2 years after thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings.]

NRS 645B.690 Dutyof Commissioner to take disciplinary action for certain violations.

NRS 645B.700 Categorizationof major and minor violations; regulations.

NRS 645B.710 Actor omission of partner, officer or director deemed act or omission ofpartnership, corporation or unincorporated association.

NRS 645B.720 Authorityof Commissioner to order summary suspension of license and take other action toprotect public before conducting hearing.

HEARINGS; APPEALS

NRS 645B.750 Dutyof Commissioner to provide written notice of disciplinary action or denial oflicense; right to administrative hearing; entry of final order; appeals.

NRS 645B.760 Effectof failure to appear at hearing; penalty.

ENFORCEMENT BY ATTORNEY GENERAL

NRS 645B.800 AttorneyGeneral has primary criminal jurisdiction; duty to provide Attorney Generalwith information to assist prosecution; penalty.

NRS 645B.810 AttorneyGeneral may bring civil action; recovery of costs in civil action.

ADVISORY COUNCIL ON MORTGAGE INVESTMENTS AND MORTGAGE LENDING

NRS 645B.860 Creation;members; appointment; terms and vacancies; no compensation or per diemallowance; protections afforded members who are public officers or employees.

NRS 645B.865 Chairmanand Vice Chairman; meetings; quorum; subcommittees.

NRS 645B.870 Purpose.

UNLAWFUL ACTS; PENALTIES

NRS 645B.900 Unlawfulto conduct business of mortgage broker or mortgage agent without being licensedor exempt from licensing.

NRS 645B.910 Unlawfulfor foreign corporation, association or business trust to conduct business ofmortgage broker without meeting certain requirements.

NRS 645B.950 Penaltiesfor general violations.

NRS 645B.960 Penaltiesfor violations relating to escrow or trust accounts.

_________

 

GENERAL PROVISIONS

NRS 645B.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS645B.0105 to 645B.0135, inclusive,have the meanings ascribed to them in those sections.

(Added to NRS by 1973, 1536; A 1975, 961; 1977, 1635;1981, 1785; 1983, 1378, 1700; 1985, 2186; 1987, 498, 1876; 1989, 965; 1995,1097; 1999, 3779;2001, 2464; 2003, 3546)

NRS 645B.0105 Commissionerdefined. Commissioner means the Commissionerof Mortgage Lending.

(Added to NRS by 1999, 3765; A 2003, 3546)

NRS 645B.0107 Constructioncontrol defined. Construction control hasthe meaning ascribed to it in NRS 627.050.

(Added to NRS by 1999, 3765)

NRS 645B.0109 Depositoryfinancial institution defined. Depositoryfinancial institution means a bank, savings and loan association, thriftcompany or credit union.

(Added to NRS by 1999, 3765)

NRS 645B.0111 Divisiondefined. Division means the Division ofMortgage Lending of the Department of Business and Industry.

(Added to NRS by 1999, 3765; A 2003, 3546)

NRS 645B.0113 Escrowagency defined. Escrow agency has the meaningascribed to it in NRS 645A.010.

(Added to NRS by 1999, 3765)

NRS 645B.0115 Escrowagent defined. Escrow agent has the meaningascribed to it in NRS 645A.010.

(Added to NRS by 1999, 3765)

NRS 645B.0117 Escrowofficer defined. Escrow officer has the meaningascribed to it in NRS 692A.028.

(Added to NRS by 1999, 3765)

NRS 645B.0119 Financialservices license or registration defined. Financialservices license or registration means any license or registration issued inthis State or any other state, district or territory of the United States thatauthorizes the person who holds the license or registration to engage in anybusiness or activity described in the provisions of this chapter, title 55 or56 of NRS or chapter 604A, 645, 645A, 645C, 645Eor 649 of NRS.

(Added to NRS by 1999, 3765; A 2005, 1712)

NRS 645B.0121 Investordefined. Investor means a person who wantsto acquire or who acquires ownership of or a beneficial interest in a loansecured by a lien on real property.

(Added to NRS by 1999, 3765)

NRS 645B.0123 Licenseedefined. Licensee means a person who islicensed as a mortgage broker pursuant to this chapter. The term does notinclude a person issued a license as a mortgage agent pursuant to NRS 645B.410.

(Added to NRS by 1999, 3765; A 2003, 3546)

NRS 645B.0125 Mortgageagent defined.

1. Mortgage agent means a natural person who:

(a) Is an employee or independent contractor of amortgage broker who is required to be licensed pursuant to this chapter; and

(b) Is authorized by the mortgage broker to engage in,on behalf of the mortgage broker, any activity that would require the person,if he were not an employee or independent contractor of the mortgage broker, tobe licensed as a mortgage broker pursuant to this chapter.

2. The term does not include a person who:

(a) Is licensed as a mortgage broker;

(b) Is a general partner, officer or director of amortgage broker; or

(c) Performs only clerical or ministerial tasks for amortgage broker.

(Added to NRS by 1999, 3765)

NRS 645B.0127 Mortgagebroker defined.

1. Mortgage broker means a person who, directly orindirectly:

(a) Holds himself out for hire to serve as an agent forany person in an attempt to obtain a loan which will be secured by a lien onreal property;

(b) Holds himself out for hire to serve as an agent forany person who has money to lend, if the loan is or will be secured by a lienon real property;

(c) Holds himself out as being able to make loanssecured by liens on real property;

(d) Holds himself out as being able to buy or sellnotes secured by liens on real property; or

(e) Offers for sale in this State any security which isexempt from registration under state or federal law and purports to makeinvestments in promissory notes secured by liens on real property.

2. The term does not include a person who is licensedas a mortgage banker, as defined in NRS645E.100, unless the person is also licensed as a mortgage broker pursuantto this chapter.

(Added to NRS by 1999, 3765; A 2003, 3546)

NRS 645B.0129 Policyof title insurance defined. Policy of titleinsurance has the meaning ascribed to it in NRS 692A.035.

(Added to NRS by 1999, 3766)

NRS 645B.01305 Privateinvestor defined. Private investor means:

1. An investor who is a natural person and whoprovides his own money for investment in a loan secured by a lien on realproperty; and

2. Two or more investors who are relatives and whojointly provide their own money for investment in a loan secured by a lien onreal property, unless the investors are acting on behalf of a partnership, acorporation or some other separate legal entity.

(Added to NRS by 2001, 2463)

NRS 645B.0131 Relativedefined. Relative means a spouse or anyother person who is related within the second degree by blood or marriage.

(Added to NRS by 1999, 3766)

NRS 645B.0133 Titleagent defined. Title agent has the meaningascribed to it in NRS 692A.060.

(Added to NRS by 1999, 3766)

NRS 645B.0135 Titleinsurer defined. Title insurer has themeaning ascribed to it in NRS 692A.070.

(Added to NRS by 1999, 3766)

NRS 645B.0145 Statutoryand common-law rights, remedies and punishments unaffected; limitation onactions against State and its officers and employees. Theprovisions of this chapter do not:

1. Limit any statutory or common-law right of a personto bring a civil action against a mortgage broker or mortgage agent for any actor omission involved in the transaction of business by or on behalf of themortgage broker or mortgage agent;

2. Limit the right of the State to punish a person forthe violation of any law, ordinance or regulation; or

3. Establish a basis for a person to bring a civilaction against the State or its officers or employees for any act or omissionin carrying out the provisions of this chapter, including, without limitation,any act or omission relating to the disclosure of information or the failure todisclose information pursuant to the provisions of this chapter.

(Added to NRS by 1973, 1543; A 1999, 3801)(Substitutedin revision for NRS 645B.200)

EXEMPTIONS

NRS 645B.015 Exemptionsfor certain persons and entities. Except asotherwise provided in NRS 645B.016,the provisions of this chapter do not apply to:

1. Any person doing business under the laws of thisState, any other state or the United States relating to banks, savings banks,trust companies, savings and loan associations, consumer finance companies,industrial loan companies, credit unions, thrift companies or insurancecompanies, unless the business conducted in this State is not subject tosupervision by the regulatory authority of the other jurisdiction, in whichcase licensing pursuant to this chapter is required.

2. A real estate investment trust, as defined in 26U.S.C. 856, unless the business conducted in this State is not subject tosupervision by the regulatory authority of the other jurisdiction, in whichcase licensing pursuant to this chapter is required.

3. An employee benefit plan, as defined in 29 U.S.C. 1002(3), if the loan is made directly from money in the plan by the planstrustee.

4. An attorney at law rendering services in theperformance of his duties as an attorney at law.

5. A real estate broker rendering services in theperformance of his duties as a real estate broker.

6. Any person doing any act under an order of anycourt.

7. Any one natural person, or husband and wife, whoprovides money for investment in loans secured by a lien on real property, onhis own account, unless such a person makes a loan secured by a lien on realproperty using his own money and assigns all or a part of his interest in theloan to another person, other than his spouse or child, within 5 years after thedate on which the loan is made or the deed of trust is recorded, whicheveroccurs later.

8. Agencies of the United States and of this State andits political subdivisions, including the Public Employees Retirement System.

9. A seller of real property who offers credit securedby a mortgage of the property sold.

(Added to NRS by 1973, 1542; A 1975, 962; 1977, 618;1981, 1791; 1983, 1314, 1381; 1985, 2190; 1987, 499; 1989, 966, 1762; 1993,494; 1995, 1098; 1999,3779; 2003, 3546)

NRS 645B.016 Certificateof exemption required for certain persons and entities; application; fee;automatic expiration; prohibitions; administrative fine. Except as otherwise provided in NRS 645B.690:

1. A person who claims an exemption from theprovisions of this chapter pursuant to subsection 1 of NRS 645B.015 must:

(a) File a written application for a certificate of exemptionwith the Office of the Commissioner;

(b) Pay the fee required pursuant to NRS 645B.050; and

(c) Include with the written application satisfactoryproof that the person meets the requirements of subsection 1 of NRS 645B.015.

2. The Commissioner may require a person who claims anexemption from the provisions of this chapter pursuant to subsections 2 to 9,inclusive, of NRS 645B.015 to:

(a) File a written application for a certificate ofexemption with the Office of the Commissioner;

(b) Pay the fee required pursuant to NRS 645B.050; and

(c) Include with the written application satisfactoryproof that the person meets the requirements of at least one of thoseexemptions.

3. A certificate of exemption expires automaticallyif, at any time, the person who claims the exemption no longer meets therequirements of at least one exemption set forth in the provisions of NRS 645B.015.

4. If a certificate of exemption expires automaticallypursuant to this section, the person shall not provide any of the services of amortgage broker or mortgage agent or otherwise engage in, carry on or holdhimself out as engaging in or carrying on the business of a mortgage broker or mortgageagent unless the person applies for and is issued:

(a) A license as a mortgage broker or mortgage agent,as applicable, pursuant to this chapter; or

(b) Another certificate of exemption.

5. The Commissioner may impose upon a person who isrequired to apply for a certificate of exemption or who holds a certificate ofexemption an administrative fine of not more than $10,000 for each violationthat he commits, if the person:

(a) Has knowingly made or caused to be made to theCommissioner any false representation of material fact;

(b) Has suppressed or withheld from the Commissionerany information which the person possesses and which, if submitted by him,would have rendered the person ineligible to hold a certificate of exemption;or

(c) Has violated any provision of this chapter, aregulation adopted pursuant to this chapter or an order of the Commissionerthat applies to a person who is required to apply for a certificate ofexemption or who holds a certificate of exemption.

(Added to NRS by 1999, 3767; A 2003, 3547)

NRS 645B.018 Exemptionsfor certain loans; application; grounds for granting exemption; powers andduties of Commissioner.

1. A person may apply to the Commissioner for anexemption from the provisions of this chapter governing the making of a loan ofmoney.

2. The Commissioner may grant the exemption if hefinds that:

(a) The making of the loan would not be detrimental tothe financial condition of the lender, the debtor or the person who isproviding the money for the loan;

(b) The lender, the debtor or the person who isproviding the money for the loan has established a record of sound performance,efficient management, financial responsibility and integrity;

(c) The making of the loan is likely to increase theavailability of capital for a sector of the state economy; and

(d) The making of the loan is not detrimental to thepublic interest.

3. The Commissioner:

(a) May revoke an exemption unless the loan for whichthe exemption was granted has been made; and

(b) Shall issue a written statement setting forth thereasons for his decision to grant, deny or revoke an exemption.

(Added to NRS by 1989, 965; A 1999, 3800)(Substitutedin revision for NRS 645B.197)

LICENSING OF MORTGAGE BROKERS

NRS 645B.020 Applicationfor license; application for branch offices; requirements for issuance oflicense.

1. A person who wishes to be licensed as a mortgagebroker must file a written application for a license with the Office of theCommissioner and pay the fee required pursuant to NRS 645B.050. An application for alicense as a mortgage broker must:

(a) Be verified.

(b) State the name, residence address and businessaddress of the applicant and the location of each principal office and branchoffice at which the mortgage broker will conduct business within this State.

(c) State the name under which the applicant willconduct business as a mortgage broker.

(d) List the name, residence address and businessaddress of each person who will:

(1) If the applicant is not a natural person,have an interest in the mortgage broker as a principal, partner, officer,director or trustee, specifying the capacity and title of each such person.

(2) Be associated with or employed by themortgage broker as a mortgage agent.

(e) Include a general business plan and a descriptionof the policies and procedures that the mortgage broker and his mortgage agentswill follow to arrange and service loans and to conduct business pursuant tothis chapter.

(f) State the length of time the applicant has beenengaged in the business of a broker.

(g) Include a financial statement of the applicant and,if applicable, satisfactory proof that the applicant will be able to maintaincontinuously the net worth required pursuant to NRS 645B.115.

(h) Include all information required to complete theapplication.

(i) Include any other information required pursuant tothe regulations adopted by the Commissioner or an order of the Commissioner.

2. If a mortgage broker will conduct business at oneor more branch offices within this State, the mortgage broker must apply for alicense for each such branch office.

3. Except as otherwise provided in this chapter, theCommissioner shall issue a license to an applicant as a mortgage broker if:

(a) The application complies with the requirements ofthis chapter; and

(b) The applicant and each general partner, officer ordirector of the applicant, if the applicant is a partnership, corporation orunincorporated association:

(1) Has a good reputation for honesty,trustworthiness and integrity and displays competence to transact the businessof a mortgage broker in a manner which safeguards the interests of the generalpublic. The applicant must submit satisfactory proof of these qualifications tothe Commissioner.

(2) Has not been convicted of, or entered a pleaof nolo contendere to, a felony relating to the practice of mortgage brokers orany crime involving fraud, misrepresentation or moral turpitude.

(3) Has not made a false statement of materialfact on his application.

(4) Has not had a license that was issuedpursuant to the provisions of this chapter or chapter645E of NRS suspended or revoked within the 10 years immediately precedingthe date of his application.

(5) Has not had a license that was issued in anyother state, district or territory of the United States or any foreign countrysuspended or revoked within the 10 years immediately preceding the date of hisapplication.

(6) Has not violated any provision of thischapter or chapter 645E of NRS, a regulationadopted pursuant thereto or an order of the Commissioner.

(Added to NRS by 1973, 1536; A 1981, 1786; 1983,1701; 1985, 2186; 1987, 1877; 1989, 1763; 1993, 495; 1997, 2171; 1999, 3780; 2001, 2464; 2003, 2721; 2005, 2781, 2807, 2816)

NRS 645B.023 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Commissioner. [Effective until the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. Inaddition to any other requirements set forth in this chapter:

(a) Anatural person who applies for the issuance of a license as a mortgage brokershall include the social security number of the applicant in the application submittedto the Commissioner.

(b) A natural person who applies for the issuance orrenewal of a license as a mortgage broker shall submit to the Commissioner thestatement prescribed by the Division of Welfare and Supportive Services of theDepartment of Health and Human Services pursuant to NRS 425.520. The statement must becompleted and signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license; or

(b) A separate form prescribed by the Commissioner.

3. A license as a mortgage broker may not be issued orrenewed by the Commissioner if the applicant is a natural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 1997, 2170; A 1999, 3782; 2005, 2783, 2807, 2810)

NRS 645B.023 Payment of child support: Submissionof certain information by applicant; grounds for denial of license; duty ofCommissioner. [Effective on the date of the repeal of the federal law requiringeach state to establish procedures for withholding, suspending and restrictingthe professional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings and expires by limitation 2 years after thatdate.]

1. In addition to any other requirements set forth inthis chapter, a natural person who applies for the issuance or renewal of alicense as a mortgage broker shall submit to the Commissioner the statementprescribed by the Division of Welfare and Supportive Services of the Departmentof Health and Human Services pursuant to NRS425.520. The statement must be completed and signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of the license; or

(b) A separate form prescribed by the Commissioner.

3. A license as a mortgage broker may not be issued orrenewed by the Commissioner if the applicant is a natural person who:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 1997, 2170; A 1999, 3782; 2005, 2783, 2807, 2810, effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 645B.0243 Groundsfor denial of license: Employing or associating with certain persons who areineligible to be mortgage agents. The Commissionermay refuse to issue a license to an applicant if the Commissioner has reasonablecause to believe that the applicant or any general partner, officer or directorof the applicant has, after October 1, 1999, employed or proposed to employ aperson as a mortgage agent or authorized or proposed to authorize a person tobe associated with a mortgage broker as a mortgage agent at a time when theapplicant or the general partner, officer or director knew or, in light of allthe surrounding facts and circumstances, reasonably should have known that theperson:

1. Had been convicted of, or entered a plea of nolocontendere to:

(a) A felony relating to the practice of mortgageagents; or

(b) Any crime involving fraud, misrepresentation ormoral turpitude; or

2. Had a financial services license or registration suspendedor revoked within the immediately preceding 10 years.

(Added to NRS by 1999, 3768; A 2003, 2723)

NRS 645B.0245 Groundsfor denial of license: Control by relative who would be ineligible to belicensed; act or omission of partner, officer or director.

1. If an applicant is a natural person, theCommissioner may refuse to issue a license to the applicant if the Commissionerhas reasonable cause to believe that the applicant would be subject to controlby a relative who would be ineligible to be licensed pursuant to this chapter.

2. If an applicant is a partnership, corporation orunincorporated association, the Commissioner may refuse to issue a license tothe applicant if:

(a) Any member of the partnership or any officer ordirector of the corporation or unincorporated association has committed any actor omission that would be cause for refusing to issue a license to a naturalperson; or

(b) The Commissioner has reasonable cause to believethat any member of the partnership or any officer or director of thecorporation or unincorporated association would be subject to control by arelative who would be ineligible to be licensed pursuant to this chapter.

(Added to NRS by 1999, 3769)

NRS 645B.0247 Groundsfor denial of license: Authority of Commissioner not limited. The provisions of NRS645B.0243 and 645B.0245 do notlimit the authority of the Commissioner to refuse to issue a license to anapplicant for any other lawful reason or pursuant to any other provision oflaw.

(Added to NRS by 1999, 3769)

NRS 645B.025 Postingof license; restrictions on transfer or assignment of license.

1. A mortgage broker shall post each license in aconspicuous place in the office to which it pertains.

2. A mortgage broker may not transfer or assign alicense to another person, unless the Commissioner gives his written approval.

(Added to NRS by 1983, 1376; A 1983, 1843; 1987,1877; 1999, 3782)

NRS 645B.035 Activitiesauthorized by license; dual licensure as mortgage banker and mortgage broker.

1. A license as a mortgage broker entitles a licenseeto engage only in the activities authorized by this chapter.

2. The provisions of this chapter do not prohibit alicensee from:

(a) Holding a license as a mortgage banker pursuant to chapter 645E of NRS; or

(b) Conducting the business of a mortgage banker andthe business of a mortgage broker in the same office or place of business.

(Added to NRS by 1999, 3770; A 2003, 3548)

EXPIRATION AND RENEWAL OF BROKERS LICENSE OR CERTIFICATEOF EXEMPTION; FEES

NRS 645B.050 Annualexpiration of license or certificate of exemption; procedure for renewal; fees.

1. A license as a mortgage broker issued pursuant tothis chapter expires each year on June 30, unless it is renewed. To renew sucha license, the licensee must submit to the Commissioner on or before May 31 ofeach year:

(a) An application for renewal;

(b) The fee required to renew the license pursuant tothis section;

(c) The information required pursuant to NRS 645B.051; and

(d) All information required to complete the renewal.

2. If the licensee fails to submit any item requiredpursuant to subsection 1 to the Commissioner on or before May 31 of any year,the license is cancelled as of June 30 of that year. The Commissioner mayreinstate a cancelled license if the licensee submits to the Commissioner:

(a) An application for renewal;

(b) The fee required to renew the license pursuant tothis section;

(c) The information required pursuant to NRS 645B.051;

(d) Except as otherwise provided in this section, areinstatement fee of $200; and

(e) All information required to complete thereinstatement.

3. Except as otherwise provided in NRS 645B.016, a certificate of exemptionissued pursuant to this chapter expires each year on December 31, unless it isrenewed. To renew a certificate of exemption, a person must submit to the Commissioneron or before November 30 of each year:

(a) An application for renewal that includessatisfactory proof that the person meets the requirements for an exemption fromthe provisions of this chapter; and

(b) The fee required to renew the certificate ofexemption.

4. If the person fails to submit any item requiredpursuant to subsection 3 to the Commissioner on or before November 30 of anyyear, the certificate of exemption is cancelled as of December 31 of that year.Except as otherwise provided in NRS645B.016, the Commissioner may reinstate a cancelled certificate ofexemption if the person submits to the Commissioner:

(a) An application for renewal that includessatisfactory proof that the person meets the requirements for an exemption fromthe provisions of this chapter;

(b) The fee required to renew the certificate ofexemption; and

(c) Except as otherwise provided in this section, areinstatement fee of $100.

5. Except as otherwise provided in this section, aperson must pay the following fees to apply for, to be issued or to renew alicense as a mortgage broker pursuant to this chapter:

(a) To file an original application for a license,$1,500 for the principal office and $40 for each branch office. The person mustalso pay such additional expenses incurred in the process of investigation asthe Commissioner deems necessary.

(b) To be issued a license, $1,000 for the principaloffice and $60 for each branch office.

(c) To renew a license, $500 for the principal officeand $100 for each branch office.

6. Except as otherwise provided in this section, aperson must pay the following fees to apply for or to renew a certificate ofexemption pursuant to this chapter:

(a) To file an application for a certificate ofexemption, $200.

(b) To renew a certificate of exemption, $100.

7. To be issued a duplicate copy of any license orcertificate of exemption, a person must make a satisfactory showing of its lossand pay a fee of $10.

8. Except as otherwise provided in this chapter, allfees received pursuant to this chapter must be deposited in the Fund forMortgage Lending created by NRS 645F.270.

9. The Commissioner may, by regulation, increase anyfee set forth in this section if the Commissioner determines that such anincrease is necessary for the Commissioner to carry out his duties pursuant tothis chapter. The amount of any increase in a fee pursuant to this subsectionmust not exceed the amount determined to be necessary for the Commissioner tocarry out his duties pursuant to this chapter.

(Added to NRS by 1973, 1538; A 1975, 814; 1977, 1636;1979, 120, 1094; 1981, 1788; 1983, 1320, 1379, 1702; 1985, 2187; 1987, 86,1878; 1989, 1764; 1991, 177, 1803, 1825; 1993, 496; 1997, 2172; 1999, 3782; 2001, 2465; 2003, 3229, 3548; 2003, 20thSpecial Session, 265; 2005, 2784, 2807, 2817)

NRS 645B.051 Continuingeducation required for renewal of license.

1. Except as otherwise provided in this section, in additionto the requirements set forth in NRS645B.050, to renew a license as a mortgage broker:

(a) If the licensee is a natural person, the licenseemust submit to the Commissioner satisfactory proof that the licensee attendedat least 10 hours of certified courses of continuing education during the 12months immediately preceding the date on which the license expires.

(b) If the licensee is not a natural person, thelicensee must submit to the Commissioner satisfactory proof that each naturalperson who supervises the daily business of the licensee attended at least 10hours of certified courses of continuing education during the 12 monthsimmediately preceding the date on which the license expires.

2. TheCommissioner may provide by regulation that any hours of a certified course ofcontinuing education attended during a 12-month period, but not needed tosatisfy a requirement set forth in this section for the 12-month period inwhich the course was taken, may be used to satisfy a requirement set forth inthis section for a later 12-month period.

3. As used in this section, certified course ofcontinuing education means a course of continuing education which relates tothe mortgage industry or mortgage transactions and which is certified by:

(a) The National Association of Mortgage Brokers or anysuccessor in interest to that organization; or

(b) Any organization designated for this purpose by theCommissioner by regulation.

(Added to NRS by 2001, 2464; A 2003, 3551)

SUPERVISION BY COMMISSIONER

General Provisions

NRS 645B.060 Dutiesof Commissioner: Regulations; investigations; annual examinations; periodic andspecial audits; hearings; related fees.

1. Subject to the administrative control of theDirector of the Department of Business and Industry, the Commissioner shallexercise general supervision and control over mortgage brokers and mortgageagents doing business in this State.

2. In addition to the other duties imposed upon him bylaw, the Commissioner shall:

(a) Adopt any regulations that are necessary to carryout the provisions of this chapter, except as to loan brokerage fees.

(b) Conduct such investigations as may be necessary todetermine whether any person has violated any provision of this chapter, aregulation adopted pursuant to this chapter or an order of the Commissioner.

(c) Conduct an annual examination of each mortgagebroker doing business in this State. The annual examination must include,without limitation, a formal exit review with the mortgage broker. TheCommissioner shall adopt regulations prescribing:

(1) Standards for determining the rating of eachmortgage broker based upon the results of the annual examination; and

(2) Procedures for resolving any objections madeby the mortgage broker to the results of the annual examination. The results ofthe annual examination may not be opened to public inspection pursuant to NRS 645B.090 until any objections made bythe mortgage broker have been decided by the Commissioner.

(d) Conduct such other examinations, periodic orspecial audits, investigations and hearings as may be necessary and proper forthe efficient administration of the laws of this State regarding mortgagebrokers and mortgage agents. The Commissioner shall adopt regulations specifyingthe general guidelines that will be followed when a periodic or special auditof a mortgage broker is conducted pursuant to this chapter.

(e) Classify as confidential certain records andinformation obtained by the Division when those matters are obtained from agovernmental agency upon the express condition that they remain confidential.This paragraph does not limit examination by:

(1) The Legislative Auditor; or

(2) The Department of Taxation if necessary tocarry out the provisions of chapter 363A ofNRS.

(f) Conduct such examinations and investigations as arenecessary to ensure that mortgage brokers and mortgage agents meet therequirements of this chapter for obtaining a license, both at the time of theapplication for a license and thereafter on a continuing basis.

3. For each special audit, investigation orexamination, a mortgage broker or mortgage agent shall pay a fee based on therate established pursuant to NRS 645F.280.

(Added to NRS by 1973, 1538; A 1973, 1669; 1981,1789; 1983, 1380, 1703; 1987, 1878, 2224; 1993, 497, 1893; 1995, 526; 1999, 3784; 2001, 2467; 2003, 3552; 2003, 20thSpecial Session, 220)

NRS 645B.070 Subpoenas;oaths; examination of witnesses; penalty; assessment of costs.

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

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

(b) Administer oaths.

(c) Examine any person under oath concerning thebusiness and conduct of affairs of any person subject to the provisions of thischapter 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 thissection who willfully refuses or willfully neglects to appear at the time andplace named in the subpoena or to produce books, records or papers required bythe Commissioner, or who refuses to be sworn or answer as a witness, is guiltyof a misdemeanor and shall be punished as provided in NRS 645B.950.

3. In addition to the authority to recover attorneysfees and costs pursuant to any other statute, the Commissioner may assessagainst and collect from a person all costs, including, without limitation,reasonable attorneys fees, that are attributable to any examination, periodicor special audit, investigation or hearing that is conducted to examine orinvestigate the conduct, activities or business of the person pursuant to thischapter.

(Added to NRS by 1973, 1538; A 1981, 1789; 1983,1703; 1987, 1879; 1999,3785; 2003, 3468)

NRS 645B.075 Paymentof statutory assessment by mortgage broker; duty of mortgage broker and agentsto cooperate fully with audits and examinations. Eachmortgage broker shall pay the assessment levied pursuant to NRS 645F.180. Each mortgage broker andmortgage agent shall cooperate fully with the audits and examinations performedpursuant thereto.

(Added to NRS by 1987, 826; A 1999, 3799; 2003, 3552)

Records and Financial Statements

NRS 645B.080 Recordsrelating to mortgage transactions, financial condition and trust accounts;monthly report to Commissioner; accounting procedures for trust accounts;regulations.

1. Each mortgage broker shall keep and maintain at alltimes at each location where the mortgage broker conducts business in thisstate complete and suitable records of all mortgage transactions made by themortgage broker at that location. Each mortgage broker shall also keep andmaintain at all times at each such location all original books, papers anddata, or copies thereof, clearly reflecting the financial condition of thebusiness of the mortgage broker.

2. Each mortgage broker shall submit to theCommissioner each month a report of the mortgage brokers activity for theprevious month. The report must:

(a) Specify the volume of loans arranged by themortgage broker for the month or state that no loans were arranged in thatmonth;

(b) Include any information required pursuant to NRS 645B.260 or pursuant to theregulations adopted by the Commissioner; and

(c) Be submitted to the Commissioner by the 15th day ofthe month following the month for which the report is made.

3. The Commissioner may adopt regulations prescribingaccounting procedures for mortgage brokers handling trust accounts and therequirements for keeping records relating to such accounts.

(Added to NRS by 1973, 1538; A 1981, 1789; 1985,2187; 1987, 1879; 1989, 1765; 1995, 136; 1999, 3786)

NRS 645B.085 Annualfinancial statement; audit of trust accounts; regulations.

1. Except as otherwise provided in this section, notlater than 90 days after the last day of each fiscal year for a mortgagebroker, the mortgage broker shall submit to the Commissioner a financialstatement that:

(a) Is dated not earlier than the last day of thefiscal year; and

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

2. The Commissioner may grant a reasonable extensionfor the submission of a financial statement pursuant to this section if amortgage broker requests such an extension before the date on which thefinancial statement is due.

3. If a mortgage broker maintains any accountsdescribed in subsection 1 of NRS 645B.175,the financial statement submitted pursuant to this section must be audited. Ifa mortgage broker maintains any accounts described in subsection 4 of NRS 645B.175, those accounts must beaudited. The public accountant who prepares the report of an audit shall submita copy of the report to the Commissioner at the same time that he submits thereport to the mortgage broker.

4. The Commissioner shall adopt regulationsprescribing the scope of an audit conducted pursuant to subsection 3.

(Added to NRS by 1999, 3772; A 2001, 2467)

NRS 645B.090 Recordsof Commissioner: General provisions governing public inspection,confidentiality and disclosure of information relating to investigations anddisciplinary action.

1. Except as otherwise provided in this section or byspecific statute, all papers, documents, reports and other written instrumentsfiled with the Commissioner pursuant to this chapter are open to publicinspection.

2. Except as otherwise provided in subsection 3, thecommissioner may withhold from public inspection or refuse to disclose to aperson, for such time as the commissioner considers necessary, any informationthat, in his judgment, would:

(a) Impede or otherwise interfere with an investigationthat is currently pending against a mortgage broker;

(b) Have an undesirable effect on the welfare of thepublic or the welfare of any mortgage broker or mortgage agent; or

(c) Give any mortgage broker a competitive advantageover any other mortgage broker.

3. Except as otherwise provided in NRS 645B.092, the Commissioner shalldisclose the following information concerning a mortgage broker to any personwho requests it:

(a) The findings and results of any investigation whichhas been completed during the immediately preceding 5 years against themortgage broker pursuant to the provisions of this chapter and which hasresulted in a finding by the Commissioner that the mortgage broker committed aviolation of a provision of this chapter, a regulation adopted pursuant to thischapter or an order of the Commissioner; and

(b) The nature of any disciplinary action that has beentaken during the immediately preceding 5 years against the mortgage brokerpursuant to the provisions of this chapter.

(Added to NRS by 1973, 1543; A 1983, 1704; 1987,1880; 1999, 3786;2003, 3469)

NRS 645B.092 Recordsof Commissioner: Certain records relating to investigation deemed confidential;certain records relating to disciplinary action and orders imposing disciplinedeemed public records.

1. Except as otherwise provided in this section, acomplaint filed with the Commissioner, all documents and other informationfiled with the complaint and all documents and other information compiled as aresult of an investigation conducted to determine whether to initiatedisciplinary action are confidential.

2. The complaint or other document filed by theCommissioner to initiate disciplinary action and all documents and informationconsidered by the Commissioner when determining whether to impose disciplineare public records.

3. An order that imposes discipline and the findingsof fact and conclusions of law supporting that order are public records.

(Added to NRS by 2003, 3468)

Transfer of Stock

NRS 645B.095 Notificationof certain transfers required; application to Commissioner for approval ofchange of control; investigation; waiver.

1. As used in this section, change of control means:

(a) A transfer of voting stock which results in givinga person, directly or indirectly, the power to direct the management and policyof a mortgage broker; or

(b) A transfer of at least 25 percent of theoutstanding voting stock of a mortgage broker.

2. The Commissioner must be notified of a transfer of5 percent or more of the outstanding voting stock of a mortgage broker and mustapprove a transfer of voting stock of a mortgage broker which constitutes achange of control.

3. The person who acquires stock resulting in a changeof control of the mortgage broker shall apply to the Commissioner for approvalof the transfer. The application must contain information which shows that therequirements of this chapter for obtaining a license will be satisfied afterthe change of control. Except as otherwise provided in subsection 4, theCommissioner shall conduct an investigation to determine whether thoserequirements will be satisfied. If, after the investigation, the Commissionerdenies the application, he may forbid the applicant from participating in thebusiness of the mortgage broker.

4. A mortgage broker may submit a written request tothe Commissioner to waive an investigation pursuant to subsection 3. TheCommissioner may grant a waiver if the applicant has undergone a similarinvestigation by a state or federal agency in connection with the licensing ofor his employment with a financial institution.

(Added to NRS by 1983, 1376; A 1983, 1843; 1985,1344; 1987, 1880; 1999,3787)

Net Worth

NRS 645B.115 Minimumnet worth required for certain mortgage brokers; initial and annualdetermination of net worth; examination by Commissioner; regulations.

1. If a mortgage broker maintains any accountsdescribed in NRS 645B.175, themortgage broker and his mortgage agents shall not engage in any activity thatis authorized pursuant to this chapter, unless the mortgage broker maintainscontinuously a minimum net worth in the following amount based upon the averagemonthly balance of the accounts maintained by the mortgage broker pursuant to NRS 645B.175:

 

AVERAGE MONTHLY BALANCE MINIMUMNET

WORTHREQUIRED

$100,000 or less.................................................................................................. $25,000

More than $100,000 but not more than$250,000............................................ 50,000

More than $250,000 but not more than$500,000.......................................... 100,000

More than $500,000 but not more than$1,000,000....................................... 200,000

More than $1,000,000........................................................................................ 250,000

 

The Commissioner shall determine the appropriate initialminimum net worth that must be maintained by the mortgage broker pursuant tothis section based upon the expected average monthly balance of the accountsmaintained by the mortgage broker pursuant to NRS 645B.175. After determining theinitial minimum net worth that must be maintained by the mortgage broker, theCommissioner shall, on an annual basis, determine the appropriate minimum networth that must be maintained by the mortgage broker pursuant to this sectionbased upon the average monthly balance of the accounts maintained by themortgage broker pursuant to NRS 645B.175.

2. If requested by the Commissioner, a mortgage brokerwho is subject to the provisions of this section and his mortgage agents shallsubmit to the Commissioner or allow the Commissioner to examine anydocumentation or other evidence that is related to determining the net worth ofthe mortgage broker.

3. The Commissioner:

(a) Shall adopt regulations prescribing standards fordetermining the net worth of a mortgage broker; and

(b) May adopt any other regulations that are necessaryto carry out the provisions of this section.

(Added to NRS by 1999, 3771)

ESCROW AND TRUST ACCOUNTS

NRS 645B.165 Escrowaccount required for fee, salary, deposit or money paid in advance; releasefrom escrow; exceptions; refunds; penalty.

1. Except as otherwise provided in subsection 3, theamount of any advance fee, salary, deposit or money paid to a mortgage brokerand his mortgage agents or any other person to obtain a loan which will be securedby a lien on real property must be placed in escrow pending completion of theloan or a commitment for the loan.

2. The amount held in escrow pursuant to subsection 1must be released:

(a) Upon completion of the loan or commitment for theloan, to the mortgage broker or other person to whom the advance fee, salary,deposit or money was paid.

(b) If the loan or commitment for the loan fails, tothe person who made the payment.

3. Advance payments to cover reasonably estimatedcosts paid to third persons are excluded from the provisions of subsections 1and 2 if the person making them first signs a written agreement which specifiesthe estimated costs by item and the estimated aggregate cost, and which recitesthat money advanced for costs will not be refunded. If an itemized service isnot performed and the estimated cost thereof is not refunded, the recipient ofthe advance payment is subject to the penalties provided in NRS 645B.960.

(Added to NRS by 1977, 618; A 1979, 1397; 1989, 1442;1991, 178; 1995, 1313; 1999,3793)

NRS 645B.170 Trustaccount required for money deposited to pay taxes or insurance premiums;fiduciary duty of mortgage broker; accounting to debtor and Commissioner;additional duties and prohibitions.

1. All money paid to a mortgage broker and hismortgage agents for payment of taxes or insurance premiums on real propertywhich secures any loan arranged by the mortgage broker must be deposited in aninsured depository financial institution and kept separate, distinct and apartfrom money belonging to the mortgage broker. Such money, when deposited, is tobe designated as an impound trust account or under some other appropriatename indicating that the accounts are not the money of the mortgage broker.

2. The mortgage broker has a fiduciary duty to eachdebtor with respect to the money in an impound trust account.

3. The mortgage broker shall, upon reasonable notice,account to any debtor whose real property secures a loan arranged by themortgage broker for any money which that person has paid to the mortgage brokerfor the payment of taxes or insurance premiums on the real property.

4. The mortgage broker shall, upon reasonable notice,account to the Commissioner for all money in an impound trust account.

5. A mortgage broker shall:

(a) Require contributions to an impound trust accountin an amount reasonably necessary to pay the obligations as they become due.

(b) Within 30 days after the completion of the annualreview of an impound trust account, notify the debtor:

(1) Of the amount by which the contributionsexceed the amount reasonably necessary to pay the annual obligations due fromthe account; and

(2) That the debtor may specify the dispositionof the excess money within 20 days after receipt of the notice. If the debtorfails to specify such a disposition within that time, the mortgage broker shallmaintain the excess money in the account.

Thissubsection does not prohibit a mortgage broker from requiring additionalamounts to be paid into an impound trust account to recover a deficiency thatexists in the account.

6. A mortgage broker shall not make payments from animpound trust account in a manner that causes a policy of insurance to becancelled or causes property taxes or similar payments to become delinquent.

(Added to NRS by 1973, 1543; A 1983, 1708; 1987, 1884;1989, 1765; 1999,1539, 3793)

NRS 645B.175 Trustor escrow account required for money received from investor to fund loan; trustor escrow account required for money received from debtor to repay loan;release of money; accounting to investor, debtor and Commissioner; additionalconditions, limitations and prohibitions.

1. Except as otherwise provided in this section, allmoney received by a mortgage broker and his mortgage agents from an investor toacquire ownership of or a beneficial interest in a loan secured by a lien onreal property must:

(a) Be deposited in:

(1) An insured depository financial institution;or

(2) An escrow account which is controlled by aperson who is independent of the parties and subject to instructions regardingthe account which are approved by the parties.

(b) Be kept separate from money:

(1) Belonging to the mortgage broker in anaccount appropriately named to indicate that the money does not belong to themortgage broker.

(2) Received pursuant to subsection 4.

2. Except as otherwise provided in this section, theamount held in trust pursuant to subsection 1 must be released:

(a) Upon completion of the loan, including properrecordation of the respective interests or release, or upon completion of thetransfer of the ownership or beneficial interest therein, to the debtor or hisdesignee less the amount due the mortgage broker for the payment of any fee orservice charge;

(b) If the loan or the transfer thereof is notconsummated, to each investor who furnished the money held in trust; or

(c) Pursuant to any instructions regarding the escrowaccount.

3. The amount held in trust pursuant to subsection 1must not be released to the debtor or his designee unless:

(a) The amount released is equal to the total amount ofmoney which is being loaned to the debtor for that loan, less the amount duethe mortgage broker for the payment of any fee or service charge; and

(b) The mortgage broker has provided a writteninstruction to a title agent or title insurer requiring that a lenders policyof title insurance or appropriate title endorsement, which names as an insuredeach investor who owns a beneficial interest in the loan, be issued for thereal property securing the loan.

4. Except as otherwise provided in this section, allmoney paid to a mortgage broker and his mortgage agents by a person in full orin partial payment of a loan secured by a lien on real property, must:

(a) Be deposited in:

(1) An insured depository financial institution;or

(2) An escrow account which is controlled by aperson who is subject to instructions regarding the account which are approvedby the parties.

(b) Be kept separate from money:

(1) Belonging to the mortgage broker in anaccount appropriately named to indicate that it does not belong to the mortgagebroker.

(2) Received pursuant to subsection 1.

5. Except as otherwise provided in this section, theamount held in trust pursuant to subsection 4:

(a) Must be released, upon the deduction and payment ofany fee or service charge due the mortgage broker, to each investor who owns abeneficial interest in the loan in exact proportion to the beneficial interestthat he owns in the loan; and

(b) Must not be released, in any proportion, to aninvestor who owns a beneficial interest in the loan, unless the amountdescribed in paragraph (a) is also released to every other investor who owns abeneficial interest in the loan.

6. An investor may waive, in writing, the right toreceive one or more payments, or portions thereof, that are released to otherinvestors in the manner set forth in subsection 5. A mortgage broker ormortgage agent shall not act as the attorney-in-fact or the agent of aninvestor with respect to the giving of a written waiver pursuant to thissubsection. Any such written waiver applies only to the payment or payments, orportions thereof, that are included in the written waiver and does not affectthe right of the investor to:

(a) Receive the waived payment or payments, or portionsthereof, at a later date; or

(b) Receive all other payments in full and inaccordance with the provisions of subsection 5.

7. Upon reasonable notice, any mortgage brokerdescribed in this section shall:

(a) Account to any investor or debtor who has paid tothe mortgage broker or his mortgage agents money that is required to bedeposited in a trust account pursuant to this section; and

(b) Account to the Commissioner for all money which themortgage broker and his mortgage agents have received from each investor ordebtor and which the mortgage broker is required to deposit in a trust accountpursuant to this section.

8. Money received by a mortgage broker and hismortgage agents pursuant to this section from a person who is not associatedwith the mortgage broker may be held in trust for not more than 45 days beforean escrow account must be opened in connection with the loan. If, within this45-day period, the loan or the transfer therefor is not consummated, the moneymust be returned within 24 hours. If the money is so returned, it may not bereinvested with the mortgage broker for at least 15 days.

9. If a mortgage broker or a mortgage agent receivesany money pursuant to this section, the mortgage broker or mortgage agent,after the deduction and payment of any fee or service charge due the mortgagebroker, shall not release the money to:

(a) Any person who does not have a contractual or legalright to receive the money; or

(b) Any person who has a contractual right to receivethe money if the mortgage broker or mortgage agent knows or, in light of allthe surrounding facts and circumstances, reasonably should know that thepersons contractual right to receive the money violates any provision of thischapter or a regulation adopted pursuant to this chapter.

(Added to NRS by 1981, 1784; A 1983, 1708; 1985,2189; 1987, 1885; 1999,3794)

NRS 645B.180 Limitationson execution or attachment of money in trust account; commingling of moneyprohibited.

1. Money in an impound trust account is not subject toexecution or attachment on any claim against the mortgage broker or hismortgage agents.

2. It is unlawful for a mortgage broker or hismortgage agents knowingly to keep or cause to be kept any money in a depositoryfinancial institution under the heading of impound trust account or any othername designating such money as belonging to the investors or debtors of themortgage broker, unless the money has been paid to the mortgage broker or hismortgage agents by an investor or debtor and is being held in trust by themortgage broker pursuant to NRS 645B.170or 645B.175.

(Added to NRS by 1973, 1543; A 1989, 1766; 1999, 1540, 3796)

DISCLOSURES AND ADVERTISING

NRS 645B.185 Useof disclosure forms required; release of financial statements; duties ofmortgage broker and agents; prohibitions; powers of Commissioner; regulations.

1. A mortgage broker or mortgage agent shall notaccept money from a private investor to acquire ownership of or a beneficialinterest in a loan secured by a lien on real property unless:

(a) The private investor and the mortgage broker ormortgage agent sign and date a disclosure form that complies with theprovisions of this section; and

(b) The mortgage broker or mortgage agent gives theprivate investor the original disclosure form that has been signed and dated.

2. A private investor and a mortgage broker ormortgage agent must sign and date a separate disclosure form pursuant tosubsection 1 for each loan in which the private investor invests his money. Amortgage broker or mortgage agent shall not act as the attorney-in-fact or theagent of a private investor with respect to the signing or dating of anydisclosure form.

3. In addition to the requirements of subsections 1and 2, a mortgage broker or mortgage agent shall not accept money from aprivate investor to acquire ownership of or a beneficial interest in a loansecured by a lien on real property, unless the mortgage broker or mortgageagent gives the private investor a written form by which the private investormay request that the mortgage broker authorize the Commissioner to release themortgage brokers financial statement to the private investor. Such a form mustbe given to the private investor for each loan. If the private investor, beforegiving money to the mortgage broker for the loan, requests that the mortgagebroker authorize the release of a financial statement pursuant to thissubsection, the mortgage broker and his mortgage agents shall not accept moneyfrom the private investor for that loan until the mortgage broker receivesnotice from the Commissioner that the financial statement has been released tothe private investor.

4. A private investor and a mortgage broker ormortgage agent may not agree to alter or waive the provisions of this sectionby contract or other agreement. Any such contract or agreement is void and mustnot be given effect to the extent that it violates the provisions of this section.

5. A mortgage broker shall retain a copy of eachdisclosure form that is signed and dated pursuant to subsection 1 for theperiod that is prescribed in the regulations adopted by the Commissioner.

6. The standard provisions for each such disclosureform must include, without limitation, statements:

(a) Explaining the risks of investing through themortgage broker, including, without limitation:

(1) The possibility that the debtor may defaulton the loan;

(2) The nature of the losses that may result throughforeclosure;

(3) The fact that payments of principal andinterest are not guaranteed and that the private investor may lose the entireamount of principal that he has invested;

(4) The fact that the mortgage broker is not adepository financial institution and that the investment is not insured by anydepository insurance and is not otherwise insured or guaranteed by the Federalor State Government; and

(5) Any other information required pursuant tothe regulations adopted by the Commissioner; and

(b) Disclosing to the private investor the followinginformation if the information is known or, in light of all the surroundingfacts and circumstances, reasonably should be known to the mortgage broker:

(1) Whether the real property that will securethe loan is encumbered by any other liens and, if so, the priority of each suchlien, the amount of debt secured by each such lien and the current status ofthat debt, including, without limitation, whether the debt is being paid or isin default;

(2) Whether the mortgage broker or any generalpartner, officer, director or mortgage agent of the mortgage broker has anydirect or indirect interest in the debtor;

(3) Whether any disciplinary action has beentaken by the Commissioner against the mortgage broker or any general partner,officer or director of the mortgage broker within the immediately preceding 12months, and the nature of any such disciplinary action;

(4) Whether the mortgage broker or any generalpartner, officer or director of the mortgage broker has been convicted withinthe immediately preceding 12 months for violating any law, ordinance orregulation that involves fraud, misrepresentation or a deceitful, fraudulent ordishonest business practice; and

(5) Any other information required pursuant tothe regulations adopted by the Commissioner.

7. Whether or not a mortgage broker is required todisclose any information to private investors through a disclosure form thatcomplies with the provisions of this section, the Commissioner may order themortgage broker to disclose to private investors and other investors or to thegeneral public any information concerning the mortgage broker, any generalpartner, officer, director or mortgage agent of the mortgage broker or any loanin which the mortgage broker is or has been involved, if the Commissioner, inhis judgment, believes that the information:

(a) Would be of material interest to a reasonableinvestor who is deciding whether to invest money with the mortgage broker; or

(b) Is necessary to protect the welfare of the public.

8. In carrying out the provisions of subsection 7, theCommissioner may, without limitation, order a mortgage broker to includestatements of disclosure prescribed by the Commissioner:

(a) In the disclosure form that must be given toprivate investors pursuant to subsection 1;

(b) In additional disclosure forms that must be givento private investors and other investors before or after they have investedmoney through the mortgage broker; or

(c) In any advertisement that the mortgage broker usesin carrying on his business.

9. The Commissioner:

(a) Shall adopt regulations prescribing the period forwhich a mortgage broker must retain a copy of each disclosure form that isgiven to private investors; and

(b) May adopt any other regulations that are necessaryto carry out the provisions of this section, including, without limitation,regulations specifying the size of print and any required formatting ortypesetting that a mortgage broker must use in any form that is given toprivate investors.

(Added to NRS by 1985, 2185; A 1987, 1886; 1999, 3796; 2001, 2468)

NRS 645B.186 Disclosureof certain business and personal relationships required.

1. If a licensee or a relative of the licensee islicensed as, conducts business as or holds a controlling interest or positionin:

(a) A construction control;

(b) An escrow agency or escrow agent; or

(c) A title agent, a title insurer or an escrow officerof a title agent or title insurer,

the licenseeshall fully disclose his status as, connection to or relationship with theconstruction control, escrow agency, escrow agent, title agent, title insureror escrow officer to each investor, and the licensee shall not require, as acondition to an investor acquiring ownership of or a beneficial interest in aloan secured by a lien on real property, that the investor transact businesswith or use the services of the construction control, escrow agency, escrowagent, title agent, title insurer or escrow officer or that the investorauthorize the licensee to transact business with or use the services of theconstruction control, escrow agency, escrow agent, title agent, title insureror escrow officer on behalf of the investor.

2. For the purposes of this section, a person shall bedeemed to hold a controlling interest or position if the person:

(a) Owns or controls a majority of the voting stock orholds any other controlling interest, directly or indirectly, that gives himthe power to direct management or determine policy; or

(b) Is a partner, officer, director or trustee.

3. As used in this section, licensee means:

(a) A person who is licensed as a mortgage brokerpursuant to this chapter; and

(b) Any general partner, officer or director of such aperson.

(Added to NRS by 1999, 3770)

NRS 645B.187 Prohibitionon making certain guarantees in advertisements and solicitations; limitationson payment of premium interest; penalty.

1. If a mortgage broker or mortgage agent solicits orreceives money from an investor, the mortgage broker or mortgage agent shallnot:

(a) In any advertisement; or

(b) Before, during or after solicitation or receipt ofmoney from the investor,

make, orcause or encourage to be made, any explicit or implicit statement, representationor promise, oral or written, which a reasonable person would construe as aguarantee that the investor will be repaid the principal amount of money heinvests or will earn a specific rate of return or a specific rate of intereston the principal amount of money he invests.

2. If a mortgage broker offers to pay or pays premiuminterest on money that the mortgage broker receives from a person to acquireownership of or a beneficial interest in a loan secured by a lien on realproperty or in full or partial payment of such a loan:

(a) The premium interest must be paid from the assetsor income of the mortgage broker; and

(b) The mortgage broker or a mortgage agent shall not:

(1) In any advertisement; or

(2) Before, during or after receipt of moneyfrom such a person,

make, or causeor encourage to be made, any explicit or implicit statement, representation orpromise, oral or written, which a reasonable person would construe as aguarantee that the mortgage broker will pay the premium interest.

3. A person who violates any provision of this sectionis guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.

4. As used in this section, premium interest meansthat amount of interest a mortgage broker pays to a person which exceeds theamount which is being obtained from the insured depository financialinstitution.

(Added to NRS by 1985, 2185; A 1999, 3799)

NRS 645B.189 Statementsof disclosure required in certain advertisements; review of advertisements byCommissioner; advertisements must comply with state and federal laws concerningdeceptive trade practices and deceptive advertising; regulations.

1. If, in carrying on his business, a mortgage brokeruses an advertisement that is designed, intended or reasonably likely tosolicit money from private investors, the mortgage broker shall include in eachsuch advertisement a statement of disclosure in substantially the followingform:

 

Money invested through a mortgagebroker is not guaranteed to earn any interest or return and is not insured.

 

2. A mortgage broker shall include in eachadvertisement that the mortgage broker uses in carrying on his business anystatements of disclosure required pursuant to the regulations adopted by theCommissioner or required pursuant to an order of the Commissioner entered inaccordance with subsections 7 and 8 of NRS645B.185.

3. Each mortgage broker shall submit any proposedadvertisement that the mortgage broker intends to use in carrying on hisbusiness to the Commissioner for approval.

4. In addition to the requirements set forth in thischapter, each advertisement that a mortgage broker uses in carrying on hisbusiness must comply with the requirements of:

(a) NRS 598.0903to 598.0999, inclusive, concerningdeceptive trade practices; and

(b) Any applicable federal statute or regulationconcerning deceptive advertising and the advertising of interest rates.

5. If a mortgage broker violates any provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptivetrade practices or any federal statute or regulation concerning deceptiveadvertising or the advertising of interest rates, in addition to any sanctionor penalty imposed by state or federal law upon the mortgage broker for theviolation, the Commissioner may take any disciplinary action set forth in subsection2 of NRS 645B.670 against the mortgagebroker.

6. The Commissioner may adopt any regulations that arenecessary to carry out the provisions of this section.

(Added to NRS by 1985, 2185; A 1987, 1886; 1999, 3799; 2001, 2470)

NRS 645B.196 Liabilityof advertising spokesperson for mortgage broker for certain damages.

1. An advertising spokesperson for a mortgage brokeris jointly and severally liable with the mortgage broker for damages caused bythe mortgage broker by fraud, embezzlement, misappropriation of property, aviolation of the provisions of this chapter or the regulations adopted pursuantthereto, or an action of the mortgage broker that is grounds for disciplinaryaction, if:

(a) The advertising spokesperson knew or should haveknown of the fraud, embezzlement, misappropriation of property, violation ofthe provisions of this chapter or the regulations adopted pursuant thereto, oraction of the mortgage broker that is grounds for disciplinary action; or

(b) In advertising for the mortgage broker, theadvertising spokesperson knew or should have known that:

(1) The conduct of the advertising spokespersonwas likely to deceive, defraud or harm the public or any person who engaged inbusiness with the mortgage broker; or

(2) The advertising spokesperson wasdisseminating material information concerning the mortgage broker or thebusiness, products or services of the mortgage broker which was false ormisleading.

2. As used in this section:

(a) Advertising for a mortgage broker meansadvertising or otherwise promoting a mortgage broker or the business, productsor services of the mortgage broker using any medium of communication.

(b) Advertising spokesperson for a mortgage broker oradvertising spokesperson means a person who consents to and receivescompensation for using his name or likeness in advertising for a mortgagebroker.

(Added to NRS by 2003, 3543)

LOAN PAYMENTS AND DEFAULTS

NRS 645B.240 Limitationson charging late fee, additional amount of interest or other penalty.

1. If a person is required to make a payment to amortgage broker pursuant to the terms of a loan secured by a lien on realproperty, the mortgage broker may not charge the person a late fee, anadditional amount of interest or any other penalty in connection with thatpayment if the payment is delivered to the mortgage broker before 5 p.m. on:

(a) The day that the payment is due pursuant to theterms of the loan, if an office of the mortgage broker is open to customersuntil 5 p.m. on that day; or

(b) The next day that an office of the mortgage brokeris open to customers until 5 p.m., if the provisions of paragraph (a) do nototherwise apply.

2. A person and a mortgage broker or mortgage agentmay not agree to alter or waive the provisions of this section by contract orother agreement, and any such contract or agreement is void and must not begiven effect to the extent that it violates the provisions of this section.

(Added to NRS by 1999, 3773)

NRS 645B.250 Prohibitionon advancing payments to investor on behalf of debtor in default; exceptions. Except pursuant to a contract for the collection orservicing of a loan which is governed by the requirements established by the GovernmentNational Mortgage Association, Federal Home Loan Mortgage Corporation orFederal National Mortgage Association, a mortgage broker or mortgage agentshall not advance payments to an investor on behalf of a person who hasobtained a loan secured by a lien on real property and who has defaulted in hispayments.

(Added to NRS by 1985, 2185; A 1989, 966; 1999, 3800)(Substitutedin revision for NRS 645B.191)

NRS 645B.260 Monthlyreport to Commissioner on delinquencies in payments and defaults; monthlynotice to investors; regulations.

1. If a mortgage broker maintains any accountsdescribed in subsection 4 of NRS 645B.175in which the mortgage broker deposits payments from a debtor on a loan securedby a lien on real property and, on the last day of any month, the debtor hasfailed to make two or more consecutive payments in accordance with the terms ofthe loan, the mortgage broker shall:

(a) Include in the report that the mortgage brokersubmits to the Commissioner pursuant to subsection 2 of NRS 645B.080 the information relating todelinquencies in payments and defaults that is required by the regulationsadopted pursuant to subsection 2;

(b) Not later than 15 days after the last day of eachsuch month, mail to the last known address of each investor who owns abeneficial interest in the loan a notice containing the information relating todelinquencies in payments and defaults that is required by the regulationsadopted pursuant to subsection 2; and

(c) Comply with the provisions of this section eachmonth on a continuing basis until:

(1) The debtor or his designee remedies thedelinquency in payments and any default; or

(2) The lien securing the loan is extinguished.

2. The Commissioner:

(a) Shall adopt regulations prescribing the informationrelating to delinquencies in payments and defaults that a mortgage broker mustinclude in his report to the commissioner and in the notice mailed to investorspursuant to subsection 1. Such regulations may provide for variations betweenthe information that a mortgage broker must include in his report to theCommissioner and the information that a mortgage broker must include in thenotice mailed to investors.

(b) May adopt any other regulations that are necessaryto carry out the provisions of this section.

(Added to NRS by 1999, 3773)

CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS

NRS 645B.300 Writtenappraisal of real property required; persons authorized to perform appraisal;retention and inspection of appraisal; exceptions.

1. Except as otherwise provided in subsection 4, amortgage broker or mortgage agent shall not accept money from an investor toacquire ownership of or a beneficial interest in a loan secured by a lien onreal property, unless the mortgage broker has obtained a written appraisal ofthe real property securing the loan.

2. The written appraisal of the real property:

(a) Must be performed by an appraiser who is authorizedto perform appraisals in this state; and

(b) Must not be performed by the mortgage broker or amortgage agent, unless the mortgage broker or mortgage agent is certified or licensedto perform such an appraisal pursuant to chapter645C of NRS.

3. A copy of the written appraisal of the realproperty must be:

(a) Maintained at each office of the mortgage brokerwhere money is accepted from an investor to acquire ownership of or abeneficial interest in a loan secured by a lien on the real property; and

(b) Made available during normal business hours forinspection by each such investor and the Commissioner.

4. A mortgage broker is not required to obtain awritten appraisal of the real property pursuant to this section if the mortgagebroker obtains a written waiver of the appraisal from each investor whoacquires ownership of or a beneficial interest in a loan secured by a lien onthe real property. A mortgage broker or mortgage agent shall not act as theattorney-in-fact or the agent of an investor with respect to the giving of awritten waiver pursuant to this subsection.

5. As used in this section, appraisal has themeaning ascribed to it in NRS 645C.030.

(Added to NRS by 1999, 3772)

NRS 645B.310 Requirementsfor mortgage broker to assign interest in loan. Amortgage broker shall not assign all or a part of his interest in a loan securedby a lien on real property, unless the mortgage broker:

1. Obtains a policy of title insurance for the realproperty; and

2. Records the assignment in the office of the countyrecorder of the county in which the real property is located.

(Added to NRS by 1985, 2185; A 1999, 3800)(Substitutedin revision for NRS 645B.193)

NRS 645B.320 Copyof recorded deed of trust must be mailed to each investor. If money from an investor is released to a debtor or hisdesignee pursuant to subsection 2 of NRS645B.175 upon completion of a loan secured by a lien on real property, themortgage broker that arranged the loan shall, not later than 3 business daysafter the date on which the mortgage broker receives a copy of the recordeddeed of trust, mail to the last known address of each investor who owns abeneficial interest in the loan a copy of the recorded deed of trust.

(Added to NRS by 1999, 3773)

NRS 645B.330 Limitationson use of power of attorney.

1. A mortgage broker or mortgage agent shall notengage in any act or transaction on behalf of a private investor pursuant to apower of attorney unless:

(a) The power of attorney is executed for the solepurpose of providing services for not more than one specific loan in which theprivate investor owns a beneficial interest; and

(b) The provisions of the power of attorney:

(1) Have been approved by the Commissioner;

(2) Expressly prohibit the mortgage broker andhis mortgage agents from engaging in any act or transaction that subordinatesthe priority of a recorded deed of trust unless, before such an act ortransaction, the mortgage broker obtains written approval for the subordinationfrom the private investor;

(3) Expressly prohibit the mortgage broker andhis mortgage agents from using or releasing any money in which the privateinvestor owns a beneficial interest with regard to the specific loan for apurpose that is not directly related to providing services for the loan unless,before any such money is used or released for another purpose, the mortgagebroker obtains written approval from the private investor to use or release themoney for the other purpose; and

(4) Expressly provide that the power of attorneyis effective only for the term of the specific loan unless the mortgage brokerobtains written approval from the private investor to extend the term of thepower of attorney to provide services for not more than one other loan and the writtenapproval:

(I) Identifies the loan for which thepower of attorney was executed; and

(II) Identifies the loan for which thewritten approval is being given.

2. A mortgage broker or mortgage agent shall not actas the attorney-in-fact or the agent of a private investor with respect to thegiving of written approval pursuant to paragraph (b) of subsection 1. A privateinvestor and a mortgage broker or mortgage agent may not agree to alter orwaive the provisions of this section by contract or other agreement. Any suchcontract or agreement is void and must not be given effect to the extent thatit violates the provisions of this section.

3. Except as otherwise provided in subsection 4, apower of attorney which designates a mortgage broker or mortgage agent as theattorney-in-fact or the agent of a private investor and which violates theprovisions of this section is void and must not be given effect with regard toany act or transaction that occurs on or after October 1, 1999, whether or notthe power of attorney is or has been executed by the private investor before,on or after October 1, 1999.

4. The provisions of subsection 3 do not apply to apower of attorney that designates a mortgage broker or mortgage agent as theattorney-in-fact or the agent of a private investor if the power of attorney:

(a) Was executed before July 1, 2001; and

(b) Complied with the provisions of this section thatwere in effect on October 1, 1999.

5. The provisions of this section do not limit theright of a private investor to include provisions in a power of attorney thatare more restrictive than the provisions set forth in subsection 1.

(Added to NRS by 1999, 3774; A 2001, 2471)

LICENSING AND REGULATION OF MORTGAGE AGENTS

NRS 645B.400 Licenserequired. A person shall not act as or provideany of the services of a mortgage agent or otherwise engage in, carry on orhold himself out as engaging in or carrying on the activities of a mortgageagent unless the person has a license as a mortgage agent issued pursuant to NRS 645B.410.

(Added to NRS by 2003, 3543)

NRS 645B.410 Qualificationsand procedure for issuance of license; fees.

1. To obtain a license as a mortgage agent, a personmust:

(a) Be a natural person;

(b) File a written application for a license as amortgage agent with the Office of the Commissioner;

(c) Comply with the applicable requirements of thischapter; and

(d) Pay an application fee set by the Commissioner ofnot more than $185.

2. An application for a license as a mortgage agentmust:

(a) Be verified;

(b) State the name and residence address of theapplicant;

(c) Include a provision by which the applicant giveshis written consent to an investigation of his credit history, criminal historyand background;

(d) Include a complete set of fingerprints which theDivision may forward to the Central Repository for Nevada Records of CriminalHistory for submission to the Federal Bureau of Investigation for its report;

(e) Include a verified statement from the mortgagebroker with whom the applicant will be associated that expresses the intent ofthat mortgage broker to associate the applicant with the mortgage broker and tobe responsible for the activities of the applicant as a mortgage agent; and

(f) Include any other information or supportingmaterials required pursuant to the regulations adopted by the Commissioner orby an order of the Commissioner. Such information or supporting materials mayinclude, without limitation, other forms of identification of the person.

3. Except as otherwise provided in this chapter, theCommissioner shall issue a license as a mortgage agent to an applicant if:

(a) The application complies with the applicablerequirements of this chapter; and

(b) The applicant:

(1) Has not been convicted of, or entered a pleaof nolo contendere to, a felony relating to the practice of mortgage agents orany crime involving fraud, misrepresentation or moral turpitude;

(2) Has not had a financial services licensesuspended or revoked within the immediately preceding 10 years;

(3) Has not made a false statement of materialfact on his application;

(4) Has not violated any provision of thischapter or chapter 645E of NRS, a regulationadopted pursuant thereto or an order of the Commissioner; and

(5) Has a good reputation for honesty,trustworthiness and integrity and displays competence to transact the businessof a mortgage agent in a manner which safeguards the interests of the generalpublic. The applicant must submit satisfactory proof of these qualifications tothe Commissioner.

4. Money received by the Commissioner pursuant to thissection must be deposited in the Fund for Mortgage Lending created by NRS 645F.270.

(Added to NRS by 2003, 3543)

NRS 645B.420 Paymentof child support: Submission of certain information by applicant; grounds fordenial of license; duty of Commissioner. [Effective until the date of therepeal of the federal law requiring each state to establish procedures forwithholding, suspending and restricting the professional, occupational andrecreational licenses for child support arrearages and for noncompliance withcertain processes relating to paternity or child support proceedings.]

1. Inaddition to any other requirements set forth in this chapter:

(a) Anapplicant for the issuance of a license as a mortgage agent pursuant to thischapter shall include the social security number of the applicant in theapplication submitted to the Commissioner.

(b) An applicant for the issuance or renewal of alicense as a mortgage agent pursuant to this chapter shall submit to theCommissioner the statement prescribed by the Division of Welfare and SupportiveServices of the Department of Health and Human Services pursuant to NRS 425.520. The statement must becompleted and signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of a license as a mortgage agent; or

(b) A separate form prescribed by the Commissioner.

3. The license as a mortgage agent may not be issuedor renewed by the Commissioner if the applicant:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 2003, 3545; A 2005, 2785, 2817)

NRS 645B.420 Payment of child support: Submissionof certain information by applicant; grounds for denial of license; duty ofCommissioner. [Effective on the date of the repeal of the federal law requiringeach state to establish procedures for withholding, suspending and restrictingthe professional, occupational and recreational licenses for child supportarrearages and for noncompliance with certain processes relating to paternityor child support proceedings and expires by limitation 2 years after thatdate.]

1. In addition to any other requirements set forth inthis chapter, an applicant for the issuance or renewal of a license as amortgage agent pursuant to this chapter shall submit to the Commissioner thestatement prescribed by the Division of Welfare and Supportive Services of theDepartment of Health and Human Services pursuant to NRS 425.520. The statement must becompleted and signed by the applicant.

2. The Commissioner shall include the statementrequired pursuant to subsection 1 in:

(a) The application or any other forms that must besubmitted for the issuance or renewal of a license as a mortgage agent; or

(b) A separate form prescribed by the Commissioner.

3. The license as a mortgage agent may not be issuedor renewed by the Commissioner if the applicant:

(a) Fails to submit the statement required pursuant tosubsection 1; or

(b) Indicates on the statement submitted pursuant tosubsection 1 that he is subject to a court order for the support of a child andis not in compliance with the order or a plan approved by the district attorneyor other public agency enforcing the order for the repayment of the amount owedpursuant to the order.

4. If an applicant indicates on the statementsubmitted pursuant to subsection 1 that he is subject to a court order for thesupport of a child and is not in compliance with the order or a plan approvedby the district attorney or other public agency enforcing the order for therepayment of the amount owed pursuant to the order, the Commissioner shalladvise the applicant to contact the district attorney or other public agencyenforcing the order to determine the actions that the applicant may take tosatisfy the arrearage.

(Added to NRS by 2003, 3545; A 2005, 2785, 2786, 2817, effective onthe date of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional,occupational and recreational licenses for child support arrearages and fornoncompliance with certain processes relating to paternity or child supportproceedings)

NRS 645B.430 Annualexpiration of license; procedure for renewal; continuing education; fees.

1. A license as a mortgage agent issued pursuant to NRS 645B.410 expires 1 year after thedate the license is issued, unless it is renewed. To renew a license as amortgage agent, the holder of the license must submit to the Commissioner eachyear, on or before the date the license expires:

(a) An application for renewal;

(b) Except as otherwise provided in this section,satisfactory proof that the holder of the license as a mortgage agent attendedat least 10 hours of certified courses of continuing education during the 12months immediately preceding the date on which the license expires; and

(c) A renewal fee set by the Commissioner of not morethan $170.

2. If the holder of the license as a mortgage agentfails to submit any item required pursuant to subsection 1 to the Commissionereach year on or before the date the license expires, the license is cancelled.The Commissioner may reinstate a cancelled license if the holder of the licensesubmits to the Commissioner:

(a) An application for renewal;

(b) The fee required to renew the license pursuant tothis section; and

(c) A reinstatement fee of $75.

3. To be issued a duplicate copy of a license as amortgage agent, a person must make a satisfactory showing of its loss and pay afee of $10.

4. To change the mortgage broker with whom themortgage agent is associated, a person must pay a fee of $10.

5. Money received by the Commissioner pursuant to thissection must be deposited in the Fund for Mortgage Lending created by NRS 645F.270.

6. The Commissioner may provide by regulation that anyhours of a certified course of continuing education attended during a 12-monthperiod, but not needed to satisfy a requirement set forth in this section forthe 12-month period in which the hours were taken, may be used to satisfy arequirement set forth in this section for a later 12-month period.

7. As used in this section, certified course ofcontinuing education has the meaning ascribed to it in NRS 645B.051.

(Added to NRS by 2003, 3544)

NRS 645B.450 Conditionsand limitations regarding employment of or association with mortgage agent;duties of mortgage broker upon termination of mortgage agent.

1. A person licensed as a mortgage agent pursuant tothe provisions of NRS 645B.410 may notbe associated with or employed by more than one mortgage broker at the sametime.

2. A mortgage broker shall not associate with oremploy a person as a mortgage agent or authorize a person to be associated withthe mortgage broker as a mortgage agent if the mortgage agent is not licensedwith the Division pursuant to NRS 645B.410.

3. If a mortgage agent terminates his association oremployment with a mortgage broker for any reason, the mortgage broker shall,not later than the third business day following the date of termination:

(a) Deliver to the mortgage agent or send by certifiedmail to the last known residence address of the mortgage agent a writtenstatement which advises him that his termination is being reported to theDivision; and

(b) Deliver or send by certified mail to the Division:

(1) The license or license number of themortgage agent;

(2) A written statement of the circumstancessurrounding the termination; and

(3) A copy of the written statement that themortgage broker delivers or mails to the mortgage agent pursuant to paragraph(a).

(Added to NRS by 1999, 3769; A 2001, 2472; 2003, 2723, 2863, 3552)

NRS 645B.460 Supervisionby mortgage broker; requirements; regulations.

1. A mortgage broker shall exercise reasonablesupervision over the activities of his mortgage agents. Such reasonablesupervision must include, as appropriate:

(a) The establishment of written or oral policies andprocedures for his mortgage agents; and

(b) The establishment of a system to review, overseeand inspect the activities of his mortgage agents, including, withoutlimitation:

(1) Transactions handled by his mortgage agentspursuant to this chapter;

(2) Communications between his mortgage agentsand a party to such a transaction;

(3) Documents prepared by his mortgage agentsthat may have a material effect upon the rights or obligations of a party tosuch a transaction; and

(4) The handling by his mortgage agents of anyfee, deposit or money paid to the mortgage broker or his mortgage agents orheld in trust by the mortgage broker or his mortgage agents pursuant to thischapter.

2. The Commissioner shall allow a mortgage broker totake into consideration the total number of mortgage agents associated with oremployed by the mortgage broker when the mortgage broker determines the formand extent of the policies and procedures for those mortgage agents and thesystem to review, oversee and inspect the activities of those mortgage agents.

3. The Commissioner may adopt regulations prescribingstandards for determining whether a mortgage broker has exercised reasonablesupervision over the activities of a mortgage agent pursuant to this section.

(Added to NRS by 1999, 3769; A 2001, 2473)

RIGHTS OF BROKERS AND AGENTS DURING MILITARY SERVICE

NRS 645B.490 Rightto be placed on inactive status; procedure for reinstatement.

1. Any mortgage broker or mortgage agent licensedunder the provisions of this chapter who is called into the military service ofthe United States shall, at his request, be relieved from compliance with theprovisions of this chapter and placed on inactive status for the period of suchmilitary service and for a period of 6 months after discharge therefrom.

2. At any time within 6 months after termination ofsuch service, if the mortgage broker or mortgage agent complies with theprovisions of subsection 1, the mortgage broker or mortgage agent may bereinstated, without having to meet any qualification or requirement other thanthe payment of the reinstatement fee, as provided in NRS 645B.050 or 645B.430, and the mortgage broker ormortgage agent is not required to make payment of the renewal fee for thecurrent year.

3. Any mortgage broker or mortgage agent seeking toqualify for reinstatement, as provided in subsections 1 and 2, must present acertified copy of his honorable discharge or certificate of satisfactoryservice to the Commissioner.

(Added to NRS by 2003, 3545)

INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIALACTION

NRS 645B.600 Personmay file complaint alleging violation; requirements.

1. A person may file with the Commissioner a complaintalleging that another person has violated a provision of this chapter, aregulation adopted pursuant to this chapter or an order of the Commissioner.

2. A complaint filed pursuant to this section must:

(a) Be in writing;

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

(c) Contain an address and a telephone number for theperson filing the complaint or the authorized representative of the personfiling the complaint;

(d) Describe the nature of the alleged violation in asmuch detail as possible;

(e) Include as exhibits copies of all documentationsupporting the complaint; and

(f) Include any other information or supportingmaterials required by the regulations adopted by the Commissioner or by anorder of the Commissioner.

(Added to NRS by 1999, 3775; A 2001, 2474)

NRS 645B.610 Dutiesof Commissioner when complaint is filed.

1. If a person properly files a complaint with theCommissioner pursuant to NRS 645B.600,the Commissioner shall investigate each violation alleged in the complaint,unless the Commissioner has previously investigated the alleged violation.

2. Except as otherwise provided in subsection 2 of NRS 645B.090, if the Commissioner doesnot conduct an investigation of an alleged violation pursuant to subsection 1because he previously has investigated the alleged violation, the Commissionershall provide to the person who filed the complaint a written summary of theprevious investigation and the nature of any disciplinary action that was takenas a result of the previous investigation.

3. If the Commissioner conducts an investigation of analleged violation pursuant to subsection 1, the Commissioner shall determinefrom the investigation whether there is reasonable cause to believe that theperson committed the alleged violation.

4. If, upon investigation, the Commissioner determinesthat there is not reasonable cause to believe that the person committed thealleged violation, the Commissioner shall provide the reason for his determination,in writing, to the person who filed the complaint and to the person alleged tohave committed the violation.

5. Except as otherwise provided in subsection 6, if,upon investigation, the Commissioner determines that there is reasonable causeto believe that the person committed the alleged violation, the Commissionershall:

(a) Schedule a hearing concerning the allegedviolation;

(b) Mail to the last known address of the person whofiled the complaint written notice that must include, without limitation:

(1) The date, time and place of the hearing; and

(2) A statement of each alleged violation thatwill be considered at the hearing; and

(c) By personal service in accordance with the NevadaRules of Civil Procedure and any applicable provision of NRS, serve writtennotice of the hearing to the person alleged to have committed the violation.The written notice that is served pursuant to this paragraph must include,without limitation:

(1) The date, time and place of the hearing;

(2) A copy of the complaint and a statement ofeach alleged violation that will be considered at the hearing; and

(3) A statement informing the person that,pursuant to NRS 645B.760, if he fails toappear, without reasonable cause, at the hearing:

(I) He is guilty of a misdemeanor; and

(II) The Commissioner is authorized toconduct the hearing in his absence, draw any conclusions that the Commissionerdeems appropriate from his failure to appear and render a decision concerningeach alleged violation.

6. If the Commissioner enters into a written consentagreement settling or resolving the alleged violation, the Commissioner shallprovide a copy of the written consent agreement to the person who filed thecomplaint.

7. The Commissioner may:

(a) Investigate and conduct a hearing concerning anyalleged violation, whether or not a complaint has been filed.

(b) Hear and consider more than one alleged violationagainst a person at the same hearing.

(Added to NRS by 1999, 3775; A 2003, 3469)

NRS 645B.620 Dutiesof Commissioner when violation is suspected; referral of violations to AttorneyGeneral for criminal prosecution; civil action for injunctive relief.

1. Whether or not a complaint has been filed, theCommissioner shall investigate a mortgage broker, mortgage agent or other personif, for any reason, it appears that:

(a) The mortgage broker or mortgage agent is conductingbusiness in an unsafe and injurious manner or in violation of any provision ofthis chapter, a regulation adopted pursuant to this chapter or an order of theCommissioner;

(b) The person is offering or providing any of theservices of a mortgage broker or mortgage agent or otherwise engaging in,carrying on or holding himself out as engaging in or carrying on the businessof a mortgage broker or mortgage agent without being appropriately licensed orexempt from licensing pursuant to the provisions of this chapter; or

(c) The person is violating any other provision of thischapter, a regulation adopted pursuant to this chapter or an order of theCommissioner.

2. If, upon investigation, the Commissioner hasreasonable cause to believe that the mortgage broker, mortgage agent or otherperson has engaged in any conduct or committed any violation described insubsection 1:

(a) The Commissioner shall notify the Attorney Generalof the conduct or violation and, if applicable, the Commissioner shallimmediately take possession of the property of the mortgage broker pursuant to NRS 645B.630; and

(b) The Attorney General shall, if appropriate:

(1) Investigate and prosecute the mortgagebroker, mortgage agent or other person pursuant to NRS 645B.800; and

(2) Bring a civil action to:

(I) Enjoin the mortgage broker, mortgageagent or other person from engaging in the conduct, operating the business orcommitting the violation; and

(II) Enjoin any other person who hasencouraged, facilitated, aided or participated in the conduct, the operation ofthe business or the commission of the violation, or who is likely to engage insuch acts, from engaging in or continuing to engage in such acts.

3. If the Attorney General brings a civil actionpursuant to subsection 2, the district court of any county of this State ishereby vested with the jurisdiction in equity to enjoin the conduct, theoperation of the business or the commission of the violation and may grant anyinjunctions that are necessary to prevent and restrain the conduct, theoperation of the business or the commission of the violation. During thependency of the proceedings before the district court:

(a) The court may issue any temporary restrainingorders as may appear to be just and proper;

(b) The findings of the Commissioner shall be deemed tobe prima facie evidence and sufficient grounds, in the discretion of the court,for the ex parte issuance of a temporary restraining order; and

(c) The Attorney General may apply for and on dueshowing is entitled to have issued the courts subpoena requiring forthwith theappearance of any person to:

(1) Produce any documents, books and records asmay appear necessary for the hearing of the petition; and

(2) Testify and give evidence concerning theconduct complained of in the petition.

(Added to NRS by 1973, 1540; A 1983, 1705; 1987,1882; 1999, 3790;2003, 3554)

NRS 645B.630 Dutiesof Commissioner when unsafe condition or practice is suspected; seizure ofproperty and assets of mortgage broker; duties of Attorney General.

1. In addition to any other action that is required orpermitted pursuant to this chapter, if the Commissioner has reasonable cause tobelieve that:

(a) The assets or capital of a mortgage broker areimpaired; or

(b) A mortgage broker is conducting business in anunsafe and injurious manner that may result in danger to the public,

the Commissionershall immediately take possession of all the property, business and assets ofthe mortgage broker that are located in this State and shall retain possessionof them pending further proceedings provided for in this chapter.

2. If the licensee, the board of directors or anyofficer or person in charge of the offices of the mortgage broker refuses topermit the Commissioner to take possession of the property of the mortgagebroker pursuant to subsection 1:

(a) The Commissioner shall notify the Attorney General;and

(b) The Attorney General shall immediately bring suchproceedings as may be necessary to place the Commissioner in immediatepossession of the property of the mortgage broker.

3. If the Commissioner takes possession of theproperty of the mortgage broker, the Commissioner shall:

(a) Make or have made an inventory of the assets andknown liabilities of the mortgage broker;

(b) File one copy of the inventory in his office andone copy in the office of the clerk of the district court of the county inwhich the principal office of the mortgage broker is located and shall mail onecopy to each stockholder, partner, officer, director or associate of themortgage broker at his last known address; and

(c) If the mortgage broker maintains any accountsdescribed in NRS 645B.175, not laterthan 5 business days after the date on which the Commissioner takes possessionof the property of the mortgage broker, mail notice of his possession to thelast known address of each person whose money is deposited in such an accountor whose money was or should have been deposited in such an account during thepreceding 12 months.

4. The clerk of the court with which the copy of theinventory is filed shall file it as any other case or proceeding pending in thecourt and shall give it a docket number.

(Added to NRS by 1973, 1541; A 1981, 1790; 1983,1707; 1987, 1883; 1999,3791)(Substituted in revision for NRS 645B.150)

NRS 645B.640 Personsentitled to correct unsafe conditions and practices; effect of failure tocorrect; receivership and liquidation of assets.

1. If the Commissioner takes possession of theproperty of a mortgage broker pursuant to NRS645B.630, the licensee, officers, directors, partners, associates orstockholders of the mortgage broker may, within 60 days after the date on whichthe Commissioner takes possession of the property, make good any deficit in theassets or capital of the mortgage broker or remedy any unsafe and injuriousconditions or practices of the mortgage broker.

2. At the expiration of the 60-day period, if thedeficiency in assets or capital has not been made good or the unsafe andinjurious conditions or practices remedied, the Commissioner may apply to thecourt to be appointed receiver and proceed to liquidate the assets of themortgage broker which are located in this State in the same manner as nowprovided by law for liquidation of a private corporation in receivership.

3. No other person may be appointed receiver by anycourt without first giving the Commissioner ample notice of his application.

4. The inventory made by the Commissioner and allclaims filed by creditors are open at all reasonable times for inspection, andany action taken by the receiver upon any of the claims is subject to theapproval of the court before which the cause is pending.

5. The expenses of the receiver and compensation ofcounsel, as well as all expenditures required in the liquidation proceedings,must be fixed by the Commissioner subject to the approval of the court and,upon certification of the Commissioner, must be paid out of the money in hishands as the receiver.

(Added to NRS by 1973, 1542; A 1983, 1707; 1987,1884; 1999, 3792)(Substitutedin revision for NRS 645B.160)

DISCIPLINARY ACTION

NRS 645B.670 Authorizeddisciplinary action; grounds for disciplinary action. Exceptas otherwise provided in NRS 645B.690:

1. For each violation committed by an applicant for alicense issued pursuant to this chapter, whether or not he is issued a license,the Commissioner may impose upon the applicant an administrative fine of notmore than $10,000, if the applicant:

(a) Has knowingly made or caused to be made to theCommissioner any false representation of material fact;

(b) Has suppressed or withheld from the Commissionerany information which the applicant possesses and which, if submitted by him,would have rendered the applicant ineligible to be licensed pursuant to theprovisions of this chapter; or

(c) Has violated any provision of this chapter, aregulation adopted pursuant to this chapter or an order of the Commissioner incompleting and filing his application for a license or during the course of theinvestigation of his application for a license.

2. For each violation committed by a mortgage broker,the Commissioner may impose upon the mortgage broker an administrative fine ofnot more than $10,000, may suspend, revoke or place conditions upon his license,or may do both, if the mortgage broker, whether or not acting as such:

(a) Is insolvent;

(b) Is grossly negligent or incompetent in performingany act for which he is required to be licensed pursuant to the provisions ofthis chapter;

(c) Does not conduct his business in accordance withlaw or has violated any provision of this chapter, a regulation adoptedpursuant to this chapter or an order of the Commissioner;

(d) Is in such financial condition that he cannotcontinue in business with safety to his customers;

(e) Has made a material misrepresentation in connectionwith any transaction governed by this chapter;

(f) Has suppressed or withheld from a client anymaterial facts, data or other information relating to any transaction governedby the provisions of this chapter which the mortgage broker knew or, by theexercise of reasonable diligence, should have known;

(g) Has knowingly made or caused to be made to theCommissioner any false representation of material fact or has suppressed orwithheld from the Commissioner any information which the mortgage brokerpossesses and which, if submitted by him, would have rendered the mortgagebroker ineligible to be licensed pursuant to the provisions of this chapter;

(h) Has failed to account to persons interested for allmoney received for a trust account;

(i) Has refused to permit an examination by theCommissioner of his books and affairs or has refused or failed, within areasonable time, to furnish any information or make any report that may berequired by the Commissioner pursuant to the provisions of this chapter or aregulation adopted pursuant to this chapter;

(j) Has been convicted of, or entered a plea of nolocontendere to, a felony relating to the practice of mortgage brokers or anycrime involving fraud, misrepresentation or moral turpitude;

(k) Has refused or failed to pay, within a reasonabletime, any fees, assessments, costs or expenses that the mortgage broker isrequired to pay pursuant to this chapter or a regulation adopted pursuant tothis chapter;

(l) Has failed to satisfy a claim made by a clientwhich has been reduced to judgment;

(m) Has failed to account for or to remit any money ofa client within a reasonable time after a request for an accounting orremittal;

(n) Has commingled the money or other property of aclient with his own or has converted the money or property of others to his ownuse;

(o) Has engaged in any other conduct constituting adeceitful, fraudulent or dishonest business practice;

(p) Has repeatedly violated the policies and proceduresof the mortgage broker;

(q) Has failed to exercise reasonable supervision overthe activities of a mortgage agent as required by NRS 645B.460;

(r) Has instructed a mortgage agent to commit an actthat would be cause for the revocation of the license of the mortgage broker,whether or not the mortgage agent commits the act;

(s) Has employed a person as a mortgage agent orauthorized a person to be associated with the mortgage broker as a mortgageagent at a time when the mortgage broker knew or, in light of all thesurrounding facts and circumstances, reasonably should have known that theperson:

(1) Had been convicted of, or entered a plea ofnolo contendere to, a felony relating to the practice of mortgage agents or anycrime involving fraud, misrepresentation or moral turpitude; or

(2) Had a financial services license orregistration suspended or revoked within the immediately preceding 10 years;

(t) Has failed to pay a tax as required pursuant to theprovisions of chapter 363A of NRS; or

(u) Has not conducted verifiable business as a mortgagebroker for 12 consecutive months, except in the case of a new applicant. TheCommissioner shall determine whether a mortgage broker is conducting businessby examining the monthly reports of activity submitted by the mortgage brokeror by conducting an examination of the mortgage broker.

3. For each violation committed by a mortgage agent,the Commissioner may impose upon the mortgage agent an administrative fine ofnot more than $10,000, may suspend, revoke or place conditions upon hislicense, or may do both, if the mortgage agent, whether or not acting as such:

(a) Is grossly negligent or incompetent in performingany act for which he is required to be licensed pursuant to the provisions ofthis chapter;

(b) Has made a material misrepresentation in connectionwith any transaction governed by this chapter;

(c) Has suppressed or withheld from a client anymaterial facts, data or other information relating to any transaction governedby the provisions of this chapter which the mortgage agent knew or, by theexercise of reasonable diligence, should have known;

(d) Has knowingly made or caused to be made to theCommissioner any false representation of material fact or has suppressed orwithheld from the Commissioner any information which the mortgage agentpossesses and which, if submitted by him, would have rendered the mortgageagent ineligible to be licensed pursuant to the provisions of this chapter;

(e) Has been convicted of, or entered a plea of nolocontendere to, a felony relating to the practice of mortgage agents or anycrime involving fraud, misrepresentation or moral turpitude;

(f) Has failed to account for or to remit any money ofa client within a reasonable time after a request for an accounting orremittal;

(g) Has commingled the money or other property of aclient with his own or has converted the money or property of others to his ownuse;

(h) Has engaged in any other conduct constituting adeceitful, fraudulent or dishonest business practice;

(i) Has repeatedly violated the policies and proceduresof the mortgage broker with whom he is associated or by whom he is employed; or

(j) Has violated any provision of this chapter, aregulation adopted pursuant to this chapter or an order of the Commissioner orhas assisted or offered to assist another person to commit such a violation.

(Added to NRS by 1973, 1539; A 1977, 93; 1981, 1790;1983, 1380, 1704; 1985, 2188; 1987, 1880; 1993, 498; 1999, 3787; 2001, 2474; 2003, 2724, 3555; 2003, 20thSpecial Session, 221, 258)

NRS 645B.680 Suspensionof license for failure to pay child support or comply with certain subpoenas orwarrants; reinstatement of license. [Expires by limitation 2 years after thedate of the repeal of the federal law requiring each state to establishprocedures for withholding, suspending and restricting the professional, occupationaland recreational licenses for child support arrearages and for noncompliancewith certain processes relating to paternity or child support proceedings.]

1. If the Commissioner receives a copy of a courtorder issued pursuant to NRS 425.540that provides for the suspension of all professional, occupational and recreationallicenses, certificates and permits issued to a person who is the holder of a licenseas a mortgage broker or mortgage agent, the Commissioner shall deem the licenseissued to that person to be suspended at the end of the 30th day after the dateon which the court order was issued unless the Commissioner receives a letterissued to the holder of the license by the district attorney or other publicagency pursuant to NRS 425.550 statingthat the holder of the license has complied with the subpoena or warrant or hassatisfied the arrearage pursuant to NRS425.560.

2. The Commissioner shall reinstate a license as amortgage broker or mortgage agent that has been suspended by a district courtpursuant to NRS 425.540 if theCommissioner receives a letter issued by the district attorney or other publicagency pursuant to NRS 425.550 to theperson whose license was suspended stating that the person whose license wassuspended has complied with the subpoena or warrant or has satisfied thearrearage pursuant to NRS 425.560.

(Added to NRS by 1997, 2171; A 1999, 3789; 2003, 3556; 2005, 2807, 2810, 2817)

NRS 645B.690 Dutyof Commissioner to take disciplinary action for certain violations.

1. If a person offers or provides any of the servicesof a mortgage broker or mortgage agent or otherwise engages in, carries on orholds himself out as engaging in or carrying on the business of a mortgagebroker or mortgage agent and, at the time:

(a) The person was required to have a license pursuantto this chapter and the person did not have such a license; or

(b) The persons license was suspended or revokedpursuant to this chapter,

theCommissioner shall impose upon the person an administrative fine of not morethan $10,000 for each violation and, if the person has a license, the Commissionershall revoke it.

2. If a mortgage broker violates any provision ofsubsection 1 of NRS 645B.080 and themortgage broker fails, without reasonable cause, to remedy the violation within20 business days after being ordered by the Commissioner to do so or withinsuch later time as prescribed by the Commissioner, or if the Commissionerorders a mortgage broker to provide information, make a report or permit anexamination of his books or affairs pursuant to this chapter and the mortgagebroker fails, without reasonable cause, to comply with the order within 20business days or within such later time as prescribed by the Commissioner, theCommissioner shall:

(a) Impose upon the mortgage broker an administrativefine of not more than $10,000 for each violation;

(b) Suspend or revoke the license of the mortgage broker;and

(c) Conduct a hearing to determine whether the mortgagebroker is conducting business in an unsafe and injurious manner that may resultin danger to the public and whether it is necessary for the Commissioner totake possession of the property of the mortgage broker pursuant to NRS 645B.630.

(Added to NRS by 1999, 3776; A 2003, 3557)

NRS 645B.700 Categorizationof major and minor violations; regulations.

1. Except as otherwise provided in subsection 2, foreach violation that may be committed by a person pursuant to this chapter orthe regulations adopted pursuant to this chapter, the Commissioner may adoptregulations:

(a) Categorizing the violation as a major violation ora minor violation; and

(b) Specifying the disciplinary action that will betaken by the Commissioner pursuant to this chapter against a person whocommits:

(1) A major violation. The disciplinary actiontaken by the Commissioner for a major violation may include, withoutlimitation, suspension or revocation of the persons license.

(2) More than two minor violations. TheCommissioner may establish graduated sanctions for a person who commits morethan two minor violations based upon the number, the frequency and the severityof the minor violations and whether the person previously has committed anymajor violations.

2. The provisions of this section do not apply to aviolation for which the Commissioner is required to take disciplinary action inaccordance with NRS 645B.690.

(Added to NRS by 1999, 3777; A 2001, 2476)

NRS 645B.710 Actor omission of partner, officer or director deemed act or omission ofpartnership, corporation or unincorporated association. If a person is a partnership, corporation orunincorporated association, the Commissioner shall take any disciplinary actionrequired pursuant to NRS 645B.690 andmay take any other disciplinary action set forth in this chapter against theperson if any member of the partnership or any officer or director of thecorporation or unincorporated association has committed any act or omissionthat would be cause for taking such disciplinary action against a naturalperson.

(Added to NRS by 1999, 3777)

NRS 645B.720 Authorityof Commissioner to order summary suspension of license and take other action toprotect public before conducting hearing. Beforeconducting a hearing, the Commissioner may, to the fullest extent permitted bythe Constitution of the United States and the Constitution of this State:

1. Order a summary suspension of a license pursuant tosubsection 3 of NRS 233B.127; and

2. Take any other action against a licensee or otherperson that is necessary to protect the health, safety or welfare of thepublic.

(Added to NRS by 1999, 3777)

HEARINGS; APPEALS

NRS 645B.750 Dutyof Commissioner to provide written notice of disciplinary action or denial oflicense; right to administrative hearing; entry of final order; appeals.

1. If the Commissioner enters an order taking anydisciplinary action against a person or denying a persons application for alicense, the Commissioner shall cause a written notice of the order to beserved personally or sent by certified mail or telegram to the person.

2. Unless a hearing has already been conductedconcerning the matter, the person, upon application, is entitled to a hearing.If the person does not make such an application within 20 days after the dateof the initial order, the Commissioner shall enter a final order concerning thematter.

3. A person may appeal a final order of theCommissioner in accordance with the provisions of chapter233B of NRS that apply to a contested case.

(Added to NRS by 1973, 1539; A 1983, 1705; 1987,1881; 1999, 3789;2003, 984)

NRS 645B.760 Effectof failure to appear at hearing; penalty. If aperson is alleged to have engaged in any conduct or committed any violationthat is described in NRS 645B.620, 645B.630 or 645B.670 or is alleged to have committeda violation of any other provision of this chapter, a regulation adoptedpursuant to this chapter or an order of the Commissioner, and the person failsto appear, without reasonable cause, at a hearing before the Commissionerconcerning the alleged conduct or violation:

1. The Commissioner shall notify the Attorney Generalthat the person failed to appear;

2. The person is guilty of a misdemeanor and shall bepunished as provided in NRS 645B.950;and

3. The Commissioner may conduct the hearing in thepersons absence, draw any conclusions that the Commissioner deems appropriatefrom his failure to appear and render a decision concerning the alleged conductor violation.

(Added to NRS by 1999, 3777)

ENFORCEMENT BY ATTORNEY GENERAL

NRS 645B.800 AttorneyGeneral has primary criminal jurisdiction; duty to provide Attorney Generalwith information to assist prosecution; penalty.

1. The Attorney General has primary jurisdiction forthe enforcement of this chapter. The Attorney General shall, if appropriate,investigate and prosecute a person who violates:

(a) Any provision of this chapter, a regulation adoptedpursuant to this chapter or an order of the Commissioner, including, withoutlimitation, a violation of any provision of NRS645B.620 or 645B.670; or

(b) Any other law or regulation if the violation iscommitted by the person in the course of committing a violation described inparagraph (a).

2. The Attorney General shall, if appropriate,investigate and prosecute a person who is alleged to have committed a violationdescribed in subsection 1 whether or not:

(a) The Commissioner notifies the Attorney General ofthe alleged violation;

(b) The Commissioner takes any disciplinary actionagainst the person alleged to have committed the violation;

(c) Any other person files a complaint against theperson alleged to have committed the violation; or

(d) A civil action is commenced against the personalleged to have committed the violation.

3. When acting pursuant to this section, the AttorneyGeneral may commence his investigation and file a criminal action without leaveof court, and the Attorney General has exclusive charge of the conduct of theprosecution.

4. Except as otherwise provided by the Constitution ofthe United States, the Constitution of this State or a specific statute, aperson shall, if requested, provide the Attorney General with information thatwould assist in the prosecution of any other person who is alleged to havecommitted a violation described in subsection 1. If a person fails, withoutreasonable cause, to provide the Attorney General with such information uponrequest, the person is guilty of a misdemeanor and shall be punished asprovided in NRS 645B.950.

(Added to NRS by 1999, 3778)

NRS 645B.810 AttorneyGeneral may bring civil action; recovery of costs in civil action.

1. The Attorney General may bring any appropriatecivil action against a person to enforce any provision of this chapter, aregulation adopted pursuant to this chapter or an order of the Commissioner,including, without limitation, an order of the Commissioner:

(a) Imposing an administrative fine; or

(b) Suspending, revoking or placing conditions upon alicense.

2. If the Attorney General prevails in any civilaction brought pursuant to this chapter, the court shall order the personagainst whom the civil action was brought to pay:

(a) Court costs; and

(b) Reasonable costs of the investigation andprosecution of the civil action.

3. Whether or not the Attorney General brings a civilaction against a person pursuant to this chapter, the Attorney General mayprosecute the person for a criminal violation pursuant to this chapter.

(Added to NRS by 1999, 3778)

ADVISORY COUNCIL ON MORTGAGE INVESTMENTS AND MORTGAGELENDING

NRS 645B.860 Creation;members; appointment; terms and vacancies; no compensation or per diemallowance; protections afforded members who are public officers or employees.

1. The Advisory Council on Mortgage Investments andMortgage Lending is hereby created.

2. The Advisory Council consists of five membersappointed by the Legislative Commission from a list of persons provided by theCommissioner.

3. The members of the Advisory Council:

(a) Must be persons who have experience with, aninterest in or a knowledge of issues relating to mortgage investments ormortgage lending. Such persons may include, without limitation, investors,public officers and employees, licensees and persons who have engaged in orbeen involved with any business, profession or occupation relating to mortgageinvestments or mortgage lending.

(b) Serve terms of 2 years and at the pleasure of theLegislative Commission.

(c) May be reappointed.

(d) Serve without compensation and may not receive aper diem allowance or travel expenses.

4. Any vacancy in the membership of the AdvisoryCouncil must be filled for the remainder of the unexpired term in the samemanner as the original appointment.

5. A member of the Advisory Council who is an officeror employee of this State or a political subdivision of this State must berelieved from his duties without loss of his regular compensation so that hemay prepare for and attend meetings of the Advisory Council and perform anywork necessary to carry out the duties of the Advisory Council in the mosttimely manner practicable. A state agency or political subdivision of thisState shall not require an officer or employee who is a member of the AdvisoryCouncil to make up the time he is absent from work to carry out his duties as amember of the Advisory Council or use annual vacation or compensatory time forthe absence.

6. Notwithstanding any other provision of law, amember of the Advisory Council:

(a) Is not disqualified from public employment orholding a public office because of his membership on the Advisory Council; and

(b) Does not forfeit his public office or publicemployment because of his membership on the Advisory Council.

(Added to NRS by 1999, 3766)

NRS 645B.865 Chairmanand Vice Chairman; meetings; quorum; subcommittees.

1. The members of the Advisory Council on MortgageInvestments and Mortgage Lending shall elect a Chairman and a Vice Chairmanfrom among their membership. The Vice Chairman shall perform the duties of theChairman during any absence of the Chairman.

2. The Advisory Council may meet at least once eachcalendar quarter and at other times on the call of the Chairman or a majorityof its members.

3. The meetings of the Advisory Council may be held atany location designated by the Chairman or a majority of its members.

4. A majority of the members of the Advisory Councilconstitutes a quorum for the transaction of all business.

5. The Chairman may appoint subcommittees of themembers of the Advisory Council to consider specific problems relating tomortgage investments or mortgage lending.

(Added to NRS by 1999, 3767)

NRS 645B.870 Purpose. The purpose of the Advisory Council on MortgageInvestments and Mortgage Lending is to:

1. Consult with, advise and make recommendations tothe Commissioner in all matters relating to mortgage investments and mortgagelending.

2. Make recommendations to the Legislature concerningthe enactment of any legislation relating to mortgage investments and mortgagelending.

3. Make recommendations to the Legislature and theCommissioner concerning educational requirements and other qualifications forpersons who are engaged in any business, profession or occupation relating tomortgage investments and mortgage lending.

4. Conduct hearings, conferences and special studieson all matters relating to mortgage investments and mortgage lending.

5. Provide a forum for the consideration anddiscussion of all matters relating to mortgage investments and mortgagelending.

6. Gather and disseminate information relating tomortgage investments and mortgage lending.

7. Engage in other activities that are designed topromote, improve and protect the reliability and stability of mortgageinvestments and mortgage lending in this State.

(Added to NRS by 1999, 3767)

UNLAWFUL ACTS; PENALTIES

NRS 645B.900 Unlawfulto conduct business of mortgage broker or mortgage agent without being licensedor exempt from licensing. It is unlawful forany person to offer or provide any of the services of a mortgage broker ormortgage agent or otherwise to engage in, carry on or hold himself out asengaging in or carrying on the business of a mortgage broker or mortgage agentwithout first obtaining the applicable license issued pursuant to this chapter,unless the person:

1. Is exempt from the provisions of this chapter; and

2. Complies with the requirements for that exemption.

(Added to NRS by 1973, 1536; A 1981, 1792; 1999, 3801; 2003, 3558)

NRS 645B.910 Unlawfulfor foreign corporation, association or business trust to conduct business ofmortgage broker without meeting certain requirements. Itis unlawful for any foreign corporation, association or business trust toconduct any business as a mortgage broker within this State, unless it:

1. Qualifies under chapter80 of NRS; and

2. Complies with the provisions of this chapter or, ifit claims an exemption from the provisions of this chapter, complies with therequirements for that exemption.

(Added to NRS by 1973, 1542; A 1999, 3801)(Substitutedin revision for NRS 645B.220)

NRS 645B.950 Penaltiesfor general violations.

1. Except as otherwise provided in NRS 645B.960, a person, or any generalpartner, director, officer, agent or employee of a person, who violates anyprovision of this chapter, a regulation adopted pursuant to this chapter or anorder of the Commissioner is guilty of a misdemeanor.

2. In addition to any other penalty, if a person isconvicted of or enters a plea of nolo contendere to a violation described insubsection 1, the court shall order the person to pay:

(a) Court costs; and

(b) Reasonable costs of the investigation andprosecution of the violation.

(Added to NRS by 1973, 1543; A 1981, 1792; 1999, 3802)(Substitutedin revision for NRS 645B.230)

NRS 645B.960 Penaltiesfor violations relating to escrow or trust accounts.

1. A person, or any general partner, director,officer, agent or employee of a person, who violates any provision of NRS 645B.165 to 645B.180, inclusive, is guilty of:

(a) A misdemeanor if the amount involved is less than$250;

(b) A gross misdemeanor if the amount involved is $250or more but less than $1,000; or

(c) A category D felony if the amount involved is$1,000 or more, and shall be punished as provided in NRS 193.130.

2. In addition to any other penalty, if a person isconvicted of or enters a plea of nolo contendere to a violation described insubsection 1, the court shall order the person to pay:

(a) Court costs; and

(b) Reasonable costs of the investigation andprosecution of the violation.

(Added to NRS by 1981, 1785; A 1985, 2191; 1989,1442; 1995, 1313; 1999,3801)(Substituted in revision for NRS 645B.225)

 

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