USA Statutes : nevada
Title : Title 54 - PROFESSIONS, OCCUPATIONS AND BUSINESSES
Chapter : CHAPTER 645B - MORTGAGE BROKERS AND MORTGAGE AGENTS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 645B.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 )
“Commissioner” means the
Commissioner of Mortgage Lending.
(Added to NRS by 1999, 3765 ; A 2003, 3546 )
“Construction
control” has the meaning ascribed to it in NRS 627.050 .
(Added to NRS by 1999, 3765 )
“Depository financial institution” means a bank, savings and loan
association, thrift company or credit union.
(Added to NRS by 1999, 3765 )
“Division” means the Division
of Mortgage Lending of the Department of Business and Industry.
(Added to NRS by 1999, 3765 ; A 2003, 3546 )
“Escrow agency” has the
meaning ascribed to it in NRS 645A.010 .
(Added to NRS by 1999, 3765 )
“Escrow agent” has the
meaning ascribed to it in NRS 645A.010 .
(Added to NRS by 1999, 3765 )
“Escrow officer” has the
meaning ascribed to it in NRS 692A.028 .
(Added to NRS by 1999, 3765 )
“Financial services license or registration” means any license
or registration issued in this State or any other state, district or
territory of the United States that authorizes the person who holds the
license or registration to engage in any business or activity described
in the provisions of this chapter, title 55 or 56 of NRS or chapter 604A
, 645 , 645A
, 645C , 645E
or 649 of NRS.
(Added to NRS by 1999, 3765 ; A 2005, 1712 )
“Investor” means a person who
wants to acquire or who acquires ownership of or a beneficial interest in
a loan secured by a lien on real property.
(Added to NRS by 1999, 3765 )
“Licensee” means a person who
is licensed as a mortgage broker pursuant to this chapter. The term does
not include a person issued a license as a mortgage agent pursuant to NRS
645B.410 .
(Added to NRS by 1999, 3765 ; A 2003, 3546 )
1. “Mortgage agent” means a natural person who:
(a) Is an employee or independent contractor of a mortgage 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, to
be 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 a mortgage broker;
or
(c) Performs only clerical or ministerial tasks for a mortgage
broker.
(Added to NRS by 1999, 3765 )
1. “Mortgage broker” means a person who, directly or indirectly:
(a) Holds himself out for hire to serve as an agent for any person
in an attempt to obtain a loan which will be secured by a lien on real
property;
(b) Holds himself out for hire to serve as an agent for any person
who has money to lend, if the loan is or will be secured by a lien on
real property;
(c) Holds himself out as being able to make loans secured by liens
on real property;
(d) Holds himself out as being able to buy or sell notes secured by
liens on real property; or
(e) Offers for sale in this State any security which is exempt from
registration under state or federal law and purports to make investments
in promissory notes secured by liens on real property.
2. The term does not include a person who is licensed as a
mortgage banker, as defined in NRS 645E.100 , unless the person is also licensed as a
mortgage broker pursuant to this chapter.
(Added to NRS by 1999, 3765 ; A 2003, 3546 )
“Policy of
title insurance” has the meaning ascribed to it in NRS 692A.035 .
(Added to NRS by 1999, 3766 )
“Private investor”
means:
1. An investor who is a natural person and who provides his own
money for investment in a loan secured by a lien on real property; and
2. Two or more investors who are relatives and who jointly provide
their own money for investment in a loan secured by a lien on real
property, unless the investors are acting on behalf of a partnership, a
corporation or some other separate legal entity.
(Added to NRS by 2001, 2463 )
“Relative” means a spouse or
any other person who is related within the second degree by blood or
marriage.
(Added to NRS by 1999, 3766 )
“Title agent” has the
meaning ascribed to it in NRS 692A.060 .
(Added to NRS by 1999, 3766 )
“Title insurer” has the
meaning ascribed to it in NRS 692A.070 .
(Added to NRS by 1999, 3766 )
The provisions of this chapter do not:
1. Limit any statutory or common-law right of a person to bring a
civil action against a mortgage broker or mortgage agent for any act or
omission involved in the transaction of business by or on behalf of the
mortgage broker or mortgage agent;
2. Limit the right of the State to punish a person for the
violation of any law, ordinance or regulation; or
3. Establish a basis for a person to bring a civil action against
the State or its officers or employees for any act or omission in
carrying out the provisions of this chapter, including, without
limitation, any act or omission relating to the disclosure of information
or the failure to disclose information pursuant to the provisions of this
chapter.
(Added to NRS by 1973, 1543; A 1999, 3801 )—(Substituted in revision for NRS
645B.200)
EXEMPTIONS
Except
as otherwise provided in NRS 645B.016 , the provisions of this chapter do not apply
to:
1. Any person doing business under the laws of this State, any
other state or the United States relating to banks, savings banks, trust
companies, savings and loan associations, consumer finance companies,
industrial loan companies, credit unions, thrift companies or insurance
companies, unless the business conducted in this State is not subject to
supervision by the regulatory authority of the other jurisdiction, in
which case licensing pursuant to this chapter is required.
2. A real estate investment trust, as defined in 26 U.S.C. § 856,
unless the business conducted in this State is not subject to supervision
by the regulatory authority of the other jurisdiction, in which case
licensing pursuant to this chapter is required.
3. An employee benefit plan, as defined in 29 U.S.C. § 1002(3), if
the loan is made directly from money in the plan by the plan’s trustee.
4. An attorney at law rendering services in the performance of his
duties as an attorney at law.
5. A real estate broker rendering services in the performance of
his duties as a real estate broker.
6. Any person doing any act under an order of any court.
7. Any one natural person, or husband and wife, who provides money
for investment in loans secured by a lien on real property, on his own
account, unless such a person makes a loan secured by a lien on real
property using his own money and assigns all or a part of his interest in
the loan to another person, other than his spouse or child, within 5
years after the date on which the loan is made or the deed of trust is
recorded, whichever occurs later.
8. Agencies of the United States and of this State and its
political subdivisions, including the Public Employees’ Retirement System.
9. A seller of real property who offers credit secured by 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 )
Except as otherwise provided in NRS 645B.690 :
1. A person who claims an exemption from the provisions of this
chapter pursuant to subsection 1 of NRS 645B.015 must:
(a) File a written application for a certificate of exemption with
the Office of the Commissioner;
(b) Pay the fee required pursuant to NRS 645B.050 ; and
(c) Include with the written application satisfactory proof that
the person meets the requirements of subsection 1 of NRS 645B.015 .
2. The Commissioner may require a person who claims an exemption
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 of exemption with
the Office of the Commissioner;
(b) Pay the fee required pursuant to NRS 645B.050 ; and
(c) Include with the written application satisfactory proof that
the person meets the requirements of at least one of those exemptions.
3. A certificate of exemption expires automatically if, at any
time, the person who claims the exemption no longer meets the
requirements of at least one exemption set forth in the provisions of NRS
645B.015 .
4. If a certificate of exemption expires automatically pursuant to
this section, the person shall not provide any of the services of a
mortgage broker or mortgage agent or otherwise engage in, carry on or
hold himself out as engaging in or carrying on the business of a mortgage
broker or mortgage agent unless the person applies for and is issued:
(a) A license as a mortgage broker or mortgage agent, as
applicable, pursuant to this chapter; or
(b) Another certificate of exemption.
5. The Commissioner may impose upon a person who is required to
apply for a certificate of exemption or who holds a certificate of
exemption an administrative fine of not more than $10,000 for each
violation that he commits, if the person:
(a) Has knowingly made or caused to be made to the Commissioner any
false representation of material fact;
(b) Has suppressed or withheld from the Commissioner any
information which the person possesses and which, if submitted by him,
would have rendered the person ineligible to hold a certificate of
exemption; or
(c) Has violated any provision of this chapter, a regulation
adopted pursuant to this chapter or an order of the Commissioner that
applies to a person who is required to apply for a certificate of
exemption or who holds a certificate of exemption.
(Added to NRS by 1999, 3767 ; A 2003, 3547 )
1. A person may apply to the Commissioner for an exemption from
the provisions of this chapter governing the making of a loan of money.
2. The Commissioner may grant the exemption if he finds that:
(a) The making of the loan would not be detrimental to the
financial condition of the lender, the debtor or the person who is
providing the money for the loan;
(b) The lender, the debtor or the person who is providing the money
for the loan has established a record of sound performance, efficient
management, financial responsibility and integrity;
(c) The making of the loan is likely to increase the availability
of capital for a sector of the state economy; and
(d) The making of the loan is not detrimental to the public
interest.
3. The Commissioner:
(a) May revoke an exemption unless the loan for which the exemption
was granted has been made; and
(b) Shall issue a written statement setting forth the reasons for
his decision to grant, deny or revoke an exemption.
(Added to NRS by 1989, 965; A 1999, 3800 )—(Substituted in revision for NRS
645B.197)
LICENSING OF MORTGAGE BROKERS
1. A person who wishes to be licensed as a mortgage broker must
file a written application for a license with the Office of the
Commissioner and pay the fee required pursuant to NRS 645B.050 . An application for a license as a mortgage
broker must:
(a) Be verified.
(b) State the name, residence address and business address of the
applicant and the location of each principal office and branch office at
which the mortgage broker will conduct business within this State.
(c) State the name under which the applicant will conduct business
as a mortgage broker.
(d) List the name, residence address and business address of each
person who will:
(1) If the applicant is not a natural person, have an
interest in the mortgage broker as a principal, partner, officer,
director or trustee, specifying the capacity and title of each such
person.
(2) Be associated with or employed by the mortgage broker as
a mortgage agent.
(e) Include a general business plan and a description of the
policies and procedures that the mortgage broker and his mortgage agents
will follow to arrange and service loans and to conduct business pursuant
to this chapter.
(f) State the length of time the applicant has been engaged 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
maintain continuously the net worth required pursuant to NRS 645B.115
.
(h) Include all information required to complete the application.
(i) Include any other information required pursuant to the
regulations adopted by the Commissioner or an order of the Commissioner.
2. If a mortgage broker will conduct business at one or more
branch offices within this State, the mortgage broker must apply for a
license for each such branch office.
3. Except as otherwise provided in this chapter, the Commissioner
shall issue a license to an applicant as a mortgage broker if:
(a) The application complies with the requirements of this chapter;
and
(b) The applicant and each general partner, officer or director of
the applicant, if the applicant is a partnership, corporation or
unincorporated association:
(1) Has a good reputation for honesty, trustworthiness and
integrity and displays competence to transact the business of a mortgage
broker in a manner which safeguards the interests of the general public.
The applicant must submit satisfactory proof of these qualifications to
the Commissioner.
(2) Has not been convicted of, or entered a plea of nolo
contendere to, a felony relating to the practice of mortgage brokers or
any crime involving fraud, misrepresentation or moral turpitude.
(3) Has not made a false statement of material fact on his
application.
(4) Has not had a license that was issued pursuant to the
provisions of this chapter or chapter 645E
of NRS suspended or revoked within the 10 years immediately preceding the
date of his application.
(5) Has not had a license that was issued in any other
state, district or territory of the United States or any foreign country
suspended or revoked within the 10 years immediately preceding the date
of his application.
(6) Has not violated any provision of this chapter or
chapter 645E of NRS, a regulation adopted
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 )
[Effective until the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. In addition to any other requirements set forth in this chapter:
(a) A natural person who applies for the issuance of a license as a
mortgage broker shall include the social security number of the applicant
in the application submitted to the Commissioner.
(b) A natural person who applies for the issuance or renewal of a
license as a mortgage broker shall submit to the Commissioner the
statement prescribed by the Division of Welfare and Supportive Services
of the Department of Health and Human Services pursuant to NRS 425.520
. The statement must be completed and
signed by the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of the license; or
(b) A separate form prescribed by the Commissioner.
3. A license as a mortgage broker may not be issued or renewed by
the Commissioner if the applicant is a natural person who:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2170; A 1999, 3782 ; 2005, 2783 , 2807 , 2810 )
[Effective on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings and expires by
limitation 2 years after that date.]
1. In addition to any other requirements set forth in this
chapter, a natural person who applies for the issuance or renewal of a
license as a mortgage broker shall submit to the Commissioner the
statement prescribed by the Division of Welfare and Supportive Services
of the Department of Health and Human Services pursuant to NRS 425.520
. The statement must be completed and
signed by the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of the license; or
(b) A separate form prescribed by the Commissioner.
3. A license as a mortgage broker may not be issued or renewed by
the Commissioner if the applicant is a natural person who:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1997, 2170; A 1999, 3782 ; 2005, 2783 , 2807 , 2810 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
The Commissioner may refuse to issue a license to an applicant
if the Commissioner has reasonable cause to believe that the applicant or
any general partner, officer or director of the applicant has, after
October 1, 1999, employed or proposed to employ a person as a mortgage
agent or authorized or proposed to authorize a person to be associated
with a mortgage broker as a mortgage agent at a time when the applicant
or the general partner, officer or director knew or, in light of all the
surrounding facts and circumstances, reasonably should have known that
the person:
1. Had been convicted of, or entered a plea of nolo contendere to:
(a) A felony relating to the practice of mortgage agents; or
(b) Any crime involving fraud, misrepresentation or moral
turpitude; or
2. Had a financial services license or registration suspended or
revoked within the immediately preceding 10 years.
(Added to NRS by 1999, 3768 ; A 2003, 2723 )
1. If an applicant is a natural person, the Commissioner may
refuse to issue a license to the applicant if the Commissioner has
reasonable cause to believe that the applicant would be subject to
control by a relative who would be ineligible to be licensed pursuant to
this chapter.
2. If an applicant is a partnership, corporation or unincorporated
association, the Commissioner may refuse to issue a license to the
applicant if:
(a) Any member of the partnership or any officer or director of the
corporation or unincorporated association has committed any act or
omission that would be cause for refusing to issue a license to a natural
person; or
(b) The Commissioner has reasonable cause to believe that any
member of the partnership or any officer or director of the corporation
or unincorporated association would be subject to control by a relative
who would be ineligible to be licensed pursuant to this chapter.
(Added to NRS by 1999, 3769 )
The provisions of NRS 645B.0243 and 645B.0245 do not limit the authority of the
Commissioner to refuse to issue a license to an applicant for any other
lawful reason or pursuant to any other provision of law.
(Added to NRS by 1999, 3769 )
1. A mortgage broker shall post each license in a conspicuous
place in the office to which it pertains.
2. A mortgage broker may not transfer or assign a license to
another person, unless the Commissioner gives his written approval.
(Added to NRS by 1983, 1376; A 1983, 1843; 1987, 1877; 1999, 3782
)
1. A license as a mortgage broker entitles a licensee to engage
only in the activities authorized by this chapter.
2. The provisions of this chapter do not prohibit a licensee from:
(a) Holding a license as a mortgage banker pursuant to chapter 645E
of NRS; or
(b) Conducting the business of a mortgage banker and the business
of a mortgage broker in the same office or place of business.
(Added to NRS by 1999, 3770 ; A 2003, 3548 )
EXPIRATION AND RENEWAL OF BROKER’S LICENSE OR CERTIFICATE OF EXEMPTION;
FEES
1. A license as a mortgage broker issued pursuant to this chapter
expires each year on June 30, unless it is renewed. To renew such a
license, the licensee must submit to the Commissioner on or before May 31
of each year:
(a) An application for renewal;
(b) The fee required to renew the license pursuant to this section;
(c) The information required pursuant to NRS 645B.051 ; and
(d) All information required to complete the renewal.
2. If the licensee fails to submit any item required pursuant 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 may
reinstate a cancelled license if the licensee submits to the Commissioner:
(a) An application for renewal;
(b) The fee required to renew the license pursuant to this section;
(c) The information required pursuant to NRS 645B.051 ;
(d) Except as otherwise provided in this section, a reinstatement
fee of $200; and
(e) All information required to complete the reinstatement.
3. Except as otherwise provided in NRS 645B.016 , a certificate of exemption issued pursuant
to this chapter expires each year on December 31, unless it is renewed.
To renew a certificate of exemption, a person must submit to the
Commissioner on or before November 30 of each year:
(a) An application for renewal that includes satisfactory proof
that the person meets the requirements for an exemption from the
provisions of this chapter; and
(b) The fee required to renew the certificate of exemption.
4. If the person fails to submit any item required pursuant to
subsection 3 to the Commissioner on or before November 30 of any year,
the certificate of exemption is cancelled as of December 31 of that year.
Except as otherwise provided in NRS 645B.016 , the Commissioner may reinstate a cancelled
certificate of exemption if the person submits to the Commissioner:
(a) An application for renewal that includes satisfactory proof
that the person meets the requirements for an exemption from the
provisions of this chapter;
(b) The fee required to renew the certificate of exemption; and
(c) Except as otherwise provided in this section, a reinstatement
fee of $100.
5. Except as otherwise provided in this section, a person must pay
the following fees to apply for, to be issued or to renew a license as a
mortgage broker pursuant to this chapter:
(a) To file an original application for a license, $1,500 for the
principal office and $40 for each branch office. The person must also pay
such additional expenses incurred in the process of investigation as the
Commissioner deems necessary.
(b) To be issued a license, $1,000 for the principal office and $60
for each branch office.
(c) To renew a license, $500 for the principal office and $100 for
each branch office.
6. Except as otherwise provided in this section, a person must pay
the following fees to apply for or to renew a certificate of exemption
pursuant to this chapter:
(a) To file an application for a certificate of exemption, $200.
(b) To renew a certificate of exemption, $100.
7. To be issued a duplicate copy of any license or certificate of
exemption, a person must make a satisfactory showing of its loss and pay
a fee of $10.
8. Except as otherwise provided in this chapter, all fees received
pursuant to this chapter must be deposited in the Fund for Mortgage
Lending created by NRS 645F.270 .
9. The Commissioner may, by regulation, increase any fee set forth
in this section if the Commissioner determines that such an increase is
necessary for the Commissioner to carry out his duties pursuant to this
chapter. The amount of any increase in a fee pursuant to this subsection
must not exceed the amount determined to be necessary for the
Commissioner to carry 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, 20th Special Session, 265 ; 2005, 2784 , 2807 , 2817 )
1. Except as otherwise provided in this section, in addition to
the requirements set forth in NRS 645B.050 , to renew a license as a mortgage broker:
(a) If the licensee is a natural person, the licensee must submit
to the Commissioner satisfactory proof that the licensee attended at
least 10 hours of certified courses of continuing education during the 12
months immediately preceding the date on which the license expires.
(b) If the licensee is not a natural person, the licensee must
submit to the Commissioner satisfactory proof that each natural person
who supervises the daily business of the licensee attended at least 10
hours of certified courses of continuing education during the 12 months
immediately preceding the date on which the license expires.
2. The Commissioner may provide by regulation that any hours of a
certified course of continuing education attended during a 12-month
period, but not needed to satisfy a requirement set forth in this section
for the 12-month period in which the course was taken, may be used to
satisfy a requirement set forth in this section for a later 12-month
period.
3. As used in this section, “certified course of continuing
education” means a course of continuing education which relates to the
mortgage industry or mortgage transactions and which is certified by:
(a) The National Association of Mortgage Brokers or any successor
in interest to that organization; or
(b) Any organization designated for this purpose by the
Commissioner by regulation.
(Added to NRS by 2001, 2464 ; A 2003, 3551 )
SUPERVISION BY COMMISSIONER
General Provisions
1. Subject to the administrative control of the Director of the
Department of Business and Industry, the Commissioner shall exercise
general supervision and control over mortgage brokers and mortgage agents
doing business in this State.
2. In addition to the other duties imposed upon him by law, the
Commissioner shall:
(a) Adopt any regulations that are necessary to carry out the
provisions of this chapter, except as to loan brokerage fees.
(b) Conduct such investigations as may be necessary to determine
whether any person has violated any provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the
Commissioner.
(c) Conduct an annual examination of each mortgage broker doing
business in this State. The annual examination must include, without
limitation, a formal exit review with the mortgage broker. The
Commissioner shall adopt regulations prescribing:
(1) Standards for determining the rating of each mortgage
broker based upon the results of the annual examination; and
(2) Procedures for resolving any objections made by the
mortgage broker to the results of the annual examination. The results of
the annual examination may not be opened to public inspection pursuant to
NRS 645B.090 until any objections
made by the mortgage broker have been decided by the Commissioner.
(d) Conduct such other examinations, periodic or special audits,
investigations and hearings as may be necessary and proper for the
efficient administration of the laws of this State regarding mortgage
brokers and mortgage agents. The Commissioner shall adopt regulations
specifying the general guidelines that will be followed when a periodic
or special audit of a mortgage broker is conducted pursuant to this
chapter.
(e) Classify as confidential certain records and information
obtained by the Division when those matters are obtained from a
governmental agency upon the express condition that they remain
confidential. This paragraph does not limit examination by:
(1) The Legislative Auditor; or
(2) The Department of Taxation if necessary to carry out the
provisions of chapter 363A of NRS.
(f) Conduct such examinations and investigations as are necessary
to ensure that mortgage brokers and mortgage agents meet the requirements
of this chapter for obtaining a license, both at the time of the
application for a license and thereafter on a continuing basis.
3. For each special audit, investigation or examination, a
mortgage broker or mortgage agent shall pay a fee based on the rate
established pursuant to NRS 645F.280 .
(Added to NRS by 1973, 1538; A 1973, 1669; 1981, 1789; 1983, 1380,
1703; 1987, 1878, 2224; 1993, 497, 1893; 1995, 526; 1999, 3784 ; 2001, 2467 ; 2003, 3552 ; 2003, 20th Special Session, 220 )
1. In the conduct of any examination, periodic or special audit,
investigation or hearing, the Commissioner may:
(a) Compel the attendance of any person by subpoena.
(b) Administer oaths.
(c) Examine any person under oath concerning the business and
conduct of affairs of any person subject to the provisions of this
chapter and in connection therewith require the production of any books,
records or papers relevant to the inquiry.
2. Any person subpoenaed under the provisions of this section who
willfully refuses or willfully neglects to appear at the time and place
named in the subpoena or to produce books, records or papers required by
the Commissioner, or who refuses to be sworn or answer as a witness, is
guilty of a misdemeanor and shall be punished as provided in NRS 645B.950
.
3. In addition to the authority to recover attorney’s fees and
costs pursuant to any other statute, the Commissioner may assess against
and collect from a person all costs, including, without limitation,
reasonable attorney’s fees, that are attributable to any examination,
periodic or special audit, investigation or hearing that is conducted to
examine or investigate the conduct, activities or business of the person
pursuant to this chapter.
(Added to NRS by 1973, 1538; A 1981, 1789; 1983, 1703; 1987, 1879;
1999, 3785 ; 2003, 3468 )
Each mortgage broker shall pay the assessment levied
pursuant to NRS 645F.180 . Each
mortgage broker and mortgage agent shall cooperate fully with the audits
and examinations performed pursuant thereto.
(Added to NRS by 1987, 826; A 1999, 3799 ; 2003, 3552 )
Records and Financial Statements
1. Each mortgage broker shall keep and maintain at all times at
each location where the mortgage broker conducts business in this state
complete and suitable records of all mortgage transactions made by the
mortgage broker at that location. Each mortgage broker shall also keep
and maintain at all times at each such location all original books,
papers and data, or copies thereof, clearly reflecting the financial
condition of the business of the mortgage broker.
2. Each mortgage broker shall submit to the Commissioner each
month a report of the mortgage broker’s activity for the previous month.
The report must:
(a) Specify the volume of loans arranged by the mortgage broker for
the month or state that no loans were arranged in that month;
(b) Include any information required pursuant to NRS 645B.260
or pursuant to the regulations
adopted by the Commissioner; and
(c) Be submitted to the Commissioner by the 15th day of the month
following the month for which the report is made.
3. The Commissioner may adopt regulations prescribing accounting
procedures for mortgage brokers handling trust accounts and the
requirements for keeping records relating to such accounts.
(Added to NRS by 1973, 1538; A 1981, 1789; 1985, 2187; 1987, 1879;
1989, 1765; 1995, 136; 1999, 3786 )
1. Except as otherwise provided in this section, not later than 90
days after the last day of each fiscal year for a mortgage broker, the
mortgage broker shall submit to the Commissioner a financial statement
that:
(a) Is dated not earlier than the last day of the fiscal year; and
(b) Has been prepared from the books and records of the mortgage
broker by an independent public accountant who holds a permit to engage
in the practice of public accounting in this State that has not been
revoked or suspended.
2. The Commissioner may grant a reasonable extension for the
submission of a financial statement pursuant to this section if a
mortgage broker requests such an extension before the date on which the
financial statement is due.
3. If a mortgage broker maintains any accounts described in
subsection 1 of NRS 645B.175 , the
financial statement submitted pursuant to this section must be audited.
If a mortgage broker maintains any accounts described in subsection 4 of
NRS 645B.175 , those accounts must be
audited. The public accountant who prepares the report of an audit shall
submit a copy of the report to the Commissioner at the same time that he
submits the report to the mortgage broker.
4. The Commissioner shall adopt regulations prescribing the scope
of an audit conducted pursuant to subsection 3.
(Added to NRS by 1999, 3772 ; A 2001, 2467 )
1. Except as otherwise provided in this section or by specific
statute, all papers, documents, reports and other written instruments
filed with the Commissioner pursuant to this chapter are open to public
inspection.
2. Except as otherwise provided in subsection 3, the commissioner
may withhold from public inspection or refuse to disclose to a person,
for such time as the commissioner considers necessary, any information
that, in his judgment, would:
(a) Impede or otherwise interfere with an investigation that is
currently pending against a mortgage broker;
(b) Have an undesirable effect on the welfare of the public or the
welfare of any mortgage broker or mortgage agent; or
(c) Give any mortgage broker a competitive advantage over any other
mortgage broker.
3. Except as otherwise provided in NRS 645B.092 , the Commissioner shall disclose the
following information concerning a mortgage broker to any person who
requests it:
(a) The findings and results of any investigation which has been
completed during the immediately preceding 5 years against the mortgage
broker pursuant to the provisions of this chapter and which has resulted
in a finding by the Commissioner that the mortgage broker committed a
violation of a provision of this chapter, a regulation adopted pursuant
to this chapter or an order of the Commissioner; and
(b) The nature of any disciplinary action that has been taken
during the immediately preceding 5 years against the mortgage broker
pursuant to the provisions of this chapter.
(Added to NRS by 1973, 1543; A 1983, 1704; 1987, 1880; 1999, 3786
; 2003, 3469 )
1. Except as otherwise provided in this section, a complaint filed
with the Commissioner, all documents and other information filed with the
complaint and all documents and other information compiled as a result of
an investigation conducted to determine whether to initiate disciplinary
action are confidential.
2. The complaint or other document filed by the Commissioner to
initiate disciplinary action and all documents and information considered
by the Commissioner when determining whether to impose discipline are
public records.
3. An order that imposes discipline and the findings of fact and
conclusions of law supporting that order are public records.
(Added to NRS by 2003, 3468 )
Transfer of Stock
1. As used in this section, “change of control” means:
(a) A transfer of voting stock which results in giving a person,
directly or indirectly, the power to direct the management and policy of
a mortgage broker; or
(b) A transfer of at least 25 percent of the outstanding voting
stock of a mortgage broker.
2. The Commissioner must be notified of a transfer of 5 percent or
more of the outstanding voting stock of a mortgage broker and must
approve a transfer of voting stock of a mortgage broker which constitutes
a change of control.
3. The person who acquires stock resulting in a change of control
of the mortgage broker shall apply to the Commissioner for approval of
the transfer. The application must contain information which shows that
the requirements of this chapter for obtaining a license will be
satisfied after the change of control. Except as otherwise provided in
subsection 4, the Commissioner shall conduct an investigation to
determine whether those requirements will be satisfied. If, after the
investigation, the Commissioner denies the application, he may forbid the
applicant from participating in the business of the mortgage broker.
4. A mortgage broker may submit a written request to the
Commissioner to waive an investigation pursuant to subsection 3. The
Commissioner may grant a waiver if the applicant has undergone a similar
investigation by a state or federal agency in connection with the
licensing of or his employment with a financial institution.
(Added to NRS by 1983, 1376; A 1983, 1843; 1985, 1344; 1987, 1880;
1999, 3787 )
Net Worth
1. If a mortgage broker maintains any accounts described in NRS
645B.175 , the mortgage broker and his
mortgage agents shall not engage in any activity that is authorized
pursuant to this chapter, unless the mortgage broker maintains
continuously a minimum net worth in the following amount based upon the
average monthly balance of the accounts maintained by the mortgage broker
pursuant to NRS 645B.175 :
AVERAGE MONTHLY BALANCE
MINIMUM NET
WORTH REQUIRED
$100,000 or
less.......................................................................
........................... $25,000
More than $100,000 but not more than
$250,000............................................ 50,000
More than $250,000 but not more than
$500,000.......................................... 100,000
More than $500,000 but not more than
$1,000,000....................................... 200,000
More than
$1,000,000.................................................................
....................... 250,000
The Commissioner shall determine the appropriate initial minimum net
worth that must be maintained by the mortgage broker pursuant to this
section based upon the expected average monthly balance of the accounts
maintained by the mortgage broker pursuant to NRS 645B.175 . After determining the initial minimum net
worth that must be maintained by the mortgage broker, the Commissioner
shall, on an annual basis, determine the appropriate minimum net worth
that must be maintained by the mortgage broker pursuant to this section
based upon the average monthly balance of the accounts maintained by the
mortgage broker pursuant to NRS 645B.175 .
2. If requested by the Commissioner, a mortgage broker who is
subject to the provisions of this section and his mortgage agents shall
submit to the Commissioner or allow the Commissioner to examine any
documentation or other evidence that is related to determining the net
worth of the mortgage broker.
3. The Commissioner:
(a) Shall adopt regulations prescribing standards for determining
the net worth of a mortgage broker; and
(b) May adopt any other regulations that are necessary to carry out
the provisions of this section.
(Added to NRS by 1999, 3771 )
ESCROW AND TRUST ACCOUNTS
1. Except as otherwise provided in subsection 3, the amount of any
advance fee, salary, deposit or money paid to a mortgage broker and his
mortgage agents or any other person to obtain a loan which will be
secured by a lien on real property must be placed in escrow pending
completion of the loan or a commitment for the loan.
2. The amount held in escrow pursuant to subsection 1 must be
released:
(a) Upon completion of the loan or commitment for the loan, to the
mortgage broker or other person to whom the advance fee, salary, deposit
or money was paid.
(b) If the loan or commitment for the loan fails, to the person who
made the payment.
3. Advance payments to cover reasonably estimated costs paid to
third persons are excluded from the provisions of subsections 1 and 2 if
the person making them first signs a written agreement which specifies
the estimated costs by item and the estimated aggregate cost, and which
recites that money advanced for costs will not be refunded. If an
itemized service is not performed and the estimated cost thereof is not
refunded, the recipient of the advance payment is subject to the
penalties provided in NRS 645B.960 .
(Added to NRS by 1977, 618; A 1979, 1397; 1989, 1442; 1991, 178;
1995, 1313; 1999, 3793 )
1. All money paid to a mortgage broker and his mortgage agents for
payment of taxes or insurance premiums on real property which secures any
loan arranged by the mortgage broker must be deposited in an insured
depository financial institution and kept separate, distinct and apart
from money belonging to the mortgage broker. Such money, when deposited,
is to be designated as an “impound trust account” or under some other
appropriate name indicating that the accounts are not the money of the
mortgage broker.
2. The mortgage broker has a fiduciary duty to each debtor with
respect to the money in an impound trust account.
3. The mortgage broker shall, upon reasonable notice, account to
any debtor whose real property secures a loan arranged by the mortgage
broker for any money which that person has paid to the mortgage broker
for the payment of taxes or insurance premiums on the real property.
4. The mortgage broker shall, upon reasonable notice, account to
the Commissioner for all money in an impound trust account.
5. A mortgage broker shall:
(a) Require contributions to an impound trust account in an amount
reasonably necessary to pay the obligations as they become due.
(b) Within 30 days after the completion of the annual review of an
impound trust account, notify the debtor:
(1) Of the amount by which the contributions exceed the
amount reasonably necessary to pay the annual obligations due from the
account; and
(2) That the debtor may specify the disposition of the
excess money within 20 days after receipt of the notice. If the debtor
fails to specify such a disposition within that time, the mortgage broker
shall maintain the excess money in the account.
Ê This subsection does not prohibit a mortgage broker from requiring
additional amounts to be paid into an impound trust account to recover a
deficiency that exists in the account.
6. A mortgage broker shall not make payments from an impound trust
account in a manner that causes a policy of insurance to be cancelled or
causes property taxes or similar payments to become delinquent.
(Added to NRS by 1973, 1543; A 1983, 1708; 1987, 1884; 1989, 1765;
1999, 1539 , 3793 )
1. Except as otherwise provided in this section, all money
received by a mortgage broker and his mortgage agents from an investor to
acquire ownership of or a beneficial interest in a loan secured by a lien
on real property must:
(a) Be deposited in:
(1) An insured depository financial institution; or
(2) An escrow account which is controlled by a person who is
independent of the parties and subject to instructions regarding the
account which are approved by the parties.
(b) Be kept separate from money:
(1) Belonging to the mortgage broker in an account
appropriately named to indicate that the money does not belong to the
mortgage broker.
(2) Received pursuant to subsection 4.
2. Except as otherwise provided in this section, the amount held
in trust pursuant to subsection 1 must be released:
(a) Upon completion of the loan, including proper recordation of
the respective interests or release, or upon completion of the transfer
of the ownership or beneficial interest therein, to the debtor or his
designee less the amount due the mortgage broker for the payment of any
fee or service charge;
(b) If the loan or the transfer thereof is not consummated, to each
investor who furnished the money held in trust; or
(c) Pursuant to any instructions regarding the escrow account.
3. The amount held in trust pursuant to subsection 1 must not be
released to the debtor or his designee unless:
(a) The amount released is equal to the total amount of money which
is being loaned to the debtor for that loan, less the amount due the
mortgage broker for the payment of any fee or service charge; and
(b) The mortgage broker has provided a written instruction to a
title agent or title insurer requiring that a lender’s policy of title
insurance or appropriate title endorsement, which names as an insured
each investor who owns a beneficial interest in the loan, be issued for
the real property securing the loan.
4. Except as otherwise provided in this section, all money paid to
a mortgage broker and his mortgage agents by a person in full or in
partial payment of a loan secured by a lien on real property, must:
(a) Be deposited in:
(1) An insured depository financial institution; or
(2) An escrow account which is controlled by a person who is
subject to instructions regarding the account which are approved by the
parties.
(b) Be kept separate from money:
(1) Belonging to the mortgage broker in an account
appropriately named to indicate that it does not belong to the mortgage
broker.
(2) Received pursuant to subsection 1.
5. Except as otherwise provided in this section, the amount held
in trust pursuant to subsection 4:
(a) Must be released, upon the deduction and payment of any fee or
service charge due the mortgage broker, to each investor who owns a
beneficial interest in the loan in exact proportion to the beneficial
interest that he owns in the loan; and
(b) Must not be released, in any proportion, to an investor who
owns a beneficial interest in the loan, unless the amount described in
paragraph (a) is also released to every other investor who owns a
beneficial interest in the loan.
6. An investor may waive, in writing, the right to receive one or
more payments, or portions thereof, that are released to other investors
in the manner set forth in subsection 5. A mortgage broker or mortgage
agent shall not act as the attorney-in-fact or the agent of an investor
with respect to the giving of a written waiver pursuant to this
subsection. Any such written waiver applies only to the payment or
payments, or portions thereof, that are included in the written waiver
and does not affect the right of the investor to:
(a) Receive the waived payment or payments, or portions thereof, at
a later date; or
(b) Receive all other payments in full and in accordance with the
provisions of subsection 5.
7. Upon reasonable notice, any mortgage broker described in this
section shall:
(a) Account to any investor or debtor who has paid to the mortgage
broker or his mortgage agents money that is required to be deposited in a
trust account pursuant to this section; and
(b) Account to the Commissioner for all money which the mortgage
broker and his mortgage agents have received from each investor or debtor
and which the mortgage broker is required to deposit in a trust account
pursuant to this section.
8. Money received by a mortgage broker and his mortgage agents
pursuant to this section from a person who is not associated with the
mortgage broker may be held in trust for not more than 45 days before an
escrow account must be opened in connection with the loan. If, within
this 45-day period, the loan or the transfer therefor is not consummated,
the money must be returned within 24 hours. If the money is so returned,
it may not be reinvested with the mortgage broker for at least 15 days.
9. If a mortgage broker or a mortgage agent receives any money
pursuant to this section, the mortgage broker or mortgage agent, after
the deduction and payment of any fee or service charge due the mortgage
broker, shall not release the money to:
(a) Any person who does not have a contractual or legal right to
receive the money; or
(b) Any person who has a contractual right to receive the money if
the mortgage broker or mortgage agent knows or, in light of all the
surrounding facts and circumstances, reasonably should know that the
person’s contractual right to receive the money violates any provision of
this chapter or a regulation adopted pursuant to this chapter.
(Added to NRS by 1981, 1784; A 1983, 1708; 1985, 2189; 1987, 1885;
1999, 3794 )
1. Money in an impound trust account is not subject to execution
or attachment on any claim against the mortgage broker or his mortgage
agents.
2. It is unlawful for a mortgage broker or his mortgage agents
knowingly to keep or cause to be kept any money in a depository financial
institution under the heading of “impound trust account” or any other
name designating such money as belonging to the investors or debtors of
the mortgage broker, unless the money has been paid to the mortgage
broker or his mortgage agents by an investor or debtor and is being held
in trust by the mortgage broker pursuant to NRS 645B.170 or 645B.175 .
(Added to NRS by 1973, 1543; A 1989, 1766; 1999, 1540 , 3796 )
DISCLOSURES AND ADVERTISING
1. A mortgage broker or mortgage agent shall not accept money from
a private investor to acquire ownership of or a beneficial interest in a
loan secured by a lien on real property unless:
(a) The private investor and the mortgage broker or mortgage agent
sign and date a disclosure form that complies with the provisions of this
section; and
(b) The mortgage broker or mortgage agent gives the private
investor the original disclosure form that has been signed and dated.
2. A private investor and a mortgage broker or mortgage agent must
sign and date a separate disclosure form pursuant to subsection 1 for
each loan in which the private investor invests his money. A mortgage
broker or mortgage agent shall not act as the attorney-in-fact or the
agent of a private investor with respect to the signing or dating of any
disclosure form.
3. In addition to the requirements of subsections 1 and 2, a
mortgage broker or mortgage agent shall not accept money from a private
investor to acquire ownership of or a beneficial interest in a loan
secured by a lien on real property, unless the mortgage broker or
mortgage agent gives the private investor a written form by which the
private investor may request that the mortgage broker authorize the
Commissioner to release the mortgage broker’s financial statement to the
private investor. Such a form must be given to the private investor for
each loan. If the private investor, before giving money to the mortgage
broker for the loan, requests that the mortgage broker authorize the
release of a financial statement pursuant to this subsection, the
mortgage broker and his mortgage agents shall not accept money from the
private investor for that loan until the mortgage broker receives notice
from the Commissioner that the financial statement has been released to
the private investor.
4. A private investor and a mortgage broker or mortgage agent may
not agree to alter or waive the provisions of this section by contract or
other agreement. Any such contract or agreement is void and must not be
given effect to the extent that it violates the provisions of this
section.
5. A mortgage broker shall retain a copy of each disclosure form
that is signed and dated pursuant to subsection 1 for the period that is
prescribed in the regulations adopted by the Commissioner.
6. The standard provisions for each such disclosure form must
include, without limitation, statements:
(a) Explaining the risks of investing through the mortgage broker,
including, without limitation:
(1) The possibility that the debtor may default on the loan;
(2) The nature of the losses that may result through
foreclosure;
(3) The fact that payments of principal and interest are not
guaranteed and that the private investor may lose the entire amount of
principal that he has invested;
(4) The fact that the mortgage broker is not a depository
financial institution and that the investment is not insured by any
depository insurance and is not otherwise insured or guaranteed by the
Federal or State Government; and
(5) Any other information required pursuant to the
regulations adopted by the Commissioner; and
(b) Disclosing to the private investor the following information if
the information is known or, in light of all the surrounding facts and
circumstances, reasonably should be known to the mortgage broker:
(1) Whether the real property that will secure the loan is
encumbered by any other liens and, if so, the priority of each such lien,
the amount of debt secured by each such lien and the current status of
that debt, including, without limitation, whether the debt is being paid
or is in default;
(2) Whether the mortgage broker or any general partner,
officer, director or mortgage agent of the mortgage broker has any direct
or indirect interest in the debtor;
(3) Whether any disciplinary action has been taken by the
Commissioner against the mortgage broker or any general partner, officer
or director of the mortgage broker within the immediately preceding 12
months, and the nature of any such disciplinary action;
(4) Whether the mortgage broker or any general partner,
officer or director of the mortgage broker has been convicted within the
immediately preceding 12 months for violating any law, ordinance or
regulation that involves fraud, misrepresentation or a deceitful,
fraudulent or dishonest business practice; and
(5) Any other information required pursuant to the
regulations adopted by the Commissioner.
7. Whether or not a mortgage broker is required to disclose any
information to private investors through a disclosure form that complies
with the provisions of this section, the Commissioner may order the
mortgage broker to disclose to private investors and other investors or
to the general public any information concerning the mortgage broker, any
general partner, officer, director or mortgage agent of the mortgage
broker or any loan in which the mortgage broker is or has been involved,
if the Commissioner, in his judgment, believes that the information:
(a) Would be of material interest to a reasonable investor who is
deciding whether to invest money with the mortgage broker; or
(b) Is necessary to protect the welfare of the public.
8. In carrying out the provisions of subsection 7, the
Commissioner may, without limitation, order a mortgage broker to include
statements of disclosure prescribed by the Commissioner:
(a) In the disclosure form that must be given to private investors
pursuant to subsection 1;
(b) In additional disclosure forms that must be given to private
investors and other investors before or after they have invested money
through the mortgage broker; or
(c) In any advertisement that the mortgage broker uses in carrying
on his business.
9. The Commissioner:
(a) Shall adopt regulations prescribing the period for which a
mortgage broker must retain a copy of each disclosure form that is given
to private investors; and
(b) May adopt any other regulations that are necessary to carry out
the provisions of this section, including, without limitation,
regulations specifying the size of print and any required formatting or
typesetting that a mortgage broker must use in any form that is given to
private investors.
(Added to NRS by 1985, 2185; A 1987, 1886; 1999, 3796 ; 2001, 2468 )
1. If a licensee or a relative of the licensee is licensed as,
conducts business as or holds a controlling interest or position in:
(a) A construction control;
(b) An escrow agency or escrow agent; or
(c) A title agent, a title insurer or an escrow officer of a title
agent or title insurer,
Ê the licensee shall fully disclose his status as, connection to or
relationship with the construction control, escrow agency, escrow agent,
title agent, title insurer or escrow officer to each investor, and the
licensee shall not require, as a condition to an investor acquiring
ownership of or a beneficial interest in a loan secured by a lien on real
property, that the investor transact business with or use the services of
the construction control, escrow agency, escrow agent, title agent, title
insurer or escrow officer or that the investor authorize the licensee to
transact business with or use the services of the construction control,
escrow agency, escrow agent, title agent, title insurer or escrow officer
on behalf of the investor.
2. For the purposes of this section, a person shall be deemed to
hold a controlling interest or position if the person:
(a) Owns or controls a majority of the voting stock or holds any
other controlling interest, directly or indirectly, that gives him the
power to direct management or determine policy; or
(b) Is a partner, officer, director or trustee.
3. As used in this section, “licensee” means:
(a) A person who is licensed as a mortgage broker pursuant to this
chapter; and
(b) Any general partner, officer or director of such a person.
(Added to NRS by 1999, 3770 )
1. If a mortgage broker or mortgage agent solicits or receives
money from an investor, the mortgage broker or mortgage agent shall not:
(a) In any advertisement; or
(b) Before, during or after solicitation or receipt of money from
the investor,
Ê make, or cause or encourage to be made, any explicit or implicit
statement, representation or promise, oral or written, which a reasonable
person would construe as a guarantee that the investor will be repaid the
principal amount of money he invests or will earn a specific rate of
return or a specific rate of interest on the principal amount of money he
invests.
2. If a mortgage broker offers to pay or pays premium interest on
money that the mortgage broker receives from a person to acquire
ownership of or a beneficial interest in a loan secured by a lien on real
property or in full or partial payment of such a loan:
(a) The premium interest must be paid from the assets or income of
the mortgage broker; and
(b) The mortgage broker or a mortgage agent shall not:
(1) In any advertisement; or
(2) Before, during or after receipt of money from such a
person,
Ê make, or cause or encourage to be made, any explicit or implicit
statement, representation or promise, oral or written, which a reasonable
person would construe as a guarantee that the mortgage broker will pay
the premium interest.
3. A person who violates any provision of this section is guilty
of a misdemeanor and shall be punished as provided in NRS 645B.950 .
4. As used in this section, “premium interest” means that amount
of interest a mortgage broker pays to a person which exceeds the amount
which is being obtained from the insured depository financial institution.
(Added to NRS by 1985, 2185; A 1999, 3799 )
1. If, in carrying on his business, a mortgage broker uses an
advertisement that is designed, intended or reasonably likely to solicit
money from private investors, the mortgage broker shall include in each
such advertisement a statement of disclosure in substantially the
following form:
Money invested through a mortgage broker is not guaranteed to earn any
interest or return and is not insured.
2. A mortgage broker shall include in each advertisement that the
mortgage broker uses in carrying on his business any statements of
disclosure required pursuant to the regulations adopted by the
Commissioner or required pursuant to an order of the Commissioner entered
in accordance with subsections 7 and 8 of NRS 645B.185 .
3. Each mortgage broker shall submit any proposed advertisement
that the mortgage broker intends to use in carrying on his business to
the Commissioner for approval.
4. In addition to the requirements set forth in this chapter, each
advertisement that a mortgage broker uses in carrying on his business
must comply with the requirements of:
(a) NRS 598.0903 to 598.0999
, inclusive, concerning deceptive trade
practices; and
(b) Any applicable federal statute or regulation concerning
deceptive advertising and the advertising of interest rates.
5. If a mortgage broker violates any provision of NRS 598.0903
to 598.0999 , inclusive, concerning deceptive trade
practices or any federal statute or regulation concerning deceptive
advertising or the advertising of interest rates, in addition to any
sanction or penalty imposed by state or federal law upon the mortgage
broker for the violation, the Commissioner may take any disciplinary
action set forth in subsection 2 of NRS 645B.670 against the mortgage broker.
6. The Commissioner may adopt any regulations that are necessary
to carry out the provisions of this section.
(Added to NRS by 1985, 2185; A 1987, 1886; 1999, 3799 ; 2001, 2470 )
1. An advertising spokesperson for a mortgage broker is jointly
and severally liable with the mortgage broker for damages caused by the
mortgage broker by fraud, embezzlement, misappropriation of property, a
violation of the provisions of this chapter or the regulations adopted
pursuant thereto, or an action of the mortgage broker that is grounds for
disciplinary action, if:
(a) The advertising spokesperson knew or should have known of the
fraud, embezzlement, misappropriation of property, violation of the
provisions of this chapter or the regulations adopted pursuant thereto,
or action of the mortgage broker that is grounds for disciplinary action;
or
(b) In advertising for the mortgage broker, the advertising
spokesperson knew or should have known that:
(1) The conduct of the advertising spokesperson was likely
to deceive, defraud or harm the public or any person who engaged in
business with the mortgage broker; or
(2) The advertising spokesperson was disseminating material
information concerning the mortgage broker or the business, products or
services of the mortgage broker which was false or misleading.
2. As used in this section:
(a) “Advertising for a mortgage broker” means advertising or
otherwise promoting a mortgage broker or the business, products or
services of the mortgage broker using any medium of communication.
(b) “Advertising spokesperson for a mortgage broker” or
“advertising spokesperson” means a person who consents to and receives
compensation for using his name or likeness in advertising for a mortgage
broker.
(Added to NRS by 2003, 3543 )
LOAN PAYMENTS AND DEFAULTS
1. If a person is required to make a payment to a mortgage broker
pursuant to the terms of a loan secured by a lien on real property, the
mortgage broker may not charge the person a late fee, an additional
amount of interest or any other penalty in connection with that payment
if the payment is delivered to the mortgage broker before 5 p.m. on:
(a) The day that the payment is due pursuant to the terms of the
loan, if an office of the mortgage broker is open to customers until 5
p.m. on that day; or
(b) The next day that an office of the mortgage broker is open to
customers until 5 p.m., if the provisions of paragraph (a) do not
otherwise apply.
2. A person and a mortgage broker or mortgage agent may not agree
to alter or waive the provisions of this section by contract or other
agreement, and any such contract or agreement is void and must not be
given effect to the extent that it violates the provisions of this
section.
(Added to NRS by 1999, 3773 )
Except pursuant to a contract
for the collection or servicing of a loan which is governed by the
requirements established by the Government National Mortgage Association,
Federal Home Loan Mortgage Corporation or Federal National Mortgage
Association, a mortgage broker or mortgage agent shall not advance
payments to an investor on behalf of a person who has obtained a loan
secured by a lien on real property and who has defaulted in his payments.
(Added to NRS by 1985, 2185; A 1989, 966; 1999, 3800 )—(Substituted in revision for NRS
645B.191)
1. If a mortgage broker maintains any accounts described in
subsection 4 of NRS 645B.175 in which
the mortgage broker deposits payments from a debtor on a loan secured by
a lien on real property and, on the last day of any month, the debtor has
failed to make two or more consecutive payments in accordance with the
terms of the loan, the mortgage broker shall:
(a) Include in the report that the mortgage broker submits to the
Commissioner pursuant to subsection 2 of NRS 645B.080 the information relating to delinquencies in
payments and defaults that is required by the regulations adopted
pursuant to subsection 2;
(b) Not later than 15 days after the last day of each such month,
mail to the last known address of each investor who owns a beneficial
interest in the loan a notice containing the information relating to
delinquencies in payments and defaults that is required by the
regulations adopted pursuant to subsection 2; and
(c) Comply with the provisions of this section each month on a
continuing basis until:
(1) The debtor or his designee remedies the delinquency in
payments and any default; or
(2) The lien securing the loan is extinguished.
2. The Commissioner:
(a) Shall adopt regulations prescribing the information relating to
delinquencies in payments and defaults that a mortgage broker must
include in his report to the commissioner and in the notice mailed to
investors pursuant to subsection 1. Such regulations may provide for
variations between the information that a mortgage broker must include in
his report to the Commissioner and the information that a mortgage broker
must include in the notice mailed to investors.
(b) May adopt any other regulations that are necessary to carry out
the provisions of this section.
(Added to NRS by 1999, 3773 )
CONDITIONS AND LIMITATIONS ON CERTAIN MORTGAGE TRANSACTIONS
1. Except as otherwise provided in subsection 4, a mortgage broker
or mortgage agent shall not accept money from an investor to acquire
ownership of or a beneficial interest in a loan secured by a lien on real
property, unless the mortgage broker has obtained a written appraisal of
the real property securing the loan.
2. The written appraisal of the real property:
(a) Must be performed by an appraiser who is authorized to perform
appraisals in this state; and
(b) Must not be performed by the mortgage broker or a mortgage
agent, unless the mortgage broker or mortgage agent is certified or
licensed to perform such an appraisal pursuant to chapter 645C of NRS.
3. A copy of the written appraisal of the real property must be:
(a) Maintained at each office of the mortgage broker where money is
accepted from an investor to acquire ownership of or a beneficial
interest in a loan secured by a lien on the real property; and
(b) Made available during normal business hours for inspection by
each such investor and the Commissioner.
4. A mortgage broker is not required to obtain a written appraisal
of the real property pursuant to this section if the mortgage broker
obtains a written waiver of the appraisal from each investor who acquires
ownership of or a beneficial interest in a loan secured by a lien on the
real property. A mortgage broker or mortgage agent shall not act as the
attorney-in-fact or the agent of an investor with respect to the giving
of a written waiver pursuant to this subsection.
5. As used in this section, “appraisal” has the meaning ascribed
to it in NRS 645C.030 .
(Added to NRS by 1999, 3772 )
A mortgage broker shall not assign all or a part of his
interest in a loan secured by a lien on real property, unless the
mortgage broker:
1. Obtains a policy of title insurance for the real property; and
2. Records the assignment in the office of the county recorder of
the county in which the real property is located.
(Added to NRS by 1985, 2185; A 1999, 3800 )—(Substituted in revision for NRS
645B.193)
If money from an investor is released to a debtor or his
designee pursuant to subsection 2 of NRS 645B.175 upon completion of a loan secured by a lien
on real property, the mortgage broker that arranged the loan shall, not
later than 3 business days after the date on which the mortgage broker
receives a copy of the recorded deed of trust, mail to the last known
address of each investor who owns a beneficial interest in the loan a
copy of the recorded deed of trust.
(Added to NRS by 1999, 3773 )
1. A mortgage broker or mortgage agent shall not engage in any act
or transaction on behalf of a private investor pursuant to a power of
attorney unless:
(a) The power of attorney is executed for the sole purpose of
providing services for not more than one specific loan in which the
private investor owns a beneficial interest; and
(b) The provisions of the power of attorney:
(1) Have been approved by the Commissioner;
(2) Expressly prohibit the mortgage broker and his mortgage
agents from engaging in any act or transaction that subordinates the
priority of a recorded deed of trust unless, before such an act or
transaction, the mortgage broker obtains written approval for the
subordination from the private investor;
(3) Expressly prohibit the mortgage broker and his mortgage
agents from using or releasing any money in which the private investor
owns a beneficial interest with regard to the specific loan for a purpose
that is not directly related to providing services for the loan unless,
before any such money is used or released for another purpose, the
mortgage broker obtains written approval from the private investor to use
or release the money for the other purpose; and
(4) Expressly provide that the power of attorney is
effective only for the term of the specific loan unless the mortgage
broker obtains written approval from the private investor to extend the
term of the power of attorney to provide services for not more than one
other loan and the written approval:
(I) Identifies the loan for which the power of
attorney was executed; and
(II) Identifies the loan for which the written
approval is being given.
2. A mortgage broker or mortgage agent shall not act as the
attorney-in-fact or the agent of a private investor with respect to the
giving of written approval pursuant to paragraph (b) of subsection 1. A
private investor and a mortgage broker or mortgage agent may not agree to
alter or waive the provisions of this section by contract or other
agreement. Any such contract or agreement is void and must not be given
effect to the extent that it violates the provisions of this section.
3. Except as otherwise provided in subsection 4, a power of
attorney which designates a mortgage broker or mortgage agent as the
attorney-in-fact or the agent of a private investor and which violates
the provisions of this section is void and must not be given effect with
regard to any act or transaction that occurs on or after October 1, 1999,
whether or not the power of attorney is or has been executed by the
private investor before, on or after October 1, 1999.
4. The provisions of subsection 3 do not apply to a power of
attorney that designates a mortgage broker or mortgage agent as the
attorney-in-fact or the agent of a private investor if the power of
attorney:
(a) Was executed before July 1, 2001; and
(b) Complied with the provisions of this section that were in
effect on October 1, 1999.
5. The provisions of this section do not limit the right of a
private investor to include provisions in a power of attorney that are
more restrictive than the provisions set forth in subsection 1.
(Added to NRS by 1999, 3774 ; A 2001, 2471 )
LICENSING AND REGULATION OF MORTGAGE AGENTS
A person shall not act as or
provide any of the services of a mortgage agent or otherwise engage in,
carry on or hold himself out as engaging in or carrying on the activities
of a mortgage agent unless the person has a license as a mortgage agent
issued pursuant to NRS 645B.410 .
(Added to NRS by 2003, 3543 )
1. To obtain a license as a mortgage agent, a person must:
(a) Be a natural person;
(b) File a written application for a license as a mortgage agent
with the Office of the Commissioner;
(c) Comply with the applicable requirements of this chapter; and
(d) Pay an application fee set by the Commissioner of not more than
$185.
2. An application for a license as a mortgage agent must:
(a) Be verified;
(b) State the name and residence address of the applicant;
(c) Include a provision by which the applicant gives his written
consent to an investigation of his credit history, criminal history and
background;
(d) Include a complete set of fingerprints which the Division may
forward to the Central Repository for Nevada Records of Criminal History
for submission to the Federal Bureau of Investigation for its report;
(e) Include a verified statement from the mortgage broker with whom
the applicant will be associated that expresses the intent of that
mortgage broker to associate the applicant with the mortgage broker and
to be responsible for the activities of the applicant as a mortgage
agent; and
(f) Include any other information or supporting materials required
pursuant to the regulations adopted by the Commissioner or by an order of
the Commissioner. Such information or supporting materials may include,
without limitation, other forms of identification of the person.
3. Except as otherwise provided in this chapter, the Commissioner
shall issue a license as a mortgage agent to an applicant if:
(a) The application complies with the applicable requirements of
this chapter; and
(b) The applicant:
(1) Has not been convicted of, or entered a plea of nolo
contendere to, a felony relating to the practice of mortgage agents or
any crime involving fraud, misrepresentation or moral turpitude;
(2) Has not had a financial services license suspended or
revoked within the immediately preceding 10 years;
(3) Has not made a false statement of material fact on his
application;
(4) Has not violated any provision of this chapter or
chapter 645E of NRS, a regulation adopted
pursuant thereto or an order of the Commissioner; and
(5) Has a good reputation for honesty, trustworthiness and
integrity and displays competence to transact the business of a mortgage
agent in a manner which safeguards the interests of the general public.
The applicant must submit satisfactory proof of these qualifications to
the Commissioner.
4. Money received by the Commissioner pursuant to this section
must be deposited in the Fund for Mortgage Lending created by NRS
645F.270 .
(Added to NRS by 2003, 3543 )
[Effective until the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings.]
1. In addition to any other requirements set forth in this chapter:
(a) An applicant for the issuance of a license as a mortgage agent
pursuant to this chapter shall include the social security number of the
applicant in the application submitted to the Commissioner.
(b) An applicant for the issuance or renewal of a license as a
mortgage agent pursuant to this chapter shall submit to the Commissioner
the statement prescribed by the Division of Welfare and Supportive
Services of the Department of Health and Human Services pursuant to NRS
425.520 . The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of a license as a mortgage agent; or
(b) A separate form prescribed by the Commissioner.
3. The license as a mortgage agent may not be issued or renewed by
the Commissioner if the applicant:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 2003, 3545 ; A 2005, 2785 , 2817 )
[Effective on the date of the repeal of the federal law
requiring each state to establish procedures for withholding, suspending
and restricting the professional, occupational and recreational licenses
for child support arrearages and for noncompliance with certain processes
relating to paternity or child support proceedings and expires by
limitation 2 years after that date.]
1. In addition to any other requirements set forth in this
chapter, an applicant for the issuance or renewal of a license as a
mortgage agent pursuant to this chapter shall submit to the Commissioner
the statement prescribed by the Division of Welfare and Supportive
Services of the Department of Health and Human Services pursuant to NRS
425.520 . The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the statement required pursuant
to subsection 1 in:
(a) The application or any other forms that must be submitted for
the issuance or renewal of a license as a mortgage agent; or
(b) A separate form prescribed by the Commissioner.
3. The license as a mortgage agent may not be issued or renewed by
the Commissioner if the applicant:
(a) Fails to submit the statement required pursuant to subsection
1; or
(b) Indicates on the statement submitted pursuant to subsection 1
that he is subject to a court order for the support of a child and is not
in compliance with the order or a plan approved by the district attorney
or other public agency enforcing the order for the repayment of the
amount owed pursuant to the order.
4. If an applicant indicates on the statement submitted pursuant
to subsection 1 that he is subject to a court order for the support of a
child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the
repayment of the amount owed pursuant to the order, the Commissioner
shall advise the applicant to contact the district attorney or other
public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 2003, 3545 ; A 2005, 2785 , 2786 , 2817 , effective on the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings)
1. A license as a mortgage agent issued pursuant to NRS 645B.410
expires 1 year after the date the
license is issued, unless it is renewed. To renew a license as a mortgage
agent, the holder of the license must submit to the Commissioner each
year, 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 attended at
least 10 hours of certified courses of continuing education during the 12
months immediately preceding the date on which the license expires; and
(c) A renewal fee set by the Commissioner of not more than $170.
2. If the holder of the license as a mortgage agent fails to
submit any item required pursuant to subsection 1 to the Commissioner
each 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 license submits to the Commissioner:
(a) An application for renewal;
(b) The fee required to renew the license pursuant to this section;
and
(c) A reinstatement fee of $75.
3. To be issued a duplicate copy of a license as a mortgage agent,
a person must make a satisfactory showing of its loss and pay a fee of
$10.
4. To change the mortgage broker with whom the mortgage agent is
associated, a person must pay a fee of $10.
5. Money received by the Commissioner pursuant to this section
must be deposited in the Fund for Mortgage Lending created by NRS
645F.270 .
6. The Commissioner may provide by regulation that any hours of a
certified course of continuing education attended during a 12-month
period, but not needed to satisfy a requirement set forth in this section
for the 12-month period in which the hours were taken, may be used to
satisfy a requirement set forth in this section for a later 12-month
period.
7. As used in this section, “certified course of continuing
education” has the meaning ascribed to it in NRS 645B.051 .
(Added to NRS by 2003, 3544 )
1. A person licensed as a mortgage agent pursuant to the
provisions of NRS 645B.410 may not be
associated with or employed by more than one mortgage broker at the same
time.
2. A mortgage broker shall not associate with or employ a person
as a mortgage agent or authorize a person to be associated with the
mortgage broker as a mortgage agent if the mortgage agent is not licensed
with the Division pursuant to NRS 645B.410 .
3. If a mortgage agent terminates his association or employment
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 certified mail to the
last known residence address of the mortgage agent a written statement
which advises him that his termination is being reported to the Division;
and
(b) Deliver or send by certified mail to the Division:
(1) The license or license number of the mortgage agent;
(2) A written statement of the circumstances surrounding the
termination; and
(3) A copy of the written statement that the mortgage 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 )
1. A mortgage broker shall exercise reasonable supervision over
the activities of his mortgage agents. Such reasonable supervision must
include, as appropriate:
(a) The establishment of written or oral policies and procedures
for his mortgage agents; and
(b) The establishment of a system to review, oversee and inspect
the activities of his mortgage agents, including, without limitation:
(1) Transactions handled by his mortgage agents pursuant to
this chapter;
(2) Communications between his mortgage agents and a party
to such a transaction;
(3) Documents prepared by his mortgage agents that may have
a material effect upon the rights or obligations of a party to such a
transaction; and
(4) The handling by his mortgage agents of any fee, deposit
or money paid to the mortgage broker or his mortgage agents or held in
trust by the mortgage broker or his mortgage agents pursuant to this
chapter.
2. The Commissioner shall allow a mortgage broker to take into
consideration the total number of mortgage agents associated with or
employed by the mortgage broker when the mortgage broker determines the
form and extent of the policies and procedures for those mortgage agents
and the system to review, oversee and inspect the activities of those
mortgage agents.
3. The Commissioner may adopt regulations prescribing standards
for determining whether a mortgage broker has exercised reasonable
supervision 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
1. Any mortgage broker or mortgage agent licensed under the
provisions of this chapter who is called into the military service of the
United States shall, at his request, be relieved from compliance with the
provisions of this chapter and placed on inactive status for the period
of such military service and for a period of 6 months after discharge
therefrom.
2. At any time within 6 months after termination of such service,
if the mortgage broker or mortgage agent complies with the provisions of
subsection 1, the mortgage broker or mortgage agent may be reinstated,
without having to meet any qualification or requirement other than the
payment of the reinstatement fee, as provided in NRS 645B.050 or 645B.430 , and the mortgage broker or mortgage agent
is not required to make payment of the renewal fee for the current year.
3. Any mortgage broker or mortgage agent seeking to qualify for
reinstatement, as provided in subsections 1 and 2, must present a
certified copy of his honorable discharge or certificate of satisfactory
service to the Commissioner.
(Added to NRS by 2003, 3545 )
INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL ACTION
1. A person may file with the Commissioner a complaint alleging
that another person has violated a provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the
Commissioner.
2. A complaint filed pursuant to this section must:
(a) Be in writing;
(b) Be signed by the person filing the complaint or the authorized
representative of the person filing the complaint;
(c) Contain an address and a telephone number for the person filing
the complaint or the authorized representative of the person filing the
complaint;
(d) Describe the nature of the alleged violation in as much detail
as possible;
(e) Include as exhibits copies of all documentation supporting the
complaint; and
(f) Include any other information or supporting materials required
by the regulations adopted by the Commissioner or by an order of the
Commissioner.
(Added to NRS by 1999, 3775 ; A 2001, 2474 )
1. If a person properly files a complaint with the Commissioner
pursuant to NRS 645B.600 , the
Commissioner shall investigate each violation alleged in the complaint,
unless the Commissioner has previously investigated the alleged violation.
2. Except as otherwise provided in subsection 2 of NRS 645B.090
, if the Commissioner does not conduct
an investigation of an alleged violation pursuant to subsection 1 because
he previously has investigated the alleged violation, the Commissioner
shall provide to the person who filed the complaint a written summary of
the previous investigation and the nature of any disciplinary action that
was taken as a result of the previous investigation.
3. If the Commissioner conducts an investigation of an alleged
violation pursuant to subsection 1, the Commissioner shall determine from
the investigation whether there is reasonable cause to believe that the
person committed the alleged violation.
4. If, upon investigation, the Commissioner determines that there
is not reasonable cause to believe that the person committed the alleged
violation, the Commissioner shall provide the reason for his
determination, in writing, to the person who filed the complaint and to
the person alleged to have committed the violation.
5. Except as otherwise provided in subsection 6, if, upon
investigation, the Commissioner determines that there is reasonable cause
to believe that the person committed the alleged violation, the
Commissioner shall:
(a) Schedule a hearing concerning the alleged violation;
(b) Mail to the last known address of the person who filed the
complaint written notice that must include, without limitation:
(1) The date, time and place of the hearing; and
(2) A statement of each alleged violation that will be
considered at the hearing; and
(c) By personal service in accordance with the Nevada Rules of
Civil Procedure and any applicable provision of NRS, serve written notice
of the hearing to the person alleged to have committed the violation. The
written notice that is served pursuant to this paragraph must include,
without limitation:
(1) The date, time and place of the hearing;
(2) A copy of the complaint and a statement of each alleged
violation that will be considered at the hearing; and
(3) A statement informing the person that, pursuant to NRS
645B.760 , if he fails to appear,
without reasonable cause, at the hearing:
(I) He is guilty of a misdemeanor; and
(II) The Commissioner is authorized to conduct the
hearing in his absence, draw any conclusions that the Commissioner deems
appropriate from his failure to appear and render a decision concerning
each alleged violation.
6. If the Commissioner enters into a written consent agreement
settling or resolving the alleged violation, the Commissioner shall
provide a copy of the written consent agreement to the person who filed
the complaint.
7. The Commissioner may:
(a) Investigate and conduct a hearing concerning any alleged
violation, whether or not a complaint has been filed.
(b) Hear and consider more than one alleged violation against a
person at the same hearing.
(Added to NRS by 1999, 3775 ; A 2003, 3469 )
1. Whether or not a complaint has been filed, the Commissioner
shall investigate a mortgage broker, mortgage agent or other person if,
for any reason, it appears that:
(a) The mortgage broker or mortgage agent is conducting business in
an unsafe and injurious manner or in violation of any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner;
(b) The person is offering or providing any of the services of a
mortgage broker or mortgage agent or otherwise engaging in, carrying on
or holding himself out as engaging in or carrying on the business of a
mortgage broker or mortgage agent without being appropriately licensed or
exempt from licensing pursuant to the provisions of this chapter; or
(c) The person is violating any other provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the
Commissioner.
2. If, upon investigation, the Commissioner has reasonable cause
to believe that the mortgage broker, mortgage agent or other person has
engaged in any conduct or committed any violation described in subsection
1:
(a) The Commissioner shall notify the Attorney General of the
conduct or violation and, if applicable, the Commissioner shall
immediately take possession of the property of the mortgage broker
pursuant to NRS 645B.630 ; and
(b) The Attorney General shall, if appropriate:
(1) Investigate and prosecute the mortgage broker, mortgage
agent or other person pursuant to NRS 645B.800 ; and
(2) Bring a civil action to:
(I) Enjoin the mortgage broker, mortgage agent or
other person from engaging in the conduct, operating the business or
committing the violation; and
(II) Enjoin any other person who has encouraged,
facilitated, aided or participated in the conduct, the operation of the
business or the commission of the violation, or who is likely to engage
in such acts, from engaging in or continuing to engage in such acts.
3. If the Attorney General brings a civil action pursuant to
subsection 2, the district court of any county of this State is hereby
vested with the jurisdiction in equity to enjoin the conduct, the
operation of the business or the commission of the violation and may
grant any injunctions that are necessary to prevent and restrain the
conduct, the operation of the business or the commission of the
violation. During the pendency of the proceedings before the district
court:
(a) The court may issue any temporary restraining orders as may
appear to be just and proper;
(b) The findings of the Commissioner shall be deemed to be prima
facie evidence and sufficient grounds, in the discretion of the court,
for the ex parte issuance of a temporary restraining order; and
(c) The Attorney General may apply for and on due showing is
entitled to have issued the court’s subpoena requiring forthwith the
appearance of any person to:
(1) Produce any documents, books and records as may appear
necessary for the hearing of the petition; and
(2) Testify and give evidence concerning the conduct
complained of in the petition.
(Added to NRS by 1973, 1540; A 1983, 1705; 1987, 1882; 1999, 3790
; 2003, 3554 )
1. In addition to any other action that is required or permitted
pursuant to this chapter, if the Commissioner has reasonable cause to
believe that:
(a) The assets or capital of a mortgage broker are impaired; or
(b) A mortgage broker is conducting business in an unsafe and
injurious manner that may result in danger to the public,
Ê the Commissioner shall immediately take possession of all the property,
business and assets of the mortgage broker that are located in this State
and shall retain possession of them pending further proceedings provided
for in this chapter.
2. If the licensee, the board of directors or any officer or
person in charge of the offices of the mortgage broker refuses to permit
the Commissioner to take possession of the property of the mortgage
broker pursuant to subsection 1:
(a) The Commissioner shall notify the Attorney General; and
(b) The Attorney General shall immediately bring such proceedings
as may be necessary to place the Commissioner in immediate possession of
the property of the mortgage broker.
3. If the Commissioner takes possession of the property of the
mortgage broker, the Commissioner shall:
(a) Make or have made an inventory of the assets and known
liabilities of the mortgage broker;
(b) File one copy of the inventory in his office and one copy in
the office of the clerk of the district court of the county in which the
principal office of the mortgage broker is located and shall mail one
copy to each stockholder, partner, officer, director or associate of the
mortgage broker at his last known address; and
(c) If the mortgage broker maintains any accounts described in NRS
645B.175 , not later than 5 business
days after the date on which the Commissioner takes possession of the
property of the mortgage broker, mail notice of his possession to the
last known address of each person whose money is deposited in such an
account or whose money was or should have been deposited in such an
account during the preceding 12 months.
4. The clerk of the court with which the copy of the inventory is
filed shall file it as any other case or proceeding pending in the court
and shall give it a docket number.
(Added to NRS by 1973, 1541; A 1981, 1790; 1983, 1707; 1987, 1883;
1999, 3791 )—(Substituted in revision for NRS
645B.150)
1. If the Commissioner takes possession of the property of a
mortgage broker pursuant to NRS 645B.630 , the licensee, officers, directors,
partners, associates or stockholders of the mortgage broker may, within
60 days after the date on which the Commissioner takes possession of the
property, make good any deficit in the assets or capital of the mortgage
broker or remedy any unsafe and injurious conditions or practices of the
mortgage broker.
2. At the expiration of the 60-day period, if the deficiency in
assets or capital has not been made good or the unsafe and injurious
conditions or practices remedied, the Commissioner may apply to the court
to be appointed receiver and proceed to liquidate the assets of the
mortgage broker which are located in this State in the same manner as now
provided by law for liquidation of a private corporation in receivership.
3. No other person may be appointed receiver by any court without
first giving the Commissioner ample notice of his application.
4. The inventory made by the Commissioner and all claims filed by
creditors are open at all reasonable times for inspection, and any action
taken by the receiver upon any of the claims is subject to the approval
of the court before which the cause is pending.
5. The expenses of the receiver and compensation of counsel, as
well as all expenditures required in the liquidation proceedings, must be
fixed by the Commissioner subject to the approval of the court and, upon
certification of the Commissioner, must be paid out of the money in his
hands as the receiver.
(Added to NRS by 1973, 1542; A 1983, 1707; 1987, 1884; 1999, 3792
)—(Substituted in revision for NRS
645B.160)
DISCIPLINARY ACTION
Except as otherwise provided in NRS 645B.690 :
1. For each violation committed by an applicant for a license
issued pursuant to this chapter, whether or not he is issued a license,
the Commissioner may impose upon the applicant an administrative fine of
not more than $10,000, if the applicant:
(a) Has knowingly made or caused to be made to the Commissioner any
false representation of material fact;
(b) Has suppressed or withheld from the Commissioner any
information which the applicant possesses and which, if submitted by him,
would have rendered the applicant ineligible to be licensed pursuant to
the provisions of this chapter; or
(c) Has violated any provision of this chapter, a regulation
adopted pursuant to this chapter or an order of the Commissioner in
completing and filing his application for a license or during the course
of the investigation 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
of not 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 performing any act for
which he is required to be licensed pursuant to the provisions of this
chapter;
(c) Does not conduct his business in accordance with law or has
violated any provision of this chapter, a regulation adopted pursuant to
this chapter or an order of the Commissioner;
(d) Is in such financial condition that he cannot continue in
business with safety to his customers;
(e) Has made a material misrepresentation in connection with any
transaction governed by this chapter;
(f) Has suppressed or withheld from a client any material facts,
data or other information relating to any transaction governed by the
provisions of this chapter which the mortgage broker knew or, by the
exercise of reasonable diligence, should have known;
(g) Has knowingly made or caused to be made to the Commissioner any
false representation of material fact or has suppressed or withheld from
the Commissioner any information which the mortgage broker possesses and
which, if submitted by him, would have rendered the mortgage broker
ineligible to be licensed pursuant to the provisions of this chapter;
(h) Has failed to account to persons interested for all money
received for a trust account;
(i) Has refused to permit an examination by the Commissioner of his
books and affairs or has refused or failed, within a reasonable time, to
furnish any information or make any report that may be required by the
Commissioner pursuant to the provisions of this chapter or a regulation
adopted pursuant to this chapter;
(j) Has been convicted of, or entered a plea of nolo contendere to,
a felony relating to the practice of mortgage brokers or any crime
involving fraud, misrepresentation or moral turpitude;
(k) Has refused or failed to pay, within a reasonable time, any
fees, assessments, costs or expenses that the mortgage broker is required
to pay pursuant to this chapter or a regulation adopted pursuant to this
chapter;
(l) Has failed to satisfy a claim made by a client which has been
reduced to judgment;
(m) Has failed to account for or to remit any money of a client
within a reasonable time after a request for an accounting or remittal;
(n) Has commingled the money or other property of a client with his
own or has converted the money or property of others to his own use;
(o) Has engaged in any other conduct constituting a deceitful,
fraudulent or dishonest business practice;
(p) Has repeatedly violated the policies and procedures of the
mortgage broker;
(q) Has failed to exercise reasonable supervision over the
activities of a mortgage agent as required by NRS 645B.460 ;
(r) Has instructed a mortgage agent to commit an act that would be
cause for the revocation of the license of the mortgage broker, whether
or not the mortgage agent commits the act;
(s) Has employed a person as a mortgage agent or authorized a
person to be associated with the mortgage broker as a mortgage agent at a
time when the mortgage broker knew or, in light of all the surrounding
facts and circumstances, reasonably should have known that the person:
(1) Had been convicted of, or entered a plea of nolo
contendere to, a felony relating to the practice of mortgage agents or
any crime involving fraud, misrepresentation or moral turpitude; or
(2) Had a financial services license or registration
suspended or revoked within the immediately preceding 10 years;
(t) Has failed to pay a tax as required pursuant to the provisions
of chapter 363A of NRS; or
(u) Has not conducted verifiable business as a mortgage broker for
12 consecutive months, except in the case of a new applicant. The
Commissioner shall determine whether a mortgage broker is conducting
business by examining the monthly reports of activity submitted by the
mortgage broker or 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 of
not more than $10,000, may suspend, revoke or place conditions upon his
license, or may do both, if the mortgage agent, whether or not acting as
such:
(a) Is grossly negligent or incompetent in performing any act for
which he is required to be licensed pursuant to the provisions of this
chapter;
(b) Has made a material misrepresentation in connection with any
transaction governed by this chapter;
(c) Has suppressed or withheld from a client any material facts,
data or other information relating to any transaction governed by the
provisions of this chapter which the mortgage agent knew or, by the
exercise of reasonable diligence, should have known;
(d) Has knowingly made or caused to be made to the Commissioner any
false representation of material fact or has suppressed or withheld from
the Commissioner any information which the mortgage agent possesses and
which, if submitted by him, would have rendered the mortgage agent
ineligible to be licensed pursuant to the provisions of this chapter;
(e) Has been convicted of, or entered a plea of nolo contendere to,
a felony relating to the practice of mortgage agents or any crime
involving fraud, misrepresentation or moral turpitude;
(f) Has failed to account for or to remit any money of a client
within a reasonable time after a request for an accounting or remittal;
(g) Has commingled the money or other property of a client with his
own or has converted the money or property of others to his own use;
(h) Has engaged in any other conduct constituting a deceitful,
fraudulent or dishonest business practice;
(i) Has repeatedly violated the policies and procedures of the
mortgage broker with whom he is associated or by whom he is employed; or
(j) Has violated any provision of this chapter, a regulation
adopted pursuant to this chapter or an order of the Commissioner or has
assisted or offered to assist another person to commit such a violation.
(Added to NRS by 1973, 1539; A 1977, 93; 1981, 1790; 1983, 1380,
1704; 1985, 2188; 1987, 1880; 1993, 498; 1999, 3787 ; 2001, 2474 ; 2003, 2724 , 3555 ; 2003, 20th Special Session, 221 , 258 )
[Expires by limitation 2 years after the date of the repeal of
the federal law requiring each state to establish procedures for
withholding, suspending and restricting the professional, occupational
and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child
support proceedings.]
1. If the Commissioner receives a copy of a court order issued
pursuant to NRS 425.540 that provides
for the suspension of all professional, occupational and recreational
licenses, certificates and permits issued to a person who is the holder
of a license as a mortgage broker or mortgage agent, the Commissioner
shall deem the license issued to that person to be suspended at the end
of the 30th day after the date on which the court order was issued unless
the Commissioner receives a letter issued to the holder of the license by
the district attorney or other public agency pursuant to NRS 425.550
stating that the holder of the license
has complied with the subpoena or warrant or has satisfied the arrearage
pursuant to NRS 425.560 .
2. The Commissioner shall reinstate a license as a mortgage broker
or mortgage agent that has been suspended by a district court pursuant to
NRS 425.540 if the Commissioner
receives a letter issued by the district attorney or other public agency
pursuant to NRS 425.550 to the person
whose license was suspended stating that the person whose license was
suspended has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560 .
(Added to NRS by 1997, 2171; A 1999, 3789 ; 2003, 3556 ; 2005, 2807 , 2810 , 2817 )
1. If a person offers or provides any of the services of a
mortgage broker or mortgage agent or otherwise engages in, carries on or
holds himself out as engaging in or carrying on the business of a
mortgage broker or mortgage agent and, at the time:
(a) The person was required to have a license pursuant to this
chapter and the person did not have such a license; or
(b) The person’s license was suspended or revoked pursuant to this
chapter,
Ê the Commissioner shall impose upon the person an administrative fine of
not more than $10,000 for each violation and, if the person has a
license, the Commissioner shall revoke it.
2. If a mortgage broker violates any provision of subsection 1 of
NRS 645B.080 and the mortgage broker
fails, without reasonable cause, to remedy the violation within 20
business days after being ordered by the Commissioner to do so or within
such later time as prescribed by the Commissioner, or if the Commissioner
orders a mortgage broker to provide information, make a report or permit
an examination of his books or affairs pursuant to this chapter and the
mortgage broker fails, without reasonable cause, to comply with the order
within 20 business days or within such later time as prescribed by the
Commissioner, the Commissioner shall:
(a) Impose upon the mortgage broker an administrative fine of not
more than $10,000 for each violation;
(b) Suspend or revoke the license of the mortgage broker; and
(c) Conduct a hearing to determine whether the mortgage broker is
conducting business in an unsafe and injurious manner that may result in
danger to the public and whether it is necessary for the Commissioner to
take possession of the property of the mortgage broker pursuant to NRS
645B.630 .
(Added to NRS by 1999, 3776 ; A 2003, 3557 )
1. Except as otherwise provided in subsection 2, for each
violation that may be committed by a person pursuant to this chapter or
the regulations adopted pursuant to this chapter, the Commissioner may
adopt regulations:
(a) Categorizing the violation as a major violation or a minor
violation; and
(b) Specifying the disciplinary action that will be taken by the
Commissioner pursuant to this chapter against a person who commits:
(1) A major violation. The disciplinary action taken by the
Commissioner for a major violation may include, without limitation,
suspension or revocation of the person’s license.
(2) More than two minor violations. The Commissioner may
establish graduated sanctions for a person who commits more than two
minor violations based upon the number, the frequency and the severity of
the minor violations and whether the person previously has committed any
major violations.
2. The provisions of this section do not apply to a violation for
which the Commissioner is required to take disciplinary action in
accordance with NRS 645B.690 .
(Added to NRS by 1999, 3777 ; A 2001, 2476 )
If a person is a partnership, corporation or unincorporated
association, the Commissioner shall take any disciplinary action required
pursuant to NRS 645B.690 and may take
any other disciplinary action set forth in this chapter against the
person if any member of the partnership or any officer or director of the
corporation or unincorporated association has committed any act or
omission that would be cause for taking such disciplinary action against
a natural person.
(Added to NRS by 1999, 3777 )
Before conducting a hearing, the Commissioner may, to the
fullest extent permitted by the Constitution of the United States and the
Constitution of this State:
1. Order a summary suspension of a license pursuant to subsection
3 of NRS 233B.127 ; and
2. Take any other action against a licensee or other person that
is necessary to protect the health, safety or welfare of the public.
(Added to NRS by 1999, 3777 )
HEARINGS; APPEALS
1. If the Commissioner enters an order taking any disciplinary
action against a person or denying a person’s application for a license,
the Commissioner shall cause a written notice of the order to be served
personally or sent by certified mail or telegram to the person.
2. Unless a hearing has already been conducted concerning the
matter, the person, upon application, is entitled to a hearing. If the
person does not make such an application within 20 days after the date of
the initial order, the Commissioner shall enter a final order concerning
the matter.
3. A person may appeal a final order of the Commissioner in
accordance with the provisions of chapter 233B of NRS that apply to a contested case.
(Added to NRS by 1973, 1539; A 1983, 1705; 1987, 1881; 1999, 3789
; 2003, 984 )
If
a person is alleged to have engaged in any conduct or committed any
violation that is described in NRS 645B.620 , 645B.630 or 645B.670 or is alleged to have committed a violation
of any other provision of this chapter, a regulation adopted pursuant to
this chapter or an order of the Commissioner, and the person fails to
appear, without reasonable cause, at a hearing before the Commissioner
concerning the alleged conduct or violation:
1. The Commissioner shall notify the Attorney General that the
person failed to appear;
2. The person is guilty of a misdemeanor and shall be punished as
provided in NRS 645B.950 ; and
3. The Commissioner may conduct the hearing in the person’s
absence, draw any conclusions that the Commissioner deems appropriate
from his failure to appear and render a decision concerning the alleged
conduct or violation.
(Added to NRS by 1999, 3777 )
ENFORCEMENT BY ATTORNEY GENERAL
1. The Attorney General has primary jurisdiction for the
enforcement of this chapter. The Attorney General shall, if appropriate,
investigate and prosecute a person who violates:
(a) Any provision of this chapter, a regulation adopted pursuant to
this chapter or an order of the Commissioner, including, without
limitation, a violation of any provision of NRS 645B.620 or 645B.670 ; or
(b) Any other law or regulation if the violation is committed by
the person in the course of committing a violation described in paragraph
(a).
2. The Attorney General shall, if appropriate, investigate and
prosecute a person who is alleged to have committed a violation described
in subsection 1 whether or not:
(a) The Commissioner notifies the Attorney General of the alleged
violation;
(b) The Commissioner takes any disciplinary action against the
person alleged to have committed the violation;
(c) Any other person files a complaint against the person alleged
to have committed the violation; or
(d) A civil action is commenced against the person alleged to have
committed the violation.
3. When acting pursuant to this section, the Attorney General may
commence his investigation and file a criminal action without leave of
court, and the Attorney General has exclusive charge of the conduct of
the prosecution.
4. Except as otherwise provided by the Constitution of the United
States, the Constitution of this State or a specific statute, a person
shall, if requested, provide the Attorney General with information that
would assist in the prosecution of any other person who is alleged to
have committed a violation described in subsection 1. If a person fails,
without reasonable cause, to provide the Attorney General with such
information upon request, the person is guilty of a misdemeanor and shall
be punished as provided in NRS 645B.950 .
(Added to NRS by 1999, 3778 )
1. The Attorney General may bring any appropriate civil action
against a person to enforce any provision of this chapter, a regulation
adopted pursuant to this chapter or an order of the Commissioner,
including, without limitation, an order of the Commissioner:
(a) Imposing an administrative fine; or
(b) Suspending, revoking or placing conditions upon a license.
2. If the Attorney General prevails in any civil action brought
pursuant to this chapter, the court shall order the person against whom
the civil action was brought to pay:
(a) Court costs; and
(b) Reasonable costs of the investigation and prosecution of the
civil action.
3. Whether or not the Attorney General brings a civil action
against a person pursuant to this chapter, the Attorney General may
prosecute the person for a criminal violation pursuant to this chapter.
(Added to NRS by 1999, 3778 )
ADVISORY COUNCIL ON MORTGAGE INVESTMENTS AND MORTGAGE LENDING
1. The Advisory Council on Mortgage Investments and Mortgage
Lending is hereby created.
2. The Advisory Council consists of five members appointed by the
Legislative Commission from a list of persons provided by the
Commissioner.
3. The members of the Advisory Council:
(a) Must be persons who have experience with, an interest in or a
knowledge of issues relating to mortgage investments or mortgage lending.
Such persons may include, without limitation, investors, public officers
and employees, licensees and persons who have engaged in or been involved
with any business, profession or occupation relating to mortgage
investments or mortgage lending.
(b) Serve terms of 2 years and at the pleasure of the Legislative
Commission.
(c) May be reappointed.
(d) Serve without compensation and may not receive a per diem
allowance or travel expenses.
4. Any vacancy in the membership of the Advisory Council must be
filled for the remainder of the unexpired term in the same manner as the
original appointment.
5. A member of the Advisory Council who is an officer or employee
of this State or a political subdivision of this State must be relieved
from his duties without loss of his regular compensation so that he may
prepare for and attend meetings of the Advisory Council and perform any
work necessary to carry out the duties of the Advisory Council in the
most timely manner practicable. A state agency or political subdivision
of this State shall not require an officer or employee who is a member of
the Advisory Council to make up the time he is absent from work to carry
out his duties as a member of the Advisory Council or use annual vacation
or compensatory time for the absence.
6. Notwithstanding any other provision of law, a member of the
Advisory Council:
(a) Is not disqualified from public employment or holding a public
office because of his membership on the Advisory Council; and
(b) Does not forfeit his public office or public employment because
of his membership on the Advisory Council.
(Added to NRS by 1999, 3766 )
1. The members of the Advisory Council on Mortgage Investments and
Mortgage Lending shall elect a Chairman and a Vice Chairman from among
their membership. The Vice Chairman shall perform the duties of the
Chairman during any absence of the Chairman.
2. The Advisory Council may meet at least once each calendar
quarter and at other times on the call of the Chairman or a majority of
its members.
3. The meetings of the Advisory Council may be held at any
location designated by the Chairman or a majority of its members.
4. A majority of the members of the Advisory Council constitutes a
quorum for the transaction of all business.
5. The Chairman may appoint subcommittees of the members of the
Advisory Council to consider specific problems relating to mortgage
investments or mortgage lending.
(Added to NRS by 1999, 3767 )
The purpose of the Advisory Council on
Mortgage Investments and Mortgage Lending is to:
1. Consult with, advise and make recommendations to the
Commissioner in all matters relating to mortgage investments and mortgage
lending.
2. Make recommendations to the Legislature concerning the
enactment of any legislation relating to mortgage investments and
mortgage lending.
3. Make recommendations to the Legislature and the Commissioner
concerning educational requirements and other qualifications for persons
who are engaged in any business, profession or occupation relating to
mortgage investments and mortgage lending.
4. Conduct hearings, conferences and special studies on all
matters relating to mortgage investments and mortgage lending.
5. Provide a forum for the consideration and discussion of all
matters relating to mortgage investments and mortgage lending.
6. Gather and disseminate information relating to mortgage
investments and mortgage lending.
7. Engage in other activities that are designed to promote,
improve and protect the reliability and stability of mortgage investments
and mortgage lending in this State.
(Added to NRS by 1999, 3767 )
UNLAWFUL ACTS; PENALTIES
It is
unlawful for any person to offer or provide any of the services of a
mortgage broker or mortgage agent or otherwise to engage in, carry on or
hold himself out as engaging in or carrying on the business of a mortgage
broker or mortgage agent without first obtaining the applicable license
issued pursuant to this chapter, unless the person:
1. Is exempt from the provisions of this chapter; and
2. Complies with the requirements for that exemption.
(Added to NRS by 1973, 1536; A 1981, 1792; 1999, 3801 ; 2003, 3558 )
It is unlawful for any foreign corporation,
association or business trust to conduct any business as a mortgage
broker within this State, unless it:
1. Qualifies under chapter 80 of NRS;
and
2. Complies with the provisions of this chapter or, if it claims
an exemption from the provisions of this chapter, complies with the
requirements for that exemption.
(Added to NRS by 1973, 1542; A 1999, 3801 )—(Substituted in revision for NRS
645B.220)
1. Except as otherwise provided in NRS 645B.960 , a person, or any general partner, director,
officer, agent or employee of a person, who violates any provision of
this chapter, a regulation adopted pursuant to this chapter or an order
of the Commissioner is guilty of a misdemeanor.
2. In addition to any other penalty, if a person is convicted of
or enters a plea of nolo contendere to a violation described in
subsection 1, the court shall order the person to pay:
(a) Court costs; and
(b) Reasonable costs of the investigation and prosecution of the
violation.
(Added to NRS by 1973, 1543; A 1981, 1792; 1999, 3802 )—(Substituted in revision for NRS
645B.230)
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 $250 or more but
less than $1,000; or
(c) A category D felony if the amount involved is $1,000 or more,
and shall be punished as provided in NRS 193.130 .
2. In addition to any other penalty, if a person is convicted of
or enters a plea of nolo contendere to a violation described in
subsection 1, the court shall order the person to pay:
(a) Court costs; and
(b) Reasonable costs of the investigation and prosecution of the
violation.
(Added to NRS by 1981, 1785; A 1985, 2191; 1989, 1442; 1995, 1313;
1999, 3801 )—(Substituted in revision for NRS
645B.225)
