24 Dec Nevada Legislative Update
The Nevada legislature recently amended its laws governing the licensing of mortgage bankers, mortgage brokers and mortgage servicers, effective January 1, 2016.
NEVADA ASSEMBLY BILL 480
Mortgage servicers in Nevada must now be licensed and supervised.
“Mortgage Servicer” includes a person who directly services a mortgage loan, or who is responsible for interacting with a borrower, managing a loan account on a daily basis, including, without limitation, collecting and crediting periodic loan payments, managing any escrow account or enforcing the note and security instrument, either as the current owner of the promissory note or as the authorized agent of the current owner of the promissory note. The term includes a person providing such services by contract as a subservicing agent to a master servicer by contract. The term does not include a trustee under a deed of trust, or the trustee’s authorized agent, acting under a power of sale pursuant to a deed of trust.
Except as otherwise provided below, a person may not engage in the business of a Mortgage Servicer or hold himself or herself out as a Mortgage Servicer in Nevada without a license.
The Commissioner of Mortgage Lending (“Commissioner”) must adopt regulations establishing the requirements for the licensure and supervision of Mortgage Servicers.
Mortgage Servicers must comply with federal laws and any applicable state law or regulation or any order of the Commissioner.
The Commissioner must conduct any examination or investigation of a Mortgage Servicer or applicant for the issuance of a license as a Mortgage Servicer as may be necessary to ensure compliance with Nevada laws and regulations and may impose penalties for any violation of such laws and regulations.
Unless otherwise provided, the Commissioner shall require a person to submit to the Commissioner through NMLS:
· An application for the initial issuance or the renewal of a license as a Mortgage Servicer, including any fees related to the issuance or renewal of a license;
· Any form or filing that a Mortgage Servicer is otherwise required to submit to the Commissioner;
· Any administrative fine assessed against the licensee; and
· Any costs associated with the submittal of any document, information, fee or fine through NMLS.
Any such fees and costs are non-refundable.
The following are exempt from the Mortgage Servicer licensing requirement:
· A depository financial institution, or any subsidiary or holding company of a depository financial institution if such entity maintains its principal place of business or a branch office in Nevada;
· A real estate investment trust unless the business conducted by the trust in Nevada is not subject to supervision by the appropriate regulatory body of a jurisdiction outside of Nevada;
· Any trustee of an employee benefit plan who makes a residential mortgage loan directly from money in the plan;
· An attorney who is licensed in Nevada and who does not engage in the business of, or otherwise hold himself out as being able to provide services related to, a Mortgage Servicer, if the activities of the attorney are directly incidental to the representation of a client;
· A person performing any act pursuant to a court order;
· A federal or state agency or a political subdivision of the state of Nevada, including, without limitation, the Public Employees’ Retirement System;
· A nonprofit organization that is recognized by the Internal Revenue Service as exempt;
· A Mortgage Servicer that, in the aggregate with any affiliates, services not more than 10 residential mortgage loans in Nevada during a calendar year;
· A person licensed in Nevada as a mortgage broker, mortgage banker or a licensee under the Nevada Installment Loan and Finance Act who is collecting payments on a mortgage loan or servicing one or more mortgage loans made or arranged by the person under his or her license.
A mortgage broker that only acts as a wholesale lender is no longer required to maintain an office in Nevada. A Wholesale Lender is defined as a person who holds himself out as a mortgage broker or mortgage banker but does not directly take or receive an application from, or negotiate terms with, a borrower.
If a mortgage banker or mortgage broker applicant will conduct business in Nevada only as a wholesale lender, they may apply for a license for an office or other place of business located outside the state of Nevada from which the applicant will conduct business in the state of Nevada.
Mortgage banker and mortgage broker applicants who intend to conduct business out of state may now provide the required books, accounts, papers, records and files to the Commissioner electronically.
The fees for each branch office of a mortgage banker or mortgage broker have been amended as follows:
· To file an original application for a license – capped at $400 (formerly $40); and
· To be issued a license for a branch office – capped at $100 (formerly $60).
The renewal fees and fees for the principal office licenses remain the same.