Nevada Enacts Homeowner’s Bill of Rights
by Zachary Pearlstein, Esq.
Nevada has modified several provisions regarding the foreclosure of owner occupied property, effective October 1, 2013.
Under current law, the trustee of a deed of trust has the power to sell the attached property, subject to certain restrictions. Current law also allows judicial foreclosure to recover debt, or to enforce a right secured by another lien on the property.
The new bill:
• Requires that at least thirty days before recording a notice of default and election to sell, or commencing a judicial foreclosure action, and at least 30 days after the borrower’s default, the mortgage servicer must provide to the borrower (1) information concerning the borrower’s account, (2) foreclosure prevention alternatives, and (3) a statement of the facts supporting the right to foreclose.
• Prohibits the recording of a notice of default and election to sell, or the commencement of a judicial foreclosure action involving a failure to make payment, until the servicer makes contact with, or attempts to contact the borrower.
• Prohibits a mortgage servicer from continuing the foreclosure process while an application for a foreclosure prevention alternative is pending, or while the borrower is current on his or her obligation under a foreclosure prevention alternative.
• Requires a mortgage servicer to provide a single point of contact for a borrower who requests a foreclosure prevention alternative.
• Requires that under certain circumstances, a mortgage servicer, mortgagee or beneficiary of a deed of trust must dismiss a judicial foreclosure action or rescind a recorded notice of default and election or notice of sale.
This bill applies only to a notice of default and election to sell which is recorded on or after October 1, 2013, and does not apply to a financial institution that, during its preceding annual reporting period, has foreclosed on 100 or fewer owner-occupied homes in Nevada. Lastly, this bill provides civil remedies for any material violation of its provisions.
Nevada Amends Provisions Governing Certain Loans
Current law places restrictions on the amounts that a check-cashing service, deferred deposit loan service, high-interest loan service, or title loan service may charge a customer in the event of a default.
This new bill allows certain licensees that make high interest loans to charge a fee of not more than $15, payable on a one-time basis, for any installment payment that remains unpaid 10 days or more after the date of default.
About the Author:
Zachary is Associate Counsel and Regulatory Compliance Specialist at Bankers Advisory, Inc. He is a graduate of Brandeis University and earned his Juris Doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar Association.
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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