Nevada Amends Mortgage Broker and Mortgage Banker Provisions
Nevada has modified its provisions relating to mortgage brokers and mortgage bankers. The effective date of these provisions ranges from October 1, 2017 to January 1, 2020.
Definitions
The definitions section has been updated to define terms such as “applicant,” “commercial mortgage loan,” “commercial property,” and “institutional investor.”
Surety Bond Requirement
Section 15.5 requires mortgage brokers to deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada. The previous section set out a template for the surety bond and required that the bond substantially follow the same form. The amended provision eliminates this requirement and instead requires the bond to take a form prescribed by the Commissioner.
Business Transactions
Section 88.5 sets out a list of activities that do not constitute the transaction of business in Nevada. Added to this list are the soliciting of business for the activities of a mortgage broker or a mortgage banker, and the arranging of mortgage loans secured by real property that is not commercial property.
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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