The Nevada Commissioner of Mortgage Lending recently adopted new requirements relating to mortgage brokers, mortgage bankers and escrow agents. The requirements, among other things, impose a duty of good faith and fair dealing on mortgage brokers and mortgage bankers acting as mortgage servicers, and require escrow agents to designate a “qualified employee” for each place of business. The provisions became effective January 27, 2017.
Mortgage Brokers and Mortgage Bankers. The new requirements impose a number of new obligations on Nevada mortgage brokers and mortgage bankers. Most significant is the imposition on mortgage brokers and mortgage bankers of a duty of good faith and fair dealing in connection with communications, transactions and course of dealings with borrowers when acting as a mortgage servicer. The new requirements also impose new standards regarding the manner in which mortgage brokers and mortgage bankers must conduct mortgage servicing. Additional important changes relate to the incorporation of the term “control person” into existing regulations; revision of various NMLS-related provisions to address certain requirements for persons not required to register with the NMLS; fees; regulatory oversight; and recordkeeping.
Escrow Agents. The new requirements also impose a number of changes for Nevada escrow agents. Most significant is the new requirement that escrow agents designate a “qualified employee” for each place of business identified in the license issued to the escrow agency. The new requirements also set forth the criteria that a person must satisfy prior to designation as a qualified employee. Another change of significance is a change in the standard of proof required in investigatory hearings, from substantial evidence to a preponderance of the evidence. Additional important changes relate to reporting requirements, requirements for the closing of principal or branch offices, continuing education requirements and audit requirements.
Copies of the new requirements can be viewed here:
Mortgage Brokers: http://www.leg.state.nv.us/Register/2016Register/R125-16A.pdf;
Mortgage Bankers: http://www.leg.state.nv.us/Register/2016Register/R126-16A.pdf;
Escrow Agents: http://www.leg.state.nv.us/Register/RegsReviewed/$R070-16A.pdf.