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WBK Industry News - State Regulatory Developments

Nevada Amends Mortgage Banker and Broker Licensing Exemption for Certain Foreign LLCs

Effective October 1, 2017, Nevada’s Assembly Bill 468 (“AB 468”) will amend the exemption from licensure for certain foreign LLCs found within the foreign LLC statute to mirror a similar but narrower exemption found in the foreign corporation statute.

The Nevada statutes governing foreign business entities provide exemptions from the mortgage banker and broker licensing requirements under certain conditions.  Currently, the statutory requirements for the foreign LLC exemption are facially broader than those for foreign corporations.  However, effective October 1, 2017, AB 468 will amend the foreign LLC exemption requirements to track the exemption requirements for foreign corporations.  Thus, in order to be considered not transacting business in Nevada and therefore qualify for the exemption, a foreign LLC must not (a) maintain an office in Nevada for the transaction of business; (b) solicit or accept deposits in Nevada; (c) solicit business for the activities of a mortgage banker or mortgage broker; or (d) arrange a mortgage loan secured by real property that is not commercial property.  Previously, a foreign LLC was exempt from licensure so long as it did not (a) maintain an office in Nevada for the transaction of business; or (b) solicit or accept deposits in Nevada.

As reported previously, AB 468 also contains other provisions, including amendments to regulate mortgage bankers and mortgage brokers under a single regulatory framework for “mortgage companies” that will be effective January 1, 2020.

The full text of AB 468 can be found here: https://www.leg.state.nv.us/Session/79th2017/Bills/AB/AB468_EN.pdf.