AB 468 — Revises provisions relating to mortgage brokers, mortgage agents and mortgage bankers. (BDR 54-1028)

If a certificate of exemption expires automatically pursuant to this section, the person shall not provide any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise engage in, carry on or hold himself or herself out as engaging in or carrying on the business of a mortgage [broker] companyapplies orfor mortgageand [agent]is issued:] loan originator unless the person applies(a) forA andlicense isas issued:a mortgage [broker] company or mortgage [agent,] loan originator, as applicable, pursuant to this chapter;

(a) A license as a mortgage [broker] company or mortgage [agent,] loan originator, as applicable, pursuant to this chapter;

(b) Has suppressed or withheld from the Commissioner any information which the person possesses and which, if submitted by - *AB468_R2* – 8 – the person, would have rendered the person ineligible to hold a certificate of exemption;

or - 79th Session (2017) – 8 – (c) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner that applies to a person who is required to apply for a certificate of exemption or who holds a certificate of exemption.

7.chapter may file a written application for a certificate of exemption with the Office of the Commissioner for the purposes of complying with the requirements of the Registry or enabling a mortgage [agent] loan originator to comply with the requirements of the Registry.

A person who is exempt from the requirements of this chapter may file a written application for a certificate of exemption with the Office of the Commissioner for the purposes of complying with the requirements of the Registry or enabling a mortgage [agent] loan originator to comply with the requirements of the Registry.

(a) State the name, residence address and business address of the applicant and, if the applicant is a mortgage [broker] company other than a wholesale lender, the location of each principal office and branch office at which the mortgage [broker] company will conductconductd business within this State.

(1) If the applicant is not a natural person, have an interest in the mortgage [broker] company as a principal, partner, officer, - *AB468_R2*79th Session (2017) – 9 – director or trustee, specifying the capacity and title of each such person.

(e) Include a general business plan and a description of the policies and procedures that the mortgage [broker] company and his or her mortgage [agents] loan originators will follow to arrange and service loans and to conduct business pursuant to this chapter.

Except as otherwise provided by law, the Commissioner shallif:ll issue a license to an applicant as a mortgage [broker] company if:(a) The application is verified by the Commissioner and complies with the requirements of this chapter;

(a) The application is verified by the Commissioner and complies with the requirements of this chapter;

(2) Has not been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of the application, or at any time if such felony involved an act of - 79th Session (2017) – 10 – fraud, dishonesty or a breach of trust, moral turpitude or money laundering.

- *AB468_R2* – 10 – (3) Has not made a false statement of material fact on the application.

(4) Has never had a license or registration as a mortgage agent, mortgage banker, mortgage broker, mortgage company,company,rtgage mortgage loan originator or residential mortgage loan originator revoked in this State or any other jurisdiction or had a financial services license revoked within the immediately preceding 10 years.

¬ The applicant must be allowed to choose between paragraph (a) or (b) in complying with the provisions of this subsection.

(a) Sec.

- 79th Session (2017) – 11 – (a) A natural person who applies for the issuance of a license as a mortgage [broker] company shall include the social security number of the applicant in the application submitted to the Commissioner.

- *AB468_R2* – 11 – (b) A natural person who applies for the issuance or renewal of a license as a mortgage [broker] company shall submit to thethenewal of a Commissioner the statement prescribed by the Division of Welfare and Supportive Services of the Department of Health and Human Services pursuant to NRS 425.520.

or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to thethecing order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to determine the actions that the applicant may take to satisfy the arrearage.

645B.0243 The Commissioner may refuse to issue a license to an applicant if the Commissioner has reasonable cause to believe that the applicant or any general partner, officer or director of the applicant has, after October 1, 1999, employed or proposed to employ a person as a mortgage [agent] loan originator or authorized or proposed to authorize a person to be associated with a mortgage [broker] company as a mortgage [agent] loan originator - 79th Session (2017) – 12 – at a time when the applicant or the general partner, officer or director knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person has committed any act or omission that would be cause for refusing to issueissSec. a license to a mortgage [agent.] loan originator.

-15.ensNRS *AB468_R2*645B.025 –is 12hereby –amended Sec.to read as follows:

15.

NRS 645B.025 is hereby amended to read as follows:

Whereas, the principal has been issued a license as a mortgage broker or mortgage agent by the Commissioner of Mortgage Lending - 79th Session (2017) – 13 – and is required to furnish a bond, which is conditioned as set forth in this bond:

Now, therefore, if the principal, his or her agents and employees, strictly, honestly and faithfully comply with the provisions of chapter 645B of NRS, and pay all damages suffered by any person because of a violation of any of the provisions of chapter 645B of NRS, or by reason of any fraud, dishonesty, misrepresentation or concealment of - *AB468_R2* – 13 – material facts growing out of any transaction governed by the provisions of chapter 645B of NRS, then this obligation is void;

.........................................................(Seal) Principal .........................................................(Seal) Surety By.......................................................By.........Attorney-in-fact..............................

Attorney-in-fact ...........................................................

Except as otherwise required by federal law or regulation, for the purposes of subsection 4, the Commissioner shall determine the appropriate amount of the surety bond that must be deposited - 79th Session (2017) – 14 – initially by a mortgage broker based upon the expected annual loan production amount and shall determine the appropriate amount of the surety bond annually based upon the actual annual loan production.

Sec.645B.042 N1.

16.6As a condition to doing business in this State, each mortgage [broker] company shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to the Commissioner and which names as principals the mortgage [broker] company and all mortgage [agents] loan originators employed by or associated with the mortgage [broker.] company.

NRS 645B.042 is hereby amended to read as follows:

645B.042 1.

As a condition to doing business in this State, each mortgage [broker] company shall deposit with the Commissioner and keep in full force and effect a corporate surety bond payable to the State of Nevada, in the amount set forth in subsection 4, which is executed by a corporate surety satisfactory to - *AB468_R2* – 14 – the Commissioner and which names as principals the mortgage [broker] company and all mortgage [agents] loan originators employed by or associated with the mortgage [broker.] company.

(b) For an annual loan production of more than $20,000,000, $75,000.$755.00Except as otherwise required by federal law or regulation, for the purposes of subsection 4, the Commissioner shall determine the appropriate amount of the surety bond that must be deposited initially by a mortgage [broker] company based upon the expected annual loan production amount and shall determine the appropriate amount of the surety bond annually based upon the actual annual loan production.

5.

Except as otherwise required by federal law or regulation, for the purposes of subsection 4, the Commissioner shall determine the appropriate amount of the surety bond that must be deposited initially by a mortgage [broker] company based upon the expected annual loan production amount and shall determine the appropriate amount of the surety bond annually based upon the actual annual loan production.

An action may not be commenced after the - 79th Session (2017) – 15 – expiration of 3 years following the commission of the act on which the action is based.

(a)(b) ThatIf athere bond is inan effectaction against the bond, the title, court and case number of the action and the amount ofsought by the bond;plaintiff.

and (b) If there is an action against the bond, the title, court and case number of the action and the amount sought by the plaintiff.

- *AB468_R2* – 15 – 4.

To renew such a license, the licensee must submit to the Commissioner on or after November 1 and on or before December 31 of each year, or on a date otherwise specified by the Commissioner by regulation:

The Commissioner may reinstate a - 79th Session (2017) – 16 – cancelled license if the licensee submits to the Commissioner on or before February 28 of the following year:

(b) The fee required to renew the license pursuant to this section;sec(c) The information required pursuant to NRS 645B.051;

(c) The information required pursuant to NRS 645B.051;

The person must also pay such additional expenses - *AB468_R2* – 16 – incurred in the process of investigation as the Commissioner deems necessary.

6.date set forth in this section if the Commissioner determines that such an adjustment is necessary for the Commissioner to carry out his or her duties pursuant to this chapter.

The Commissioner may, by regulation, adjust any fee or date set forth in this section if the Commissioner determines that such an adjustment is necessary for the Commissioner to carry out his or her duties pursuant to this chapter.

- 79th Session (2017) – 17 – (a) If the licensee is a natural person, the licensee must submit to the Commissioner satisfactory proof that the licensee attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license exp(b) If the licensee is not a natural person, the licensee must submit to the Commissioner satisfactory proof that each natural person who supervises the daily business of the licensee attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

(b) If the licensee is not a natural person, the licensee must submit to the Commissioner satisfactory proof that each natural person who supervises the daily business of the licensee attended at least 10 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

In lieu of the continuing education requirements set forth in paragraph (a) or (b) of subsection 1, a licensee or any natural person who supervises the daily business of the licensee who, pursuant to subsection 1 of NRS 645F.267, is not required to register or renew with the Registry and who has not voluntarily registered or renewed with the Registry must submit to the Commissioner satisfactory - *AB468_R2* – 17 – proof that he or she attended at least 5 hours of certified courses of continuing education during the 12 months immediately preceding the date on which the license expires.

As used in this section, “certified course of continuing education” means a course of continuing education which relates to the mortgage industry or mortgage transactions and which meets the requirements set forth by the Commissioner by regulation pursuant to NRSSec. 645B.0138.

Sec.20..01NRS 645B.060 is hereby amended to read as follows:

20.

NRS 645B.060 is hereby amended to read as follows:

- 79th Session (2017) – 18 – (2) Establishing reasonable limitations and guidelines on loans made by a mortgage [broker] company to a director, officer, mortgage [agent] loan originator or employee of the mortgage [broker.] company.

(b) Adopt any other regulations that are necessary to carry out the provisions of this chapter, except as to loan [brokerage] fees.

and - *AB468_R2* – 18 – (2) Procedures for resolving any objections made by the mortgage [broker] company to the results of the annual examination.

The Commissioner shall adopt regulations specifying the general guidelines that will be followed when a periodic or special audit of a mortgage [broker] company is conducted pursuant to this chapter.

- 79th Session (2017) – 19 – 3.

4.[broker,] company, as described in paragraph (d) of subsection 2, on a biennial instead of an annual basis if the mortgage [broker:] company:

The Commissioner may conduct examinations of a mortgage [broker,] company, as described in paragraph (d) of subsection 2, on a biennial instead of an annual basis if the mortgage [broker:] company:

Each mortgage - *AB468_R2* – 19 – [broker] company and mortgage [agent] loan originator shall cooperate fully with the audits and examinations performed pursuant thereto.

Each mortgage [broker] company shall keep and maintain at all times at each location where the mortgage [broker] company conducts business in this state complete and suitable records of all mortgage transactions made by the mortgage [broker] companyalso keep and maintain at thatall location.times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage [broker.] company.

Each mortgage [broker] company shall also keep and maintain at all times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage [broker.] company.

- 79th Session (2017) – 20 – 3.

4.or voluntarily registers with the Registry shall submit to the Registry and the Commissioner a report of condition or any other report required by the Registry in the form and at the time required by the Registry.

Each mortgage [broker] company who is required to register or voluntarily registers with the Registry shall submit to the Registry and the Commissioner a report of condition or any other report required by the Registry in the form and at the time required by the Registry.

Unless otherwise prohibited by the Registry, the Commissioner may grant a reasonable extension for the submission of a financial statement pursuant to this section if a mortgage - *AB468_R2* – 20 – [broker] company requests such an extension before the date on which the financial statement is due.

If a mortgage [broker] company maintains any accounts described in subsection 1 or 44.of The Commissioner shall adopt regulations prescribing the scope of NRSan 645B.175,audit thoseconducted accountspursuant mustto besubsection audited.3.

4.

The Commissioner shall adopt regulations prescribing the scope of an audit conducted pursuant to subsection 3.

- 79th Session (2017) – 21 – (a) Impede or otherwise interfere with an investigation or examination that is currently pending against a mortgage [broker;] company;

or (c)3.) RevealRExcept personalas informationotherwise provided in violation of NRS 239B.030.645B.092, the9B.030.

3.Commissioner shall disclose the following information concerning a mortgage [broker] company to any person who requests it:

Except as otherwise provided in NRS 645B.092, the Commissioner shall disclose the following information concerning a mortgage [broker] company to any person who requests it:

- *AB468_R2* – 21 – (I) All examinations or investigations of the mortgage [broker] company conducted pursuant to NRS 645B.060 during the immediately preceding 5 years, including, without limitation, annual or biennial examinations of the mortgage [broker] company conducted pursuant to NRS 645B.060, including, without limitation, the rating for each annual or biennial examination and an explanation of the standards for determining that rating;

and - 79th Session (2017) – 22 – (b) Shall ensure that all money received for mortgage transactions is accounted for separately from all money received for securities transactions.

A mortgage [broker] company who is an investment adviser orNRSa arep90.330ativorof representativeexemptestmefromdvislicensureed of an investment adviser licensed pursuant to NRS 90.330 or exempt from licensure pursuant to NRS 90.340:

The application must - *AB468_R2* – 22 – contain information which shows that the requirements of this chapter and the Registry, if applicable, for obtaining a license will be satisfied after the change of control.

- 79th Session (2017) – 23 – Sec.

If a mortgage [broker] company maintains any accounts described in NRS 645B.175, the mortgage [broker] company and his or her mortgage [agents] loan originators shall not engage in any activity that is authorized pursuant to this chapter, unless the mortgage [broker] company maintains continuously aaapter, minimum net worth in the following amount based upon the average monthly balance of the accounts maintained by the mortgage [broker] company pursuant to NRS 645B.175:

After determining the initial minimum net worth that must be maintained by the mortgage [broker,] company, the Commissioner shall, on an annual basis, determine the appropriate minimum net worth that must be maintained by the mortgage [broker] company pursuant to this section based upon the average monthly balance of the accounts maintained by the mortgage [broker] company pursuant to NRS 645B.175.

-the *AB468_R2*mortgage –[broker] 23company –pursuant to 2.

- 79th Session (2017) – 24 – Sec.

Except as otherwise permitted by law and as otherwise provided in subsection 3, the amount of any advance fee, salary, deposit or money paid to a mortgage [broker] company and his or her mortgage [agents] loan originators or any other person to obtain a loan which will be secured by a lien on real property mustmusto be placed in escrow pending completion of the loan or a commitment for the loan.

All money paid to a mortgage [broker] company and his or her mortgage [agents] loan originators for payment of taxes or insurance premiums on real property which secures any loan arranged or loan made by the mortgage [broker] company must be deposited in an insured depository financial institution and kept separate, distinct and apart from money belonging to thetheion and mortgage [broker.] company.

- *AB468_R2* – 24 – 2.

- 79th Session (2017) – 25 – 4.

(a) Require contributions to an impound trust account in an amount reasonably necessary to pay the obligations as they become due.

Except as otherwise provided in this section, all money received by a mortgage [broker] company and his or her mortgage [agents] loan originators from an investor to acquire ownershipreal ofproperty ormust:eneficial a beneficial interest in a loan secured by a lien on real(a) propertyBe must:deposited in:

(a) Be deposited in:

- *AB468_R2* – 25 – (1) Belonging to the mortgage [broker] company in an account appropriately named to indicate that the money does not belong to the mortgage [broker.] company.

- 79th Session (2017) – 26 – (a) Upon completion of the loan, including proper recordation of the respective interests or release, or upon completion of the transfer of the ownership or beneficial interest therein, to the debtor or the debtor’s designee less the amount due the mortgage [broker] companycom(b) forIf the paymentloan ofor anythe feetransfer orthereof serviceis charge;not consummated, to each investor who furnished the money held in trust;

(b) If the loan or the transfer thereof is not consummated, to each investor who furnished the money held in trust;

(b) Be(1) keptBelonging separateto fromthe money:mortgage [broker] company in an account appropriately named to indicate that it does not belong to the mortgage [broker.] company.

(1) Belonging to the mortgage [broker] company in an account appropriately named to indicate that it does not belong to the mortgage [broker.] company.

(a) Must be released, upon the deduction and payment of any fee or service charge due the mortgage [broker,] company, to each investor who owns a beneficial interest in the loan in exact - *AB468_R2* – 26 – proportion to the beneficial interest that the investor owns in the loan;

and (b) Must not be released, in any proportion, to an investor who owns a beneficial interest in the loan, unless the amount described in - 79th Session (2017) – 27 – paragraph (a) is also released to every other investor who owns a beneficial interest in the loan.

An investor may waive, in writing, the right to receive one or more payments, or portions thereof, that are released to other investors[broker] incompany or mortgage [agent] loan originator shall not act as the mannerattorney-in-fact setor forththe inagent subsectionof 5.an investor with respect to the giving of a written waiver pursuant to this subsection.

A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of an investor with respect to the giving of a written waiver pursuant to this subsection.

Money received by a mortgage [broker] company and his or her mortgage [agents] loan originators pursuant to this section from a person who is not associated with the mortgage [broker] company may be held in trust for not more than 45 days before an escrowescrowny account must be opened in connection with the loan.

- *AB468_R2* – 27 – (a) Any person who does not have a contractual or legal right to receive the money;

or - 79th Session (2017) – 28 – (b) Any person who has a contractual right to receive the money if the mortgage [broker] company or mortgage [agent] loan originator knows or, in light of all the surrounding facts and circumstances, reasonably should know that the person’s contractual rightregulation toadopted receivepursuant theto moneythis violateschapter.ision any provision of this chapter or a regulation10. adopted pursuant to this chapter.

10.

It is unlawful for a mortgage [broker] company or his or her mortgage [agents] loan originators knowingly to keep or cause to be kept any money in a depository financial institution under the heading of “impound trust account” or any other name designatingdesignatinge such money as belonging to the investors or debtors of the mortgage [broker,] company, unless the money has been paid to the mortgage [broker] company or his or her mortgage [agents] loan originators by an investor or debtor and is being held in trust by the mortgage [broker] company pursuant to NRS 645B.170 or 645B.175.

and - *AB468_R2*79th Session (2017) – 2829 – (b) The mortgage [broker] company or mortgage [agent] loan originator gives the private investor the original disclosure form that has been signed and dated.

A private investor and a mortgage [broker] company or mortgage [agent] loan originator must sign and date a separate disclosure form pursuant to subsection 1 for each loan in which the private investor invests his or her money.

4.mortgage [agent] loan originator may not agree to alter or waive the provisions of this section by contract or other agreement.

A private investor and a mortgage [broker] company or mortgage [agent] loan originator may not agree to alter or waive the provisions of this section by contract or other agreement.

- 79th Session (2017) – 30 – (2) The nature of the losses that may result through foreclosure;

- *AB468_R2* – 29 – (3) The fact that payments of principal and interest are not guaranteed and that the private investor may lose the entire amount of principalpri(4) The fact that hethe mortgage [broker] company is not a depository financial institution and that the investment is not insured by any depository insurance and is not otherwise insured or sheguaranteed hasby invested;the Federal or State Government;

(4) The fact that the mortgage [broker] company is not a depository financial institution and that the investment is not insured by any depository insurance and is not otherwise insured or guaranteed by the Federal or State Government;

(3) Whether any disciplinary action has been taken by the Commissioner against the mortgage [broker] company or any general partner, officer or director of the mortgage [broker] company within the immediately preceding 12 months, and the naturenature(4) Whether the mortgage [broker] company or any general partner, officer or director of the mortgage [broker] company has been convicted within the immediately preceding 12 months for violating any suchlaw, disciplinaryordinance action;or regulation that involves fraud, misrepresentation or a deceitful, fraudulent or dishonest business practice;

(4) Whether the mortgage [broker] company or any general partner, officer or director of the mortgage [broker] company has been convicted within the immediately preceding 12 months for violating any law, ordinance or regulation that involves fraud, misrepresentation or a deceitful, fraudulent or dishonest business practice;

Whether or not a mortgage [broker] company is required to disclose any information to private investors through a disclosure form that complies with the provisions of this section, the Commissioner may order the mortgage [broker] company to disclose to private investors and other investors or to the general public any information concerning the mortgage [broker,] company, - 79th Session (2017) – 31 – any general partner, officer, director or mortgage [agent] loan originator of the mortgage [broker] company or any loan in which the mortgage [broker] company is or has been involved, if the Commissioner, in his or her judgment, believes that the information:

- *AB468_R2* – 30 – (a) Would be of material interest to a reasonable investor who is deciding whether to invest money with the mortgage [broker;][broker;]r who is company;

Sec.645B.186 NR1.64If a licensee or a relative of the licensee is licensed as, conducts business as or holds a controlling interest or position in:

33.

NRS 645B.186 is hereby amended to read as follows:

645B.186 1.

If a licensee or a relative of the licensee is licensed as, conducts business as or holds a controlling interest or position in:

or (c) A title agent, a title insurer or an escrow officer of a title agent or title insurer, ¬ the licensee shall fully disclose his or her status as, connection to or relationship with the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer to each investor, and the licensee shall not require, as a condition to an investor acquiring ownership of or a beneficial interest in a loan secured by a lien on real property, that the investor transact business with or use the services of the construction control, escrow agency, escrow agent, - 79th Session (2017) – 32 – title agent, title insurer or escrow officer or that the investor authorize the licensee to transact business with or use the services of the construction control, escrow agency, escrow agent, title agent, title insurer or escrow officer on behalf of the investor.

2.hold a controlling interest or position if the person:ll be deemed to (a) Owns or controls a majority of the voting stock or holds any other controlling interest, directly or indirectly, that gives the person the power to direct management or determine policy;

For the purposes of this section, a person shall be deemed to hold a controlling interest or position if the person:

- *AB468_R2* – 31 – (a) Owns or controls a majority of the voting stock or holds any other controlling interest, directly or indirectly, that gives the person the power to direct management or determine policy;

2.premium interest on money that the mortgage [broker] company receives from a person to acquire ownership of or a beneficial interest in a loan secured by a lien on real property or in full or partial payment of such a loan:

If a mortgage [broker] company offers to pay or pays premium interest on money that the mortgage [broker] company receives from a person to acquire ownership of or a beneficial interest in a loan secured by a lien on real property or in full or partial payment of such a loan:

or (2) Before, during or after receipt of money from such a person, ¬ make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a - 79th Session (2017) – 33 – reasonable person would construe as a guarantee that the mortgage [broker] company will pay the premium interest.

A person who violates any provision of this section is guilty of a misdemeanor and shall be punished as provided in NRSNRS4.45BAs 645B.950.used in this section, “premium interest” means that amount of interest a mortgage [broker] company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.

4.Sec.

As used in this section, “premium interest” means that amount of interest a mortgage [broker] company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.

- *AB468_R2* – 32 – Sec.

9 Money invested through a mortgage [broker] company is not guaranteed to earn any interest or return and is not insured.

Each mortgage [broker] company who has received an initial license within the past 12 months shall submit any proposed advertisement that the mortgage [broker] company intends to use in carrying on his or her business to the Commissioner for approval.approval.n 4.

4.

If a mortgage [broker] company violates any provision of NRS 598.0903 to 598.0999, inclusive, concerning deceptive trade practices or any federal statute or regulation concerning deceptive advertising or the advertising of interest rates, in addition to any sanction or penalty imposed by state or federal law upon the mortgage [broker] company for the violation, the Commissioner - 79th Session (2017) – 34 – may take any disciplinary action set forth in paragraph (b) of subsection 1 of NRS 645B.670 against the mortgage [broker.] company.

The Commissioner may adopt any regulations that are necessarynecSec. to carry out the provisions of this section.

Sec.36.o cNRS 645B.196 is hereby amended to read as follows:

36.

NRS 645B.196 is hereby amended to read as follows:

An advertising spokesperson for a mortgage [broker] company is jointly and severally liable with the mortgage [broker] company for damages caused by the mortgage [broker] company by fraud, embezzlement, misappropriation of property, a violation of the provisions of this chapter or the regulations adopted - *AB468_R2* – 33 – pursuant thereto, or an action of the mortgage [broker] company that is grounds for disciplinary action, if:

(a) “Advertising for a mortgage [broker”] company” means advertising or otherwise promoting a mortgage [broker] company or the business, products or services of the mortgage [broker] company using any medium of communication.

- 79th Session (2017) – 35 – (a) The day that the payment is due pursuant to the terms of the loan, if an office of the mortgage [broker] company is open to customers until 5 p.m.

or (b) The next day that an office of the mortgage [broker] companyparagraph is(a) opendo tonot customersotherwise untilapply.p.m., 5 p.m., if the provisions of paragraph2. (a) do not otherwise apply.

2.

- *AB468_R2* – 34 – Sec.

(a) Include in the report that the mortgage [broker] company submits to the Commissioner pursuant to subsection 2 of NRSNRSpany 645B.080 the information relating to delinquencies in payments and defaults that is required by the regulations adopted pursuant to subsection 2;

- 79th Session (2017) – 36 – 2.

(a) Shall adopt regulations prescribing the information relating to delinquencies in payments and defaults that a mortgage [broker] company must include in his or her report to the Commissioner and inregulations may provide for variations between the noticeinformation mailedthat toa investorsmortgage pursuant[broker] company must include in his or her report to subsectionthe 1.Commissioner and the information that a mortgage [broker] company must include in the notice mailed to investors.

Such regulations may provide for variations between the information that a mortgage [broker] company must include in his or her report to the Commissioner and the information that a mortgage [broker] company must include in the notice mailed to investors.

- *AB468_R2* – 35 – Sec.

and (d) Must not be performed by the mortgage [broker] company or a mortgage [agent,] loan originator, unless the mortgage [broker] company or mortgage [agent] loan originator is certified or licensed to perform such an appraisal pursuant to chapter 645C of NRS.

A - 79th Session (2017) – 37 – mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of an investor with respect to the giving of a written waiver pursuant to this subsection.

If the mortgage [broker] company obtains a written waiver of the appraisal as provided in subsection 4, the mortgage [broker] company shall provide to each investor before accepting any moneymoneyr] from the investor a separate written disclosure which contains the information analyzed, the valuation methods and techniques employed and the reasoning for any opinion regarding value provided by or on behalf of the mortgage [broker.] company.

- *AB468_R2* – 36 – Sec.

If the mortgage [broker] company is not registered with the Registry,Reg2.tryAny theidentifying license number ofissued by the mortgageRegistry. [broker;] company;

orcompany; 2.

Anyor identifyingSec. number issued by the Registry.

Sec.

- 79th Session (2017) – 38 – Sec.

645B.320 If money from an investor is released to a debtor or the debtor’s designee pursuant to subsection 2 of NRS 645B.175 upon completion of a loan secured by a lien on real property, the mortgage [broker] company that arranged the loan shall, not later than 3 business days after the date on which the mortgage [broker] company receives a copy of the recorded deed of trust, mail to the last known address of each investor who owns a beneficial interest in the loan a copy of the recorded deed of trust.

- *AB468_R2* – 37 – (a) The power of attorney is executed for the sole purpose of providing services for not more than one specific loan in which the private investor owns a beneficial interest;

(3) Expressly prohibit the mortgage [broker] company and his or her mortgage [agents] loan originators from using or releasing any money in which the private investor owns a beneficial interest with regard to the specific loan for a purpose that is not directly related to providing services for the loan unless, before any such money is used or released for another purpose, the mortgagemortgagere any [broker] company obtains written approval from the private investor to use or release the money for the other purpose;

A mortgage [broker] company or mortgage [agent] loan originator shall not act as the attorney-in-fact or the agent of a - 79th Session (2017) – 39 – private investor with respect to the giving of written approval pursuant to paragraph (b) of subsection 1.

A private investor and a mortgage [broker] company or mortgage [agent] loan originator may not agree to alter or waive the provisions of this section by contractand ormust othernot agreement.be given effect to the extent that it violates thevoid provisions of this section.

Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.

- *AB468_R2* – 38 – 4.

Except as otherwise provided by law or by agreement between the parties and regardless of the date the interests were created, if the beneficial interest in a loan or the ownership interest in the real property previously securing the loan belongs to more than one person, the holders of the beneficial interest in a loan whose interests represent 51 percent or more of the outstanding principal balance of the loan or the holders of 51 percent or more of the ownership interest in the real property, as indicated on a trustee’s deed upon sale recorded pursuant to subsection 10 of NRS 107.080, a deed recorded pursuant to subsection 5 of NRS 40.430 or a deed in lieu of foreclosure, and any subsequent deed selling, transferring or assigning an ownership interest, may act on behalf of all the holders of the beneficial interests or ownership interests of record on matters which require the action of the holders of the beneficial interests in the loan or the ownership interests in the real property, including, without limitation:

- 79th Session (2017) – 40 – (a) The designation of a mortgage [broker] company or mortgage [agent,] loan originator, servicing agent or any other person to act on behalf of all the holders of the beneficial interests or ownership interests of record;

(b)(c) The foreclosuresubsequent ofsale, thetransfer, propertyencumbrance foror whichlease theof loanreal; was made;

(c) The subsequent sale, transfer, encumbrance or lease of real property owned by the holders resulting from a foreclosure or the receipt of a deed in lieu of a foreclosure in full satisfaction of a loan, to a bona fide purchaser or encumbrancer for value;

and (e) The modification or restructuring of any term of the loan, deed of trust or other document relating to the loan, including, without limitation, changes to the maturity date, interest rate and the - *AB468_R2* – 39 – acceptance of payment of less than the full amount of the loan and any accrued interest in full satisfaction of the loan.

(a) The actions that will be taken on behalf of the holders who consent to an action pursuant to this section, if the holders of the beneficial interest in a loan whose interests represent 51 percent or more of the outstanding principal balance of the loan or the holders of 51 percent or more of the ownership interest in the real property act pursuant to subsection 1;

- 79th Session (2017) – 41 – 3.

If real property is sold, transferred, encumbered or leased pursuant to paragraph (c) of subsection 1, any beneficial interest in the loan or ownership interest in the real property of a holder who does not consent to the sale, transfer, encumbrance or lease, including, without limitation, any interest of a tenant in common who does not consent to the sale, transfer, encumbrance or lease, must be sold, transferred, encumbered or leased by a reference to this section and by the signatures on the necessary documents of the holders consenting to the sale, transfer, encumbrance or lease of the real property.

- *AB468_R2* – 40 – 4.

1.investor who owns or has a beneficial interest in the loan, theother mortgage [broker] company may provide to that other investor the name, address, telephone number and electronic mail address of the investor;

That, upon receipt of a written request submitted by another investor who owns or has a beneficial interest in the loan, the mortgage [broker] company may provide to that other investor the name, address, telephone number and electronic mail address of the investor;

That the address, telephone number and electronic mail address of the investor must remain confidential and that the mortgage [broker] company may not provide that information to any other investor unless the investor provides the mortgage [broker] - 79th Session (2017) – 42 – company with subsequent written permission to provide such information to other investors.

A mortgage [broker] company who makes or arranges a loan shall not include in any loan document a provision which requires a private investor to participate in binding arbitration of disputes relating to the loan.

- *AB468_R2* – 41 – 2.

(2) Release to the investors, pursuant to paragraph (a) of subsection 5 of NRS 645B.175, within 15 days after receipt of all money paid to the mortgage [broker] company in full or partialpartialall payment of a loan;

(5) Upon receiving a written request from an investor for a tally of any vote of the investors, provide to the investor a statement - 79th Session (2017) – 43 – of the number of investors voting in favor of an action and the number of investors voting against the action and the percentage of beneficial interest represented by each such vote;

and (6) Respond within a reasonable time under the circumstancesany toerrors therelating requestto of the loan.the borrower or investor to correct any(b) errorsProhibit relatingthe tomortgage the[broker] loan.company from:

(b) Prohibit the mortgage [broker] company from:

- *AB468_R2* – 42 – Sec.

645B.354[broker] 1.company who is servicing a loan or to other investors, the mortgage [broker] company shall not withhold money due the investor in order to offset the money owed to the mortgage [broker] company or to another investor, unless:

If an investor owes money to the mortgage [broker] company who is servicing a loan or to other investors, the mortgage [broker] company shall not withhold money due the investor in order to offset the money owed to the mortgage [broker] company or to another investor, unless:

- 79th Session (2017) – 44 – Sec.

If a borrower or investor wishes to utilize a construction control for money belonging to the borrower or investor, a mortgage [broker] company must place the money with a person who is mortgage independent of the mortgage [broker] company and is licensed or authorized to accept such money.

and - *AB468_R2* – 43 – (c) Obtains the written authorization of each investor consenting to the transfer of his or her interest in the loan or in the real property to the limited-liability company, business trust or other entity.

If a private investor is placed into a limited-liability company, business trust or other entity pursuant to subsection 1, any beneficial interest in a loan or ownership interest in real property of the private investor who does not consent to the placement, including, without limitation, any interest of a tenant in common who does not consent to the placement, must be placed in the limited-liability company, business trust or other entity by a reference to this section and by the signatures on the necessary documents of the investors consenting to the placement.

- 79th Session (2017) – 45 – 3.

The documents provided to each investor pursuant to paragraph (a) of subsection 1 must clearly and concisely state any fees which will be paid to the mortgage [broker] company by the limited-liability company, business trust or other entity, and the sections of the documents that state fees must be initialed by the investor and any representative designated pursuant to subsection 2.

645B.400 A person shall not act as or provide any of the services of a mortgage [agent or] loan originator, otherwise engage in, carry on or hold himself or herself out as engaging in or carrying - *AB468_R2* – 44 – on the activities of a mortgage [agent] loan originator or supervise a mortgage loan originator unless the person:

1.pursuant to NRS 645B.410 [.mortgage [agent] loan originator issued 2.

Has a license as a mortgage [agent] loan originator issued pursuant to NRS 645B.410 [.

2.

and - 79th Session (2017) – 46 – (b) Is registered with and provides any identifying number issued by the Registry.

645B.405 A mortgage [broker] company or qualified employee who wishes to engage in activities as a residential mortgage loan originator or to supervise a mortgage [agent] loan originator who engages in activities as a residential mortgage loan originator must obtain and maintain a license as a mortgage [agent] loan originator pursuant to the provisions of NRS 645B.400 to 645B.460, inclusive.

or [(4)] (3) A loan processor who is not an employee and who is associated with, or has received an offer of a contract with, a - *AB468_R2* – 45 – mortgage [broker, mortgage banker] company or person who holdsholdsh, a a certificate of exemption pursuant to NRS 645B.016.

- 79th Session (2017) – 47 – (d) Include a verified statement from the mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 with whom the applicant will be associated or employed that expresses the intent of that mortgage [broker, mortgage banker] company or exempt person to employ or associate the applicant with the mortgage [broker, mortgage banker] company or exempt person and to be responsible for the activities of the applicant as a mortgage [agent;] loan originator;

(2) Has never had a license or registration as a mortgage agent, mortgage banker, mortgage broker, mortgage company, mortgage loan originator or residential mortgage loan originator revoked in this State or any other jurisdiction, or had a financial services license revoked within the immediately preceding 10 years;

- *AB468_R2* – 46 – (3) Has not made a false statement of material fact on his or her application;

Money received by the Commissioner pursuant to this section is in addition to any fee required to be paid to the Registry - 79th Session (2017) – 48 – and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

The Commissioner may require the submission of an item or the payment of a fee required by this section directly to the Commissioner or, if the person submitting the item or fee is required to register or voluntarily registers with the Registry, to thetheequired Commissioner through the Registry.

The license as a mortgage [agent] loan originator may not be issued(a) orFails renewedto bysubmit the Commissionerstatement ifrequired thepursuant applicant:to subsection 1;

(a)or Fails(b) toIndicates submiton the statement requiredsubmitted pursuant to subsection 1;that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

or (b) Indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by - *AB468_R2* – 47 – the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order.

If an applicant indicates on the statement submitted pursuant to subsection 1 that the applicant is subject to a court order for the support of a child and is not in compliance with the order or a plan approved by the district attorney or other public agency enforcing the order for the repayment of the amount owed pursuant to the order, the Commissioner shall advise the applicant to contact the district attorney or other public agency enforcing the order to - 79th Session (2017) – 49 – determine the actions that the applicant may take to satisfy the arrearage.

A license as a mortgage [agent] loan originator issued pursuant to NRS 645B.410 expires each year on December 31, unless it is renewed.

The hours of continuing education required by this subsectionsub(a) mustAt include:least 3 hours relating to the laws and regulations of this State;

(a) At least 3 hours relating to the laws and regulations of this State;

If the holder of the license as a mortgage [agent] loan originator fails to submit any item required pursuant to subsection 1 or 2 to the Commissioner on or after November 1 and on or before December 31 of any year, unless a different date is specified by the - *AB468_R2* – 48 – Commissioner by regulation, the license is cancelled as of December 31 of that year.

and - 79th Session (2017) – 50 – (c) A reinstatement fee of $75.

To change the mortgage [broker] company with whom the mortgage [agent] loan originator is associated, a person must pay a fee in an amount prescribed by regulation of the Commissioner, not to exceed5.ceeMoney $50.received by the Commissioner pursuant to this section is in addition to any fee that must be paid to the Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

5.

Money received by the Commissioner pursuant to this section is in addition to any fee that must be paid to the Registry and must be deposited in the Account for Mortgage Lending created by NRS 645F.270.

A mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 shall not associate with or employ a person as a mortgage [agent] loan originator or authorize a person to be associated with the mortgage [broker, mortgage banker] company or exempt person who holds a certificate of exemption pursuant to NRS 645B.016 as a mortgage [agent] loan originator if the mortgage [agent] loan originator is not licensed with the Division pursuant to NRS 645B.410.

Before allowing a mortgage [agent] loan originator to act on its behalf, a mortgage [broker, mortgage banker] company or - *AB468_R2* – 49 – person who holds a certificate of exemption pursuant to NRS 645B.016, must:

or - 79th Session (2017) – 51 – (b) If the mortgage [agent] loan originator is not required to be registered with the Registry, notify the Division of its sponsorship of the mortgage [agent.] loan originator.

If a mortgage [agent] loan originator terminates his or her association or employment with a mortgage [broker, mortgage banker] company or exempt person who holds a certificate of exemption pursuant to NRS 645B.016 for any reason, the mortgage [broker, mortgage banker] company or person who holds a certificate of exemption pursuant to NRS 645B.016 shall, not later than the third business day following the date of termination:

(b) The establishment of a system to review, oversee and inspect the activities of the mortgage [agents,] loan originators, including, without limitation:

and (4) The handling by the mortgage [agents] loan originators of any fee, deposit or money paid to the mortgage [broker] company or the mortgage [agents] loan originators or held in trust by the - *AB468_R2* – 50 – mortgage [broker] company or the mortgage [agents] loan originators pursuant to this chapter;

and - 79th Session (2017) – 52 – (c) The establishment of a system of reporting to the Division of any fraudulent activity engaged in by any of the mortgage [agents.] loan originators.

The Commissioner shall allow a mortgage [broker] company to take into consideration the total number of mortgage [agents] loan originators associated with or employed by thetheage mortgage [broker] company when the mortgage [broker] company determines the form and extent of the policies and procedures for those mortgage [agents] loan originators and the system to review, oversee and inspect the activities of those mortgage [agents.] loan originators.

At any time within 6 months after termination of such service, if the mortgage [broker] company or mortgage [agent] loan originator complies with the provisions of subsection 1, the mortgage [broker] company or mortgage [agent] loan originator may be reinstated, without having to meet any qualification or requirement other than the payment of the reinstatement fee, as provided in NRS 645B.050 or 645B.430, and the mortgage [broker] company or mortgage [agent] loan originator is not required to make payment of the renewal fee for the current year.

Whether or not a complaint has been filed, the Commissioner [shall] may investigate a mortgage [broker,] - *AB468_R2*79th Session (2017) – 5153 – company, mortgage [agent] loan originator or other person if, for any reason, it appears that:

(a) The mortgage [broker] company or mortgage [agent] loan originator is conducting business in an unsafe and injurious manner pursuant to this chapter or inan violationorder of anythe provisionCommissioner;ation adopted (b) The person is offering or providing any of thisthe chapter,services of a regulationmortgage adopted[broker] pursuantcompany toor thismortgage chapter[agent] loan originator or anotherwise orderengaging in, carrying on or holding himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator without being appropriately licensed or exempt from licensing pursuant to the Commissioner;provisions of this chapter;

(b) The person is offering or providing any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise engaging in, carrying on or holding himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator without being appropriately licensed or exempt from licensing pursuant to the provisions of this chapter;

and (2) Bring(I) aEnjoin civilthe actionmortgage to:[broker,] company, mortgage [agent] loan originator or other person from engaging in the conduct, operating the business or committing the violation;

(I) Enjoin the mortgage [broker,] company, mortgage [agent] loan originator or other person from engaging in the conduct, operating the business or committing the violation;

If the Attorney General brings a civil action pursuant to subsection 2, the district court of any county of this State is hereby vested with the jurisdiction in equity to enjoin the conduct, the operation of the business or the commission of the violation and may grant any injunctions that are necessary to prevent and restrain the conduct, the operation of the business or the commission of the - 79th Session (2017) – 54 – violation.

- *AB468_R2* – 52 – (a) The court may issue any temporary restraining orders as may appear to be just and proper;

(b) The findings of the Commissioner shall be deemed to be prima facie evidence and sufficient grounds, in the discretion of the court, for the ex parte issuance of a temporary restraining order;

If the licensee, the board of directors or any officer or person in charge of the offices of the mortgage [broker] company refuses to permitmortgage the[broker] Commissionercompany pursuant to takesubsection possession1:roperty of the property(a) ofThe theCommissioner mortgageshall [broker]notify companythe pursuantAttorney toGeneral; subsection 1:

(a) The Commissioner shall notify the Attorney General;

(b) File one copy of the inventory in the office of the Commissioner and one copy in the office of the clerk of the district court of the county in which the principal office of the mortgage [broker] company is located and shall mail one copy to each - 79th Session (2017) – 55 – stockholder, partner, officer, director or associate of the mortgage [broker] company at his or her last known address;

and (c) If the mortgage [broker] company maintains any accounts described in NRS 645B.175, not later than 5 business days after the - *AB468_R2* – 53 – date on which the Commissioner takes possession of the property of the mortgage [broker,] company, mail notice of the possession totoof the last known address of each person whose money is deposited in such an account or whose money was or should have been deposited in such an account during the preceding 12 months.

3.without first giving the Commissioner ample notice of his or her application.

No other person may be appointed receiver by any court without first giving the Commissioner ample notice of his or her application.

- 79th Session (2017) – 56 – (a) For each violation committed by an applicant for a license issued pursuant to this chapter, whether or not the applicant is issued a license, the Commissioner may impose upon the applicant anant is issued administrative fine of not more than $25,000 if the applicant:

- *AB468_R2* – 54 – (2) Has suppressed or withheld from the Commissioner any information which the applicant possesses and which, if submitted by the applicant, would have rendered the applicant ineligible to be licensed pursuant to the provisions of this chapter;

(b) For each violation committed by a mortgage [broker,] company, the Commissioner may impose upon the mortgage [broker] company an administrative fine of not more than $25,000, may suspend, revoke or place conditions upon the mortgage [broker’s] company’s license, or may do both, if the mortgage [broker,][broke(1) company,Is whetherinsolvent;her or not acting as such:

(1) Is insolvent;

(7) Has knowingly made or caused to be made to the Commissioner any false representation of material fact or has suppressed or withheld from the Commissioner any information which the mortgage [broker] company possesses and which, if submitted by the mortgage [broker,] company, would have rendered - 79th Session (2017) – 57 – the mortgage [broker] company ineligible to be licensed pursuant to the provisions of this chapter;

(9) Has refused to permit an examination by the Commissioner of his or her books and affairs or has refused orory the failed, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to - *AB468_R2* – 55 – the provisions of this chapter or a regulation adopted pursuant to this chapter;

(15)deceitful, Hasfraudulent engagedor indishonest anybusiness otherpractice;ting conducta constituting(16) aHas deceitful,repeatedly fraudulentviolated orthe dishonestpolicies businessand practice;procedures of the mortgage [broker;] company;

(16) Has repeatedly violated the policies and procedures of the mortgage [broker;] company;

(19) Has employed a person as a mortgage [agent] loan originator or authorized a person to be associated with the mortgage [broker] company as a mortgage [agent] loan originator at a time when the mortgage [broker] company knew or, in light of all the - 79th Session (2017) – 58 – surrounding facts and circumstances, reasonably should have known that the person:p(I) Had been convicted of, or entered or agreed to enter a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court within the 7 years immediately preceding the date of application, or at any time if such felony involved an act of fraud, dishonesty or a breach of trust, moral turpitude or money laundering;

(I)or (II) Had beena convictedlicense of, or enteredregistration oras agreed to enter a pleamortgage ofagent, guiltymortgage orbanker, nolomortgage contenderebroker, to,mortgage acompany, felonymortgage inloan aoriginator domestic, foreign or militaryresidential courtmortgage withinloan theoriginator 7revoked yearsin immediatelythis precedingState the date of application, or at any timeother ifjurisdiction suchor felonyhad involveda anfinancial actservices oflicense fraud, dishonesty or aregistration breachrevoked ofwithin trust,the moralimmediately turpitudepreceding or10 moneyyears; laundering;

or (II) Had a license or registration as a mortgage agent, mortgage banker, mortgage broker, mortgage company, mortgage - *AB468_R2* – 56 – loan originator or residential mortgage loan originator revoked in this State or any other jurisdiction or had a financial services license or registration revoked within the immediately preceding 10 years;

or (22) Has, directly or indirectly, paid any commission, fees, points or any other compensation as remuneration for the services of a mortgage [agent] loan originator to a person other than a mortgage [agent][(I) loanIs originatoran who:employee of or associated with the mortgage [broker;] company;

(I) Is an employee of or associated with the mortgage [broker;] company;

(3) Has suppressed or withheld from a client any material facts, data or other information relating to any transaction governed by the provisions of this chapter which the mortgage [agent] loan originator knew or, by the exercise of reasonable diligence, should have known;

- 79th Session (2017) – 59 – (4) Has knowingly made or caused to be made to the Commissioner any false representation of material fact or has suppressed or withheld from the Commissioner any informationinformations which the mortgage [agent] loan originator possesses and which, if submitted by the mortgage [agent,] loan originator, would have rendered the mortgage [agent] loan originator ineligible to be licensed pursuant to the provisions of this chapter;

- *AB468_R2* – 57 – (6) Has failed to account for or to remit any money of a client within a reasonable time after a request for an accounting or remittal;

(8)deceitful, Hasfraudulent engagedor indishonest anybusiness otherpractice;ng conduct constituting a deceitful,(9) fraudulentHas orviolated dishonestNRS business645C.557; practice;

(9) Has violated NRS 645C.557;

or (12) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner or has assisted or offered to assist another person to commit such aaor violation.

This section does not prohibit the co-brokering of a commercial loan through the cooperation of two or more mortgage - 79th Session (2017) – 60 – [brokers] companies so long as such a transaction is not inconsistent with any other provision of this chapter.

66.

(Deleted by amendment.) Sec.

If the Commissioner receives a copy of a court order issued pursuant to NRS 425.540 that provides for the suspension of all professional, occupational and recreational licenses, certificates and permits issued to a person who is the holder of a license as a mortgage [broker] company or mortgage [agent,] loan originator, the Commissioner shall deem the license issued to that person to be suspended at the end of the 30th day after the date on which the court order was issued unless the Commissioner receives a letter issued to the holder of the license by the district attorney or other public agency pursuant to NRS 425.550 - *AB468_R2* – 58 – stating that the holder of the license has complied with the subpoena or warrant or has satisfied the arrearage pursuant to NRS 425.560.

If a person offers or provides any of the services of a mortgage [broker] company or mortgage [agent] loan originator or otherwise engages in, carries on or holds himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator and, at the time:

- 79th Session (2017) – 61 – 2.

If a mortgage [broker] company violates any provision of subsection 1 of NRS 645B.080 and the mortgage [broker] company fails, without reasonable cause, to remedy the violation within 20 business days after being ordered by the Commissioner to do so or within such later time as prescribed by the Commissioner, or if the Commissioner orders a mortgage [broker] company to provideprovideor if the information, make a report or permit an examination of his or her books or affairs pursuant to this chapter and the mortgage [broker] company fails, without reasonable cause, to comply with the order within 20 business days or within such later time as prescribed by the Commissioner, the Commissioner [shall:] may:

and (c) Conduct a hearing to determine whether the mortgage [broker] company is conducting business in an unsafe and injurious manner that may result in danger to the public and whether it is - *AB468_R2* – 59 – necessary for the Commissioner to take possession of the property of the mortgage [broker] company pursuant to NRS 645B.630.

NRS 645B.710 is hereby amended to read as follows:fol645B.710 If a person is a partnership, corporation or unincorporated association, the Commissioner [shall] may take any disciplinary action required pursuant to NRS 645B.690 and may take any other disciplinary action set forth in this chapter against the person if any member of the partnership or any officer or director of the corporation or unincorporated association has committed any act or omission that would be cause for taking such disciplinary action against a natural person.

645B.710 If a person is a partnership, corporation or unincorporated association, the Commissioner [shall] may take any disciplinary action required pursuant to NRS 645B.690 and may take any other disciplinary action set forth in this chapter against the person if any member of the partnership or any officer or director of the corporation or unincorporated association has committed any act or omission that would be cause for taking such disciplinary action against a natural person.

- 79th Session (2017) – 62 – 1.

645B.900 It is unlawful for any person to offer or provide any of the services of a mortgage [broker] company or mortgage [agent][agent]any loan originator or otherwise to engage in, carry on or hold himself or herself out as engaging in or carrying on the business of a mortgage [broker] company or mortgage [agent] loan originator without first obtaining the applicable license issued pursuant to this chapter, unless the person:

- *AB468_R2* – 60 – Sec.

A person who engages in an activity for which a license as a mortgage [broker] company or mortgage [agent] loan originator is required pursuant to this chapter, without regard to whether such a person is licensed pursuant to this chapter, may be - 79th Session (2017) – 63 – required by the Commissioner to pay restitution to any person who has suffered an economic loss as a result of a violation of the provisions of this chapter or any regulation adopted pursuant thereto.

2.subsection 1 of NRS 622A.120, payment of restitution pursuant to subsection 1 shall be done in a manner consistent with the provisions of chapter 622A of NRS.

Notwithstanding the provision of paragraph (m) of subsection 1 of NRS 622A.120, payment of restitution pursuant to subsection 1 shall be done in a manner consistent with the provisions of chapter 622A of NRS.

The Commissioner may appoint deputy commissioners of mortgage lending, examiners, assistants, clerks, stenographers and other employees necessary to assist the - *AB468_R2* – 61 – Commissioner in the performance of his or her duties pursuant to this chapter, chapters 645A [,] and 645B [and 645E] of NRS or any other law.

The Commissioner may employ or contract with a certified public accountant to review and conduct independent audits and examinations of escrow agencies, mortgage [brokers,] companies Commissioner shall levy an assessment upon each licensed escrowThe agency, mortgage [broker,] company and mortgage servicersservicer .[and mortgage banker] to cover all the costs related to the employment of or the contract with the certified public accountant and the performance of the audits and examinations.

[and mortgage bankers.] The Commissioner shall levy an assessment upon each licensed escrow agency, mortgage [broker,] company and mortgage servicer [and mortgage banker] to cover all the costs related to the employment of or the contract with the certified public accountant and the performance of the audits and examinations.

645F.250 The Commissioner and the Division shall administer the provisions of this chapter and chapters 645A [,] and 645B [and - 79th Session (2017) – 64 – 645E] of NRS, subject to administrative supervision by the Director of the Department of Business and Industry.

645F.260 The State Board of Finance shall act in an advisory capacity to the Division in the administration of this chapter and chapters 645A [,] and 645B [and 645E] of NRS.NRS.n of this chapter and Sec.

Sec.

A mortgage [agent,] loan originator, mortgage [banker, mortgage broker] company or mortgage servicer or an employee of a mortgage [banker, mortgage broker] company or mortgage servicer who, pursuant to subsection 1, is not required to register or renew with the Registry and who voluntarily registers or renews - *AB468_R2* – 62 – with the Registry shall comply with all requirements of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008, and any regulations adopted pursuant thereto.

As used in this section, “residential mortgage loan originator”oriSec. has the meaning ascribed to it in NRS 645B.01325.

Sec.

NRShaNRS 645F.275 is hereby amended to read as follows:

- 79th Session (2017) – 65 – Sec.

2.

The regulations must include, without limitation:

and (b) “Residential mortgage loan originator” has the meaning ascribedascSec. to it in NRS 645B.01325.

- *AB468_R2* – 63 – Sec.

NRSitNRS 645F.500 is hereby amended to read as follows:

- 79th Session (2017) – 66 – 4.

An attorney who is licensed in this State and who does not engage in the business of, or otherwise hold himself or herself 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 5.cliA person performing any act pursuant to a client.court order.

5.

A person performing any act pursuant to a court order.

A bank, mortgage [broker, mortgage banker,] company, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company or savings and loan association, or any subsidiaryState;iary thereof which is authorized to transact business in this State;2.

2.

or - *AB468_R2* – 64 – 3.

- 79th Session (2017) – 67 – Sec.

645H.160certificate 1.of registration or permit do not apply to a person ora broker who has a current permit to engage in property management pursuant to chapter 645 of NRS.

The provisions of this chapter which require a certificate of registration or permit do not apply to a person or broker who has a current permit to engage in property management pursuant to chapter 645 of NRS.

As used in this section, “financial institution” means a bank, mortgage [broker, mortgage banker,] company, mortgage servicer as that term is defined in NRS 645F.063, credit union, thrift company or savings and loan association, or anyanyedit subsidiary or affiliate of a bank, mortgage [broker, mortgage banker,] company, mortgage servicer, credit union, thrift company or savings and loan association, which is authorized to transact - *AB468_R2* – 65 – business in this State and which makes or acquires, in whole or in part, any loan of the kind described in subsection 2.

- 79th Session (2017) – 68 – 3.

(a) Is not, for the purposes of NRS 40.430, an action for the recovery of any debt or an action for the enforcement of any right secured by mortgage or lien upon real estate.

(d) Maintaining offices or agencies for the transfer, exchange and registration of the corporation’s own securities or maintaining trustees or depositaries with respect to those securities;securities;intaining (e) Making sales through independent contractors;

(e) Making sales through independent contractors;

- *AB468_R2* – 66 – (g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

- 79th Session (2017) – 69 – (k) The production of motion pictures as defined in NRS 231.020;

and (m)2.) TransactingTThe businesslist of activities in interstatesubsection commerce.1 is not exhaustive.

2.

The list of activities in subsection 1 is not exhaustive.

and (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not doing business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

- *AB468_R2* – 67 – Sec.

- 79th Session (2017) – 70 – (a) Maintaining, defending or settling any proceeding;

(d) Maintaining offices or agencies for the transfer, exchange and registration of the company’s own securities or maintainingmaintainingge trustees or depositaries with respect to those securities;

A person who is not transacting business in this State within the meaning of this section need not qualify or comply with any provision of this chapter, title 55 or 56 of NRS or chapter 645A, 645B645(a) orMaintains 645Ean ofoffice NRSin unlessthis State for the person:transaction of business;

(a) Maintains an office in this State for the transaction of business;

- *AB468_R2* – 68 – (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise - 79th Session (2017) – 71 – personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding;

and (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

(f) Soliciting or receiving orders outside this State through or in response to letters, circulars, catalogs or other forms of advertising, acceptingshipping thosegoods ordersinto outside this State;this State and filling them by shipping(g) goodsCreating intoor thisacquiring State;indebtedness, mortgages and security interests in real or personal property;

(g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

- *AB468_R2*79th Session (2017) – 6972 – 3.

(a)business;intains Maintains an office in this State for the transaction of business;(b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS;

(b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS;

and (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to the person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A5985.of As used in this section, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

5.

As used in this section, “deposits” means demand deposits, savings deposits and time deposits, as those terms are defined in chapter 657 of NRS.

- 79th Session (2017) – 73 – (e) Making sales through independent contractors;

- *AB468_R2* – 70 – (f) Soliciting or receiving orders outside this State through or in response to letters, circulars, catalogs or other forms of advertising, accepting those orders outside this State and filling them by shippingshi(g) goodsCreating intoor thisacquiring State;indebtedness, mortgages and security interests in real or personal property;

(g) Creating or acquiring indebtedness, mortgages and security interests in real or personal property;

(a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding;

- 79th Session (2017) – 74 – 5.

- *AB468_R2* – 71 – Sec.

88.602inclusive, 1.the following activities do not constitute transacting business in this State:

For the purposes of NRS 88.570 to 88.605, inclusive, the following activities do not constitute transacting business in this State:

(l) Transacting business as an out-of-state depository institution pursuant to the provisions of title 55 of NRS;

andandository institution (m) Transacting business in interstate commerce.

- 79th Session (2017) – 75 – (a) Does not affect the determination of whether any court, administrative agency or regulatory body in this State may exercise personal jurisdiction over the person in any civil action, criminal action, administrative proceeding or regulatory proceeding;

and (b) Except as otherwise provided in subsection 3, does not affect the applicability of any other provision of law with respect to thethet - *AB468_R2* – 72 – person and may not be offered as a defense or introduced in evidence in any civil action, criminal action, administrative proceeding or regulatory proceeding to prove that the person is not transacting business in this State, including, without limitation, any civil action, criminal action, administrative proceeding or regulatory proceeding involving an alleged violation of chapter 597, 598 or 598A of NRS.

§ 78l, and has been subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934, 15 U.S.C.

§§ 78m and 78o(d), for not less than 90 days next preceding the transaction, or has filed and maintained with the Administrator for not less than 90 days preceding the transaction information, in such form as the Administrator, by regulation, specifies, substantiallysubstantiallych comparable to the information the issuer would be required to file under section 12(b) or 12(g) of the Securities Exchange Act of 1934, 15 U.S.C.

- 79th Session (2017) – 76 – (c) At the time of the transaction, a recognized securities manual designated by the Administrator by regulation or order contains the names of the issuer’s officers and directors, a statement of the financial condition of the issuer as of a date within the preceding 18 months, and a statement of income or operations for each of the last 2 years next preceding the date of the statement of financialfinancialhe last condition, or for the period as of the date of the statement of financial condition if the period of existence is less than 2 years;

- *AB468_R2* – 73 – (d) The issuer of the security has not undergone a major reorganization, merger or acquisition within the preceding 30 days which is not reflected in the information contained in the manual;

A nonissuer transaction in a security that has a fixed maturity or a fixed interest or dividend provision if there has been no default during the current fiscal year or within the 3 preceding years, or during the existence of the issuer, and any predecessors if lesson thanthe 3security.s, years, in the payment of principal, interest or dividends on5. the security.

5.

- 79th Session (2017) – 77 – 9.

11.transaction pursuant to an offer to sell securities of an issuer if:

Except as otherwise provided in this subsection, a transaction pursuant to an offer to sell securities of an issuer if:

- *AB468_R2* – 74 – (b) No general solicitation or general advertising is used in connection with the offer to sell or sale of the securities;

¬ The Administrator by rule or order as to a security or transaction or a type of security or transaction may withdraw or further condition the exemption set forth in this subsection or waive one or moremor12.f oftAn theoffer conditionsto sell or sale of thea exemption.preorganization certificate or subscription if:

12.

An offer to sell or sale of a preorganization certificate or subscription if:

An offer to sell or sale of a preorganization certificate or subscription issued in connection with the organization of a depository institution if that organization is under the supervision of an official or agency of a state or of the United States which has and exercises the authority to regulate and supervise the organization of - 79th Session (2017) – 78 – the depository institution.

For the purpose of this subsection, “under the supervision of an official or agency” means that the official or agency by law has authority to require disclosures to prospective investors similar to those required under NRS 90.490, impound proceeds from the sale of a preorganization certificate or subscription until organization of the depository institution is completed, and require refund to investors if the depository institution does not obtain a grant of authority from the appropriate official or agency.

A transaction pursuant to an offer to sell to existing security holders of the issuer, including persons who at the time of - *AB468_R2* – 75 – the transaction are holders of transferable warrants exercisable within not more than 90 days after their issuance, convertible securities or nontransferable warrants, if:

(b) A registration statement, if required, has been filed under thisthi(c) chapter,No butorder denying, suspending or revoking the effectiveness of registration, of which the offeror is notaware, effective;has been entered by the Administrator or the Securities and Exchange Commission, and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

and (c) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator or the Securities and Exchange Commission, and no examination or public proceeding that may culminate in that kind of order is known by the offeror to be pending.

A transaction involving an offer to sell, but not a sale, of a security exempt from registration under the Securities Act of 1933, 15 U.S.C.

and (b) No order denying, suspending or revoking the effectiveness of registration, of which the offeror is aware, has been entered by the Administrator and no examination or public proceeding that may - 79th Session (2017) – 79 – culminate in that kind of order is known by the offeror to be pending.

A transaction involving the distribution of the securities of an issuer to the security holders of another person in connection with a merger, consolidation, exchange of securities, sale of assets or other reorganization to which the issuer, or its parent or assets subsidiary, and the other person, or its parent or subsidiary, are parties, if:

§§ 77a et seq., written notice of the transaction and a copy of the materials, if - *AB468_R2* – 76 – any, by which approval of the transaction will be solicited, together with a nonrefundable fee of $300, are given to the Administrator at least 10 days before the consummation of the transaction and the Administrator does not, by order, disallow the exemption within the next 10 days.

(b) Each purchaser must pay cash either at the time of the sale or withinwit(c) 60Each dayspurchaser aftermay buy for the sale;purchaser’s own account only.

and (c) Each purchaser may buy for the purchaser’s own account only.

- 79th Session (2017) – 80 – 20.

(a) The seller of the securities pursuant to the contract is one of the parties described in subsection 18 or 19 who may originateoriginates one of securities;

- *AB468_R2* – 77 – Sec.

(c) Receives any proceeds or any other money in connection withfrom a mortgageviolation lendingof transactionparagraph that(a) theor (b);the person knows resulted from(d) aConspires violationwith another person to violate any of the provisions of paragraph (a)(a), (b) or (b);(c);

(d) Conspires with another person to violate any of the provisions of paragraph (a), (b) or (c);

A person who engages in a pattern of mortgage lending fraud or conspires or attempts to engage in a pattern of mortgage lending fraud is guilty of a category B felony and, upon conviction, - 79th Session (2017) – 81 – shall be punished by imprisonment in the state prison for a minimum term of not less than 3 years and a maximum term of not more than 20 years, or by a fine of not more than $50,000, or by both fine and imprisonment.

3.violates any provision of subsection 1 constitutes a separate violation.

Each mortgage lending transaction in which a person violates any provision of subsection 1 constitutes a separate violation.

- *AB468_R2* – 78 – 6.

The owner or holder of the beneficial interest in real property which is the subject of mortgage lending fraud may bring a civil action in the district court in and for the county in which the real property is located to recover any damages suffered by the owner or holder of the beneficial interest plus reasonable attorney’s fees and costs.

- 79th Session (2017) – 82 – (2) The representation or offer to represent another person to make or obtain the loan;

- *AB468_R2* – 79 – (10) A mortgage broker as defined in] NRS 645B.0127;

(d) “Pattern of mortgage lending fraud” means one or more violations of a provision of subsection 1 committed in two or more mortgage lending transactions which have the same or similar purposes, results, accomplices, victims or methods of commission, or areSec. otherwise interrelated by distinguishing characteristics.

Sec.94.rwiNRS 239.010 is hereby amended to read as follows:.

94.

NRS 239.010 is hereby amended to read as follows:

Except as otherwise provided in this section and NRS 1.4683, 1.4687, 1A.110, 41.071, 49.095, 62D.420, 62D.440, 62E.516, 62E.620, 62H.025, 62H.030, 62H.170, 62H.220, 62H.320, 75A.100, 75A.150, 76.160, 78.152, 80.113, 81.850, 82.183, 86.246, 86.54615, 87.515, 87.5413, 87A.200, 87A.580, 87A.640, 88.3355, 88.5927, 88.6067, 88A.345, 88A.7345, 89.045, 89.251, 90.730, 91.160, 116.757, 116A.270, 116B.880, 118B.026, 119.260, 119.265, 119.267, 119.280, 119A.280, 119A.653, 119B.370, 119B.382, 120A.690, 125.130, 125B.140, 126.141, 126.161, 126.163, 126.730, 127.007, 127.057, 127.130, 127.140, 127.2817, 130.312, 130.712, 136.050, 159.044, 172.075, 172.245, 176.015, 176.0625, 176.09129, 176.156, 176A.630, 178.39801, 178.4715, 178.5691, 179.495, 179A.070, 179A.165, 179A.450, 179D.160, - 79th Session (2017) – 83 – 200.3771, 200.3772, 200.5095, 200.604, 202.3662, 205.4651, 209.392, 209.3925, 209.419, 209.521, 211A.140, 213.010, 213.040, 213.095, 213.131, 217.105, 217.110, 217.464, 217.475, 218A.350, 218E.625, 218F.150, 218G.130, 218G.240, 218G.350, 228.270, 228.450, 228.495, 228.570, 231.069, 231.1473, 233.190, 237.300, 239.0105, 239.0113, 239B.030, 239B.040, 239B.050, 239C.140,239C.140,300, 239C.210, 239C.230, 239C.250, 239C.270, 240.007, 241.020, 241.030, 241.039, 242.105, 244.264, 244.335, 250.087, 250.130, 250.140, 250.150, 268.095, 268.490, 268.910, 271A.105, 281.195, 281A.350, 281A.440, 281A.550, 284.4068, 286.110, 287.0438, 289.025, 289.080, 289.387, 289.830, 293.5002, 293.503, 293.558, 293B.135, 293D.510, 331.110, 332.061, 332.351, 333.333, 333.335, 338.070, 338.1379, 338.16925, 338.1725, 338.1727, 348.420, 349.597, 349.775, 353.205, 353A.049, 353A.085, 353A.100, 353C.240, 360.240, 360.247, 360.255, 360.755, 361.044, 361.610, 365.138, 366.160, 368A.180, 372A.080, 378.290, 378.300, 379.008, 385A.830, 385B.100, 387.626, 387.631, 388.1455, 388.259, 388.501, 388.503, 388.513, 388.750, 391.035, 392.029, 392.147, 392.264, 392.271, 392.850, 394.167, 394.1698, 394.447, 394.460, 394.465, 396.3295, 396.405, 396.525, 396.535, 398.403, 408.3885, 408.3886, 408.3888, 408.5484, 412.153, 416.070, 422.2749, 422.305, 422A.342, 422A.350, 425.400, 427A.1236, 427A.872, 432.205, 432B.175, 432B.280, 432B.290, 432B.407, 432B.430, - *AB468_R2* – 80 – 432B.560, 433.534, 433A.360, 439.840, 439B.420, 440.170, 441A.195, 441A.220, 441A.230, 442.330, 442.395, 445A.665, 445B.570, 449.209, 449.245, 449.720, 450.140, 453.164, 453.720, 453A.610, 453A.700, 458.055, 458.280, 459.050, 459.3866, 459.555, 459.7056, 459.846, 463.120, 463.15993, 463.240, 463.3403, 463.3407, 463.790, 467.1005, 480.365, 481.063, 482.170, 482.5536, 483.340, 483.363, 483.575, 483.659, 483.800, 484E.070,484E.070,, 485.316, 503.452, 522.040, 534A.031, 561.285, 571.160, 584.655, 587.877, 598.0964, 598.098, 598A.110, 599B.090, 603.070, 603A.210, 604A.710, 612.265, 616B.012, 616B.015, 616B.315, 616B.350, 618.341, 618.425, 622.310, 623.131, 623A.137, 624.110, 624.265, 624.327, 625.425, 625A.185, 628.418, 628B.230, 628B.760, 629.047, 629.069, 630.133, 630.30665, 630.336, 630A.555, 631.368, 632.121, 632.125, 632.405, 633.283, 633.301, 633.524, 634.055, 634.214, 634A.185, 635.158, 636.107, 637.085, 637B.288, 638.087, 638.089, 639.2485, 639.570, 640.075, 640A.220, 640B.730, 640C.400, 640C.745, 640C.760, 640D.190, 640E.340, 641.090, 641A.191, 641B.170, 641C.760, 642.524, 643.189, 644.446, 645.180, 645.625, 645A.050, 645A.082, 645B.060, 645B.092, 645C.220, 645C.225, 645D.130, 645D.135, - 79th Session (2017) – 84 – [645E.300, 645E.375,] 645G.510, 645H.320, 645H.330, 647.0945, 647.0947, 648.033, 648.197, 649.065, 649.067, 652.228, 654.110, 656.105, 661.115, 665.130, 665.133, 669.275, 669.285, 669A.310, 671.170, 673.430, 675.380, 676A.340, 676A.370, 677.243, 679B.122, 679B.152, 679B.159, 679B.190, 679B.285, 679B.690, 680A.270, 681A.440, 681B.260, 681B.410, 681B.540, 683A.0873, 685A.077, 686A.289, 686B.170, 686C.306, 687A.110, 687A.115, 687C.010, 688C.230, 688C.480, 688C.490, 692A.117, 692C.190, 692C.3536, 692C.3538, 692C.354, 692C.420, 693A.480, 693A.615, 696B.550, 703.196, 704B.320, 704B.325, 706.1725, 706A.230, 710.159, 711.600, sections 35, 38 and 41 of chapter 478, Statutes of Nevada 2011 and section 2 of chapter 391, Statutes of Nevada 2013 and unless otherwise declared by law to be confidential, all public books and public records of a governmental entity must be open at all times during office hours to inspection by any person, and may be fully copied or an abstract or memorandum may be prepared from those public books and public records.

- *AB468_R2* – 81 – 2.

A governmental entity that has legal custody or control of a public book or record shall not deny a request made pursuant to subsection 1 to inspect or copy or receive a copy of a public book or record on the basis that the requested public book or record contains information that is confidential if the governmental entity can redact, delete, conceal or separate the confidential information from the information included in the public book or record that is not otherwise confidential.

- 79th Session (2017) – 85 – (b) Except as otherwise provided in NRS 239.030, shall, upon request, prepare the copy of the public record and shall not require the person who has requested the copy to prepare the copy himself or herself.

follows:95.

NRS 315.99815 is hereby amended to read as 315.99815 “Lending institution” means any bank or trust company, Federal National Mortgage Association approved mortgage [banker,] company, national banking association, savings and loan association or other financial institution or governmental agency of the United States which customarily provides service or otherwise aids in the financing of mortgages located in this State.

95.

NRS 315.99815 is hereby amended to read as follows:

315.99815 “Lending institution” means any bank or trust company, Federal National Mortgage Association approved mortgage [banker,] company, national banking association, savings and loan association or other financial institution or governmental agency of the United States which customarily provides service or otherwise aids in the financing of mortgages located in this State.

Sec.

- *AB468_R2* – 82 – (b) The development of new programs or the improvement of existing programs of the Division.

(c) The improvement of policies and procedures of the Division, including those relating to the dissemination of relevant information to persons who participate in or are otherwise interested in programs of the Division.

- 79th Session (2017) – 86 – (b) One representative of persons engaged in residential construction in this State.

(d) One member who is knowledgeable about the sale and marketing or the management of real property in this State.

(a) The expected needs for financing and anticipated demand for tax credits and sources of funding for each of the programs administeredadm(b) byStrategies thefor Division.meeting those needs and demands.

- *AB468_R2* – 83 – (b) Strategies for meeting those needs and demands.

or (b) Submission of findings to the State Board of Finance pursuant to subsection 4 of NRS 319.323, - 79th Session (2017) – 87 – ¬ the Administrator shall submit a plan of investment or a plan of financing, together with any proposed findings relating to that plan, to the Advisory Committee for its review and comment.

The Administrator shall report to the Advisory Committee at least once each calendar quarter on the activities of the Division and the implementation of the Division’s work plan for that year.year.ision and Sec.

Sec.

(g) A person registered or required to be registered as a bank hol(h) An investment bank holding company supervised pursuant to 12 U.S.C.

§ 1844;

(h) An investment bank holding company supervised pursuant to 15 U.S.C.

- *AB468_R2* – 84 – (i) A person electing to be treated as a business development company pursuant to 15 U.S.C.

- 79th Session (2017) – 88 – (q) A national banking association organized under the National Bank Act;

(r) An entity that is related to any of the entities described in paragraphs (a), (b), (d) to (k), inclusive, and (m) to (q), inclusive, regardless of whether the entity described in any of those paragraphs is doing business in this State;

andandcribed in any of those paragraphs (s) An issuer or a service provider, ¬ who is conducting a business activity in this State.

(c) “Issuer” has the meaning ascribed to it in NRS 97A.100, except that the term does not include a seller of goods or provider of services who issues a credit card for the purpose of providing or extending credit only in connection with the goods he or she sells or the services he or she provides.

- *AB468_R2* – 85 – (d) A business “primarily consists of the sale, solicitation or negotiation of insurance” if more than 50 percent of the annual income of the business from commissions is derived from the sale, solicitation or negotiation of insurance.

(f) “Service provider” has the meaning ascribed to it in NRS 97A.130, except that the term does not include a service provider who acts in that capacity solely on behalf of a seller of goods or - 79th Session (2017) – 89 – provider of services who issues a credit card for the purpose of providing or extending credit only in connection with the goods he or she sells or the services he or she provides.

604A.2501.4A.Except Theas provisionsotherwise ofprovided thisin chapterNRS do604A.200, nota applyperson: to:

1.doing business pursuant to the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage [brokers, mortgage bankers,] companies, thrift companies or insurance companies, including, without limitation, any affiliate or subsidiary of such a person regardless of whether the affiliate or subsidiary is a bank.

Except as otherwise provided in NRS 604A.200, a person doing business pursuant to the authority of any law of this State or of the United States relating to banks, national banking associations, savings banks, trust companies, savings and loan associations, credit unions, mortgage [brokers, mortgage bankers,] companies, thrift companies or insurance companies, including, without limitation, any affiliate or subsidiary of such a person regardless of whether the affiliate or subsidiary is a bank.

A corporation organized pursuant to the laws of this State that has been continuously and exclusively engaged in a check- cashing service in this State since July 1, 1973.1973.d in a check- 7.

7.

- *AB468_R2* – 86 – 9.

- 79th Session (2017) – 90 – 12.

(b) Approved by the Federal National Mortgage Association as a sellers(c) orApproved servicer;by the Department of Housing and Urban Development and the Department of Veterans Affairs.

and (c) Approved by the Department of Housing and Urban Development and the Department of Veterans Affairs.

- *AB468_R2* – 87 – (I) Maintain separate accounts, books and records;

and (2) The mortgage banker is licensed by this State pursuant to chapter 645E of NRS and, if the mortgage banker is also licensed as a mortgage broker pursuant to chapter 645B of NRS, does not - 79th Session (2017) – 91 – receive money to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.] 3.

If a pawnbroker is licensed to operate a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service, the pawnbroker may operate that service at the same office or place of business from which he or she conducts the business as a pawnbroker pursuant to chapter 646 of NRS.

As used in this section, “financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B [, 645E] or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.law.imilar institution Sec.

Sec.

(a) “Committee to review compliance” means one or more persons assigned or engaged by a financial institution to test, review or evaluate its conduct, transactions or potential transactions, policies or procedures for the purpose of monitoring and improving or enforcing compliance with state and federal statutes and regulations requiring safe, sound and fair lending practices, - *AB468_R2* – 88 – including, without limitation, acts concerning equal credit opportunity, fair housing, fair lending, flood zone protection, housing and financial discrimination, truth in lending and financial reporting to federal or state regulatory agencies.

- 79th Session (2017) – 92 – (b) “Financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B [or 645E] of NRS, or a similar institution chartered or licensed pursuant to federal law.

The term includes, without limitation, a holding company,com2.ny,Except affiliateas orotherwise subsidiaryvoluntarily ofauthorized suchby anthe institution.financial institution:

2.

Except as otherwise voluntarily authorized by the financial institution:

The provisions of subsection 1 do not apply to a provision in a loan agreement that specifically authorizes automatic withdrawals fromfro3.an anThe account.provisions of this section may not be varied by agreement, and the rights conferred by this section may not be waived.

3.

The provisions of this section may not be varied by agreement, and the rights conferred by this section may not be waived.

(b) “Financial institution” means an institution licensed pursuant to the provisions of this title or title 56 or chapter 645B [, 645E] - *AB468_R2* – 89 – or 649 of NRS, or a similar institution chartered or licensed pursuant to federal law.

- 79th Session (2017) – 93 – Sec.

The Commissioner of Financial Institutions shall, with the cooperation of the Commissioner of Mortgage Lending, adopt regulations concerning nontraditional mortgage loan products and lending practices of persons and financial institutions that are required to be licensed or registered pursuant to the provisions ofofe titles 55 and 56 and [chapters] chapter 645B [and 645E] of NRS and which make or offer to make loans that are secured by liens on real property.

If the Commissioner determines that the revision is not suitable for this State, the Commissioner shall hold a hearing within 60 days after his or her determination and give notice of the hearing.

(a) Means a residential loan agreement whose terms allow a borrower to defer repayment of principal or payment of interest on the loan for a period.

Except as otherwise provided in NRS 645F.296, any person authorized to engage in activities as a residential mortgage loan originator on behalf of a privately insured institution - *AB468_R2*79th Session (2017) – 9094 – or organization licensed under title 55 or 56 of NRS shall obtain and maintain a license as a mortgage [agent.] loan originator.

(a) “Mortgage [agent”] loan originator” has the meaning asc(b) “Residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.0125;645B.01325.

and (b) “Residential mortgage loan originator” has the meaning ascribed to it in NRS 645B.01325.

or (c) Having any affiliation or other business arrangement with an entity that is exempt from the provisions of this chapter pursuant to subsection 1 of NRS 675.040, the effect of which is to evade the provisions of this chapter, including, without limitation, making a loan while purporting to be the agent of such an exempt entity where the purported agent holds, acquires or maintains a material economicecoSec. interest in the revenues generated by the loan.

Sec.

- 79th Session (2017) – 95 – 4.

- *AB468_R2* – 91 – 5.

A real estate broker rendering services in the performance of hisproperty.r or her duties as a real estate broker if the loan is secured by real property.6.

6.

Except as otherwise provided in subsection 2, a licensee may not conduct the business of making loans under this chapter within any office, suite, room or place of business in which any other business is solicited or engaged in, except an insurance agency or notary public, or in association or conjunction with any other business, unless authority to do so is given by the with any Commissioner.

and [(2)] (b) The mortgage [broker] company is licensed by this state pursuant to chapter 645B of NRS and does not receive money - 79th Session (2017) – 96 – to acquire or repay loans or maintain trust accounts as provided by NRS 645B.175.

(I) Operate as separate legal entities;

- *AB468_R2* – 92 – (III) Are subsidiaries of the same parent corporation;

Mortgage banker issued pursuant to NRS 645E.200 and who is otherwise qualified to hold such a license on that date shall be deemed to hold a license as a mortgage company issued pursuant to NRS 645B.020, as amended by section 11 of this act.act.ed pursuant to 3.

3.

- 79th Session (2017) – 97 – Sec.

NRS 645B.035, 645E.010, 645E.020, 645E.030, 645E.040, 645E.050, 645E.060, 645E.070, 645E.080, 645E.090, 645E.100, 645E.105, 645E.115, 645E.130, 645E.150, 645E.160, 645E.165, 645E.170, 645E.200, 645E.210, 645E.220, 645E.230, 645E.280, 645E.290, 645E.291, 645E.300, 645E.310, 645E.315, 645E.320, 645E.350, 645E.360, 645E.370, 645E.375, 645E.390, 645E.420, 645E.430, 645E.440, 645E.470, 645E.620, 645E.630, 645E.640, 645E.670, 645E.680, 645E.690, 645E.700, 645E.710, - *AB468_R2* – 93 – 645E.750, 645E.800, 645E.900, 645E.910, 645E.920, 645E.930, 645E.950, 645E.955, 645E.960, 645F.050 and 645H.100 are hereby repealed.repSec.

Sec.

Sections 1 to 15, inclusive, 16 to 88, inclusive, and 89 to 112, inclusive, of this act become effective upon passage and approval for the purpose of adopting regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act and on January 1, 2020, for all other purposes.

LEADLINES20~~~~~ OF17 REPEALED- SECTIONS79th 645B.035Session Activities(2017) authorized by license;

dual licensure as mortgage banker and mortgage broker.

645E.010 Definitions.

645E.020 “Applicant” defined.