Current through September 16, 2024
1.
Except as otherwise provided in NAC 645B.038, before a private investor makes a
loan for which a licensed mortgage company is acting as a broker, the mortgage
company must provide, unless specifically waived in writing, to the private
investor:
(a) A written application for the
loan which is signed by the prospective borrower and which contains the
borrower's address, a history of his or her employment and income, details of
monthly payments he or she is obliged to pay and any other information
requested by the private investor.
(b) Evidence of the history of employment of
the prospective borrower and income, such as a tax return or an employer's
statement of the borrower's past yearly income.
(c) A report on the history of credit of the
prospective borrower issued by a credit reporting agency, including an
explanation by the borrower of any material derogatory item in the report and
evidence that the report has been compared for accuracy to the borrower's
application for the loan.
(d) An
analysis by the mortgage company of the ability of the prospective borrower to
pay his or her monthly debts.
(e) A
preliminary report on the status of the title of the property which is proposed
as security for the loan.
2. A mortgage company shall retain a copy of
the documents described in subsection 1 and shall retain in his or her files a
statement from the private investor, on a form provided by the Division,
acknowledging that:
(a) The private investor
received the documents, or that the private investor waived in writing the
right to receive the documents;
(b)
The decision to make the loan was made after the private investor had the
opportunity to receive and review the documents; and
(c) The private investor continues to meet
the minimum financial requirement set forth in NAC
645B.255.
3. If the loan
is made, the mortgage company shall retain in his or her files and provide to
the private investor:
(a) A copy of the
promissory note;
(b) A recorded
copy of the deed of trust securing the loan; and
(c) A copy of the policy of title insurance
on the property securing the loan.
The mortgage company shall retain in his or her files a
statement, on a form provided by the Division, acknowledging that the documents
were provided to the private investor.
4. If the loan is made, the mortgage company
shall retain in his or her files:
(a) A copy
of a policy of fire insurance which is adequate to cover the replacement costs
of all improvements on the property securing the loan, including an endorsement
naming the private investor as the insured, when applicable; and
(b) If the borrower is not a natural person,
a copy of its statement authorizing the loan.
5. The mortgage company shall store his or
her original notes, if retained, in a fireproof container or room.
6. The mortgage company shall provide a copy
of the appraisal or independent assessment of the value of the mortgage
property required pursuant to NRS 645B.300 to the:
(a) Private investor, upon request;
and
(b) Borrower, upon request, if
the borrower has paid for the appraisal or independent
assessment.
Comm'r of Savings
Associations, Mortgage Reg. § 8, eff. 6-29-82-NAC A by Comm'r of Financial
Institutions, 5-19-88; R045-00, 9-5-2000; A by Comm'r of Mortgage Lending by
R056-08, R057-08 & R058-08, 4-23-2009; A by
R125-16A,
eff. 1/27/2017; A
by
R119-19A,
eff. 11/9/2023
NRS 645B.060,
645B.080
