Nevada Administrative Code
Chapter 645F - Mortgage Lending and Related Professions
NEVADA MORTGAGE SERVICER REGULATIONS
Standards of Practice
Section 645F.980 - Prohibited acts

1. Fail to conduct his or her business in accordance with any law or to violate any provision of chapter 645F of NRS, the Nevada Mortgage Servicer Regulations or any order issued by the Commissioner pursuant to chapter 645F of NRS and the Nevada Mortgage Servicer Regulations.

2. Fail to comply with any applicable federal law or regulation relating to mortgage servicing, including, without limitation, the Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 et seq., and the Truth in Lending Act, 15 U.S.C. §§ 1601 et seq., as amended, and any regulations promulgated thereunder.

3. Directly or indirectly employ any scheme, device or artifice to defraud or mislead a borrower or lender or to defraud any person.

4. Engage in any unfair or deceptive practice toward any person or misrepresent or omit any material information in connection with the servicing of a mortgage loan, including, without limitation, misrepresenting the amount, nature or terms of any fee or payment due or claimed to be due on a mortgage loan, the terms and conditions of the servicing agreement or the borrower's obligations under the mortgage loan.

5. Fail to maintain the minimum net worth required by NAC 645F.974.

6. Fail to maintain the minimum surety bond required by NAC 645F.970.

7. Suppress or withhold from the Commissioner any information which the applicant or licensee possesses and which, if submitted by the applicant or licensee, may have rendered the applicant or licensee ineligible to be licensed pursuant to the provisions of chapter 645F of NRS and the Nevada Mortgage Servicer Regulations.

8. Fail to exercise reasonable supervision over the activities of its employees or agents.

9. Fail to apply mortgage loan payments in accordance with a servicing agreement or the terms of a note.

10. Fail to properly apply payments to an escrow account or fail to place in a trust or escrow account held by a federally insured depository financial institution, as defined in NRS 645B.0109, all money that is received by the mortgage servicer from the borrower or fail to account for all money received or disbursed for a trust or escrow account.

11. Make payments in a manner that causes a policy of insurance to be cancelled or causes property taxes or similar payments to become delinquent.

12. Require any amount of money to be remitted by means which are more costly to the borrower than a bank or certified check or attorney's check from an attorney's account to be paid by the borrower.

13. Refuse to permit an examination or investigation by the Commissioner of the books and affairs of the mortgage servicer, or refuse or fail, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to chapter 645F of NRS and the Nevada Mortgage Servicer Regulations.

14. Refuse or fail to pay, within a reasonable time, any fees, assessments, costs, expenses or fines that the mortgage servicer is required to pay pursuant to the provisions of chapter 645F of NRS and the Nevada Mortgage Servicer Regulations.

15. Fail to satisfy a claim, related to activity conducted pursuant to chapter 645F of NRS and the Nevada Mortgage Servicer Regulations, which has been reduced to a judgment.

16. Commingle the money or property of a borrower or lender with the money or property of the mortgage servicer, or convert the money or property of other persons to the mortgage servicer's own use.

17. Transfer a license, or conduct the business of a mortgage servicer in a name or from an address not specified on the license, before obtaining the required approval of the Commissioner.

18. Be 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 fraud, dishonesty or a breach of trust, moral turpitude or money laundering.

19. Employ a control person at a time when the mortgage servicer knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the control person:

20. Instruct, encourage, or aid another licensee or person in the commission of an act that is a violation of chapter 645F of NRS or the Nevada Mortgage Servicer Regulations, whether or not the licensee or person commits the act.

21. Engage in, or offer to engage in or otherwise hold himself or herself as being able to provide or conduct the activity of a mortgage company, mortgage loan originator or covered service provider unless properly licensed under chapter 645B or 645F of NRS, as applicable.