Nevada Revised Statutes
Chapter 645B - Mortgage Companies and Mortgage Loan Originators
NRS 645B.175 - Trust or escrow account required for money received from investor to fund loan; trust or escrow account required for money received from debtor to repay loan; release of money; accounting to investor, debtor and Commissioner; additiona...


1. Except as otherwise provided in this section, all money received by a mortgage company and his or her mortgage loan originators from an investor to acquire ownership of or a beneficial interest in a loan secured by a lien on real property must:
(a) Be deposited in:
(1) An insured depository financial institution; or
(2) An escrow account which is controlled by a person who is independent of the parties and subject to instructions regarding the account which are approved by the parties.
(b) Be kept separate from money:
(1) Belonging to the mortgage company in an account appropriately named to indicate that the money does not belong to the mortgage company.
(2) Received pursuant to subsection 4.
2. Except as otherwise provided in this section, the amount held in trust pursuant to subsection 1 must be released:
(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 company for the payment of any fee or service charge;
(b) If the loan or the transfer thereof is not consummated, to each investor who furnished the money held in trust; or
(c) Pursuant to any instructions regarding the escrow account.
3. The amount held in trust pursuant to subsection 1 must not be released to the debtor or the debtor’s designee unless:
(a) The amount released is equal to the total amount of money which is being loaned to the debtor for that loan, less the amount due the mortgage company for the payment of any fee or service charge; and
(b) The mortgage company has provided a written instruction to a title agent or title insurer requiring that a lender’s policy of title insurance or appropriate title endorsement, which names as an insured each investor who owns a beneficial interest in the loan, be issued for the real property securing the loan.
4. Except as otherwise provided in this section, all money paid to a mortgage company and his or her mortgage loan originators by a person in full or in partial payment of a loan secured by a lien on real property, must:
(a) Be deposited in:
(1) An insured depository financial institution; or
(2) An escrow account which is controlled by a person who is subject to instructions regarding the account which are approved by the parties.
(b) Be kept separate from money:
(1) Belonging to the mortgage company in an account appropriately named to indicate that it does not belong to the mortgage company.
(2) Received pursuant to subsection 1.
5. Except as otherwise provided in this section, the amount held in trust pursuant to subsection 4:
(a) Must be released, upon the deduction and payment of any fee or service charge due the mortgage company, to each investor who owns a beneficial interest in the loan in exact 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 paragraph (a) is also released to every other investor who owns a beneficial interest in the loan.
6. An investor may waive, in writing, the right to receive one or more payments, or portions thereof, that are released to other investors in the manner set forth in subsection 5. A mortgage company or mortgage 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. Any such written waiver applies only to the payment or payments, or portions thereof, that are included in the written waiver and does not affect the right of the investor to:
(a) Receive the waived payment or payments, or portions thereof, at a later date; or
(b) Receive all other payments in full and in accordance with the provisions of subsection 5.
7. Upon reasonable notice, any mortgage company described in this section shall:
(a) Account to any investor or debtor who has paid to the mortgage company or his or her mortgage loan originators money that is required to be deposited in a trust account pursuant to this section; and
(b) Account to the Commissioner for all money which the mortgage company and his or her mortgage loan originators have received from each investor or debtor and which the mortgage company is required to deposit in a trust account pursuant to this section.
8. Money received by a mortgage company and his or her mortgage loan originators pursuant to this section from a person who is not associated with the mortgage company may be held in trust for not more than 45 days before an escrow account must be opened in connection with the loan. If, within this 45-day period, the loan or the transfer therefor is not consummated, the money must be returned within 24 hours. If the money is so returned, it may not be reinvested with the mortgage company for at least 15 days.
9. If a mortgage company or a mortgage loan originator receives any money pursuant to this section, the mortgage company or mortgage loan originator, after the deduction and payment of any fee or service charge due the mortgage company, shall not release the money to:
(a) Any person who does not have a contractual or legal right to receive the money; or
(b) Any person who has a contractual right to receive the money if the mortgage company or mortgage loan originator knows or, in light of all the surrounding facts and circumstances, reasonably should know that the person’s contractual right to receive the money violates any provision of this chapter or a regulation adopted pursuant to this chapter.
10. If a mortgage company maintains any accounts described in subsection 1 or 4, the mortgage company shall, in addition to the annual financial statement audited pursuant to NRS 645B.085, submit to the Commissioner each 6 calendar months a financial statement concerning those trust accounts.
11. The Commissioner shall adopt regulations concerning the form and content required for financial statements submitted pursuant to subsection 10.
12. Any duty, responsibility or obligation of a mortgage company pursuant to this chapter is not delegable or transferable to an investor, and, if an investor only provides money to acquire ownership of or a beneficial interest in a loan secured by a lien on real property, no criminal or civil liability may be imposed on the investor for any act or omission of a mortgage company.
(Added to NRS by 1981, 1784; A 1983, 1708; 1985, 2189; 1987, 1885; 1999, 3794; 2007, 956; 2011, 1390; 2017, 3052)

Structure Nevada Revised Statutes

Nevada Revised Statutes

Chapter 645B - Mortgage Companies and Mortgage Loan Originators

NRS 645B.010 - Definitions.

NRS 645B.0102 - "Applicant" defined.

NRS 645B.0104 - "Clerical or ministerial tasks" defined.

NRS 645B.01043 - "Commercial mortgage loan" defined.

NRS 645B.01047 - "Commercial property" defined.

NRS 645B.0105 - "Commissioner" defined.

NRS 645B.0107 - "Construction control" defined.

NRS 645B.0109 - "Depository financial institution" defined.

NRS 645B.0111 - "Division" defined.

NRS 645B.0112 - "Dwelling" defined.

NRS 645B.01125 - "Employee" defined.

NRS 645B.0113 - "Escrow agency" defined.

NRS 645B.0115 - "Escrow agent" defined.

NRS 645B.0117 - "Escrow officer" defined.

NRS 645B.0119 - "Financial services license or registration" defined.

NRS 645B.012 - "Institutional investor" defined.

NRS 645B.0121 - "Investor" defined.

NRS 645B.0123 - "Licensee" defined.

NRS 645B.0124 - "Loan processor" defined.

NRS 645B.01245 - "Majority of the investors" defined.

NRS 645B.0125 - "Mortgage loan originator" defined.

NRS 645B.0127 - "Mortgage company" defined.

NRS 645B.0128 - "Nationwide Mortgage Licensing System and Registry" and "Registry" defined.

NRS 645B.0129 - "Policy of title insurance" defined.

NRS 645B.01305 - "Private investor" defined.

NRS 645B.0131 - "Relative" defined.

NRS 645B.0132 - "Residential mortgage loan" defined.

NRS 645B.01325 - "Residential mortgage loan originator" defined.

NRS 645B.0133 - "Title agent" defined.

NRS 645B.0135 - "Title insurer" defined.

NRS 645B.01356 - "Wholesale lender" defined.

NRS 645B.0137 - Requirements for initial licensing as mortgage company or mortgage loan originator; regulations.

NRS 645B.0138 - Courses of continuing education; regulations.

NRS 645B.0145 - Statutory and common-law rights, remedies and punishments unaffected; limitation on actions against State and its officers and employees.

NRS 645B.0147 - Fiduciary obligation of licensee to client.

NRS 645B.0149 - Inapplicability to wholesale lender who only funds or purchases commercial mortgage loans.

NRS 645B.015 - Exemptions for certain persons and entities.

NRS 645B.016 - Certificate of exemption: Application; fee; automatic expiration; prohibitions; administrative fine; authority to file application for purposes of complying with requirements of Registry; applicability.

NRS 645B.017 - Certificate of exemption: Expiration; procedure for renewal; cancellation and reinstatement; fees; duplicate copy; deposit of fees; regulations.

NRS 645B.018 - Exemptions for certain loans: Grounds for granting; revocation; issuance of statement by Commissioner of reasons for granting, denying or revoking.

NRS 645B.019 - Creation; members; appointment; terms and vacancies; no compensation or per diem allowance; protections afforded members who are public officers or employees.

NRS 645B.0191 - Chair and Vice Chair; meetings; quorum; subcommittees.

NRS 645B.0192 - Purpose.

NRS 645B.020 - Application for license; application for branch offices; requirements for issuance of license; license for office outside Nevada which conducts business in Nevada.

NRS 645B.021 - Mortgage company who is not natural person to designate natural person as qualified employee; regulations.

NRS 645B.023 - Payment of child support: Submission of certain information by applicant; grounds for denial of license; duty of Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establis...

NRS 645B.0243 - Grounds for denial of license: Employing or associating with certain persons who are ineligible to be mortgage loan originators.

NRS 645B.0245 - Grounds for denial of license: Control by relative who would be ineligible to be licensed; act or omission of partner, officer or director.

NRS 645B.0247 - Grounds for denial of license: Authority of Commissioner not limited.

NRS 645B.025 - Posting of license; restrictions on transfer or assignment of license.

NRS 645B.035 - Activities authorized by license; dual licensure as mortgage banker and mortgage broker.

NRS 645B.042 - Duty of mortgage company to deposit surety bond with Commissioner; mortgage company and mortgage loan originators must be named as principals on bond; amount of bond; Commissioner to determine amount of initial deposit.

NRS 645B.046 - Cancellation of surety bond: Notices required; revocation of license unless equivalent bond furnished.

NRS 645B.048 - Action on surety bond: Procedure; limitation of time; duties of Commissioner; preliminary payment by surety; action for interpleader; payment.

NRS 645B.050 - Expiration of license; procedure for renewal; cancellation and reinstatement; fees; duplicate copy; deposit of fees; regulations. [Parts of this section were replaced in revision in 2015 by NRS 645B.017.]

NRS 645B.051 - Continuing education required for renewal of license.

NRS 645B.060 - Duties of Commissioner: General supervision and control over mortgage companies and mortgage loan originators; regulations; investigations; examinations; periodic and special audits; hearings; related fees; classification of certain re...

NRS 645B.070 - Subpoenas; oaths; examination of witnesses; penalty; assessment of costs.

NRS 645B.075 - Payment of statutory assessment by mortgage company; duty of mortgage company and loan originators to cooperate fully with audits and examinations.

NRS 645B.080 - Records relating to mortgage transactions, financial condition and trust accounts; monthly report to Commissioner; accounting procedures for trust accounts; regulations; reports.

NRS 645B.085 - Annual financial statement; audit of trust accounts; regulations.

NRS 645B.090 - Records of Commissioner: General provisions governing public inspection, confidentiality and disclosure of information relating to investigations, examinations, disciplinary actions and certain investments in promissory notes secured b...

NRS 645B.092 - Records of Commissioner: Certain records relating to complaint or investigation deemed confidential; certain records relating to disciplinary action and orders imposing discipline deemed public records; disclosure by Commissioner.

NRS 645B.093 - Commingling certain money prohibited. [Effective through June 30, 2022.] Commingling certain money prohibited. [Effective July 1, 2022.]

NRS 645B.095 - Notification of certain transfers required; application to Commissioner for approval of change of control; investigation; waiver.

NRS 645B.115 - Minimum net worth required for certain mortgage companies; initial and annual determination of net worth; examination by Commissioner; regulations.

NRS 645B.165 - Escrow account required for fee, salary, deposit or money paid in advance; release from escrow; exceptions; refunds; penalty.

NRS 645B.170 - Trust account required for money deposited to pay taxes or insurance premiums; fiduciary duty of mortgage company; accounting to debtor and Commissioner; additional duties and prohibitions.

NRS 645B.175 - Trust or escrow account required for money received from investor to fund loan; trust or escrow account required for money received from debtor to repay loan; release of money; accounting to investor, debtor and Commissioner; additiona...

NRS 645B.180 - Limitations on execution or attachment of money in trust account; commingling of money prohibited.

NRS 645B.185 - Use of disclosure forms required; release of financial statements; duties of mortgage company and loan originators; prohibitions; powers of Commissioner; regulations.

NRS 645B.186 - Disclosure of certain business and personal relationships required.

NRS 645B.187 - Prohibition on making certain guarantees in advertisements and solicitations; limitations on payment of premium interest; penalty.

NRS 645B.189 - Statements of disclosure required in certain advertisements; review of advertisements by Commissioner; advertisements must comply with state and federal laws concerning deceptive trade practices and deceptive advertising; regulations.

NRS 645B.196 - Liability of advertising spokesperson for mortgage company for certain damages.

NRS 645B.240 - Limitations on charging late fee, additional amount of interest or other penalty.

NRS 645B.250 - Prohibition on advancing payments to investor on behalf of debtor in default; exceptions.

NRS 645B.260 - Monthly report to Commissioner on delinquencies in payments and defaults; monthly notice to investors; regulations.

NRS 645B.300 - Written appraisal of real property required; persons authorized to perform appraisal; retention and inspection of appraisal; exceptions.

NRS 645B.305 - Requirement that loan include disclosure concerning fees.

NRS 645B.307 - Mortgage company required to include his or her license number or identifying number with loan.

NRS 645B.310 - Requirements for mortgage company to assign interest in loan.

NRS 645B.320 - Copy of recorded deed of trust must be mailed to each investor.

NRS 645B.330 - Limitations on use of power of attorney.

NRS 645B.340 - Multiple holders of beneficial interest in loan: Holders of majority of outstanding principal balance may act on behalf of all holders for certain matters; notice; exception.

NRS 645B.350 - Mortgage company required to provide investors certain options before acquiring ownership or beneficial interest in loan.

NRS 645B.351 - Mortgage company prohibited from including in loan document provision which requires participation in binding arbitration in event of dispute.

NRS 645B.352 - Written servicing agreement required before servicing loan.

NRS 645B.353 - Mortgage company prohibited from releasing borrower or guarantor from personal liability without certain approval.

NRS 645B.354 - Restrictions on withholding money from certain investors; loan servicing agreement may contain provision which provides written consent to withhold money.

NRS 645B.355 - Mortgage company prohibited from acting as construction control.

NRS 645B.356 - Restrictions on placing private investor into certain entities before foreclosure of real property securing loan.

NRS 645B.357 - Restriction on collection of fees by mortgage company; application of fees.

NRS 645B.400 - Requirements to provide services of or engage in activities of mortgage loan originator.

NRS 645B.405 - License as mortgage loan originator required for mortgage company or qualified employee who engages in or supervises a mortgage loan originator who engages in activities as residential mortgage loan originator.

NRS 645B.410 - Qualifications and procedure for issuance of license; fees.

NRS 645B.420 - Payment of child support: Submission of certain information by applicant; grounds for denial of license; duty of Commissioner. [Effective until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each state to establis...

NRS 645B.430 - Annual expiration of license; procedure for renewal; continuing education; fees.

NRS 645B.450 - Conditions and limitations regarding employment of or association with mortgage loan originator; duties of mortgage company or certain exempt persons upon termination of mortgage loan originator.

NRS 645B.460 - Supervision by mortgage company; requirements; regulations.

NRS 645B.490 - Right to be placed on inactive status; procedure for reinstatement.

NRS 645B.600 - Person may file complaint alleging violation; requirements.

NRS 645B.610 - Duties of Commissioner when complaint is filed.

NRS 645B.620 - Duties of Commissioner when violation is suspected; referral of violations to Attorney General for criminal prosecution; civil action for injunctive relief.

NRS 645B.630 - Duties of Commissioner when unsafe condition or practice is suspected; seizure of property and assets of mortgage company; duties of Attorney General.

NRS 645B.640 - Persons entitled to correct unsafe conditions and practices; effect of failure to correct; receivership and liquidation of assets.

NRS 645B.670 - Authorized disciplinary or other action; grounds for disciplinary action.

NRS 645B.680 - Suspension of license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license. [Effective until 2 years after the date of the repeal of 42 U.S.C. § 666, the federal law requiring each sta...

NRS 645B.690 - Duty of Commissioner to take disciplinary action for certain violations.

NRS 645B.700 - Categorization of major and minor violations; regulations.

NRS 645B.710 - Act or omission of partner, officer or director deemed act or omission of partnership, corporation or unincorporated association.

NRS 645B.720 - Authority of Commissioner to order summary suspension of license and take other action to protect public before conducting hearing.

NRS 645B.740 - Investigations, actions, disciplinary proceedings, fines and penalties not affected by expiration, revocation or voluntary surrender of license.

NRS 645B.750 - Duty of Commissioner to provide written notice of disciplinary action or denial of license; right to administrative hearing; entry of final order; appeals.

NRS 645B.760 - Effect of failure to appear at hearing; penalty.

NRS 645B.800 - Attorney General has primary criminal jurisdiction; duty to provide Attorney General with information to assist prosecution; penalty.

NRS 645B.810 - Attorney General may bring civil action; recovery of costs in civil action.

NRS 645B.820 - Exercise of jurisdiction over party to civil action; service of summons to confer jurisdiction.

NRS 645B.900 - Unlawful to conduct business of mortgage company or mortgage loan originator without being licensed or exempt from licensing.

NRS 645B.910 - Unlawful for foreign corporation, association or business trust to conduct business of mortgage company without meeting certain requirements.

NRS 645B.920 - Contracts for mortgage transaction voidable for certain violations.

NRS 645B.930 - Civil action authorized for certain violations.

NRS 645B.950 - Penalties for general violations.

NRS 645B.955 - Commissioner may require licensee to pay restitution.

NRS 645B.960 - Penalties for violations relating to escrow or trust accounts.