Nevada Revised Statutes
Chapter 645B - Mortgage Companies and Mortgage Loan Originators
NRS 645B.187 - Prohibition on making certain guarantees in advertisements and solicitations; limitations on payment of premium interest; penalty.


1. If a mortgage company or mortgage loan originator solicits or receives money from an investor, the mortgage company or mortgage loan originator shall not:
(a) In any advertisement; or
(b) Before, during or after solicitation or receipt of money from the investor,
make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the investor will be repaid the principal amount of money he or she invests or will earn a specific rate of return or a specific rate of interest on the principal amount of money he or she invests.
2. If a mortgage company offers to pay or pays premium interest on money that the mortgage 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:
(a) The premium interest must be paid from the assets or income of the mortgage company; and
(b) The mortgage company or a mortgage loan originator shall not:
(1) In any advertisement; 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 reasonable person would construe as a guarantee that the mortgage company will pay the premium interest.
3. A person who violates any provision of this section is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.
4. As used in this section, "premium interest" means that amount of interest a mortgage company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.
(Added to NRS by 1985, 2185; A 1999, 3799; 2017, 3057)

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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.