1. Except as otherwise provided in NRS 645B.690:
(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 an administrative fine of not more than $25,000 if the applicant:
(1) Has knowingly made or caused to be made to the Commissioner any false representation of material fact;
(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; or
(3) Has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner in completing and filing his or her application for a license or during the course of the investigation of his or her application for a license.
(b) For each violation committed by a mortgage company, the Commissioner may impose upon the mortgage company an administrative fine of not more than $25,000, may suspend, revoke or place conditions upon the mortgage company’s license, or may do both, if the mortgage company, whether or not acting as such:
(1) Is insolvent;
(2) Is grossly negligent or incompetent in performing any act for which the mortgage company is required to be licensed pursuant to the provisions of this chapter;
(3) Does not conduct his or her business in accordance with law or has violated any provision of this chapter, a regulation adopted pursuant to this chapter or an order of the Commissioner;
(4) Is in such financial condition that the mortgage company cannot continue in business with safety to his or her customers;
(5) Has made a material misrepresentation in connection with any transaction governed by this chapter;
(6) 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 company knew or, by the exercise of reasonable diligence, should have known;
(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 company possesses and which, if submitted by the mortgage company, would have rendered the mortgage company ineligible to be licensed pursuant to the provisions of this chapter;
(8) Has failed to account to persons interested for all money received for a trust account;
(9) Has refused to permit an examination by the Commissioner of his or her books and affairs or has refused or failed, within a reasonable time, to furnish any information or make any report that may be required by the Commissioner pursuant to the provisions of this chapter or a regulation adopted pursuant to this chapter;
(10) Has 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 fraud, dishonesty or a breach of trust, moral turpitude or money laundering;
(11) Has refused or failed to pay, within a reasonable time, any fees, assessments, costs or expenses that the mortgage company is required to pay pursuant to this chapter or a regulation adopted pursuant to this chapter;
(12) Has failed to satisfy a claim made by a client which has been reduced to judgment;
(13) 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;
(14) Has commingled the money or other property of a client with his or her own or has converted the money or property of others to his or her own use;
(15) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;
(16) Has repeatedly violated the policies and procedures of the mortgage company;
(17) Has failed to exercise reasonable supervision and control over the activities of a mortgage loan originator as required by NRS 645B.460;
(18) Has instructed a mortgage loan originator to commit an act that would be cause for the revocation of the license of the mortgage company, whether or not the mortgage loan originator commits the act;
(19) Has employed a person as a mortgage loan originator or authorized a person to be associated with the mortgage company as a mortgage loan originator at a time when the mortgage company knew or, in light of all the surrounding facts and circumstances, reasonably should have known that the person:
(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; or
(II) 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 or registration revoked within the immediately preceding 10 years;
(20) Has violated NRS 645C.557;
(21) Has failed to pay a tax as required pursuant to the provisions of chapter 363A or 363C of NRS; or
(22) Has, directly or indirectly, paid any commission, fees, points or any other compensation as remuneration for the services of a mortgage loan originator to a person other than a mortgage loan originator who:
(I) Is an employee of or associated with the mortgage company; or
(II) If the mortgage loan originator is required to register with the Registry, is an employee of and whose sponsorship has been entered with the Registry by the mortgage company as required by subsection 2 of NRS 645B.450.
(c) For each violation committed by a mortgage loan originator, the Commissioner may impose upon the mortgage loan originator an administrative fine of not more than $25,000, may suspend, revoke or place conditions upon the mortgage loan originator’s license, or may do both, if the mortgage loan originator, whether or not acting as such:
(1) Is grossly negligent or incompetent in performing any act for which the mortgage loan originator is required to be licensed pursuant to the provisions of this chapter;
(2) Has made a material misrepresentation in connection with any transaction governed by this chapter;
(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 loan originator knew or, by the exercise of reasonable diligence, should have known;
(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 information which the mortgage loan originator possesses and which, if submitted by the mortgage loan originator, would have rendered the mortgage loan originator ineligible to be licensed pursuant to the provisions of this chapter;
(5) Has 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 fraud, dishonesty or a breach of trust, moral turpitude or money laundering;
(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;
(7) Has commingled the money or other property of a client with his or her own or has converted the money or property of others to his or her own use;
(8) Has engaged in any other conduct constituting a deceitful, fraudulent or dishonest business practice;
(9) Has violated NRS 645C.557;
(10) Has repeatedly violated the policies and procedures of the mortgage company with whom the mortgage loan originator is associated or by whom he or she is employed;
(11) Has, directly or indirectly, received any commission, fees, points or any other compensation as remuneration for his or her services as a mortgage loan originator:
(I) From a person other than the mortgage company with whom the mortgage loan originator is associated or by whom he or she is employed; or
(II) If the mortgage loan originator is required to be registered with the Registry, from a person other than the mortgage company by whom the mortgage loan originator is employed and on whose behalf sponsorship was entered as required by subsection 2 of NRS 645B.450; 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 a violation.
2. This section does not prohibit the co-brokering of a commercial loan through the cooperation of two or more mortgage companies so long as such a transaction is not inconsistent with any other provision of this chapter.
3. An order that imposes discipline and the findings of fact and conclusions of law supporting that order are public records.
(Added to NRS by 1973, 1539; A 1977, 93; 1981, 1790; 1983, 1380, 1704; 1985, 2188; 1987, 1880; 1993, 498; 1999, 3787; 2001, 2474; 2003, 2724, 3555; 2003, 20th Special Session, 221, 258; 2009, 1510, 2684; 2011, 3621; 2013, 117; 2015, 2939; 2017, 3075)
Structure Nevada Revised Statutes
Chapter 645B - Mortgage Companies and Mortgage Loan Originators
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.0138 - Courses of continuing education; regulations.
NRS 645B.0147 - Fiduciary obligation of licensee to client.
NRS 645B.015 - Exemptions for certain persons and entities.
NRS 645B.0191 - Chair and Vice Chair; meetings; quorum; subcommittees.
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.051 - Continuing education required for renewal of license.
NRS 645B.070 - Subpoenas; oaths; examination of witnesses; penalty; assessment of costs.
NRS 645B.085 - Annual financial statement; audit of trust accounts; regulations.
NRS 645B.186 - Disclosure of certain business and personal relationships required.
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.305 - Requirement that loan include disclosure concerning fees.
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.352 - Written servicing agreement required before servicing loan.
NRS 645B.355 - Mortgage company prohibited from acting as construction control.
NRS 645B.357 - Restriction on collection of fees by mortgage company; application of fees.
NRS 645B.410 - Qualifications and procedure for issuance of license; fees.
NRS 645B.430 - Annual expiration of license; procedure for renewal; continuing education; fees.
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.670 - Authorized disciplinary or other action; grounds for disciplinary action.
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.760 - Effect of failure to appear at hearing; penalty.
NRS 645B.810 - Attorney General may bring civil action; recovery of costs in civil action.
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.