Nevada Passes Legislation Regarding Mortgage Foreclosure; Requires Licensure of Foreclosure, Loan Modification Consultants

Recently, Nevada Governor James A. Gibbons acted on four bills (AB 149, AB 151, AB 152, and AB 486) relating to mortgage foreclosure. Signed on May 29 and phasing into place by July 1, 2009, AB 152 requires certain foreclosure consultants, loan modification consultants, and others to register and be licensed as mortgage brokers or agents. Signed on May 29 and effective July 1, 2009, AB 149 concerns foreclosure mediation and will allow homeowners in default to request a mediation hearing with their lender and no further action may be taken to exercise the power of sale until the completion of the mediation. Also signed on May 29 and effective upon the governor’s signature, AB 151 requires mortgage brokers to include their license number on each loan secured by a lien on real property. Among other things, the bill also details applicable fines and penalties associated with failing to properly disclose a license number as directed. Finally, AB 486, effective October 1, 2009, became law without the Governor’s signature on May 26. This bill allows a party to a loan contract to void the contract if a person engaged in the escrow business or as a mortgage broker, mortgage agent or mortgage banker is operating without a proper license. The bill designates a $50,000 administrative fine against such unlicensed parties, and also authorizes parties to bring civil suits against unlicensed parties in certain circumstances