Nevada Amends Escrow Agent, Mortgage Banker, Mortgage Broker, and Mortgage Agent Laws

On June 17, Nevada Assembly Bill 77 (Bill) was signed into law, revising various provisions governing mortgage lending and the conduct and supervision of related professionals, including escrow agents and agencies, mortgage bankers, brokers, and agents, and providers of certain covered services. The Bill sets forth a requirement that certain escrow agency licensees designate a qualified employee, and provides new requirements and restrictions applicable to mortgage brokers arranging or servicing loans for private investors. The Bill amends the definition of "mortgage agent" and makes changes to the license eligibility requirements applicable to such persons, and exempts additional entities (for example, certain nonprofit agencies) from the purview of the Nevada Mortgage Brokers and Mortgage Agents Act and the Nevada Mortgage Bankers Act. The Bill requires that mortgage broker licensees undertake an annual review of impound trust accounts, and amends provisions pertaining to mortgage banker, broker, and agent license expiration dates, change of control reporting requirements applicable to mortgage broker licensees, and surety bonds requirements for escrow agency and mortgage broker licensees. Finally, the bill amends the definition of covered service to include, among other things, providing the services of a loan modification or foreclosure consultant, and specifies that such a provider of covered services may not request or receive payment of any fee from a homeowner until the requirements of the federal Mortgage Assistance Relief Services Rule and any other applicable law or federal regulation have been met. The Bill takes effect on July 1, 2011.