Alert

February 6, 2017

Nevada Commissioner of Mortgage Lending Adopts New Regulations Governing Conduct of Mortgage Brokers, Mortgage Bankers, and Escrow Agents

Effective January 27, 2017, the Nevada Commissioner of Mortgage Lending adopted regulations with new requirements for mortgage brokers and mortgage bankers. The Commissioner also imposed new requirements on escrow agents.

Mortgage Brokers & Mortgage Bankers

The most significant aspect of the new regulations imposes a duty of good faith and fair dealing on mortgage brokers and mortgage bankers acting as mortgage servicers. Additionally, this rule change imposes standards of conduct on how mortgage brokers and mortgage bankers conduct mortgage servicing transactions. Additional changes impact "control persons," fees, regulator oversight authority, and recordkeeping, among other things.

Escrow Agents

The most significant new provision applicable to escrow agents requires a "qualified employee" for each place of business. New provisions applicable to escrow agents also address the relationship between licensed escrow agents and their regulator, audit requirements, the burden of proof in investigatory hearings, and the continuing education requirements for licensing.

The new regulations may be found below.

  Mortgage Brokers (R125-16)
  Mortgage Bankers (R126-16)
  Escrow Agents (R070-16)