NAC645A.305. Annual examination of escrow agencies: Rating of escrow agency upon completion of examination.

Upon completion of an examination of an escrow agency pursuant to paragraph (b) of subsection 2 of NRS 645A.050, the examiner shall, in a report of findings, rate the escrow agency on a scale of “1” to “5,” as follows:

     1. A rating of “1” indicates that the escrow agency and the management of the escrow agency have demonstrated a high degree of compliance with applicable laws and regulations. A rating of “1” may be given if there is a minor violation or deficiency but only if:

     (a) The escrow agency acted to correct the violation or deficiency immediately; and

     (b) The remedial action taken by the escrow agency is likely to prevent future violations or deficiencies.

     2. A rating of “2” indicates that the escrow agency and the management of the escrow agency have demonstrated substantial compliance with applicable laws and regulations and that the escrow agency can correct any violations or deficiencies noted in the report made by the examiner with a minimum of regulatory supervision. A rating of “2” may be given if there is more than one minor violation or deficiency but only if:

     (a) The escrow agency acted to correct the violations or deficiencies immediately; and

     (b) The remedial action taken by the escrow agency is likely to prevent future violations or deficiencies.

     3. A rating of “3” indicates that the escrow agency and the management of the escrow agency have demonstrated less than satisfactory compliance with applicable laws and regulations. A rating of “3” may result in regulatory supervision for the correction of the violations and deficiencies noted in the report made by the examiner. A rating of “3” may be given if there were minor violations or deficiencies from a previous examination that were not corrected.

     4. A rating of “4” indicates that the escrow agency and the management of the escrow agency have demonstrated a substantial lack of compliance with applicable laws and regulations and that immediate remedial action is required for the correction of the violations and deficiencies noted in the report made by the examiner. A rating of “4” may result in the escrow agency being subject to close regulatory supervision. Disciplinary action may be warranted to cause remedial action pursuant to NRS 645A.090.

     5. A rating of “5” indicates that the escrow agency and the management of the escrow agency have demonstrated a serious and material lack of compliance with applicable laws and regulations. A rating of “5” may result in immediate remedial action for the correction of the violations and deficiencies noted in the report made by the examiner. Remedies may include, without limitation:

     (a) Action by the Commissioner to take possession of the property, business and assets of the escrow agency pursuant to NRS 645A.140; and

     (b) Disciplinary action pursuant to NRS 645A.090.

     (Added to NAC by Comm’r of Mortgage Lending by R143-08, eff. 4-20-2010)