NAC645B.068. Results of examination: Preparation and review of draft report; final report; confidentiality; action by Commissioner.

     1. Not more than 30 days after the completion of an examination of a mortgage broker, the examiner that performed the examination shall prepare a draft report of the examination and provide the draft report to appropriate personnel of the Division. The draft report must include only:

     (a) Facts that are contained in the files, books, records or other documents of the mortgage broker that were examined by the examiner;

     (b) Facts that are contained in statements made by officers or agents of the mortgage broker or other persons that the examiner interviewed concerning the mortgage broker; and

     (c) Conclusions and recommendations that are reasonably supported by the facts that are included in the draft report, including, but not limited to, the rating given to the mortgage broker pursuant to NAC 645B.067.

     2. Not more than 15 days after the draft report of an examination is received by the Division, the Commissioner or his or her designee will deliver to the mortgage broker who was examined:

     (a) A copy of the draft report; and

     (b) Notice that the mortgage broker has not more than 30 days, unless the Commissioner, for good cause, allows a longer period, to review the draft report and submit to the Commissioner, in writing, any comments regarding or objections to matters contained in the draft report.

     3. If a mortgage broker received a rating of “3,” “4” or “5” and submitted written comments or objections within the period specified in subsection 2, the Commissioner or his or her designee will:

     (a) Not more than 15 days after the last day on which the mortgage broker could submit written comments or objections pursuant to subsection 2, hold an informal meeting with the mortgage broker regarding the draft report; and

     (b) Review the draft report, together with the written submissions or objections made by the mortgage broker and any relevant portions of the working papers of the examiner, and, not more than 15 days after the date on which the informal meeting was held pursuant to paragraph (a):

          (1) Adopt the draft report as filed;

          (2) Adopt the draft report with modifications;

          (3) Provide the mortgage broker with an opportunity for a formal hearing; or

          (4) Direct the examiner to reopen the examination to obtain additional data, documents or information and, if necessary, file a new draft report pursuant to subsection 1. If the findings of the initial draft report are supported by the findings of the examiner after completion of the reopened examination, the mortgage broker is responsible for the costs attributable to the reopened examination pursuant to NRS 645B.060.

     4. If a mortgage broker:

     (a) Received a rating of “1” or “2” on an examination pursuant to NAC 645B.067 and submitted written comments or objections within the period specified in subsection 2; or

     (b) Did not file a written comment or objection to a draft report within the period specified in subsection 2,

Ê the draft report will be deemed to be the final report of the examination.

     5. Pursuant to NRS 645B.060, the results of an examination are not open to public inspection until the requirements set forth in subsection 3 are completed.

     6. If the examination and report reveal that a mortgage broker is operating in violation of this chapter, chapter 645B of NRS or a previous order of the Commissioner, the Commissioner may order the mortgage broker to take any action the Commissioner deems necessary or appropriate to correct the violation. The Commissioner may also take disciplinary action pursuant to NRS 645B.670.

     7. The Commissioner may, for good cause, extend any period specified in this section that is applicable to an examiner, the Commissioner or his designee for an additional period of not more than 15 days.

     (Added to NAC by Comm’r of Mortgage Lending by R087-04, eff. 8-31-2004)