NAC645B.235. Disclosures to borrowers by certain persons acting in dual capacity.

     1. A mortgage broker, mortgage agent or qualified employee who is also licensed as a real estate broker or real estate salesperson and who acts in both capacities in a single transaction must make to the borrower the disclosures set forth on the form prescribed by the Division pursuant to subsection 2, including, but not limited to:

     (a) Whether the mortgage broker, mortgage agent or qualified employee will be receiving compensation for acting as a mortgage broker, mortgage agent or qualified employee and as a real estate broker or real estate salesperson in the same transaction;

     (b) That the borrower is under no obligation to allow the real estate broker or real estate salesperson to submit the loan package of the borrower to a mortgage broker, mortgage agent or qualified employee; and

     (c) That the borrower may contact other mortgage brokers or mortgage agents to determine if the borrower is receiving the best services related to the loan and the best prices for those services.

     2. The mortgage broker, mortgage agent or qualified employee shall provide the disclosures required pursuant to subsection 1 to the borrower at the time of application for a loan and in the following format:

(At least 14-point font)

BORROWER(S)

ACKNOWLEDGMENT AND AGREEMENT CONCERNING

DUAL CAPACITY AS REAL ESTATE SALES AGENT AND MORTGAGE LOAN AGENT

(At least 12-point bold font)

Borrower(s) are under no obligation whatsoever to allow their real estate sales agent to initiate or submit the borrower(s) loan package to any mortgage lender, broker, banker or investor. Mortgage brokers and other loan originators cannot offer loans from all funding sources and cannot guarantee the lowest price or best terms available in the market.

There may be other mortgage loan providers available with similar services and lower rates and/or fees. You are free and encouraged to contact various lenders to determine that you are receiving the best service and rates and lowest fees for those services. A comparative analysis of providers’ services, rates and fees is recommended prior to making a decision on which lender to use.

(At least 10-point font)

Borrower(s) are hereby informed and expressly acknowledge the following:

· Real estate sales agent _________________, hereinafter referred to as “agent,” is also associated with _____________________ (mortgage broker/banker) and is acting in the dual capacity as both mortgage loan agent and real estate sales agent and shall receive compensation from the real estate sales transaction and separate compensation for arranging the mortgage loan.

· Real estate company _____________________________ (check one of the following):

_________Does have a business relationship with the licensed mortgage broker/banker or exempt company to which your loan is referred. Because of this relationship, this referral may provide the real estate company named above a financial or other benefit.

Describe the nature of the relationship, including percentage of ownership interest, if applicable.__________

___________________________________________________________________________________

___________________________________________________________________________________

___________________________________________________________________________________

· _________Does not have a business relationship with the licensed mortgage broker/banker or exempt company to which your loan is referred.

The mortgage broker/banker must provide you with a good faith estimate disclosing all estimated costs of the loan, including the yield spread premium (YSP.) The YSP is income paid to a mortgage broker upon delivery of a mortgage loan to a lender at a premium interest rate.

By signing I/we confirm my/our understanding of the information provided herein.

BORROWER                                                                                       BORROWER

_________________________________________                 _________________________________________

By signing this form, the mortgage loan agent agrees that any fees paid to the mortgage broker/banker/agent as referred to above will not increase the cost of borrower(s) loan beyond the normal and customary charges typically collected by mortgage lenders, brokers or investors.

MORTGAGE BROKER/QUALIFIED EMPLOYEE/AGENT

_________________________________________

If you have any questions regarding your mortgage loan agent or loan, please visit the Division of Mortgage Lending website at http://www.mld.nv.gov or call [phone] in Las Vegas or [phone] in Northern Nevada.

     3. As used in this section:

     (a) “Real estate broker” has the meaning ascribed to it in NRS 645.030; and

     (b) “Real estate salesperson” has the meaning ascribed to it in NRS 645.040.

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