NAC645B.240. Representation of activity as licensed; advertisements; disclosure to investors; Internet links.

     1. A licensed mortgage broker or mortgage agent shall not represent an activity which is not licensed pursuant to chapter 645B of NRS as being licensed pursuant to that chapter.

     2. Except as otherwise provided in subsection 3, an advertisement for an activity which is licensed pursuant to chapter 645B of NRS must be separate and distinct from an advertisement for an activity which is not licensed pursuant to that chapter.

     3. A mortgage broker or mortgage agent may advertise jointly with a company licensed pursuant to chapter 624 or 645 of NRS if each business is disclosed separately in the advertisement and each business incurs a pro rata share of the cost associated with the advertisement.

     4. A licensed mortgage broker or mortgage agent must include in his or her advertisements, including any advertising material available on the Internet:

     (a) The complete name of the mortgage broker or mortgage agent and the complete name under which the mortgage broker or mortgage agent does business. Any advertisement for a mortgage agent must also include the name of the mortgage broker or mortgage banker, with whom the mortgage agent is associated.

     (b) The address, telephone number and either the license number or unique identifier that the mortgage broker or mortgage agent has on file with the Division. Additional telephone or cellular phone numbers of the mortgage broker or mortgage agent may also be included.

     (c) A description of any licensed activity mentioned in the advertisement, written in nontechnical terms.

     5. A mortgage broker or mortgage agent shall not use advertising material that simulates the appearance of a check or a communication from a governmental entity, or an envelope containing a check or a communication from a governmental entity, unless:

     (a) The words “THIS IS NOT A CHECK,” “NOT NEGOTIABLE” or “THIS IS NOT A GOVERNMENTAL ENTITY,” as appropriate, appear prominently on the envelope and any material that simulates the appearance of a check or a communication from a governmental entity; and

     (b) If the material simulates the appearance of a check, the material does not contain an American Bankers Association number, microencoding or any other marks intended to create the appearance that the material is a negotiable check.

     6. A mortgage broker or mortgage agent shall not refer to an existing lender or financial institution, other than the mortgage broker or mortgage agent himself or herself, on any advertising material without the written consent of the lender or financial institution.

     7. Provided the representation of interest rates in advertisements complies with Regulation Z, 12 C.F.R. Part 226, and the content will continue to comply with this chapter and chapter 645B of NRS regarding advertising, a mortgage broker or mortgage agent may make nonsubstantive changes to his or her advertisements without additional approval from the Commissioner. For the purposes of this subsection, “nonsubstantive changes” means:

     (a) Interest rates that are quoted in the advertisement and any corresponding annual percentage rates;

     (b) Promoting another mortgage agent in the same format of advertisement;

     (c) Promoting other branch locations in the same format of advertisement;

     (d) Placing links on websites that direct the user to noncommercial or consumer education websites;

     (e) Telephone or cellular phone numbers other than the phone number that the mortgage broker or mortgage agent has on file with the Division; and

     (f) Changes to words used in the advertisement that do not alter the content of the advertisement.

     8. Approvals for advertising must be maintained at the location of the mortgage broker or mortgage agent and must be available for inspection for at least 1 year after the last day that the advertisement is used.

     9. For the purposes of NRS 645B.189, disclosures in advertisements and distributions to investors must include the following language:

Prior to investing in a loan, investors must be provided applicable disclosure documents.

     10. The mortgage broker or mortgage agent is not required to obtain approval from the Division for white-page listings, employment recruiting announcements, office signs, banners, magnetic car signs and letterhead which contain only the name, address, unique identifier and telephone number of the mortgage broker or mortgage agent, whether together or separate, and which are used for the purpose of identification only.

     11. An Internet link on a website of the mortgage broker or mortgage agent that links the user to the website of another commercial enterprise must provide notification to the user that the user is leaving the website of the mortgage broker or mortgage agent.

     12. For the purposes of this section, “advertising” includes commercial messages that promote the availability of mortgage products or investments offered by the mortgage broker or mortgage agent. Commercial messages include, but are not limited to:

     (a) Print media;

     (b) Sales literature;

     (c) Sales brochures or flyers;

     (d) Billboards;

     (e) Yellow-page listings if more than a line listing;

     (f) Radio and television advertisements;

     (g) Mass mailings distributed by the United States Postal Service or another such delivery service or by electronic mail;

     (h) Telephone or seminar scripts;

     (i) Websites or other Internet sites that promote or accept loan applications; and

     (j) Business cards.

     [Comm’r of Savings Associations, Mortgage Reg. § 11, eff. 6-29-82]—(NAC A by Comm’r of Financial Institutions, 5-19-88; R045-00, 9-5-2000; A by Comm’r of Mortgage Lending by R087-04, 8-31-2004; R058-08, 4-23-2009; R035-10, 7-22-2010)