NAC645B.505. Referral of certain suspected violations for investigation and action; grounds for disciplinary action.

     1. The Commissioner may refer to, cooperate with and share information with the appropriate federal or state agency for investigation and appropriate action each suspected violation of:

     (a) The Truth in Lending Act, 15 U.S.C. §§ 1601 to 1667f, inclusive, including, without limitation, the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, or Regulation Z, 12 C.F.R. Part 226.

     (b) The Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 to 1691f, inclusive, or Regulation B, 12 C.F.R. Part 202.

     (c) The Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 to 2617, inclusive, or Regulation X, 24 C.F.R. Part 3500.

     (d) The S.A.F.E. Mortgage Licensing Act.

     (e) Any other applicable federal or state law or regulation related to mortgage transactions.

     2. For the purposes of NRS 645B.670, a mortgage broker or mortgage agent commits a violation if the mortgage broker or a mortgage agent associated with the mortgage broker:

     (a) Engages in a deceptive trade practice as defined in chapter 598 of NRS;

     (b) Fails to refund any fees collected in excess of the actual cost the mortgage broker incurs or pays for any appraisal, credit report or any other product or service provided by a third party in connection with the making of a loan;

     (c) Improperly influences or attempts to improperly influence the proper development, reporting, result or review of a real estate appraisal with respect to the making of a mortgage loan; or

     (d) Violates a provision of:

          (1) The Truth in Lending Act, 15 U.S.C. §§ 1601 to 1667f, inclusive, including, without limitation, the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, or Regulation Z, 12 C.F.R. Part 226.

          (2) The Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 to 1691f, inclusive, or Regulation B, 12 C.F.R. Part 202.

          (3) The Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 to 2617, inclusive, or Regulation X, 24 C.F.R. Part 3500.

          (4) The S.A.F.E. Mortgage Licensing Act, including, without limitation, section 1505(e) of the Act regarding the submission of reports of condition to the Registry.

          (5) Any other applicable federal or state law or regulation related to mortgage transactions.

     3. For the purposes of NRS 645B.670, a mortgage agent commits a violation if the mortgage agent:

     (a) Engages in a deceptive trade practice as defined in chapter 598 of NRS;

     (b) Fails to refund any fees collected in excess of the actual cost the mortgage agent incurs or pays for any appraisal, credit report or any other product or service provided by a third party in connection with the making of a loan; or

     (c) Violates a provision of:

          (1) The Truth in Lending Act, 15 U.S.C. §§ 1601 to 1667f, inclusive, including, without limitation, the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1639, or Regulation Z, 12 C.F.R. Part 226.

          (2) The Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 to 1691f, inclusive, or Regulation B, 12 C.F.R. Part 202.

          (3) The Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 to 2617, inclusive, or Regulation X, 24 C.F.R. Part 3500.

          (4) The S.A.F.E. Mortgage Licensing Act, including, without limitation, section 1505(e) of the Act regarding the submission of reports of condition to the Registry.

          (5) Any other applicable federal or state law or regulation related to mortgage transaction.

     (d) Does any of the following:

          (1) Is convicted of, or enters a plea of guilty or nolo contendere to, a felony in a domestic, foreign or military court;

          (2) Has a license or registration as a mortgage agent, mortgage banker, mortgage broker or residential mortgage loan originator revoked in this State or any other jurisdiction, or has a financial services license suspended or revoked;

          (3) Makes a false statement of material fact to the Division;

          (4) Violates any provision of this chapter or chapter 645E of NRS, a regulation adopted pursuant thereto or an order of the Commissioner; or

          (5) Demonstrates a lack of financial responsibility, character and general fitness so as to lose the confidence of the community and warrant a determination that the mortgage agent will not operate honestly, fairly and efficiently for the purposes of chapter 645B of NRS.

     4. Nothing in this section shall be construed to prohibit a mortgage broker from requesting an appraiser of real estate to do one or more of the following:

     (a) Consider any appropriate information relating to the property;

     (b) Provide additional details, substantiations or explanations in support of the appraiser’s valuation of the property; or

     (c) Correct errors in the appraisal report.

     (Added to NAC by Comm’r of Financial Institutions by R045-00, eff. 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)—(Substituted in revision for NAC 645B.330)