NAC645E.295. Insider loans: Limitations and conditions.


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  •      1. Insider loans made or arranged by a mortgage banker are subject to the following limitations and conditions:

         (a) The lending limit must not exceed 25 percent of the total dollar amount of the outstanding balances of funded loans which were made or arranged by the mortgage banker or 100 percent of the mortgage banker’s net worth as evidenced by the mortgage banker’s most recent financial statement submitted to the Commissioner pursuant to NRS 645E.360, whichever is greater; and

         (b) The mortgage banker shall specifically identify on each monthly report required by NRS 645E.350 any insider loan made by the mortgage banker.

         2. As used in this section:

         (a) “Insider” means a director, officer or employee of a mortgage banker.

         (b) “Insider loan” means an extension of credit to an insider. For purposes of this paragraph, “extension of credit” includes, without limitation, a new loan or a loan renewal, a line of credit or any other financial right structured in any manner and granted by a mortgage banker as a means for the borrower to defer payment on an existing debt or to incur a debt and defer immediate payment.

         (c) “Lending limit” means the maximum dollar amount permitted for the aggregate of insider loans made by a mortgage banker.

     (Added to NAC by Comm’r of Mortgage Lending by R053-08, eff. 4-23-2009)