Nevada Administrative Code › Chapter 645F - Mortgage Lending and Related Professions › NEVADA MORTGAGE SERVICER REGULATIONS › Standards of Practice › Section 645F.980 - Prohibited acts

Current through June 11, 2024
In addition to any other activity prohibited or required by
				  chapter 645F of NRS and the Nevada Mortgage Servicer Regulations, it is a
				  violation for any applicant, licensee or mortgage servicer to:
1. Fail to conduct his or her business in
				accordance with any law or to violate any provision of chapter 645F of NRS, the
				Nevada Mortgage Servicer Regulations or any order issued by the Commissioner
				pursuant to chapter 645F of NRS and the Nevada Mortgage Servicer
				Regulations.
2. Fail to comply with
				any applicable federal law or regulation relating to mortgage servicing,
				including, without limitation, the Real Estate Settlement Procedures Act,  12 U.S.C. §§
										2601  et seq., and the Truth in Lending Act,  15 U.S.C. §§
										1601  et seq., as amended, and any regulations promulgated
				thereunder.
3. Directly or
				indirectly employ any scheme, device or artifice to defraud or mislead a
				borrower or lender or to defraud any person.
4. Engage in any unfair or deceptive practice
				toward any person or misrepresent or omit any material information in
				connection with the servicing of a mortgage loan, including, without
				limitation, misrepresenting the amount, nature or terms of any fee or payment
				due or claimed to be due on a mortgage loan, the terms and conditions of the
				servicing agreement or the borrower's obligations under the mortgage
				loan.
5. Fail to maintain the
				minimum net worth required by NAC 645F.974.
6. Fail to maintain the minimum surety bond
				required by NAC 645F.970.
7.
				Suppress or withhold from the Commissioner any information which the applicant
				or licensee possesses and which, if submitted by the applicant or licensee, may
				have rendered the applicant or licensee ineligible to be licensed pursuant to
				the provisions of chapter 645F of NRS and the Nevada Mortgage Servicer
				Regulations.
8. Fail to exercise
				reasonable supervision over the activities of its employees or
				agents.
9. Fail to apply mortgage
				loan payments in accordance with a servicing agreement or the terms of a
				note.
10. Fail to properly apply
				payments to an escrow account or fail to place in a trust or escrow account
				held by a federally insured depository financial institution, as defined in NRS 645B.0109, all money that is received by the mortgage servicer from the
				borrower or fail to account for all money received or disbursed for a trust or
				escrow account.
11. Make payments
				in a manner that causes a policy of insurance to be cancelled or causes
				property taxes or similar payments to become delinquent.
12. Require any amount of money to be
				remitted by means which are more costly to the borrower than a bank or
				certified check or attorney's check from an attorney's account to be paid by
				the borrower.
13. Refuse to permit
				an examination or investigation by the Commissioner of the books and affairs of
				the mortgage servicer, or refuse or fail, within a reasonable time, to furnish
				any information or make any report that may be required by the Commissioner
				pursuant to chapter 645F of NRS and the Nevada Mortgage Servicer
				Regulations.
14. Refuse or fail to
				pay, within a reasonable time, any fees, assessments, costs, expenses or fines
				that the mortgage servicer is required to pay pursuant to the provisions of
				chapter 645F of NRS and the Nevada Mortgage Servicer Regulations.
15. Fail to satisfy a claim, related to
				activity conducted pursuant to chapter 645F of NRS and the Nevada Mortgage
				Servicer Regulations, which has been reduced to a judgment.
16. Commingle the money or property of a
				borrower or lender with the money or property of the mortgage servicer, or
				convert the money or property of other persons to the mortgage servicer's own
				use.
17. Transfer a license, or
				conduct the business of a mortgage servicer in a name or from an address not
				specified on the license, before obtaining the required approval of the
				Commissioner.
18. Be convicted of,
				or entered or agreed to enter a plea of guilty or nolo contendere to, a felony
				in a domestic, foreign or military court within the 7 years immediately
				preceding the date of the application, or at any time if such felony involved
				an act of fraud, dishonesty or a breach of trust, moral turpitude or money
				laundering.
19. Employ a control
				person at a time when the mortgage servicer knew or, in light of all the
				surrounding facts and circumstances, reasonably should have known that the
				control person:
(a) Had been convicted of, or
				entered or agreed to enter a plea of guilty or nolo contendere to, a felony in
				a domestic, foreign or military court within the 7 years immediately preceding
				the date of the application, or at any time if such felony involved an act of
				fraud, dishonesty or a breach of trust, moral turpitude or money laundering;
				or
(b) Had a license or
				registration as a mortgage agent, mortgage broker, mortgage banker, mortgage
				company, mortgage loan originator or mortgage servicer revoked in this State or
				any other jurisdiction or had a financial services license or registration, as
				defined in NRS 645B.0119, revoked within the immediately preceding 10
				years.