Nev. Admin. Code § 645B.235

Current through December 12, 2024

Section 645B.235 - Disclosures to borrowers by certain persons acting in dual capacity

1. A mortgage company or mortgage loan originator 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 company or mortgage loan originator will be receiving compensation for acting as a mortgage company or mortgage loan originator 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 company or mortgage loan originator; and

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

2. The mortgage company or mortgage loan originator 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 ORIGINATOR

(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, mortgage company or investor. Mortgage companies 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 company) and is acting in the dual capacity as both mortgage loan originator 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 company 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 company or exempt company to which your loan is referred.

The mortgage company must provide you with a written disclosure under applicable state or federal law of all estimated costs of the loan, including the yield spread premium (YSP.) The YSP is income paid to a mortgage company 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 originator agrees that any fees paid to the mortgage company or mortgage loan originator as referred to above will not increase the cost of borrower(s) loan beyond the normal and customary charges typically collected by mortgage lenders, mortgage companies or investors.

MORTGAGE COMPANY/QUALIFIED EMPLOYEE/LOAN ORIGINATOR

___________________________

If you have any questions regarding your mortgage loan originator or loan, please visit the Division of Mortgage Lending website at https://www.mld.nv.gov or call (702) 486-0782.

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.

Nev. Admin. Code § 645B.235

Added to NAC by Comm'r of Mortgage Lending by R087-04, eff. 8-31-2004; A by R125-16A, eff. 1/27/2017; A by R119-19A, eff. 11/9/2023; A by R070-23A, eff. 1/5/2024

NRS 645B.060