Section 645B.038 - Insider loans: Limitations and conditions1. Insider loans made or arranged by a mortgage company 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 investor-funded loans which were made or arranged by the mortgage company or 100 percent of the mortgage company's net worth as described in NAC 645B.095, whichever is greater.(b) A private investor who provides money to invest in an insider loan may not waive the provisions of subsection 1 of NAC 645B.080.(c) The mortgage company shall specifically identify on each monthly report required by NRS 645B.080 any insider loan made by the mortgage company.2. As used in this section: (a) "Insider" means a control person, mortgage loan originator or employee of a mortgage company.(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 arranged by a mortgage company 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 arranged by a mortgage company.Nev. Admin. Code § 645B.038
Added to NAC by Comm'r of Mortgage Lending by R056-08, eff. 4-23-2009; A by R125-16A, eff. 1/27/2017; A by R119-19A, eff. 11/9/2023NRS 645B.060, 645F.255, 645F.520