On July 8, 2009, Governor Jim Gibbons signed emergency regulations that require all persons conducting loan modification and foreclosure consulting activities to have state licenses.
The emergency regulations are effective immediately. The Governor’s act was authorized by Assembly Bill 152, which was passed in the last Legislative Session. AB 152 modified Nevada Revised Statute 645F, and required the Commissioner of Mortgage Lending to adopt regulations to license the loan modification and foreclosure consulting companies. The emergency regulations were promulgated recently and the Governor’s signature made them effective.
In addition to the license, loan modification and foreclosure consultants now must follow specific operating rules and regulations. Section 3.3 and 6.5 of AB 152 state that consultants must deposit a client’s money in a trust account. Withdrawals of a client’s money from the trust account must be accounted for and the consultant must keep records for the client’s inspection. In addition, Section 3.3 authorizes the Commissioner to inspect and audit the books of consultants.
Violations of this law and certain regulations constitute mortgage lending fraud under Nevada law. Homeowners and consumers should be careful to deal only with licensed companies.
FAQs:
Q: Who has to have a license?
A: All loan modification and foreclosure consulting activities taking place in Nevada must have a license.
Q: Does my California loan modification company have to have a Nevada license?
A: Yes. EVERY company doing loan modification and foreclosure consulting activities in Nevada must have a Nevada license.
Q: I work foreclosure consults on my own. I don’t need a license, do I?
A: Yes. All natural persons in this type of consulting business must now be associated with a company. All employees of companies and independent contractors working on behalf of companies must have a license.
Q: Can my attorney continue helping me with my loan modification?
A: Yes. Attorneys doing loan modification and foreclosure assistance, such as the law firm of Black and LoBello, are exempt from the licensing requirement.
Persons may apply for a Nevada license at:
If you would like to read the law, click on this link:
