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Can you summarize NVAC 645E.295?
Mortgage Bankers > Insider loans: Limitations and conditions.
Short Summary
This legal document, found in the Nevada Administrative Code under Mortgage Bankers, outlines the limitations and conditions for insider loans made or arranged by a mortgage banker. The lending limit for insider loans must not exceed 25 percent of the total dollar amount of the outstanding balances of funded loans made or arranged by the mortgage banker, or 100 percent of the mortgage banker’s net worth as indicated in their most recent financial statement submitted to the Commissioner. The mortgage banker is required to specifically identify any insider loan made in their monthly report. The document defines ‘insider’ as a control person or employee of a mortgage banker, and ‘insider loan’ as an extension of credit to an insider, including new loans, loan renewals, lines of credit, or any other financial right granted by a mortgage banker to defer payment on an existing debt or incur a debt and defer immediate payment. The document also explains that ’lending limit’ refers to the maximum dollar amount permitted for the aggregate of insider loans made by a mortgage banker. This document was added to the Nevada Administrative Code by the Commissioner of Mortgage Lending and has been in effect since April 23, 2009, with amendments made on January 27, 2017.
Whom does it apply to?
Mortgage bankers
What does it govern?
Insider loans
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Nevada