Nevada Revised Statutes 645B.187 – Prohibition on making certain guarantees in advertisements and solicitations; limitations on payment of premium interest; penalty
1. If a mortgage company or mortgage loan originator solicits or receives money from an investor, the mortgage company or mortgage loan originator shall not:
Terms Used In Nevada Revised Statutes 645B.187
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- mortgage: includes a deed of trust. See Nevada Revised Statutes 0.037
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(a) In any advertisement; or
(b) Before, during or after solicitation or receipt of money from the investor, make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the investor will be repaid the principal amount of money he or she invests or will earn a specific rate of return or a specific rate of interest on the principal amount of money he or she invests.
2. If a mortgage company offers to pay or pays premium interest on money that the mortgage company receives from a person to acquire ownership of or a beneficial interest in a loan secured by a lien on real property or in full or partial payment of such a loan:
(a) The premium interest must be paid from the assets or income of the mortgage company; and
(b) The mortgage company or a mortgage loan originator shall not:
(1) In any advertisement; or
(2) Before, during or after receipt of money from such a person, make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the mortgage company will pay the premium interest.
3. A person who violates any provision of this section is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.
4. As used in this section, ‘premium interest’ means that amount of interest a mortgage company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.