Nevada Revised Statutes 645B.330 – Limitations on use of power of attorney
1. A mortgage company or mortgage loan originator shall not engage in any act or transaction on behalf of a private investor pursuant to a power of attorney unless:
Terms Used In Nevada Revised Statutes 645B.330
- Attorney-in-fact: A person who, acting as an agent, is given written authorization by another person to transact business for him (her) out of court.
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- 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
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
(a) The power of attorney is executed for the sole purpose of providing services for not more than one specific loan in which the private investor owns a beneficial interest; and
(b) The provisions of the power of attorney:
‘ (1) Have been approved by the Commissioner;
(2) Expressly prohibit the mortgage company and his or her mortgage loan originators from engaging in any act or transaction that subordinates the priority of a recorded deed of trust unless, before such an act or transaction, the mortgage company obtains written approval for the subordination from the private investor;
(3) Expressly prohibit the mortgage company and his or her mortgage loan originators from using or releasing any money in which the private investor owns a beneficial interest with regard to the specific loan for a purpose that is not directly related to providing services for the loan unless, before any such money is used or released for another purpose, the mortgage company obtains written approval from the private investor to use or release the money for the other purpose; and
(4) Expressly provide that the power of attorney is effective only for the term of the specific loan unless the mortgage company obtains written approval from the private investor to extend the term of the power of attorney to provide services for not more than one other loan and the written approval:
(I) Identifies the loan for which the power of attorney was executed; and
(II) Identifies the loan for which the written approval is being given.
2. A mortgage company or mortgage loan originator shall not act as the attorney-in-fact or the agent of a private investor with respect to the giving of written approval pursuant to paragraph (b) of subsection 1. A private investor and a mortgage company or mortgage loan originator may not agree to alter or waive the provisions of this section by contract or other agreement. Any such contract or agreement is void and must not be given effect to the extent that it violates the provisions of this section.
3. Except as otherwise provided in subsection 4, a power of attorney which designates a mortgage company or mortgage loan originator as the attorney-in-fact or the agent of a private investor and which violates the provisions of this section is void and must not be given effect with regard to any act or transaction that occurs on or after October 1, 1999, whether or not the power of attorney is or has been executed by the private investor before, on or after October 1, 1999.
4. The provisions of subsection 3 do not apply to a power of attorney that designates a mortgage company or mortgage loan originator as the attorney-in-fact or the agent of a private investor if the power of attorney:
(a) Was executed before July 1, 2001; and
(b) Complied with the provisions of this section that were in effect on October 1, 1999.
5. The provisions of this section do not limit the right of a private investor to include provisions in a power of attorney that are more restrictive than the provisions set forth in subsection 1.