Nevada Revised Statutes 645B.352 – Written servicing agreement required before servicing loan
1. Before servicing a loan in which a private investor has acquired a beneficial interest, a mortgage company must enter into a written servicing agreement with each investor which describes specifically the services which the mortgage company will provide and the compensation the mortgage company will receive for those services. The compensation of the mortgage company must include an amount reasonably necessary to pay the cost of servicing the loan.
Terms Used In Nevada Revised Statutes 645B.352
- 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
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
2. A mortgage company shall include in each servicing agreement provisions which:
(a) Require the mortgage company to:
(1) Deposit in a trust account all money paid to the mortgage company in full or partial payment of a loan, unless a provision of law authorizes the mortgage company to deposit such money in a different manner;
(2) Release to the investors, pursuant to paragraph (a) of subsection 5 of NRS 645B.175, within 15 days after receipt of all money paid to the mortgage company in full or partial payment of a loan;
(3) Record a request for special notice and notice of default for any encumbrance on the real property which has priority over the lien securing the loan or any other real property securing the loan;
(4) Provide to each investor prompt written notice of:
(I) Any lis pendens, mechanic’s lien or other lien recorded against the real property securing the loan after the origination of the loan if the mortgage company has become aware that such an instrument has been recorded; and
(II) Any delinquent taxes or insurance premiums;
(5) Upon receiving a written request from an investor for a tally of any vote of the investors, provide to the investor a statement of the number of investors voting in favor of an action and the number of investors voting against the action and the percentage of beneficial interest represented by each such vote; and
(6) Respond within a reasonable time under the circumstances to the request of the borrower or investor to correct any errors relating to the loan.
(b) Prohibit the mortgage company from:
(1) Commingling with the assets of the mortgage company any money paid to the mortgage company in full or partial payment of a loan, unless a provision of law authorizes such commingling;
(2) Using money paid to the mortgage company in full or partial payment of a loan for any transaction other than the servicing transaction for which the money was paid, unless a provision of law authorizes such use; or
(3) Requiring an investor to participate in binding arbitration of disputes relating to the loan.
(c) Allow the majority of investors or the mortgage company to transfer the servicing agreement to another entity authorized to service loans or terminate the servicing agreement for any reason, upon providing written notice at least 30 days before the effective date of the transfer or termination.