Nevada Governor Brian Sandoval signed into law AB 480, which amends provisions concerning mortgage lending, escrow agents, escrow agencies, mortgage brokers, mortgage agents, and mortgage bankers. Among the modifications to mortgage lending, the Act authorizes a wholesale lender from outside Nevada to operate in the state as a mortgage broker and mortgage banker. The bill also increases certain fees related to mortgage brokers and mortgage bankers.

The bill also creates a new mortgage servicer license that is required for persons who directly service a mortgage loan, or who are responsible for interacting with a borrower, managing a loan account on a daily basis, including, collecting and crediting periodic loan payments, managing any escrow account or enforcing the note and security instrument, either as the current owner of the promissory note or as the authorized agent of the current owner of the promissory note.

Persons who are licensed as mortgage brokers, mortgage bankers, and installment loan lenders are exempt from licensure as a mortgage servicer if they are collecting payments on a mortgage loan or servicing mortgage loans that the licensee originated. Further, the law instructs the Commissioner of Mortgage Lending to adopt regulations establishing the requirements for the licensure and supervision of mortgage servicers in Nevada.

On a related note, the bill repeals the mortgage loan servicer registration which is currently required for any person to service loans for one’s self or on behalf of third parties.

Certain sections of the bill (101.3, 101.7, and 103) are effective immediately, while others, including the sections concerning mortgage servicers and wholesale lenders, become effective on January 1, 2016, subject to the passage and approval of any necessary regulations.

Indiana Amends Licensing Provisions

The State of Indiana recently amended its Indiana Code concerning financial institutions. The Act makes certain technical and procedural revisions to provisions regulating first lien mortgage lenders, persons licensed under the Uniform Consumer Credit Code, debt management companies, and loan brokers. The amendments also make numerous changes regarding companies that engage in the making and taking assignment of small loans (i.e., loans in the amount of $50 to $550). The provisions are effective on July 1, 2015.