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- 83rd Session (2025)
Senate Bill No. 44–Committee on Commerce and Labor
CHAPTER..........
AN ACT relating to financial services; imposing certain duties on
providers of certain financial services relating to the
safeguarding of customer information; establishing certain
standards relating to the financial condition and corporate
governance of certain mortgage servicers; requiring the
Commissioner of Mortgage Lending and the Commissioner
of Financial Instit utions to adopt certain regulations;
providing penalties; and providing other matters properly
relating thereto.
Legislative Counsel’s Digest:
Existing federal regulations set forth standards for the safeguarding of customer
information by certain busines ses over which the Federal Trade Commission has
jurisdiction that are engaged in activities that are financial in nature or incidental to
such financial activities. (16 C.F.R. Part 314) The standards require such businesses
to, among other things: (1) deve lop, implement and maintain a comprehensive
information security program; and (2) notify the Federal Trade Commission of
certain unauthorized acquisitions of customer information, which existing federal
regulations designate as a “notification event.” (16 C.F.R. §§ 314.2-312.4) Sections
1, 2, 4, 7, 8, 38-41 and 43-47 of this bill specifically require persons that are
providers of certain financial services in this State to comply with the requirements
set forth in those federal regulations. Additionally, sections 1, 2, 4, 7, 8, 38-41 and
43-47 require such a person to: (1) maintain the information security program
required by existing federal regulations as part of the books and records of the
person; and (2) notify the Commissioner of Financial Institution s or Commissioner
of Mortgage Lending, as applicable, of any notification event in accordance with
the regulations adopted by the applicable commissioner. The persons to which the
requirements apply include private professional guardians and private profes sional
guardian companies, escrow agents and escrow agencies, mortgage companies,
mortgage loan originators, mortgage servicers, foreclosure consultants, foreclosure
purchasers, loan modification consultants, persons performing covered services for
compensation, collection agencies and collection agents, persons operating deferred
deposit loan services, high -interest loan services, title loan services and check -
cashing services, consumer litigation funding companies, providers of earned wage
access services, trust companies, student loan servicers, private education lenders,
money transmitters and their authorized delegates, installment lenders and
providers of debt-management services. Sections 3, 5, 32 and 42 of this bill require
the Commissioner of Mortga ge Lending and the Commissioner of Financial
Institutions, as applicable, to adopt regulations establishing procedures and
requirements for notifying the applicable commissioner of a notification event
pursuant to sections 1, 2, 4, 7, 8, 38-41 and 43-47.
Section 33 of this bill applies the definitions in existing law that govern
foreclosure consultants, foreclosure purchasers, loan modification consultants and
persons performing covered services for compensation to the provisions of section
7. Section 34 of this bill provides that the provisions of section 7 do not apply to
certain persons.
Existing law provides for the licensure and regulation of mortgage servicers by
the Commissioner of Mortgage Lending. (NRS 645F.500 -645F.540) Sections 9-31
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of this bil l set forth certain standards for the financial condition and corporate
governance of certain mortgage servicers which are modeled, in general, after the
Model State Regulatory Prudential Standards for Nonbank Mortgage Servicers
approved by the Conference of State Bank Supervisors. Under sections 26 and 35
of this bill, the standards apply, with certain exceptions, to a “covered institution”
which is defined in section 13 to mean, in general, a mortgage servicer that: (1)
services 2,000 or more residential mortgage loans; and (2) operates in two or more
states, districts or territories of the United States. Section 26 requires a covered
institution to: (1) maintain certain quantities of assets for liquidity; and (2) have in
place sound cash management and bu siness operating plans. Section 27 requires a
covered institution to establish and maintain a board of directors or similar body.
Section 28 imposes certain duties on a board of directors or similar body relating to
corporate governance and internal audits . Section 29 requires a covered institution
to obtain an annual external audit. Section 30 requires a covered institution to: (1)
establish a risk management program meeting certain requirements; (2) conduct an
annual risk management assessment; and (3) ma intain evidence of activities to
manage risk performed throughout the year. Section 31 authorizes the
Commissioner, under certain circumstances, to: (1) require a covered institution to
satisfy additional conditions; and (2) waive or temporarily suspend an y or all of the
requirements set forth in sections 9-31. Sections 9-24 define words and terms for
the purposes of sections 9-31.
Section 36 of this bill authorizes the Commissioner of Mortgage Lending to
adopt regulations to carry out the provisions requi ring compliance with the
standards for the safeguarding of customer information and the standards for the
financial condition and corporate governance of certain mortgage servicers. Section
37 of this bill authorizes the Commissioner to: (1) investigate a mortgage servicer
or applicant for a license as a mortgage servicer to ensure compliance with those
provisions; and (2) take certain disciplinary actions against a mortgage servicer or
applicant for a license as a mortgage servicer who violates those provisions.
EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1. Chapter 628B of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
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(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 2. Chapter 645A of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of th e books and records of the licensee;
and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to NRS 645A.050.
3. As used in this section:
(a) “Information security program” has t he meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 3. NRS 645A.050 is hereby amended to read as follows:
645A.050 1. Subject to the administrative control of the
Director of the Department of Business and Industry, the
Commissioner shall exercise general supervision and control over
escrow agents and agencies doing business in the State of Nevada.
2. In addition to the other duties imposed upon him or her by
law, the Commissioner shall:
(a) Adopt such regulations as may be necessary for making this
chapter effective. Such regulations must establish procedures and
requirements for notifying the Commissioner of a notification
event pursuant to section 2 of this act.
(b) Conduct or cause to be conducted each year an examination
of each escrow agency licensed pursuant to this chapter.
(c) Conduct such investigations as may be necessary to
determine whether any person has violated any provision of this
chapter.
(d) Conduct such examinations, investigations and hearings, in
addition to those specifically provided for by law, as may be
necessary and proper for the efficient administration of the laws of
this State relating to escrow.
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(e) Classify as confidential the financial statements of an escrow
agency and those records and information obtained by the Division
which:
(1) Are obtained from a governmental agency upon the
express condition that they remain confidential.
(2) Except as otherwise provided in NRS 645A.082, c onsist
of information compiled by the Division in the investigation of
possible violations of this chapter.
This paragraph does not limit examination by the Legislative
Auditor or any other person pursuant to a court order.
3. An escrow agency may enga ge a certified public accountant
to perform such an examination in lieu of the Division. In such a
case, the examination must be equivalent to the type of examination
made by the Division and the expense must be borne by the escrow
agency being examined.
4. The Commissioner shall determine whether an examination
performed by an accountant pursuant to subsection 3 is equivalent to
an examination conducted by the Division. The Commissioner may
examine any area of the operation of an escrow agency if the
Commissioner determines that the examination of that area is not
equivalent to an examination conducted by the Division.
Sec. 4. Chapter 645B of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A mortgage company and mortgage l oan originator shall
comply with the requirements set forth in 16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a mortgage company and mortgage loan
originator shall:
(a) Maintain the information sec urity program required by 16
C.F.R. § 314.3 as part of the books and records of the mortgage
company or mortgage loan originator; and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to NRS 645B.060.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 5. NRS 645B.060 is hereby amended to read as follows:
645B.060 1. Subject to the administrative control of the
Director of the Department of Business and Industry, the
Commissioner shall exercise general supervision and control over
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mortgage companies and mortgage loan originato rs doing business
in this State.
2. In addition to the other duties imposed upon him or her by
law, the Commissioner shall:
(a) Adopt regulations:
(1) Setting forth the requirements for an investor to acquire
ownership of or a beneficial interest in a loan secured by a lien on
real property. The regulations must include, without limitation, the
minimum financial conditions that the investor must comply with
before becoming an investor.
(2) Establishing reasonable limitations and guidelines on
loans made by a mortgage company to a director, officer, mortgage
loan originator or employee of the mortgage company.
(b) Adopt any other regulations that are necessary to carry out
the provisions of this chapter, except as to loan fees. Such
regulations must establish procedures and requirements for
notifying the Commissioner of a notification event pursuant to
section 4 of this act.
(c) Conduct such investigations as may be necessary to
determine whether any person has violated any pro vision of this
chapter, a regulation adopted pursuant to this chapter or an order of
the Commissioner.
(d) Conduct, at his or her discretion, periodic standard
examinations of each mortgage company doing business in this
State which must include, without limitation, a formal exit review
with the mortgage company. The Commissioner shall adopt
regulations prescribing:
(1) Standards for determining the rating of each mortgage
company based upon the results of a periodic standard examination;
and
(2) Procedures for resolving any objections made by the
mortgage company to the results of a periodic standard examination.
The results of a periodic standard examination may not be opened to
public inspection pursuant to NRS 645B.090 until after a period of
time set by the Commissioner to determine any objections made by
the mortgage company.
(e) Conduct such other examinations, periodic or special audits,
investigations and hearings as may be necessary for the efficient
administration of the laws of this Sta te regarding mortgage
companies and mortgage loan originators. The Commissioner shall
adopt regulations specifying the general guidelines that will be
followed when a periodic or special audit of a mortgage company is
conducted pursuant to this chapter.
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(f) Classify as confidential certain records and information
obtained by the Division when those matters are obtained from a
governmental agency upon the express condition that they remain
confidential. This paragraph does not limit examination by:
(1) The Legislative Auditor; or
(2) The Department of Taxation if necessary to carry out the
provisions of chapters 363A and 363C of NRS.
(g) Conduct such examinations and investigations as are
necessary to ensure that mortgage companies and mortgage loan
originators meet the requirements of this chapter for obtaining a
license, both at the time of the application for a license and
thereafter on a continuing basis.
3. For each special audit, investigation or examination, a
mortgage company or mortgage loan originator shall pay a fee based
on the rate established pursuant to NRS 645F.280.
Sec. 6. Chapter 645F of NRS is hereby amended by adding
thereto the provisions set forth as sections 7 to 31, inclusive, of this
act.
Sec. 7. 1. A foreclosure consultant , foreclosure purchaser,
loan modification consultant or person performing covered
services for compensation shall comply with the requirements set
forth in 16 C.F.R. Part 314.
2. In addition to complying with the requirements of 16
C.F.R. Part 314, a f oreclosure consultant, foreclosure purchaser,
loan modification consultant or person performing covered
services for compensation shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the co nsultant,
purchaser or person; and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to NRS 645F.255.
3. As used in this section:
(a) “Information security program” has the mea ning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 8. 1. A mortgage servicer shall comply with the
requirements set forth in 16 C.F.R Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a mortgage servicer shall:
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(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the mortgage
servicer; and
(b) Notify the Commissioner of any n otification event in
accordance with the regulations adopted by the Commissioner
pursuant to NRS 645F.255.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 9. As used in sections 9 to 31, inclusive, of this act,
unless the context otherwise requires, the words and terms defined
in sections 10 to 24, inclusive, of this act have the meanings
ascribed to them in those sections.
Sec. 10. “Agency” means the:
1. Federal Home Loan Mortgage Corporation;
2. Federal National Mortgage Association; or
3. Government National Mortgage Association.
Sec. 11. “Board of directors” means the formal body
established by a covered institution that is responsible for
corporate governance and compliance with the provisions of
sections 9 to 31, inclusive, of this act.
Sec. 12. “Corporate governance” means the structu re of a
covered institution and how the covered institution is managed,
including, without limitation, the corporate rules, policies,
processes and practices which are used to oversee and manage the
covered institution.
Sec. 13. “Covered institution” mea ns a mortgage servicer
that:
1. Services, or subservices for others, 2,000 or more
residential mortgage loans for structures comprised of not fewer
than one unit and not more than four units, not including whole
loans owned and loans being interim serviced before sale, as of the
end of the most recent calendar year as reported on the mortgage
call report; and
2. Operates in two or more states, districts or territories of the
United States either currently or as of the end of the most recent
calendar year.
Sec. 14. “Credit risk” means the potential that a borrower or
counterparty will fail to perform on an obligation.
Sec. 15. “Government-sponsored enterprise” means the:
1. Federal Home Loan Mortgage Corporation; and
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2. Federal National Mortgage Association.
Sec. 16. “Interim serviced before sale” means the activity of
collecting a limited number of contractual mortgage payments
immediately after origination on a loan held for sale but before
the loan is sold into the secondary market.
Sec. 17. “Liquidity risk” means the potential that a covered
institution:
1. Will be unable to meet its obligations as they come due
because of an inability to liquidate assets or obtain adequate
funding; or
2. Cannot easily unwind or offset specific exposures.
Sec. 18. “Mortgage call report” means a quarterly or annual
report of the origination of, servicing of and financial information
on loans for residential real estate completed by entities licensed in
the Registry.
Sec. 19. “Mortgage servicing rights” means the contractual
right to service a residential mortgage loan on behalf of the owner
of the associated mortgage in exchange for specified
compensation in accordance with the servicing contract.
Sec. 20. “Mortgage servicing rights investor” means an
entity which:
1. Invests in and owns mortgage servicing rights for a
residential mortgage loan; and
2. Relies on subservicers to administer the loan on its behalf.
Sec. 21. “Reverse mortgage” mea ns a loan collateralized by
real estate that:
1. Does not require contractual monthly payments; and
2. Is typically repaid upon the death of the borrower through
the sale of the home or refinance by the heirs of the deceased
borrower.
Sec. 22. “Servicing liquidity” means the financial resources
necessary to manage liquidity risk arising from:
1. The functions of servicing that are required in acquiring
and financing mortgage servicing rights;
2. The costs of hedging that are associated with the fa cilities
for the mortgage servicing rights and the financing thereof,
including, without limitation, margin calls; and
3. Advances or costs of advance financing for principal,
interest, taxes, insurance and any other advances related to
servicing.
Sec. 23. “Subservicer” means a mortgage servicer
performing the routine administration of a residential mortgage
loan as a subservicing agent of a master servicer or mortgage
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servicing rights investor under the terms of a subservicing
contract.
Sec. 24. “Whole loan” means a loan for which a mortgage
and the underlying credit risk is owned and held on the balance
sheet of the entity with all ownership rights.
Sec. 25. 1. Except as otherwise provided in this section,
NRS 645F.500 and section 31 of this act, the provisions of sections
9 to 31, inclusive, of this act apply to covered institutions. For
entities within a holding company or an affiliated group of
companies, the provisions of sections 9 to 31, inclusive, apply at
the organizational level of the holding company or affiliated group
of companies that constitutes a covered institution.
2. To the extent permitted by federal law , the provisions of
sections 9 to 31, inclusive, of this act apply to an agency , or its
successor, if the agency , or its successor, acts as a mortgage
servicer.
Sec. 26. 1. Except as otherwise provided in this section, a
covered institution shall maintain sufficient allowable assets for
liquidity, in addition to the amounts required for servicing
liquidity, to cover norma l business operations, including, without
limitation, payment of rent, salaries, interest expense and other
typical expenses associated with operating the institution.
Allowable assets for liquidity include those assets that may be used
to satisfy the requ irements of this subsection, including, without
limitation:
(a) Unrestricted cash and cash equivalents; and
(b) Unencumbered investment grade assets held for sale or
trade, including, without limitation:
(1) Mortgage-backed securities of an agency. As used in
this subparagraph, “mortgage-backed securities” means financial
instruments, including, without limitation, debt securities,
collateralized by residential mortgages.
(2) Obligations of government-sponsored enterprises.
(3) Obligations of the United States Treasury.
2. A covered institution shall have in place sound cash
management and business operating plans that match the size and
sophistication of the institution to ensure normal business
operations. The management of the covered institutio n must
develop, establish and implement plans, policies and procedures
for maintaining operating liquidity sufficient for the ongoing
needs of the institution. Such plans, policies and procedures must:
(a) Contain sustainable, written methodologies for
maintaining sufficient operating liquidity; and
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(b) Be made available to the Commissioner upon request.
3. For the purposes of complying with the requirements of
this section, a covered institution must determine all financial data
in accordance with generally accepted accounting principles.
4. A covered institution that satisfies the “Eligibility
Requirements for Enterprise Single -Family Seller/Servicers” of
the Federal Housing Finance Agency for capital, net worth ratio
and liquidity, whether or not th e covered institution is approved to
service loans by a government -sponsored enterprise, shall be
deemed to satisfy the requirements of this section.
5. The provisions of this section do not apply to:
(a) A mortgage servicer which only owns or conducts servicing
of one or more reverse mortgages; or
(b) The portfolio of reverse mortgages administered by a
covered institution.
Sec. 27. 1. Except as otherwise provided in subsection 2, a
covered institution shall establish and maintain a board of
directors.
2. A covered institution may establish a body similar to a
board of directors to perform the duties imposed by section 28 of
this act if:
(a) The covered institution is not approved by an agency to
service loans; or
(b) An agency has granted the co vered institution approval to
establish an alternative to a board of directors.
Sec. 28. 1. The board of directors of a covered institution,
or other body established pursuant to subsection 2 of section 27 of
this act, is responsible for the oversight of the covered institution.
2. The board of directors of a covered institution, or other
body established pursuant to subsection 2 of section 27 of this act,
shall:
(a) Establish a written framework for co rporate governance
that includes, without limitation, appropriate internal controls
designed to monitor corporate governance and assess compliance
with the framework.
(b) Monitor and ensure that the covered institution complies
with the written framework for corporate governance established
pursuant to paragraph (a) and the provisions of sections 9 to 31,
inclusive, of this act.
(c) Perform accurate and timely regulatory reporting,
including, without limitation, the requirement for filing a
mortgage call report for the covered institution.
(d) Establish requirements for internal audits that:
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(1) Are appropriate for the size, complexity and risk profile
of the covered institution; and
(2) Ensure appropriate independence to provide a reliable
evaluation of the internal control structure, risk management and
governance of the covered institution.
(e) Make available to the Commissioner, upon request:
(1) The written framework for corpo rate governance
established pursuant to paragraph (a);
(2) The requirements established pursuant to paragraph (d)
for internal audits; and
(3) The results of any internal audit performed by the
covered institution.
3. As used in this section, “internal audit” means the internal
activity of performing independent and objective assurance and
consulting to evaluate and improve the effectiveness of the
operations, risk management, internal controls and governance
processes of a covered institution.
Sec. 29. 1. Each covered institution shall annually obtain
an external audit conducted by an independent certified public
accountant that includes, without limitation, an audit of financial
statements and the preparation of a formal report of the audit.
2. The report of the audit must include, without limitation:
(a) Annual financial statements, including, without limitation:
(1) A balance sheet;
(2) A statement of operations and cash flows, or income
statement; and
(3) Notes and supplemental sched ules prepared in
accordance with generally accepted accounting principles.
(b) An expression of opinion by the independent certified
public accountant as to whether the financial statements are
presented fairly, in all material aspects, in accordance with the
applicable financial reporting framework.
(c) An assessment of the internal control structure of the
covered institution, including, without limitation, an evaluation of
the adequacy of the internal control structure.
(d) A computation of tangible n et worth. For the purposes of
this paragraph, tangible net worth is calculated by subtracting all
of the following from total equity:
(1) Receivables due from related entities;
(2) Goodwill and other intangibles; and
(3) Pledged assets.
(e) A valida tion of the valuation and reserve methodology of
mortgage servicing rights, as applicable.
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(f) Verification of adequate fidelity and errors and omissions
insurance.
(g) Testing of controls related to risk management activities,
including, without limitat ion, compliance and stress testing, as
applicable.
3. The report of the audit must be made available to the
Commissioner upon request.
Sec. 30. 1. A covered institution shall establish a risk
management program under the oversight of the board of
directors of the institution or other body established pursuant to
subsection 2 of section 27 of this act.
2. A risk management program established pursuant to
subsection 1 must:
(a) Identify, measure, monitor and control risk sufficient for
the level of sophistication of the covered institution.
(b) Have appropriate processes and models in place to
measure, monitor and mitigate financial risks and changes to the
risk profile of the covered institution and assets being serviced.
(c) Be scaled to the compl exity of the organization, but be
sufficiently robust to manage risks in several areas, including,
without limitation:
(1) Compliance risk;
(2) Credit risk;
(3) Legal risk;
(4) Liquidity risk;
(5) Market risk;
(6) Operational risk; and
(7) Reputation risk.
(d) Be available to the Commissioner upon request.
3. A covered institution shall:
(a) Annually conduct a risk management assessment;
(b) Prepare a formal report of the risk management
assessment conducted pursuant to paragraph ( a), to include,
without limitation, the evidence maintained pursuant to
paragraph (e);
(c) Provide the formal report prepared pursuant to paragraph
(b) to the board of directors of the covered institution or other
body created pursuant to subsection 2 of section 27 of this act;
(d) Make the formal report prepared pursuant to paragraph
(b) available to the Commissioner upon request; and
(e) Maintain evidence of activities to manage risk performed
throughout the year, including, without limitation, findin gs of
issues and the responses to address those issues, and include that
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evidence in a formal report prepared for that year pursuant to
paragraph (b).
4. As used in this section:
(a) “Compliance risk” means the risk of regulatory sanctions,
fines, penal ties or losses resulting from failure to comply with
laws, rules, regulations or other supervisory requirements
applicable to the covered institution.
(b) “Legal risk” means the potential that actions against the
covered institution that result in unenforceable contracts, lawsuits,
legal sanctions or adverse judgments can disrupt or otherwise
negatively affect the operations or condition of the covered
institution.
(c) “Market risk” means the risk to the condition of the
covered institution resulting from adverse movements in market
rates or prices.
(d) “Operational risk” means the risk resulting from:
(1) Inadequate or failed internal processes, persons and
systems; or
(2) External events.
(e) “Reputation risk” means the risk to earnings and capital
arising from negative publicity regarding the business practices of
the covered institution.
Sec. 31. 1. If the Commissioner, after a formal review of a
covered institution, determines that the risk to the covered
institution is extremely high, the Com missioner may order or
direct the covered institution to satisfy additional conditions
necessary to ensure that the covered institution will continue to
operate in a safe and sound manner and be able to continue to
service loans in compliance with all fede ral and state laws and
regulations.
2. If the Commissioner, after a formal review of a covered
institution, determines that the risk to the covered institution is
extremely low, the Commissioner may waive the application of any
requirement set forth in sections 9 to 31, inclusive, of this act to
the covered institution.
3. If the Commissioner determines that economic,
environmental or societal events are of such severity to warrant a
temporary suspension of any or all of the requirements set forth in
sections 9 to 31, inclusive, of this act, the Commissioner may
temporarily suspend any or all of those requirements.
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Sec. 32. NRS 645F.255 is hereby amended to read as follows:
645F.255 1. In addition to the other duties imposed upon him
or her by law, the Commissioner shall adopt any regulations that are
necessary to carry out the provisions of this chapter.
2. The regulations adopted pursuant to subsection 1 must
establish procedures and requirements for notifying the
Commissioner of a notification event pursuant to sections 7 and 8
of this act.
Sec. 33. NRS 645F.300 is hereby amended to read as follows:
645F.300 As used in NRS 645F.300 to 645F.450, inclusive,
and section 7 of this act, unless the context otherwise requires, the
words and terms defined in NRS 645F.310 to 645F.370, inclusive,
have the meanings ascribed to them in those sections.
Sec. 34. NRS 645F.380 is hereby amended to read as follows:
645F.380 The provisions of NRS 645F.300 to 645F.450,
inclusive, and section 7 of this act do not apply to, and the terms
“foreclosure consultant” and “foreclosure purchaser” do not include:
1. An attorney at law licensed to practice in this State rendering
services in the performance of his or her duties as an attorney at law,
unless the attorney at law is rendering those services in the course
and scope of his or her employment by or other affiliation with a
person who is licensed or required to be licensed pursuant to NRS
645F.390 or is otherwise engaging in a practice that is compris ed
primarily of providing a covered service to his or her clients;
2. A provider of debt-management services registered pursuant
to chapter 676A of NRS while providing debt -management services
pursuant to chapter 676A of NRS;
3. A person or the authorized agent of a person acting under the
provisions of a program sponsored by the Federal Government, this
State or a local government, including, without limitation, the
Department of Housing and Urban Development, the Federal Home
Loan Mortgage Corporation , the Federal National Mortgage
Association or the Federal Home Loan Bank System;
4. A person who holds or is owed an obligation secured by a
mortgage or other lien on a residence in foreclosure if the person
performs services in connection with this obl igation or lien and the
obligation or lien did not arise as the result of or as part of a
proposed foreclosure reconveyance;
5. Any person doing business under the laws of this State or of
the United States relating to banks, trust companies, savings and
loan associations, savings banks, industrial loan and thrift
companies, regulated lenders, credit unions, insurance companies, or
a mortgagee which is a United States Department of Housing and
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Urban Development approved mortgagee and any subsidiary or
affiliate of those persons, and any agent or employee of those
persons while engaged in the business of those persons;
6. A person, other than a person who is licensed pursuant to
NRS 645F.390, who is licensed pursuant to chapter 692A or any
chapter of titl e 54 of NRS while acting under the authority of the
license;
7. A nonprofit agency or organization that offers credit
counseling or advice to a homeowner of a residence in foreclosure
or a person in default on a loan and which maintains tax -exempt
status under section 501(c)(3) of the Internal Revenue Code of 1986,
26 U.S.C. § 501(c)(3); or
8. A judgment creditor of the homeowner whose claim accrued
before the recording of the notice of the pendency of an action for
foreclosure against the homeowner pur suant to NRS 14.010 or the
recording of the notice of default and election to sell pursuant to
NRS 107.080.
Sec. 35. NRS 645F.500 is hereby amended to read as follows:
645F.500 The provisions of NRS 645F.500 to 645F.540,
inclusive, and sections 8 to 31, inclusive, of this act do not apply to:
1. A depository financial institution, as that term is defined in
NRS 645B.0109, or any subsidiary or holding company of a
depository financial institution if such entity maintains its principal
place of business or a branch office in this State.
2. A real estate investment trust, as that term is defined in 26
U.S.C. § 856(a), unless the business conducted by the trust in this
State is not subject to supervision by the appropriate regulatory
body of a jurisdiction outside of this State.
3. Any trustee of an employee benefit plan, as that term is
defined in 29 U.S.C. § 1002(3), who makes a residential mortgage
loan directly from money in the plan.
4. An attorney who is licensed in this State and who does not
engage in the business of, or otherwise hold himself or herself out as
being able to provide services related to, a mortgage servicer, if the
activities of the attorney are directly incidental to the representation
of a client.
5. A person performing any act pursuant to a court order.
6. A federal or state agency or a political subdivision of this
State, including, without limitation, the Public Employees’
Retirement System.
7. A nonprofit organization that is recognized as exempt under
section 501(c)( 3) of the Internal Revenue Code, 26 U.S.C. §
501(c)(3).
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8. A mortgage servicer that, in the aggregate with any
affiliates, services not more than 10 residential mortgage loans in
this State during a calendar year.
9. A person licensed pursuant to the p rovisions of chapter
645B or 675 of NRS who is collecting payments on a mortgage loan
or servicing one or more mortgage loans made or arranged by the
person under his or her license.
Sec. 36. NRS 645F.520 is hereby amended to read as follows:
645F.520 1. The Commissioner:
(a) Shall adopt regulations establishing the requirements for the
licensure and supervision of mortgage servicers in this State.
(b) May adopt any other regulations necessary to carry out the
provisions of NRS 645F.500 to 645F.540, inclusive [.] , and
sections 8 to 31, inclusive, of this act.
2. The regulations adopted pursuant to subsection 1 must:
(a) Prescribe the form and contents of an application for the
initial issuance and renewal of a license as a mortgage servicer.
(b) Prescribe the manner in which an application may be
approved or denied.
(c) Prescribe the grounds and procedures for the revocation,
suspension, denial or nonrenewal of a license.
(d) Establish reasonable fees for an application, the initial
issuance of a license and the renewal of a license.
(e) Establish the manner in which the Commissioner may take
appropriate disciplinary action, including, without limitation, the
imposition of an administrative fine, against any person for a
violation of any reg ulation adopted pursuant to subsection 1 or any
provision of NRS 645F.500 to 645F.540, inclusive [.] , and sections
8 to 31, inclusive, of this act.
Sec. 37. NRS 645F.530 is hereby amended to read as follows:
645F.530 1. A mortgage servicer shall comply with:
(a) The relevant provisions of 12 C.F.R. Part 1024, commonly
known as Regulation X, and 12 C.F.R. Part 1026, commonly known
as Regulation Z, as those regulations are amended by the Final
Servicing Rules issued by the Consumer Financial Protection
Bureau in 78 Federal Register 10696 and 10902 on February 14,
2013, and any amendments thereto.
(b) Any other applicable federal or state law or regulation or any
order of the Commissioner.
2. The Commissioner shall conduct any examination or
investigation of a mortgage servicer or applicant for the issuance of
a license as a mortgage servicer as may be necessary to ensure
compliance with the provisions of NRS 645F.500 to 645F.540,
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inclusive, and sections 8 to 31, inclusive, of this act and any
regulations adopted pursuant thereto.
3. If the Commissioner, upon examination or investigation of a
mortgage servicer or applicant for the issuance of a license as a
mortgage servicer, determines that the mortgage servicer or
applicant has violated any applicable provision of NRS 645F.500 to
645F.540, inclusive, and sections 8 to 31, inclusive, of this act or
any regulations adopted pursuant thereto, the Commissioner may
take such disciplinary action against the mortgage servicer or
applicant as may be authorized by regulation of the Commissioner.
Sec. 38. Chapter 649 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 39. Chapter 604A of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commissioner of any noti fication event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
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(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 40. Chapter 604C of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commissioner o f any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 41. Chapter 604D of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commis sioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 42. NRS 658.105 is hereby amended to read as follows:
658.105 In addition to the other powers conferred upon the
Commissioner by chapters 657 to 671, inclusive, of NRS, the
Commissioner:
1. Is charged with the enforcement of the provisions of
chapters 657 to 671, inclusive, of NRS, subject to administrative
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supervision by the Director of the Department of Business and
Industry;
2. May make and publish regulations for the governing of
banks doing business under the provisions of chapters 657 to 671,
inclusive, of NRS; and
3. May require banks to furnish an audited financial statement
prepared by an independent certified public accountant licensed to
do business in Nevada.
4. Shall adopt regulations establishing procedures and
requirements for notifying the Commissioner of a notification
event pursuant to sections 1, 38 to 41, inclusive, and 43 to 47,
inclusive, of this act.
Sec. 43. Chapter 669 of NRS is hereby am ended by adding
thereto a new section to read as follows:
1. A licensee shall comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 44. Chapter 670B of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee and a private education lender shall comply
with the requirements set forth in 16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee and a private education lender
shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee or
private education lender; and
(b) Notify the Commissioner of any n otification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
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(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 45. Chapter 671 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee and an authorized delegate shall comply with
the requirements set forth in 16 C.F.R. Part 314.
2. In addition to complying with the requirements of 16
C.F.R. Part 314, a licensee and an authorized delegate shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee or
authorized delegate; and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 46. Chapter 675 of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A licensee sh all comply with the requirements set forth in
16 C.F.R. Part 314.
2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a licensee shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the licensee;
and
(b) Notify the Commissioner of any notification event in
accordance with the regulations adopted by the Commissioner
pursuant to subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 47. Chapter 676A of NRS is hereby amended by adding
thereto a new section to read as follows:
1. A provider shall comply with the requirements set forth in
16 C.F.R. Part 314.
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2. In addition to complying with the requirements set forth in
16 C.F.R. Part 314, a provider shall:
(a) Maintain the information security program required by 16
C.F.R. § 314.3 as part of the books and records of the provider;
and
(b) Notify the Commissioner of any notification event pursuant
to regulations adopted by the Commissioner pursuant to
subsection 4 of NRS 658.105.
3. As used in this section:
(a) “Information security program” has the meaning ascribed
to it in 16 C.F.R. § 314.2.
(b) “Notification event” has the meaning ascribed to it in 16
C.F.R. § 314.2.
Sec. 48. 1. This section becomes effective upon passage and
approval.
2. Sections 1 to 47, inclusive, of this act become effective:
(a) Upon passage and approval for the purpose of adopting any
regulations and performing any other preparatory administrative
tasks that are necessary to carry out the provisions of this act; and
(b) On January 1, 2026, for all other purposes.
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