FAQ - Mortgage Companies

Mortgage Companies

1. What is a mortgage company under NRS 645B?

Nevada law defines a “mortgage company” as a person, who directly or indirectly:

(a) Holds himself or herself out for hire to serve as an agent for any person in an attempt to obtain a loan which will be secured by a lien on real property;

(b) Holds himself or herself out for hire to serve as an agent for any person who has money to lend, if the loan is or will be secured by a lien on real property;

(d) Holds himself or herself out as being able to buy or sell notes secured by liens on real property; or

(e) Offers for sale in this State any security which is exempt from registration under state or federal law and purports to make investments in promissory notes secured by liens on real property.

The term includes a wholesale lender. For additional information concerning wholesale lenders, please see the separate Wholesale Lender under NRS 645B FAQs page.

Real property includes both residential and commercial property.
(NRS 645B.0127)

2. Who is required to be licensed as a mortgage company under NRS 645B?

Any person who wishes to engage in an activity meeting the statutory definition of “mortgage company” with respect to residential or commercial property is required to first obtain a license as a mortgage company under NRS 645B.

The Division requires anyone who is engaging in the activities of NRS 645B.0127 including Lead Generators to be licensed by the Division.

If under NRS 645B.016 a person holds a certificate of exemption, that person is exempt from licensing as a mortgage company per NRS 645B.015.

(NRS 645B.0127) (NRS 645B.015) (NRS 645B.016) (NRS 645B.900)

3. How do I apply for a mortgage company license?

Residential or Residential and Commercial
To obtain a mortgage company license under NRS 645B to conduct residential or residential and commercial mortgage activity, an applicant must submit its application and appropriate fees to the Division through the Nationwide Multistate Licensing System & Registry (“NMLS”) using the Company Form (MU-1 Form).
[NRS 645B.0137(1); NRS 645B.020]

Please refer to the Nevada Mortgage Company License Company New Application Checklist and the Nevada Mortgage Company License Description on the NMLS for submission requirements.

Additional information concerning the requirements to obtain a residential mortgage company license and application materials may be obtained at the Nationwide Multi-state Licensing System and Registry (NMLS) website.

Per NRS 645B.01043, a “Commercial mortgage loan” means a loan primarily for a business, commercial or agricultural purpose that:
1. Directly or indirectly, is secured by a lien on commercial property; and
2. Is created with the consent of the owner of the commercial property.

Per NRS 645B.01047, “Commercial property” means any real property which is located in this State and which is neither used as a dwelling nor upon which a dwelling is constructed or intended to be constructed.

Commercial Only
To obtain a mortgage company license under NRS 645B to conduct commercial mortgage activity only, an applicant must meet all of the above requirements, and may submit its application and fees directly to the Division. The application and further instructions may be obtained by contacting the Division at (775) 684-7060.

4. Who is a “qualified employee”?

Each licensed mortgage company must have a qualified employee at each location licensed with the Nevada Division of Mortgage Lending. (NRS 645B.021; NAC 645B.030)

A “qualified employee” is a natural person who is designated by a mortgage company to act on behalf of the mortgage company and who is approved by the Commissioner. (NAC 645B.008)

A natural person designated as a qualified employee must:

Be approved by the Commissioner to serve as a qualified employee for the licensed mortgage company;
Be a licensed mortgage loan originator in good standing;
Be present at the licensed office location for which he or she is the qualified employee the majority of the time that the office is open to the public; and
In the immediately preceding five years, has at least two years of verifiable experience in the business of lending money for real estate or mortgages. (NRS 645B.405; NAC 645B.055)

To designate or change a qualified employee:

If residential company or residential and commercial company - the change is made to the Company MU1 Form on the NMLS;

If commercial only company - MLD Form 500 Designation of Qualified Employee must be completed and submitted to the Division.

5. Does Nevada have a “brick and mortar” requirement to obtain a license as a mortgage company?

Yes, with an exception for wholesale lenders under 645B. (See FAQs for Wholesale Lenders under NRS 645B.) A company must establish and maintain a physical office location in Nevada in order to become licensed as a mortgage company. A mortgage company must also maintain a license for its home/main/corporate office. A license must also be obtained for each additional branch office location from which a mortgage company will conduct mortgage company activity on Nevada real property. (NRS 645B.020)

A mortgage company must post each license in a conspicuous place in the office to which it pertains. (NRS 645B.025)

6. Does Nevada permit a mortgage company to conduct business using an assumed or fictitious name (DBA)?

Yes. However, the mortgage company must file with the county clerk a certificate stating the assumed or fictitious name under which business will be conducted. The mortgage company must file a certified copy of the certificate with the Division and receive from the Division a license or certificate of exemption indicating the fictitious name. A licensee may only conduct business in the name that appears on its license.

A mortgage company may conduct business using more than one fictitious name only if the mortgage company obtains a separate license for each fictitious name under which he or she intends to do business. A mortgage company who conducts business in Nevada using more than one fictitious name is responsible for the conduct of each qualified employee, mortgage loan originator, and other employee associated with the mortgage company regardless of the license or name under which the conduct takes place. (NRS 602; NAC 645B.035)

The Division shall not issue a license or certificate of exemption with a name that is the same as or confusingly similar to a name on a license or certificate of exemption previously issued by the Division. (NAC 645B.037)

7. Is a license required to conduct mortgage company activity related to commercial property?

Yes. A person that engages in the activity of a mortgage company in relation to commercial mortgage activity is required to obtain and maintain the appropriate license under NRS 645B. A person that engages in both commercial and residential mortgage activity must submit its application to the Division through the NMLS. A person that only engages in commercial mortgage activity should contact the Division to obtain an application package.

8. How long must a licensed mortgage company maintain its records for examination by the Commissioner? What records must be maintained?

A mortgage company must retain complete and suitable records of all his or her completed mortgage transactions for a period of at least 4 years after the date of the last activity relating to the transaction. Records may be maintained in an electronic format if the records are maintained and made available to the Commissioner or his or her designee in the required format that allows complete access to all records and ensures that the Commissioner or his or her designee has the ability to download and print, from all office locations of the mortgage company, any or all of the records. In addition to other requirements, a mortgage company must provide any or all records maintained in an electronic format in printed form upon request of the Commissioner or his or her designee within 24 hours after a request is made.

A mortgage company must retain applications for mortgages that were denied or withdrawn for a period of at least 1 year or as otherwise required by federal law.

(NAC 645B.072; NAC 645B.077)

Each mortgage company must keep and maintain at all times at each location where the mortgage company conducts business in this state complete and suitable records of all mortgage transactions made by the mortgage company at that location. Each mortgage company shall also keep and maintain at all times at each such location all original books, papers and data, or copies thereof, clearly reflecting the financial condition of the business of the mortgage company.

(NRS 645B.080)
“Complete and suitable records” is defined in NAC 645B.072

9. Must mortgage company file a monthly report of all closed transactions?

Yes. A mortgage company is required to submit to the Commissioner a “Monthly Activity Report” (MAR) of the mortgage company's activity for the previous month on a form approved by the Commissioner. The report must:

Specify the volume of loans arranged by the mortgage company for the month or state that no loans were arranged in that month;
Include any information required;
Be submitted to the Commissioner by the 15th day of the month following the month for which the report is made.

Instructions for filing a Monthly Activity Report as well as the Monthly Activity Report Form may be found on the Division’s Website on the Industry Information page for Mortgage Companies and Mortgage Loan Originators.
[NRS 645B.080(2); NAC 645B.070]

10. Must a mortgage company submit proposed advertisements to the Commissioner for approval?

During the first 12 months of receiving an initial mortgage company license from the Division, a mortgage company is required to submit any proposed advertisement that the mortgage company intends to use in carrying on his or her business to the Commissioner for approval. The Advertisement Submission Form may be found on the Division’s Website on the Industry Information page for Mortgage Companies and Mortgage Loan Originators.
(NRS 645B.189)

11. Are branch locations required to be licensed?

Yes. A mortgage company must obtain a license for each branch office from which it will conduct mortgage company activity on Nevada real property. [NRS 645B.020(2)]

A mortgage company must post each license in a conspicuous place in the office to which it pertains. (NRS 645B.025)

12. Is a mortgage company license required to purchase mortgage loans on the secondary market?

The Division does not interpret NRS 645B to require licensure for an institution that only buys closed loans in a bona fide secondary market transaction. Such activity may, however, trigger other licensing or registration requirements such as filing requirements with the State of Nevada Secretary of State or Department of Taxation or local business licensing authorities.

13. I’m licensed as a mortgage company and want to add a branch. What is the process to obtain licensure for a new branch?

Prior to beginning to conduct licensable activity from a branch location, a licensee must make application for and obtain a license for that branch location.

If the applicant maintains an NMLS record, the applicant must complete and submit the Branch Form (MU-3 Form) application through NMLS along with the following:

A qualified employee must be designated that is a licensed mortgage loan originator and meets the requirements in NAC 645B.055. A qualified employee that manages or has been designated and approved to manage another office will not be approved.
The applicant must have been examined by the Commissioner and received a satisfactory rating during the preceding 12 months or submit a request for a waiver.

If the applicant only conducts commercial mortgage activity and does not maintain an NMLS record, the applicant must obtain a written branch application from the Division. The completed application must be submitted to the Commissioner along with the following:

The name, residence address, and telephone number of the qualified employee designated to manage and supervise the branch office;
The name of each mortgage loan originator who intends to work at the branch office; and
Evidence that the applicant has met the requirements imposed by the S.A.F.E. Mortgage Licensing Act, if applicable.

An application for a license for a branch office shall be deemed abandoned if the applicant fails to respond, within 30 calendar days of the date after the request or on or before a later date set by the Commissioner, to any written request by the Division for information or records required in connection with the investigation and evaluation of the qualifications and suitability for licensure of an applicant, its qualified employee or, if applicable, its control persons. (NAC 645B.030)

14. Are there any exemptions from the licensing requirements for a residential mortgage company?

Yes. NRS 645B.015 provides several qualifications that a person may meet to be exempt from the licensing requirements for a mortgage company. However, any person seeking to conduct business under one of the exemptions must file an application for a certificate of exemption from the Commissioner. The application may be obtained by contacting the Division at (775) 684-7060 and requesting the certificate of exemption application for Non-NMLS filers.

15. How do I apply for a certificate of exemption from the licensing requirements under NRS 645B?

A person claiming an exemption under NRS 645B.015 who conducts only commercial (non-residential) mortgage activity or does not employ any individual who must be licensed as a residential mortgage loan originator must submit its application for a certificate of exemption directly to the Division. The application may be obtained by contacting the Division at (775) 684-7060 and requesting the certificate of exemption application for non-NMLS filers.

16. What special requirements exist if I am a mortgage company acting as a mortgage servicer for loans that I made under my own license?

In addition to all other requirements, a mortgage company acting as a mortgage servicer in connection with one or more mortgage loans which the mortgage company made or arranged under his or her license as a mortgage company must file with the Commissioner:

On an annual basis, a complete schedule of the ranges of costs and fees charged to a borrower by the mortgage company for the activities of the mortgage company related to mortgage servicing; and
On a quarterly basis, directly with the Commissioner or through the Registry to the Commissioner, a report of the mortgage servicing activity that the mortgage company performs in this State on loans that the mortgage company made or arranged under his or her license as a mortgage company.

(NAC 645B.0375 (1)(b)(5) and (1)(b)(6))

17. Does the annual fee for supervision replace an examination fee?

No. The annual fee for supervision is a separate fee charged and collected from each mortgage company whose annual volume of loans reported to the Commissioner is at least $10,000,000. A mortgage company whose annual volume of loans reported to the Commissioner is less than $10,000,000 will not be assessed a fee for supervision. (Fee for Supervision Calculator) (Excel file)
(NAC 645B.060 (1) and (2))

All mortgage brokers are charged a fee of $60 per hour for any examination, audit, investigation or hearing conducted pursuant to NRS 645B. The Commissioner may also charge a fee equivalent to the estimated or actual fee charged to the Division for the time of an attorney required in any examination, investigation or hearing conducted pursuant to NRS 645B. (NAC 645B.060 (3))
NAC 645B.060