FAQ - Mortgage Servicers and Supplemental Mortgage Servicers

Mortgage Servicers and Supplemental Mortgage Servicers

1. Who is a mortgage servicer under NRS 645F?

A mortgage servicer is a person who directly services a mortgage loan or who is responsible for interacting with a borrower; managing a loan account on a daily basis, including without limitation; 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. 
 
The term includes a person providing such services by contract as a subservicing agent to a master servicer.
 
The term does not include a trustee under a deed of trust or the trustee’s authorized agent acting under a power of sale pursuant to a deed of trust.

(NRS 645F.063)

 

2. How do I apply for a mortgage servicer license?

An application for a license as a mortgage servicer must be made to the Commissioner through the Registry (NMLS) and must include:
• the fee required;
• all content and information required to be included in the application by the Commissioner;
• Written consent authorizing the Commissioner to conduct a background investigation of the applicant and, if applicable, each control person of the applicant, including, without limitation, authorization to obtain:

  1. An independent credit report from a consumer reporting agency;
  2. A criminal history report from the Federal Bureau of Investigation or any criminal history repository of any state, national or international governmental agency or entity; and 
  3. Information related to any administrative, civil, or criminal proceedings in any jurisdiction in which the applicant, or a control person of the applicant, is or has been a party;

• A complete set of fingerprints of the applicant or, if the applicant is not a natural person, a complete set of fingerprints of each control person of the applicant to be forwarded to the Central Repository for Nevada Records of Criminal History for submission to the Federal Bureau of Investigation for its report; and
• Any other information requested by the Commissioner, required by the Nevada Mortgage Servicer Regulations or required in connection with the evaluation and investigation of the applicant’s qualifications and suitability for licensure.

For a list of Law Enforcement Fingerprinting Sites, please see the Nevada Secretary of State’s list of Law Enforcement Fingerprinting Sites.

For assistance in applying for a mortgage service license through NMLS, please review the NV Mortgage Servicer License New Application Checklist (Company) on the Website of NMLS.
(LCB File No. R120-15 §20)

 

3. If I am currently licensed as a mortgage broker or mortgage banker, do I need to apply for a supplemental mortgage servicer license?

A supplemental mortgage servicer license is required for any person that is currently licensed as a mortgage broker under NRS 645B or mortgage banker under NRS 645E and is acting as or providing any of the following services in relation to one or more mortgage loans that the person did not make or arrange under their qualifying license (i.e. servicing third party mortgage loans):

  • directly services a mortgage loan that is secured by real property located in Nevada; or
  • is responsible for interacting with a borrower or managing a Nevada mortgage loan account on a daily basis by collecting and crediting periodic loan payments, managing any escrow account; or
  • engages in activity that enforces the note and security instrument; or
  • provides the above services by contract as a subservicing agent to a master servicer by contract.


Any person holding a mortgage broker or mortgage banker license that conducts any of the above activities in relation to one or more mortgage loans that the person did not make or arrange under their qualifying license, must apply for and obtain a supplemental mortgage servicer license.

 

 

4. How do I apply for a supplemental mortgage servicer license?

An application for a supplemental mortgage servicer license must be made to the Commissioner through the Registry (NMLS) and must include:

  • all content and information required to be included in the application by the Commissioner;
  • the fee required;
  • a financial statement which demonstrates that the applicant meets the minimum net worth set forth;
  • evidence of a surety bond that meets the requirements; and
  • a list of the locations of the principal office and each branch office, if any, and the name, telephone number, and electronic mail address for a contact person for each such office.

For assistance in applying for a supplemental mortgage servicer license through NMLS, please review the NV Supplemental Mortgage Servicer License New Application Checklist (Company) on the Website of NMLS.
(LCB File No. R120-15 §19.2)

 

 

 

5. Who is a "qualified employee"?

A licensee under chapter 645F of NRS and the Nevada Mortgage Servicer Regulations must designate a natural person to serve as a qualified employee for each principal or branch office. A natural person may not be designated to serve as a qualified employee unless such person:

  • Has at least two years of verifiable experience in the business of servicing mortgage loans within the immediately preceding five years;
  • Is designated by the licensee to act on behalf of the licensee and to supervise and control the conduct of the business of the licensee at only one location;
  • Will be employed and present at the location;
  • Has submitted to and successfully passed a background investigation pursuant to section 22 of the Nevada Mortgage Servicer Regulations or is a mortgage agent licensed pursuant to chapter 645B of NRS; and
  • Has been approved by the Commissioner to act as the qualified employee for the licensee at the location.

[LCB File No. R120-15 §24(1)]

6. Must a mortgage servicer file a report of its Nevada servicing activity?

Upon request, a mortgage servicer shall submit to the Commissioner, on a date and in a form prescribed by the Commissioner, a report of the mortgage servicer’s activity in this State. The report must specify:

  • The total number of mortgage loans the mortgage servicer is servicing;
  • The total dollar volume of mortgage loans the mortgage servicer is servicing;
  • The type and characteristics of mortgage loans the mortgage servicer is servicing;
  • The number of such mortgage loans in default, along with a breakdown of the 30-, 60-, and 90-day delinquencies;
  • Information on foreclosures commenced by the mortgage servicer; and
  • Any other information required by the Commissioner. 
Instructions for filing the Nevada Annual Mortgage Servicing Volume Report can be found on the Industry Information page for Mortgage Servicers and Supplemental Mortgage Servicers.

[LCB File No. R120-15 §45(1-2)]

7. What if I don't submit my financial statement or report on time?

A mortgage servicer that fails to timely submit a financial statement or report required to section 25 or 45 of LCB File No. R120-15 may be subject to a late penalty of not more than $25 for each day that the statement or report is late, up to a maximum of $1,000, and may be subject to other discipline provided for pursuant to chapter 645F of NRS and the Nevada Mortgage Servicer Regulations.
(LCB File No. R120-15 §33.8)

 

If you have any further questions, please contact the Division of Mortgage Lending at 702-486-0782.