FAQ - Wholesale Lenders under NRS 645E

Wholesale Lenders under NRS 645E

1. Who is a wholesale lender under NRS 645E?

The term “wholesale lender” is included in the definition of a mortgage banker per NRS 645E.100  

In addition, the definition of a wholesale lender is specified in NRS 645E.115.
 
A wholesale lender is a person who directly or indirectly holds himself or herself out as being able to:
  • Buy or sell notes secured by liens on real property; or
  • Make loans secured by liens on real property using his or her own money. 
 
A wholesale lender does not directly: 
  • Take or receive an application from a borrower for a loan which will be secured by a lien on real property; 
  • Negotiate any terms with a borrower relating to a loan which will be secured by a lien on real property; 
  • Engage in any other act or transaction described in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS; or
  • Make a loan secured by a lien on real property using his or her own money if any portion of the money that is used to make the loan is provided by another person who acquires ownership of or a beneficial interest in the loan.

2. Are wholesale lenders under NRS 645E required to obtain a mortgage banker license in Nevada?

Yes. Any person that directly or indirectly engages in the activities defined under NRS 645E.115 “wholesale lender” is required to obtain a mortgage banker license.

 

3. Does Nevada have a "brick and mortar" requirement to obtain a license as a mortgage banker if the mortgage banker only acts as a wholesale lender?

A mortgage banker is not required to have a licensed location in Nevada if he or she fits the definition of a wholesale lender per NRS 645E.115 and does not directly:

  • Take or receive an application from a borrower for a loan which will be secured by a lien on real property; 
  • Negotiate any terms with a borrower relating to a loan which will be secured by a lien on real property; 
  • Engage in any other act or transaction described in NRS 645B.0127, unless the person is also licensed as a mortgage broker pursuant to chapter 645B of NRS; or
  • Make a loan secured by a lien on real property using his or her own money if any portion of the money that is used to make the loan is provided by another person who acquires ownership of or a beneficial interest in the loan.

(NRS 645E.200)

 

If you have any further questions, please contact the Division at (702) 486-0782.