STATE OF NEVADA

Is a license required?

Yes. 

State specific loan modification law?

Yes.  Assembly Bill 152(Attached as Schedule A) which was recently passed as emergency legislation.  Sec. 2. states that a loan modification consultant means “means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation, or who, for compensation, performs any act that the person represents will adjust the terms of a mortgage loan in a manner not provided for in the original or previously modified mortgage loan”

Advantages of becoming a licensed Mortgage Broker?

Not possible.  Loan modification services cannot be licensed as mortgage brokers.

Penalties for operating in the state without a license:

Sec. 7. states that “A foreclosure purchaser who engages in any conduct

that operates as a fraud or deceit upon a homeowner in connection with a transaction that is subject to the provisions of NRS 645F.300 to 645F.450, inclusive, and sections 2 to 3.5, inclusive, of this act, including, without limitation, a foreclosure reconveyance, is guilty of a gross misdemeanor and shall be punished by imprisonment in the county jail for not more than 1 year, or by a fine of not more than $50,000, or by both fine and imprisonment.”

Is an advanced fee permitted?

No.  Sec. 3.3 c states “1. All money paid to a person who performs any covered service for compensation, a foreclosure consultant or a loan modification consultant by a person in full or partial payment of covered services to be performed: (a)Must be deposited in a separate checking account located in a federally insured depository financial institution or credit union in this State which must be designated a trust account; (b) Must be kept separate from money belonging to the person who performs any covered service for compensation, the foreclosure consultant or the loan modification consultant; and  (c)            Must not be withdrawn by the person who performs any covered service for compensation, foreclosure consultant or loan modification consultant until the completion of every covered”

Is a written agreement required?

Yes.  Sec. 3.1. 1. States that “A person who performs any covered service for compensation, a foreclosure consultant and a loan modification consultant shall execute a written contract with a homeowner before providing any covered service.”

Other noteworthy information?

These are emergency regulations.  State regulators said that they may be adopted permanently.  This information is good as of July 20^th 2009 but may not still be accurate in 6 months.

Nevada Statutes

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Assembly Bill 152:                                          Ctrl + Click Here

License application:                                         Ctrl + Click Here