Document Updates – NV Mortgage Company Compensation Disclosure (Cx14279), NV Reasonable Means Disclosure (Cx12913), and NV Employee Disclosure (Cx3839)

On June 9, 2017, Governor Brian Sandoval signed into law AB 468 (2017), which amends various provisions concerning mortgage bankers and mortgage brokers, including combining the two definitions together into a singular definition of “mortgage company” (see https://www.leg.state.nv.us/App/NELIS/REL/79th2017/Bill/5726/Overview). The effective date of this law is January 1, 2020.  We had expected a revised model form replacing “Disclosure of Fees Earned by Mortgage Broker” to be posted by the effective date.  As no such form has been provided by the Nevada Division of Mortgage Lending, we have updated NV Mortgage Company Compensation Disclosure (Cx14279), NV Reasonable Means Disclosure (Cx12913), and NV Employee Disclosure (Cx3839) as follows:

NV Mortgage Company Compensation Disclosure (Cx14279)

• Previously the document was titled “NV Mortgage Broker Compensation Disclosure” and printed when “Lender Is A Broker” (Field 18205) is “Yes”.  It will now print for both Brokers and Lenders, entitled “NV Mortgage Company Compensation Disclosure”.
• The term “Broker” has been replaced with “Company”, so the text will now read as “Mortgage Company” instead of “Mortgage Broker”.
• The language has been modified to more closely align with the language of the Model Form “Disclosure of Fees Earned by Mortgage Broker”.
• The “Description”, “Amount”, and “Paid By” section will continue to print fees paid to the Broker when “Lender Is A Broker” is “Yes”, otherwise fees paid to the Lender will print under “Description”, “Amount”, and “Paid By”.
• While the cross-references to the LE, GFE, TIL, and Itemization of Fees are not required, these will remain in the document as a “safety net” for clients in case they do not list all fees which could be considered “compensation.”
• A new paragraph was added above the signature acknowledgment: “Information about our fees and other costs for this loan are outlined”, [For TRID Loans: “…in a separate Loan Estimate provided to you, which is incorporated into this disclosure by reference.”], [For HELOC’s: “…in a separate Itemization of Fees provided to you, which is incorporated into this disclosure by reference.”], [For Loans that use the GFE/TIL: “…in a separate Good Faith Estimate of Settlement Costs and Truth in Lending Disclosure, which are incorporated into this disclosure by reference”.].

NV Reasonable Means Disclosure (Cx12913)

The phrase “mortgage broker/mortgage banker” will print on “NV Reasonable Means Disclosure” (Cx12913) to match current MLD Form 504.

NV Employee Disclosure (Cx3839)

• Previously the NV Employee Disclosure printed when “Lender Is A Broker” (Field 18205) is “Yes”.  It will now print for both Brokers and Lenders.
• The term “Broker” has been replaced with “Company”, so the text will now read “Mortgage Company” instead of “Mortgage Broker”.
• The format and language of this document has been modified to print for Brokers and Lenders.
• When “Lender IS A Broker” is “Yes”, the citation Nev. Admin. Code § 645B.210 will print at the bottom of the form, in addition to the Nev. Rev. Stat. § 645B.186 citation.
• If “Lender Is A Broker” (Field 18205) is “No”, the signature at the bottom of the disclosure will need to be ink signed by the loan investor.
• The existing middle paragraph of the form has been modified to trigger different language for Brokers and Lenders.

The following text will print for Brokers (when “Lender Is A Broker” is “Yes”):

Otherwise the following Lender version of the text will print:

These changes will be in effect on January 1, 2020. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.

DR 305203