The Nevada Division of Mortgage Lending publishes model/official forms which can (or are required to) be used to comply with certain disclosure laws. These forms and laws, plus our versions of these forms, are as follows:
- Form 201 Disclosure of Fees Earned by Mortgage Company
- Provided for Nev. Rev. Stat. § 645B.305 and AB 513 Guidance Letter, Exhibit NV12.
- “NV Mortgage Company Compensation Disclosure” (Cx14279)
- Form 504 Ability to Repay Income Documentation Worksheet
- Provided for Nev. Rev. Stat. § 598D.100(1)(b) and Mortgage Lending Division Letter 2007-2.
- “NV Reasonable Means Disclosure” (Cx12913)
- Form 505 Acknowledgment of Dual Capacity
- Rev. Stat. § 645B.060, Nev. Admin. Code § 645B.235, and NV Reg. LCB File No. R087-04.
- “NV Acknowledgment of Dual Capacity” (Cx13030)
Earlier this year, Nevada’s laws were amended and both mortgage bankers and mortgage brokers are licensed as “mortgage companies” (see https://compliance.docutech.com/2019/12/31/document-updates-nv-mortgage-company-compensation-disclosure-cx14279-nv-reasonable-means-disclosure-cx12913-and-nv-employee-disclosure-cx3839/). This necessitated changes to several of Nevada’s forms which referenced them otherwise; however, at the beginning of the year, the Division of Mortgage Lending had not yet published revisions to their model forms, thus no changes were made at that time.
The Division has since published such revisions (available at: http://mld.nv.gov/Industry/Mortgage_Brokers_and_Mortgage_Agents_-_NRS_645B/Mortgage_Companies_and_Mortgage_Loan_Originators_-_NRS_645B/) and we will be making changes to Cx12913, Cx13030, and Cx14279 accordingly. These changes are as follows
- “NV Reasonable Means Disclosure” (Cx12913)
- Replacing all instances of the terms “broker or mortgage banker” with “mortgage company”;
- Revising the revision date from “2/27/2019” to “01/2020”;
- Adding the acronym “MLD” before the label “License Number:” on the last page; and
- Adding the labels “Name of Mortgage Loan Originator” and “Mortgage Loan Originator NMLS ID” to the last page, along with corresponding fields for disclosing this information.
- “NV Acknowledgment of Dual Capacity (Cx13030)
- Changing references to “broker” and “banker” to “company” or “mortgage company”. Also, references to “agent” will be changed to “originator”;
- Disclosing the mortgage company name, license number, and NMLS ID number in the first bullet point, which currently discloses only the name of the mortgage broker/banker. The format of this disclosure will follow the same form as listed in the new caption which follows this information “(Mortgage Company name, MLD License Number and NMLS ID)”.
- For example, if ABC Lender is the mortgage company, their MLD license number is “123456”, and their NMLS ID number is “654321”, then the disclosure will be displayed as “ABC Lender, 123456, 654321 (Mortgage Company name, MLD License Number and NMLS ID”;
- Transforming the last sentence in the first checkboxed item of the second bullet point into its own paragraph;
- Removing references to the yield spread premium from the last paragraph;
- Adding, in the footer on each page, borrower initial lines and the identifier “Dual Capacity Disclosure (NAC 645B.235) MLD Form 505 Rev 01/2020”;
- Removing our citations currently on the form, as well as the subtitle “Acknowledgment” prior to the signature line acknowledgments. The word “the” will also be deleted from the phrase “cost of the borrower(s) loan” in such acknowledgments; and
- Replacing the signature name “Mortgage Broker/Qualified Employee/Agent” to “MORTGAGE COMPANY/MORTGAGE LOAN ORIGINATOR”, along with adding a separate date line and a bold separation line after such signature area.
- Please note that while the title in the model form does not reference “Nevada” like our form, we are retaining this word to help prevent clients from mistakenly assigning this document for use in states other than Nevada.
- “NV Mortgage Company Compensation Disclosure” (Cx14279)
- Changing the title of the document from “Nevada Mortgage Company Compensation Disclosure” to “Disclosure of Fees Earned by Mortgage Company NRS 645B.305”;
- Revising the table which reflects the name of the mortgage company, real property collateral address, et cetera to match the table on Form 201.
- Please note that this table refers both to the name of “Mortgage Company” and to the name of the “Lender”. In the former case, the name of either the broker or the lender will print (depending on how field “Lender Is A Broker” [FI 18205] is set), while in the case of the latter, the name of the lender will print;
- The phrase “Fees earned by” in the first paragraph will be changed to “All fees earned by”;
- Please note that, due to system limitations, we will continue to use our current format for disclosing fees, which differs from that of Form 201. We will also continue to print the last paragraph on our form (which cross-references other Federally-required forms), but will substitute the pronouns “our” and “you” to the nouns they reference, to keep the narrative consistent; and
- Formatting the signature area to match the one on Form 201, which includes signature lines for the applicant/borrower and mortgage company, as well as their printed names and dates.
Please note that any customizations to these forms have not been modified. Clients are encouraged to review their customizations for compatibility with these changes. Please also note that the names for these forms in ConformX and MaintainXML will be updated (if applicable) to match the titles of the forms.
These changes will take effect on March 24, 2020. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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