Nev. Rev. Stat. Ann. § 598D.130(2) requires a certain notice to appear on security instruments for loans which are considered “high cost loans” (HCLs) under Federal law, as follows:
“[If] The home loan is subject to the provisions of § 152 of the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1602(aa), and the regulations adopted by the Board of Governors of the Federal Reserve System pursuant thereto, including, without limitation, 12 C.F.R. § 226.32, the mortgage, deed of trust or other instrument must expressly indicate in writing in a size equal to at least 14-point bold type on the front page of the mortgage, deed of trust or other instrument that the home loan is a home loan as defined in NRS 598D.040 ad is subject to the provisions of § 152 of the Home Ownership and Equity Protection Act of 1994, 15 U.S.C. § 1602(aa), and the regulations adopted by the Board of Governors of the Federal Reserve System pursuant thereto, including, without limitation, 12 C.F.R. § 226.32.”
While it is debatable whether such a provision would apply to mortgage loans, since the Dodd-Frank Act transferred regulatory oversight of mortgage loans from the FRB to the CFPB (and, hence, 12 CFR Pt. 226, as a practical matter, does not apply to mortgage loans), it does apply to loans which are governed by HOEPA and, as such, the notice should be included on Nevada’s security instruments, even if the regulatory references are in desperate need of updating by Nevada’s legislature.
To this end, we will be including this notice on our standard Nevada security instruments (Cx342, Cx395, and Cx500). The notice is configured to appear when “HCL-Federal” equals “Yes” and will state the following, in 14-point bold type:
“The loan secured by this instrument is a home loan as defined in NRS 598D.040 and is subject to the provisions of §152 of the Home Ownership and Equity Protection Act of 1994, 15 USC §1602(aa), and the regulations adopted by the Board of Governors of the Federal Reserve System pursuant thereto, including, without limitation, 12 CFR §226.32.”
This change will take effect on August 6, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
July 30, 2014
DR 125508