DocMagic's Compliance Department has prepared a Nevada Mortgage Broker Fee Disclosure ("Disclosure") to assist customers with complying with an amendment to Nevada Revised Statutes Section 645B.305. This amendment became effective on May 29, 2009, when the Nevada Governor sign AB 513 into law. AB 513 amended Section 645B.305 as follows:
Sec. 13. NRS 645B.305 is hereby amended to read as follows:
645B.305 A mortgage broker shall ensure that each loan secured by a lien on real property for which he engages in activity as a mortgage broker:
Includes a disclosure:
(a) Describing, in a specific dollar amount, all fees earned by the mortgage broker;
(b) Explaining which party is responsible for the payment of the fees described in paragraph (a); and
(c) Explaining the probable impact the fees described in paragraph (a) may have on the terms of the loan, including, without limitation, the interest rates.
If a private investor has acquired a beneficial interest in the loan, includes a fee for servicing the loan which must be specified in the loan. The fee must be in an amount reasonably necessary to pay the cost of servicing the loan.
The Disclosure includes the above elements of the disclosure although note that the requirement that the Disclosure must "[e]xplain the probable impact the fees described in paragraph (a) may have on the terms of the loan, including, without limitation, the interest rates," is lender-specific. While the Compliance Department has provided for a couple of factors that may explain the impact of the fees on the loan terms from which the DocMagic user may choose, a blank area is provided for the user to annotate the Disclosure and add a specific explanation.
As Section 645B.305 does not provide a timeframe within which the Disclosure must be provided to the Borrower, the Disclosure will appear in both predisclosure and closing loan packages as well as on the "Forms" list of DocMagic as an interim/processing disclosure when the Nevada loan package is broker-originated. If you have any questions concerning the subject matter of this article, please contact DocMagic's Compliance Department.
RSS 
