Amendment No. CA38

Conference Committee Amendment to Assembly Bill No. 64 Third Reprint (BDR 54-1204)

Proposed by: First Conference Committee

Amendment Box:

Resolves Conflicts with: N/A

Amends: Summary: Title: Preamble: Joint Sponsorship:

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date

Adopted Lost | Adopted Lost

Concurred In Not | Concurred In Not

Receded Not | Receded Not

Amend sec. 62, page 28, by deleting line 27 and inserting:

"Sec. 62. Except as otherwise provided in section 78 of this act:

1. A person who claims an exemption from the provisions".

Amend sec. 75, page 35, line 43, by deleting "and".

Amend sec. 75, page 36, line 7, by deleting "purpose." and inserting:

"purpose; and

(4) Expressly provide that the power of attorney is effective for a period of not more than 6 months unless, before the date on which the period expires, the mortgage broker obtains written approval from the investor to extend the power of attorney for an additional period of not more than 6 months. The mortgage broker may, on a continuing basis, obtain written approval from the investor to extend the power of attorney for one or more consecutive periods of not more than 6 months each, except that the investor may execute only one written approval for an extension during each such 6-month period.".

Amend sec. 75, page 36, between lines 20 and 21, by inserting:

"4. The provisions of this section do not limit the right of an investor to include provisions in a power of attorney that are more restrictive than the provisions set forth in subsection 1.".

Amend sec. 78, page 38, by deleting line 3 and inserting:

"Sec. 78. 1. If a person offers or provides any of the services of a mortgage broker or otherwise engages in, carries on or holds himself out as engaging in or carrying on the business of a mortgage broker and, at the time:

(a) The person was required to have a license pursuant to this chapter and the person did not have such a license; or

(b) The person’s license was suspended or revoked pursuant to this chapter,

the commissioner shall impose upon the person an administrative fine of not more than $10,000 for each violation and, if the person has a license, the commissioner shall revoke it.

2. If a person is exempt from the provisions of this chapter pursuant to subsection 6 of NRS 645B.015 and the person, while exempt, maintains, offers to maintain or holds himself out as maintaining any accounts described in subsection 1 of NRS 645B.175 or otherwise engages in, offers to engage in or holds himself out as engaging in any activity that would remove the person from the exemption set forth in subsection 6 of NRS 645B.015, the commissioner shall impose upon the person an administrative fine of not more than $10,000 for each violation and the commissioner shall revoke the person’s exemption. If the commissioner revokes an exemption pursuant to this subsection, the person may not again be granted the same or a similar exemption from the provisions of this chapter. The person may apply for a license pursuant to this chapter unless otherwise prohibited by specific statute.

3. If a mortgage broker violates any provision of subsection 1 of NRS 645B.080 and the mortgage broker fails, without reasonable cause, to remedy the violation within 20 business days after being ordered by the commissioner to do so or within such later time as prescribed by the commissioner, or if the commissioner orders a mortgage broker to provide information, make a report or permit an examination of his books or affairs pursuant to this chapter and the mortgage broker fails, without reasonable cause, to comply with the order within 20 business days or within such later time as prescribed by the commissioner, the commissioner shall:

(a) Impose upon the mortgage broker an administrative fine of not more than $10,000 for each violation;

(b) Suspend or revoke the license of the mortgage broker; and

(c) Conduct a hearing to determine whether the mortgage broker is conducting business in an unsafe and injurious manner that may result in danger to the public and whether it is necessary for the commissioner to take possession of the property of the mortgage broker pursuant to NRS 645B.150.".

Amend the bill as a whole by adding a new section designated sec. 78.5, following sec. 78, to read as follows:

"Sec. 78.5. 1. Except as otherwise provided in subsection 2, for each violation that may be committed by a person pursuant to this chapter or the regulations adopted pursuant to this chapter, the commissioner shall adopt regulations:

(a) Categorizing the violation as a major violation or a minor violation; and

(b) Specifying the disciplinary action that will be taken by the commissioner pursuant to this chapter against a person who commits:

(1) A major violation. The disciplinary action taken by the commissioner for a major violation must include, without limitation, suspension or revocation of the person’s license.

(2) More than two minor violations. The commissioner may establish graduated sanctions for a person who commits more than two minor violations based upon the number, the frequency and the severity of the minor violations and whether the person previously has committed any major violations.

2. The provisions of this section do not apply to a violation for which the commissioner is required to take disciplinary action in accordance with section 78 of this act.".

Amend sec. 79, page 38, line 5, by deleting:

"may take any" and inserting:

"shall take any disciplinary action required pursuant to section 78 of this act and may take any other".

Amend sec. 85, page 40, line 40, by deleting "subsection," and inserting:

"subsection [,] and section 78 of this act,".

Amend sec. 93, page 48, by deleting lines 15 through 40 and inserting:

"645B.090 1. Except as otherwise provided in this section or by [law,] specific statute, all papers, documents, reports and other written instruments filed with the commissioner [under] pursuant to this chapter are open to public inspection . [, except that]

2. Except as otherwise provided in subsection 3, the commissioner may withhold from public inspection or refuse to disclose to a person, for such time as [he] the commissioner considers necessary , any information [which] that, in his judgment , would:

(a) Impede or otherwise interfere with an investigation that is currently pending against a mortgage broker;

(b) Have an undesirable effect on the [public] welfare of the public or the welfare of any mortgage [company requires to be so withheld.] broker or mortgage agent; or

(c) Give any mortgage broker a competitive advantage over any other mortgage broker.

3. The commissioner shall disclose the following information concerning a mortgage broker to any person who requests it:

(a) The findings and results of any investigation which has been completed during the immediately preceding 5 years against the mortgage broker pursuant to the provisions of this chapter and which has resulted in a finding by the commissioner that the mortgage broker committed a violation of a provision of this chapter, a regulation adopted pursuant to this chapter or an order of the commissioner; and

(b) The nature of any disciplinary action that has been taken during the immediately preceding 5 years against the mortgage broker pursuant to the provisions of this chapter.".

Amend sec. 95, page 49, by deleting line 27 and inserting:

"645B.100 Except as otherwise provided in section 78 of this act:

1. [The] For each violation committed by an applicant,".

Amend sec. 108, page 63, line 31, after "1." by inserting:

"Each mortgage broker shall include in each advertisement that the mortgage broker uses in carrying on his business:

(a) A statement of disclosure in substantially the following form:

Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured.

(b) Any other statements of disclosure required pursuant to the regulations adopted by the commissioner or required pursuant to an order of the commissioner entered in accordance with subsections 7 and 8 of NRS 645B.185.

2.".

Amend sec. 108, page 63, line 37, by deleting "2." and inserting "3.".

Amend sec. 108, page 64, line 1, by deleting "3." and inserting "4.".

Amend sec. 108, page 64, line 8, by deleting "4." and inserting "5.".

Amend sec. 139, page 83, after line 3, by inserting:

"4. Section 78.5 of this act expires by limitation on October 1, 2001.".