Nev. Admin. Code § 645B.255 - Minimum financial requirement for certain investors

1. Except as otherwise provided in subsection 5, before a private investor enters into a transaction with a mortgage company or mortgage loan originator to acquire ownership of or a beneficial interest in a loan secured by a lien on real property by investing money, the private investor must provide a statement on a form prescribed by the Division which verifies that the private investor meets one or more of the following financial requirements:

(a) The private investor's household net worth is more than $250,000, excluding any equity in any real property used as the investor's primary residence at the time of the investment; or

(b) The private investor's household net annual income was more than $70,000 for each of the previous 2 tax years, and there is a reasonable expectation of attaining or exceeding the same income for the current year.

2. Except as otherwise provided in this subsection, a private investor must also verify on the form prescribed by the Division that the private investor's total investments in loans secured by a lien on real property transacted by a mortgage company or mortgage loan originator are not valued at more than 50 percent of the private investor's household net worth or household net annual income, whichever is greater. The Division may waive this requirement in writing.

3. In the absence of knowledge to the contrary, a mortgage company or mortgage loan originator is not responsible for determining the validity of a private investor's stated financial information and may rely on such information submitted by the private investor.

4. A private investor shall verify on a form prescribed by the Division that the private investor continues to meet the minimum financial requirement set forth in subsection 1 for each transaction subsequent to the first transaction.

5. The provisions of this section do not apply to transactions of a mortgage company or mortgage loan originator investing on his or her own behalf.

Notes

Nev. Admin. Code § 645B.255

Added to NAC by Comm'r of Mortgage Lending by R057-08, eff. 4-23-2009; A by R125-16A, eff. 1/27/2017; A by R119-19A, eff. 11/9/2023

NRS 645B.060