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
(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
(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.
Nev. Admin. Code §
Added to NAC by Comm'r
of Mortgage Lending by R057-08, eff. 4-23-2009; A by
eff. 1/27/2017; A