205.372 - Mortgage lending fraud; penalties. - Nevada Statutes

205.372  Mortgage lending fraud; penalties.

      1.  A person who, with the intent to defraud a participant in a mortgage lending transaction:

      (a) Knowingly makes a false statement or misrepresentation concerning a material fact or deliberately conceals or fails to disclose a material fact;

      (b) Knowingly uses or facilitates the use of a false statement or misrepresentation made by another person concerning a material fact or deliberately uses or facilitates the use of another person’s concealment or failure to disclose a material fact;

      (c) Receives any proceeds or any other money in connection with a mortgage lending transaction that the person knows resulted from a violation of paragraph (a) or (b);

      (d) Conspires with another person to violate any of the provisions of paragraph (a), (b) or (c); or

      (e) Files or causes to be filed with a county recorder any document that the person knows to include a misstatement, misrepresentation or omission concerning a material fact,

Ê commits the offense of mortgage lending fraud which is a category C felony and, upon conviction, shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years, or by a fine of not more than $10,000, or by both fine and imprisonment.

      2.  A person who engages in a pattern of mortgage lending fraud or conspires or attempts to engage in a pattern of mortgage lending fraud is guilty of a category B felony and, upon conviction, shall be punished by imprisonment in the state prison for a minimum term of not less than 3 years and a maximum term of not more than 20 years, or by a fine of not more than $50,000, or by both fine and imprisonment.

      3.  Each mortgage lending transaction in which a person violates any provision of subsection 1 constitutes a separate violation.

      4.  Except as otherwise provided in this subsection, if a lender or any agent of the lender is convicted of the offense of mortgage lending fraud in violation of this section, the mortgage lending transaction with regard to which the fraud was committed may be rescinded by the borrower within 6 months after the date of the conviction if the borrower gives written notice to the lender and records that notice with the recorder of the county in which the mortgage was recorded. A mortgage lending transaction may not be rescinded pursuant to this subsection if the lender has transferred the mortgage to a bona fide purchaser.

      5.  The Attorney General may investigate and prosecute a violation of this section.

      6.  As used in this section:

      (a) “Bona fide purchaser” means any person who purchases a mortgage in good faith and for valuable consideration and who does not know or have reasonable cause to believe that the lender or any agent of the lender engaged in mortgage lending fraud in violation of this section.

      (b) “Mortgage lending transaction” means any transaction between two or more persons for the purpose of making or obtaining, attempting to make or obtain, or assisting another person to make or obtain a loan that is secured by a mortgage or other lien on residential real property. The term includes, without limitation:

             (1) The solicitation of a person to make or obtain the loan;

             (2) The representation or offer to represent another person to make or obtain the loan;

             (3) The negotiation of the terms of the loan;

             (4) The provision of services in connection with the loan; and

             (5) The execution of any document in connection with making or obtaining the loan.

      (c) “Participant in a mortgage lending transaction” includes, without limitation:

             (1) A borrower as defined in NRS 598D.020;

             (2) An escrow agent as defined in NRS 645A.010;

             (3) A foreclosure consultant as defined in NRS 645F.320;

             (4) A foreclosure purchaser as defined in NRS 645F.330;

             (5) An investor as defined in NRS 645B.0121;

             (6) A lender as defined in NRS 598D.050;

             (7) A loan modification consultant as defined in NRS 645F.365;

             (8) A mortgage agent as defined in NRS 645B.0125;

             (9) A mortgage banker as defined in NRS 645E.100; and

             (10) A mortgage broker as defined in NRS 645B.0127.

      (d) “Pattern of mortgage lending fraud” means one or more violations of a provision of subsection 1 committed in two or more mortgage lending transactions which have the same or similar intents, results, accomplices, victims or methods of commission, or are otherwise interrelated by distinguishing characteristics.

      (Added to NRS by 2007, 2850; A 2009, 1462)