Nevada § 205.372 - Mortgage lending fraud; penalties; civil action

§ 205.372. Mortgage lending fraud; penalties; civil action

1. A person who is a participant in a mortgage lending transaction and who: (a) Knowingly makes a false statement or misrepresentation concerning a material fact

or knowingly 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 knowingly 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, 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may be rescinded by the borrower within 6 months after the date of the conviction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 A mortgage lending transaction may not be rescinded pursuant to this subsection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. In addition to the criminal penalties imposed for a violation of this section,

any person who violates this section is subject to a civil penalty of not more than

$5,000 for each violation. This penalty must be recovered in a civil action, brought in the name of the State

of Nevada by the Attorney General. In such an action, the Attorney General may recover reasonable attorney's fees and

costs. 7. The owner or holder of the beneficial interest in real property which is the subject

of mortgage lending fraud may bring a civil action in the district court in and for

the county in which the real property is located to recover any damages suffered by

the owner or holder of the beneficial interest plus reasonable attorney's fees and

costs. 8. 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 loan originator as defined in NRS 645B.0125 ; (9) A mortgage company as defined in NRS 645B.0127 ; and (10) A mortgage servicer as defined in NRS 645F.063 . (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 purposes, results,

accomplices, victims or methods of commission, or are otherwise interrelated by distinguishing

characteristics.