1. It is an unfair lending practice for a lender to:
(a) Require a borrower, as a condition of obtaining or maintaining a home loan secured by home property, to provide property insurance on improvements to home property in an amount that exceeds the reasonable replacement value of the improvements.
(b) Knowingly or intentionally make a home loan, other than a reverse mortgage, to a borrower, including, without limitation, a low-document home loan, no-document home loan or stated-document home loan, without determining, using any commercially reasonable means or mechanism, that the borrower has the ability to repay the home loan.
(c) Finance a prepayment fee or penalty in connection with the refinancing by the original borrower of a home loan owned by the lender or an affiliate of the lender.
(d) Finance, directly or indirectly in connection with a home loan, any credit insurance.
2. As used in this section:
(a) “Credit insurance” has the meaning ascribed to it in NRS 690A.015.
(b) “Low-document home loan” means a home loan:
(1) Whose terms allow a borrower to establish his or her ability to repay the home loan by providing only limited verification of his or her income and other assets; or
(2) Which is evidenced only by a deed transferring some or all of the interest of the borrower in the home property to the creditor.
(c) “No-document home loan” means a home loan whose terms allow a borrower to establish his or her ability to repay the home loan without providing any verification of his or her income and other assets.
(d) “Prepayment fee or penalty” means any fee or penalty imposed by a lender if a borrower repays the balance of a loan or otherwise makes a payment on a loan before the regularly scheduled time for repayment.
(e) “Stated-document home loan” means a home loan whose terms allow a borrower to establish his or her ability to repay the home loan by providing only his or her own statement of verification of his or her income and other assets.
(Added to NRS by 2003, 2890; A 2007, 2846)
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.