1. If a mortgage company or mortgage loan originator solicits or receives money from an investor, the mortgage company or mortgage loan originator shall not:
(a) In any advertisement; or
(b) Before, during or after solicitation or receipt of money from the investor,
make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the investor will be repaid the principal amount of money he or she invests or will earn a specific rate of return or a specific rate of interest on the principal amount of money he or she invests.
2. If a mortgage company offers to pay or pays premium interest on money that the mortgage company receives from a person to acquire ownership of or a beneficial interest in a loan secured by a lien on real property or in full or partial payment of such a loan:
(a) The premium interest must be paid from the assets or income of the mortgage company; and
(b) The mortgage company or a mortgage loan originator shall not:
(1) In any advertisement; or
(2) Before, during or after receipt of money from such a person,
make, or cause or encourage to be made, any explicit or implicit statement, representation or promise, oral or written, which a reasonable person would construe as a guarantee that the mortgage company will pay the premium interest.
3. A person who violates any provision of this section is guilty of a misdemeanor and shall be punished as provided in NRS 645B.950.
4. As used in this section, “premium interest” means that amount of interest a mortgage company pays to a person which exceeds the amount which is being obtained from the insured depository financial institution.
(Added to NRS by 1985, 2185; A 1999, 3799; 2017, 3057, effective January 1, 2020)
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