1. The Commissioner of Financial Institutions shall, with the cooperation of the Commissioner of Mortgage Lending, adopt regulations concerning nontraditional mortgage loan products and lending practices of persons and financial institutions that are required to be licensed or registered pursuant to the provisions of this title and chapters 645B and 645E of NRS and which make or offer to make loans that are secured by liens on real property.
2. The regulations required to be adopted by subsection 1 must be substantially similar to the provisions set forth in the “Guidance on Nontraditional Mortgage Product Risks” published by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators on November 14, 2006.
3. If the publication is revised, the Commissioner shall review the revision to determine whether the revision is suitable for this State. If the Commissioner determines that the revision is suitable for this State, he or she shall adopt a regulation that includes the revision.
4. If the Commissioner determines that the revision is not suitable for this State, the Commissioner shall hold a hearing within 60 days after his or her determination and give notice of the hearing. If, after the hearing, the Commissioner does not revise his or her determination, the Commissioner shall give written notice within 30 days after the hearing that the revision is not suitable for this State.
5. As used in this section, “nontraditional mortgage loan product”:
(a) Means a residential loan agreement whose terms allow a borrower to defer repayment of principal or payment of interest on the loan for a period.
(b) Includes, without limitation:
(1) An interest-only loan; and
(2) A payment option adjustable-rate mortgage.
(c) Does not include:
(1) A home equity line of credit other than a simultaneous second-lien home equity line of credit; or
(2) A reverse mortgage.
(Added to NRS by 2007, 250; A 2017, 3103)
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