Repurchase of home loan by lender who sold home loan.

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1. If an action has been filed in a court of competent jurisdiction claiming an unfair lending practice in connection with a home loan, the lender who holds the home loan may sell the home loan and recover damages and costs as provided in this section if the lender did not:

(a) Originate the home loan; and

(b) Willfully engage in any unfair lending practice described in this chapter in connection with the home loan.

2. The lender described in subsection 1 may require the person from whom the lender purchased the home loan described in subsection 1 to:

(a) Repurchase the home loan for the amount the lender paid for the home loan; and

(b) Pay to the lender all damages and reasonable costs incurred by the lender that are related to:

(1) The purchase of the home loan by the lender from the person;

(2) Any damages awarded in the action described in subsection 1;

(3) Any costs related to the action described in subsection 1;

(4) The repurchase of the home loan by the lender if the lender was required to repurchase the home loan from another lender pursuant to this section; and

(5) The repurchase of the home loan from the lender by the person pursuant to this section.

3. The person described in subsection 2:

(a) Shall repurchase the home loan and pay the damages and costs as described in subsection 2; and

(b) After repurchasing the home loan, may sell the home loan and recover damages and costs as provided in this section if he or she is a lender described in subsection 1.

(Added to NRS by 2003, 2891)


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