Restrictions on withholding money from certain investors; loan servicing agreement may contain provision which provides written consent to withhold money. [Effective January 1, 2020.]

  1. Law
  2. Nevada Revised Statutes
  3. Mortgage Companies and Mortgage Loan Originators
  4. Restrictions on withholding money from certain investors; loan servicing agreement may contain provision which provides written consent to withhold money. [Effective January 1, 2020.]

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1. If an investor owes money to the mortgage company who is servicing a loan or to other investors, the mortgage company shall not withhold money due the investor in order to offset the money owed to the mortgage company or to another investor, unless:

(a) The mortgage company obtains the written consent of the investor who owes the money; or

(b) A court order requires the mortgage company to withhold the money.

2. A mortgage company may include in a loan servicing agreement a provision which provides written consent to withhold money due an investor in order to offset money owed by the investor to the mortgage company or other investors.

(Added to NRS by 2011, 3604; A 2017, 3066, effective January 1, 2020)


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