Last Thursday, most home loan modification and foreclosure consultants in Nevada would have been breaking the law without even knowing it. However, that same day, Nevada’s Mortgage Lending Division issued a deadline extension to ensure that home mortgage modification and foreclosure consultants would have the means to meet all requirements of a recently-passed state law.
According to the law, home loan modification and foreclosure consultants must now be licensed through the state’s mortgage division. The law also requires these licenses to be accompanied by a $75,000 surety bond. The original application deadline was Thursday, October 1. The new deadline has been extended to Monday, November 2.
Even though a deadline had originally been established, a September 30 report from the mortgage division claimed that of the 50 applications that were being processed, the required $75,000 mortgage broker bond accompanied none.
The mortgage division decided to extend the deadline after the public claimed the bonding requirement wasn’t made clear to the necessary individuals. Those found to be operating without the bond after the new November 2 deadline risk being fined. The state requires the bond to ensure that consumers are financially protected if a broker, mortgage modification or foreclosure consultant were to violate the law and cause damages.