Nevada passed a bill imposing net worth requirements for covered institutions licensed under the Mortgage Servicers Act. Under the bill, covered institutions that service (or subservice) at least 2,000 mortgage loans must maintain sufficient allowable assets for liquidity, in addition to the amounts required for servicing liquidity, to cover normal business operations. Covered institutions that meet the Federal Housing Finance Agency’s eligibility requirements for enterprise single-family seller/servicers with respect to minimum capital ratio, net worth and liquidity are deemed in compliance with this requirement (regardless of whether the covered institution is approved for government sponsored enterprise servicing). The net worth and additional requirements do not apply to covered institutions that solely own or conduct reverse annuity mortgage servicing, or the reverse annuity mortgage portfolio administered by a servicer. Also, the bill requires covered institutions to maintain a board of directors, annually procure an external audit, and establish a risk management program. “Covered institution” means a mortgage servicer that services or subservices for others at least 2,000 or more 1 to 4 unit residential mortgage loans in the United States, excluding whole loans owned, and loans being interim serviced prior to sale as of the most recent calendar year end, reported in the NMLS mortgage call report. In addition, the bill also requires mortgage companies, mortgage loan originators, and mortgage servicers (who service more than 2,000 or more 1 to 4 residential mortgage loans) to notify the Commissioner of Financial Institutions or Commissioner of Mortgage Lending in the event of a “notification event” involving nonpublic personal information. “Notification event” means the acquisition of unencrypted customer information without the authorization of the individual to which the information pertains. The bill provides an exemption to certain entities with respect to the notification event requirements for mortgage companies and mortgage servicers that maintain customer information.
The bill becomes effective January 1, 2026.
Click to view the Nevada Senate Bill No. 44: https://www.tenaco.com/wp-content/uploads/2025/08/NV-SB-44-05-29-25.pdf
