Licensing

The real estate profession has become increasingly based in legalities. While a handshake can signify an agreement, the contract is the foundation of the real estate transaction today.

With the increased focus on legal issues, NVAR provides members services in the legal arena. Various articles on current and hot legal topics are provided through the weekly NVAR Online News. In addition, the Legal Information Line is available to members.

There are many real estate related questions that arise often. These FAQs (Frequently Asked Questions) by topic are provided to assist you in finding quick answers.

Licensing

I receive daily calls from our members wanting to know whether or not real estate agents can assist clients with loan modifications and charge the client separately for it.

The answer is, “Yes and no”.


Foreclosure Consultants Doing Loan Modifications. The 2007 Legislative Session added provisions to the law describing and defining “foreclosure consultants”, “foreclosure purchasers” and “foreclosure reconveyances”, among other things. The new law is contained in Nevada Revised Statutes Chapter 645F at 645F.300 through 645F.450. The parameters under which a person may provide foreclosure and loan modification services are:
NRS 645F.320 “Foreclosure consultant” defined. “Foreclosure consultant” means a person who, directly or indirectly, makes any solicitation, representation or offer to a homeowner to perform for compensation, or who, for compensation, performs any covered service that the person represents will do any of the following:
1. Prevent or postpone a foreclosure sale;
2. Obtain any forbearance from any mortgagee or beneficiary of a deed of trust;
3. Assist the homeowner to exercise the right of reinstatement provided in the legal documents;
4. Obtain any extension of the period within which the homeowner may reinstate the homeowner’s obligation;
5. Obtain any waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in foreclosure or included in the mortgage or deed of trust;
6. Assist the homeowner in foreclosure or loan default to obtain a loan or advance of money;
7. Avoid or ameliorate the impairment of the homeowner’s credit resulting from the recording of a notice of default or the conduct of a foreclosure sale;
8. Save the homeowner’s residence from foreclosure; or
9. Assist the homeowner to obtain a foreclosure reconveyance.
(Added to NRS by 2007, 2854)
NRS 645F.310 “Covered service” defined. “Covered service” includes, without limitation:
1. Financial counseling, including, without limitation, debt counseling and budget counseling.
2. Receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a mortgage or other lien on a residence in foreclosure.
3. Contacting a creditor on behalf of a homeowner. [note: this may include loan modifications].
4. Arranging or attempting to arrange for an extension of the period within which a homeowner may cure his default and reinstate his obligation pursuant to a note, mortgage or deed of trust.
5. Arranging or attempting to arrange for any delay or postponement of the time of a foreclosure sale.
6. Advising the filing of any document or assisting in any manner in the preparation of any document for filing with a bankruptcy court.
7. Giving any advice, explanation or instruction to a homeowner which in any manner relates to the cure of a default in or the reinstatement of an obligation secured by a mortgage or other lien on the residence in foreclosure, the full satisfaction of the obligation, or the postponement or avoidance of a foreclosure sale.
(Added to NRS by 2007, 2854)

So, the answer is “yes”, an agent can assist a client in negotiating a loan modification. However, the answer is “no” he/she cannot do this using his/her real estate license.

 

QUESTION:  If I want to doe short sale negotiations for sellers or buyers, what education to I need to get a negotiator license?  

RESPONSE:  The following education is required to obtain a short sale negotiator license and later renew the license.

EDUCATIONAL REQUIREMENTS FOR LICENSURE
      NAC 645F.500  Requirements for initial licensure. (NRS 645F.255, 645F.390)
     1.  A natural person who is an applicant for an initial license as a covered service provider, foreclosure consultant or loan modification consultant must complete at least:
     (a) If the applicant is applying for a license as a covered service provider, 25 hours of instruction.
     (b) If the applicant is applying for a license as a foreclosure consultant, 20 hours of instruction.
     (c) If the applicant is applying for a license as a loan modification consultant, 15 hours of instruction.
     2.  The required hours of instruction may be through live instruction in a classroom or through distance education.
     3.  The hours of instruction required by subsection 1 must include:
     (a) Three hours of professional ethics, which must include instruction on fraud, consumer protection and fair lending issues;
     (b) Six hours of federal law and regulations relating to mortgage lending, which must include not less than:
          (1) Two hours regarding the Real Estate Settlement Procedures Act, 12 U.S.C. §§ 2601 et seq.;
          (2) Two hours regarding the Truth in Lending Act, 15 U.S.C. §§ 1601 et seq., and Regulation Z, 12 C.F.R. Part 226; and
          (3) Two hours regarding other federal laws and regulations, including, without limitation, information related to the tax consequences of loan modification or foreclosure and federal programs designed to assist homeowners facing foreclosure; and
     (c) Four hours of Nevada law and regulations relating to mortgages, at least 2 hours of which must be related to this chapter and chapter 645F of NRS.
     4.  In addition to the hours of instruction specified in subsection 3, an applicant for an initial license must complete an adequate number of hours of instruction in elective subjects to meet the number of hours of instruction required by subsection 1.
     5.  An applicant for an initial license must provide to the Commissioner one or more certificates of completion, in a form satisfactory to the Commissioner, indicating that the applicant has successfully completed the hours of instruction required by this section. Certificates issued for all such courses must bear the name of the certifying organization.
     (Added to NAC by Comm’r of Mortgage Lending by R052-09, eff. 8-25-2009)
      
NAC 645F.505  Requirements for continuing education. (NRS 645F.255, 645F.390)
     1.  A licensee who is a natural person must complete, during the 12 months immediately preceding the date on which his or her license expires, at least:
     (a) If the licensee is a covered service provider, 10 hours of instruction in approved courses of continuing education.
     (b) If the licensee is a foreclosure consultant, 7 hours of instruction in approved courses of continuing education.
     (c) If the licensee is a license as a loan modification consultant, 5 hours of instruction in approved courses of continuing education.
     2.  An approved course of continuing education must focus on the practical application of transactions conducted by covered service providers, foreclosure consultants or loan modification consultants.
     3.  Of the hours of instruction required by subsection 1, a licensee must complete:
     (a) Two hours of professional ethics, which must include instruction on fraud, consumer protection and fair lending issues;
     (b) Two hours of federal law and regulations relating to mortgage lending; and
     (c) One hour of Nevada law and regulations relating to this chapter and chapter 645F of NRS or other Nevada laws and regulations relating to mortgages.
     4.  In addition to the hours of instruction specified in subsection 3, a covered service provider or foreclosure consultant must complete an adequate number of hours of instruction in elective subjects to meet the number of hours of instruction required by subsection 1.
     (Added to NAC by Comm’r of Mortgage Lending by R052-09, eff. 8-25-2009)
      NAC 645F.510  Course material for initial licensure and continuing education: Approved subjects. (NRS 645F.255, 645F.390)  The following subjects are approved as course material for initial licensing and continuing education:
     1.  Federal and Nevada state laws and regulations relating to mortgage lending or the activities of covered service providers, foreclosure consultants and loan modification consultants.
     2.  The provisions of:
     (a) This chapter or chapter 645F of NRS governing covered service providers, foreclosure consultants and loan modification consultants;
     (b) Chapter 645B of NRS governing mortgage brokers and mortgage agents;
     (c) Chapter 598D of NRS governing unfair lending practices;
     (d) Chapter 645A of NRS governing escrow agencies and agents; and
     (e) Chapter 107 of NRS governing deeds of trust.
     3.  Practices and information relating to covered service providers, foreclosure consultants and loan modification consultants or to the mortgage industry, including, but not limited to, federal programs designed to assist homeowners facing foreclosure.
     4.  Ethics and deceptive trade practices.
     5.  Any other subject approved by the Commissioner, including, but not limited to, the tax consequences of a loan modification or foreclosure.
     (Added to NAC by Comm’r of Mortgage Lending by R052-09, eff. 8-25-2009)
      NAC 645F.515  Approval of provider: Application; appeal of denial of approval. (NRS 645F.255, 645F.390)
     1.  A provider that wishes to offer approved courses to meet the educational requirements for licensure or continuing education under this chapter and chapter 645F of NRS must apply to the Commissioner before offering any approved courses and annually thereafter on or before December 31 for approval on a form prescribed by the Commissioner. The application must include, without limitation:
     (a) The name and address of the provider;
     (b) The type of provider and a description of its facilities;
     (c) Any information requested by the Commissioner concerning the ownership of the provider, including the business organization and the names and addresses of all directors, principals, officers and others having interests as owners;
     (d) A list of the instructors;
     (e) A list of the courses to be offered and a hard copy of course materials for each course;
     (f) The allotment of time for each subject;
     (g) A tentative schedule of courses;
     (h) The titles, authors and publishers of all required textbooks;
     (i) A copy of each examination to be used and the correct answer for each question;
     (j) A statement of:
          (1) The purpose of the provider;
          (2) The fees to be charged;
          (3) The days, times and locations of classes;
          (4) The number of quizzes and examinations for each course;
          (5) The grading systems, including the methods of testing and standards of grading for each course;
          (6) The requirements for attendance; and
          (7) The location of the students’ records;
     (k) A statement as to whether the provider or any instructor employed by the provider has been disciplined by any governmental agency in this State or any other state; and
     (l) A statement that educational courses will not be provided free of charge as an inducement for students or their employers to use the services of the provider for any activities related to covered service providers, foreclosure consultants or loan modification consultants.
     2.  The Commissioner may waive the requirements of this section for courses offered by or through a federal or state governmental agency.
     3.  If the application of the provider is denied, the provider may appeal the decision of the Commissioner to deny approval of the provider by filing an appeal with the Commissioner not later than 20 days after the date on which the denial or withdrawal of the approval of the provider becomes effective, and the provider will have a right to a hearing.
     4.  The Commissioner has the right to be awarded and recover costs and attorney’s fees from the provider related to a hearing in which the hearing officer affirms the denial or withdrawal of approval of a provider.
     (Added to NAC by Comm’r of Mortgage Lending by R052-09, eff. 8-25-2009)