Nevada has always allowed individuals without a Nevada mortgage broker or solicitors license to originate loans on residential property in Nevada if the loan was not solicited and the borrower was a previous client, a friend, or a family member.

Due to the passage of AB375 in the 2007 Legislative Session, effective 10/1/07 the provisions of NRS 80.015 are amended to limit the unsolicited origination of mortgage loans in Nevada by unlicensed/non-exempt companies to commercial properties only. After 10/1/07 all Nevada 1 to 4 family residence mortgage loan origination’s will be subject to all applicable licensing or exemption requirements prescribed by law.

NRS 80.015 contains a list of activities that do not constitute “doing business” in this state including “

[c]reating or acquiring indebtedness, mortgages and security interests in real or personal property.” NRS 80.015(1)(g). However, a person is considered doing business in Nevada and is subject to applicable licensing requirements pursuant to chapter 645A, 645B or 645E of NRS or title 55 or 56 of NRS if the person:

“(a) Maintains an office in this state for the transaction of business;

(b) Solicits or accepts deposits in the State, except pursuant to the provisions of chapter 666 or 666A of NRS;

((c) & (d) added pursuant to AB 375, effective 10-1-07)

(c) Solicits business for the activities of a mortgage broker as defined by NRS 645B.0127 or the activities of a mortgage banker as defined by NRS 645E.100; or

(d) Arranges a mortgage loan secured by real property which is not commercial property as defined by NRS 645E.040″