New license law, little action
Mortgage modification and foreclosure consultants are showing little interest in complying with a new Nevada law that requires them to obtain licenses.
The law took effect on July 1, and Gov. Jim Gibbons issued emergency regulations for licensing on July 8.
The Mortgage Lending Division gave consultants in the field until Aug. 9 to submit completed applications. The division expects to accept the applications on a temporary basis while it prepares permanent regulations.
So far, only four mortgage or foreclosure consulting services have applied, and all four applications were returned because they were incomplete, the division reported Wednesday.
The attorney general’s office can take civil or criminal action against modification and foreclosure consultants who operate without a license, spokeswoman Edie Cartwright said.
The division recommended that homeowners call it to make sure a company has applied or obtained a license before buying consultant services for mortgage loan modifications or foreclosure actions.
“With the rapid increase in mortgage delinquencies and foreclosures, consumers have been targets of foreclosure rescue and loan modification scams,” Mortgage Lending Commissioner Joseph Waltuch said in a statement.
The new law “provides additional protection for consumers by regulating the companies that are providing these services,” he said.
Waltuch will hold a hearing on permanent regulations at 9 a.m. Aug. 25 at the Sawyer Building, 555 E. Washington Ave., Room 4412.
The proposed regulations may take effect as soon as September.
Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.