In a change positively impacting lending in Nevada, lenders who are unlicensed in the state of Nevada may conduct transactions through a licensed mortgage broker in the state, effective Jan. 1, 2020. Chapter 645B of NRS relates to commercial mortgage lending in the state of Nevada, Lever Capital Partners announced in a release.
The bill exempts wholesale lenders who only fund or purchase commercial mortgage loans from obtaining a license. The recent assembly Bill No. 398 amends Chapter 645B by adding the line, “The provisions of this chapter do not apply to a wholesale lender who only funds or purchases commercial mortgage loans.”
Prior to the amendment, the law required persons and entities engaged in mortgage lending in Nevada to be licensed by the commissioner of mortgage lending in Nevada.
“It was difficult for the state to track the transfer of funds, as the state lacks the staff to properly track the companies lending with or without a proper license,” Lever Capital Partners’ Principal Adam Horowitz said in the release. “Often the state focused primarily on unlicensed residential loans; therefore groups either lent illegally, filed for an exemption, or forewent lending in the state all together.”
Horowitz, according to the release, was aware of the complications this was causing within the industry and wanted to enact change. He spearheaded the amendment to the bill as he knew this would be beneficial to the state and open doors to out-of-state capital providers wanting to lend in Nevada. The bill will allow projects to be completed more easily, promote competition and increase dollars flowing into the state. The state also will be able to monitor deal traffic more easily as the transactions will be better regulated.
Lever Capital Partners maintains a commercial lending license within the state of Nevada and is on the board of the Nevada Advisory Council on Mortgage Investments and Mortgage Lending.