The Nevada Legislative Council Bureau (LCB) had release findings about the much aligned Nevada Assembly Bill 440.  As most of you know, this bill has changed the landscape of low doc, no doc, and stated income lending in Nevada.  This bill could also trickle into or has already trickeled into HR 3915.

In my opinion, this letter clearly outlines that this bill was over reacted too by many.  The Nevada assembly had the consumer in mind when they wrote this bill.  It was meant to protect them from fraud in relation to low doc, no doc, and stated income loans.  Unfortunately when some of the larger Mortgage Banks and their attorneys got a hold of it they over analyzed it to death and made it into something it WAS NOT!  I guess you can't really blame them. 

The LCB's opinion first focused on defining, "a commercially reasonable means or mechanism" in regards to a Nevada Mortgage Agents means to verify a borrowers income.  Even going so far as citing three case law precedents about ambiguity in the language of law.  They also state that "the Legislature should not provide a definition for a term or phrase used in a law if the term or phrase is intended to have its common or ordinary meaning."

The LCB then clarified that a body such as The Nevada Mortgage Lending Division WOULD have the authority to issue an opinion which could be used to clarify a law and in some cases assist in a legilative action.  This in response to the MLD's AB 440 Opinion Letter 1 and AB 440 Opinion Letter 2.

They further went into clarification about effects on Secondary Market servicers, Government home loans and loans pending when the bill was enacted.  View the LCB AB 440 opinion letter.

Your mortgage partner for life,