Nevada Mortgage Regulators On the Block

“The effect of this merger will eliminate the commissioner responsible for managing, policing, and assisting only those who work in mortgage lending.,” the draft said.

The mortgage division is reportedly headed by Commissioner Joe Waltuch.

The draft went on to suggest that the planned move could impede assistance by the state on interpretation of Nevada law, timely follow up to exams and complaints, and overall customer service.

“It will also likely mean the inability of a commissioner and department that can effectively monitor and enforce Nevada regulations against companies who choose not to act in compliance,” the statement said.

The mortgage lending division was criticized in a state audit released last month for failing to perform annual licensee examinations during 2007, failing to create procedures for scheduling examinations using a risk-based approach and not having a functional hearings process.

The division did too little to collect around $1.5 million in unpaid assessments, fees and fines, according to the audit — which was prepared by Nevada’s Legislative Counsel Bureau. The division has only filled one examiner position even though 11 were authorized by the legislature.

The audit recommended a 60-day corrective action plan.

But mortgage bankers questioned the planned integration by Nevada.

“Considering the amount of press our industry has received in the past two years, it is surprising to see that the State of Nevada would feel that less regulation and fewer resources would be the appropriate solution to their budget crisis,” the draft stated.

Related:
Regulation Under Fire
As regulatory orders continued to be hurled at financial institutions, a state audit identified shortfalls with Nevada mortgage regulators and a federal audit called the U.S. financial regulatory system fragmented, outdated and inadequate.