Wednesday, May 26, 1999 | 11:30 a.m.
CARSON CITY -- A mortgage regulation bill, which originated partially in response to the collapse of the Harley Harmon Mortgage Co., was expected to be endorsed by a Senate committee today.
"This is without a doubt the most important piece of consumer-protection legislation to be considered during this session," Assemblyman David Goldwater, D-Las Vegas, said. "Right now, I'm cautiously optimistic that it will be approved by the Senate. ... But I don't have commitments from anyone to support the bill."
Goldwater, who sponsored the bill, said he is unwilling to compromise further on a controversial provision, which would limit the amount of authority investors can give a mortgage broker to handle their affairs.
Some people in the mortgage industry are concerned about the provision, which would require investors to sign a power of attorney for each investment transaction. Currently, investors can sign a blanket power of attorney when they begin working with a particular mortgage broker.
Goldwater said it is important that investors make a decision for each individual investment.
"I won't tell you that this bill would have prevented the whole Harley Harmon problem. But I can tell you that I don't think as much money would have been lost," Goldwater said.
No charges were filed in connection with the practices of the Harley L. Harmon Mortgage Co., in which Las Vegas investors reportedly lost millions of dollars.
The laws are not clear as to who should investigate and prosecute such crimes in Nevada, Goldwater has said. The mortgage industry is exempt from the state's securities act, and neither Metro Police officials nor officials from the Clark County District Attorney's office nor the State Attorney General's Office knew who had jurisdiction over the matter, he said.
The bill, passed by the Assembly April 30, calls for giving the attorney general's office jurisdiction over investigation and prosecution of all criminal and civil cases regarding the mortgage brokers and bankers' industry.
It outlines disciplinary actions, sets maximum fines of up to $10,000 and classifies violations as major or minor ones.
archive
