On May 26, the governor of Nevada enacted SB 44 to impose new duties on financial services providers in Nevada, aligning state requirements for safeguarding customer information with FTC standards in its safeguards rule (16 C.F.R. Part 314). The new regulations require businesses to, among other things: (i) develop, implement and maintain a comprehensive information security program that consists of the administrative, technical and physical safeguards the financial institution uses to manage customer information; and (ii) implement information security programs and report unauthorized acquisitions of customer information to the FTC.
This legislation affects a wide range of financial service providers — including mortgage companies, mortgage loan originators, mortgage servicers, foreclosure purchasers, loan modification consultants, collection agencies, persons operating deferred deposit loan services, high-interest loan services, earned wage access services providers, trust companies, student loan servicers, private education lenders, money transmitters and their authorized delegates, and providers of debt-management services — who must now also notify state commissioners of certain events, i.e., a “notification event” under 16 C.F.R. Part 314.2(m).
The act outlined standards for the financial condition and corporate governance of mortgage servicers who manage 2,000 or more residential mortgage loans across multiple states. Covered institutions must maintain a certain amount of liquidity, establish risk management programs, and conduct annual assessments. The Commissioner of Mortgage Lending holds the authority to enforce, investigate and discipline as necessary.
Additionally, the legislation empowers the Commissioner to adopt regulations to ensure adherence to these standards and allows for flexibility in enforcement based on risk assessments. The bill’s provisions become effective on January 1, 2026, with some tasks beginning immediately upon passage.
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