CARSON CITY (AP) - Investors in short-term mortgage loans, often called trust deeds, will be required to meet minimum financial requirements in Nevada, under a bill passed by the Senate Commerce
and Labor Committee.
State Mortgage Lending Commissioner Scott Bice will set the minimum financial requirements by regulation under terms of the measure.
Private lenders typically solicit investments from individual investors for the short-term loans, which are secured by real estate and generally pay double-digit interest rates.
But individual investors have lost millions of dollars in the last few years as some private lenders have failed. Many retirees, however, continue to rely on trust funds as a key source of income to supplement Social Security benefits.
(Copyright 2007 by The Associated Press. All Rights Reserved.)