SB 904 Mortgage Broker Licensing Law
In August 2001, NC Governor Mike Easley signed into law the NC Mortgage Lending Act, Senate Bill 904. This law passed both houses with strong support and was endorsed by all major financial trade associations. It sets new licensing requirements for mortgage bankers, mortgage brokers and mortgage loan officers. It is the second phase of predatory lending reform in NC, following the NC Predatory Lending Act passed in 1999, which regulates the terms of a predatory loan. Both laws will substantially protect the equity that NC homeowners have invested in their homes by further curbing abusive lending practices. The law went into effect on July 1, 2002.
"NC has taken another step in protecting consumers by setting high standards for the people who broker mortgage deals. This new law holds mortgage brokers accountable and gets rid of those who would cheat their customers."
Roy Cooper, NC Attorney General
"Our Association applauds this new law, which ensures that those who provide mortgage loans in NC adhere to high standards."
Jeremy M. Salemson, NC Association of Mortgage Professionals