This law rewrote the NC Mortgage Lending Act to conform with new federal legislation. Though the bulk of the law remains the same, some new protections were added, including:
- An increase in the bond required for mortgage brokers, to between $75,000 to $250,000 depending on the broker's activity. Previously the bond requirement was a flat $50,000
- An explicit statement of the broker's duty of loyalty to the borrower, prohibiting the broker from making loans that are in his or her best interest rather than the borrower's.
The act also allows certain brokers to be licensed upon completion of an alternative training program instead of meeting the usual experience requirements. Brokers who are independent contractors, acting as agents for a single mortgage lender or broker licensee who is responsible for them, may be licensed after completing a mortgage lending course provided by the lender or licensee. Such training must be approved by the Commissioner. Each broker licensed in this way must be covered by a surety bond of $5 million, which may be posted by the broker or the lender or licensee for whom he or she acts.