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HB 814/SB 559 Fair Compensation for Mortgage Broker/Lender

August 15, 2011
Mortgage Lending
Bill Law

HB 814 and its companion SB 559, Fair Compensation for Mortgage Broker/Lender would have rolled back mortgage lending protections in our state including:

  • Weakening our predatory mortgage lending protections by raising the limits on allowable fees and discount points,
  • Cutting broker bond requirements in half, a serious problem for borrowers who have been harmed by a broker, and
  • Reducing the oversight of mortgage brokers who are having personal financial problems, as reflected in their credit reports.

The NC Commissioner of Banks (NCCOB) persuaded the bill sponsors to allow NCCOB to investigate these issues further and recommend to the legislature what action, if any, should be taken. Since the bills did not pass either House, they are technically ineligible for consideration, but legislative leadership could insert language in many other places.