North Carolina

Full Session Law This bill made technical and clarifying changes to anti-predatory lending laws for high-cost and rate-spread mortgages. The law became effective October 1, 2009. High-Cost Loans For high-cost loans, the bill clarified the definition of points and fees to include costs paid by the borrower "at or before closing". Rate-Spread Loans After the updates made through this bill...

Full Session Law This act, which became effective October 1, 2009, prohibits deficiency judgments on predatory home loans in North Carolina. A deficiency judgment is a lender's way of recovering the balance owed on a loan in the event that the proceeds of a foreclosure sale do not fully cover the amount owed. Under this law, deficiency judgments are restricted...

Full Session Law This law, which went into effect October 1, 2009, strengthened consumer protections in the areas of foreclosure and debt buying activities. Foreclosure Protections Under this law, the clerk of the court may delay foreclosure hearings for owner-occupied residences by up to 60 days, if the clerk finds good cause to believe the additional time has a reasonable...

Full Text of the Law Short Summary of SB 1149 Full Summary of SB 1149 In 1999, North Carolina became the first state to enact legislation to curb predatory mortgage lending. Over the many years since, the North Carolina law has proven its effectiveness in curtailing predatory lending while preserving a robust subprime lending market. During the first year after...

Summary Full Session Law This legislation does two things. First, it made technical corrections to provisions enacted last year providing new protections for consumers in loan servicing. Second, the law banned subprime yield-spread premiums (YSPs). YSPs are compensation paid to a broker for increasing the interest rate on a loan or for getting the borrower to agree to accept unfavorable...

Full Session Law (pdf) Bill Summary (pdf) This legislation requires mortgage loan servicers doing business in North Carolina to be licensed and imposes new standards on their loan collection activities, providing more protection for North Carolina homeowners. This bill adds mortgage servicing regulation to the regulation of mortgage bankers and mortgage brokers. New duties for mortgage servicers include: Safeguarding and...

See details below about 2015 NC General Assembly bills: Senate budget bill would repeal State Fair Housing Act Bill to legalize 80 to 125% loans still stalled Bill to roll back debt collection protections also stalled Ratified bill reduces protections against harassing calls Wage garnishment put into study committee bill Bills to reduce protections against mortgage broker abuses have not...

August 8, 2013 This legislative session was truly like no other in recent history. Many changes to existing laws were made, and certainly our laws protecting consumers from predatory lending were targeted. A stated objective of the 2013 legislature was to reduce regulation and revise North Carolina's business-related laws to be no more stringent than federal law. This, coupled with...

June 20, 2013 Learn about a pair of stalled payday lending bills, a bill to authorize predatory car title lending bill, a just signed consumer installment loan law that raises rates and fees, and a predatory mortgage lending bill in committee in our June 2013 NC legislative update. Payday bills stalled (SB 89/HB 875) Car title lending bill stalled (HB...

On July 3, the NC General Assembly adjourned until January 2013. In this Legislative Wrap-up for the two-year session, we have summarized (click on each bill to learn more): Bad bills that died HB 810: Raise rates and fees on installment loans HB 814: Weaken mortgage lending protections HB 654: Weaken protections against foreclosure rescue scams and real estate abuses...