North Carolina

H1058 significantly increases the amount of equity in their home that a homeowner can protect from creditors. This allows individuals with debt to keep their homes rather than having their home sold to satisfy a judgment. The law raises the NC homestead exemption from $18,500 to $35,000 per individual ($70,000 per married couple). If the homeowner is 65 or older, and previously owned the home with their deceased spouse, they can exempt $60,000.

HB 1523, with the strong support of the NC Commissioner of Banks, rewrote the current NC Mortgage Lending Act (MLA) to conform to standards required under new Federal legislation. Though the bulk of the Act stays the same, some new protections were added, including: Increases the bond required for mortgage brokers from $50,000 for all brokers to a sliding scale of $75,000 to $250,000, depending on the broker's lending activity, and Explicitly states that the broker owes a duty of loyalty to the borrower and cannot make loans that are in the broker's best interest rather than the borrower's...

Most consumer finance companies turned a profit in 2008. While the rest of the financial world was reeling from the recession and the effects of poor lending practices, 80% of NC consumer finance companies turned a profit. Clearly, the law provides ample opportunity for consumer finance companies to profit. Consumer finance companies are demanding guaranteed profits. The CEO of a consumer finance company said in an open meeting, "I deserve a 15% return on equity." The law should only guarantee the ability to make a profit, not confer a right to profit for anyone who applies for a license...

Download Full Report (PDF) NCCOB REPORT SHOWS THAT CHANGES TO THE CONSUMER FINANCE ACT ARE UNNECESSARY AND UNWARRANTED "In light of the foregoing findings and after careful consideration of the following report and submissions from meeting participants, the Commissioner does not recommend any changes in the CFA [Consumer Finance Act], either to enhance industry revenue or increase consumer protections." The report is the culmination of four NCCOB-sponsored meetings – three and one half of which were dedicated to industry presentations -- and months of data analysis and other research. This is...

This color-coded map of payday stores by household reveals a disturbing pattern. Southern states are among the most targeted for these high-cost, low-dollar loans.

Summary of Bill Full Session Law This legislation creates a program within the Commissioner of Banks' office designed to reduce the number of subprime foreclosures in North Carolina. The law requires that homeowners receive at least 45 days' notice before foreclosure proceedings begin, and gives the Commissioner of Banks (COB) the authority to extend the foreclosure process an additional 30 days to facilitate efforts between servicers and borrower to save the borrower's home. In addition, the law provides that the Commissioner may use existing funds to hire staff and to create a database...

Summary of the North Carolina Mortgage Broker Licensing Law (pdf) Full Text of Mortgage Broker Licensing Law (pdf) Session Law FAQs about the NC Broker 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...

In this report, we estimate how many homes—including families who are paying their mortgage on time—will suffer a decline in property values because of foreclosures in their neighborhoods. We also estimate how much the average family will lose in home equity, and how much of an impact the foreclosure crisis will have on city and county coffers.

Payday Lenders Set Up Shop in African-American Neighborhoods Neighborhoods with many African-American families house more than their share of predatory payday loan shops. View maps that show where payday shops are located relative to minorities in your part of the state. While the payday lending industry frequently describes its typical customer in detail, discussion of race is noticeably absent. This report corrects that omission. Our analysis of North Carolina neighborhoods reveals a powerful relationship between the proportion of African-Americans in a neighborhood and the prevalence of...