North Carolina

SB 1216 has two major components. First, it continues the State Home Foreclosure Prevention Project (SHFPP) through May 31, 2013 and expands the program to cover all NC home loans not just subprime loans. Second, it modifies the points & fees trigger for determining if a mortgage is high-cost. State Home Foreclosure Prevention Project Continued & Expanded This law continues...

SB 974, SB 974, which had the strong support of Attorney General Roy Cooper, includes important new consumer protections in two distinct areas: Greater protections for homeowners during the foreclosure process; and greater protections for consumers against abusive debt buying activities. Foreclosure protections: This new law allows a clerk of court to continue (delay) a foreclosure hearing for up to...

H1057 prohibits deficiency judgments on predatory home loans in North Carolina. A deficiency judgment can be pursued by the lender if a foreclosed home sells at auction for less than the mortgage on the home. For the increasing number of homeowners who owe more on their loan than their home is worth (upside down in their mortgage), deficiency judgments add...

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...

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...

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...

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...

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...

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...