AMEND PREDATORY LENDING LAW.

View NCGA Bill Details2013-2014 Session
House Bill 692 (Public) Filed Tuesday, April 9, 2013
A BILL TO BE ENTITLED AN ACT TO AMEND THE NORTH CAROLINA ANTI-PREDATORY LENDING LAW, AND TO LIMIT THE PROVISIONS OF STATE MORTGAGE LENDING LAW TO BEING NO MORE RESTRICTIVE THAN FEDERAL LAW.
Intro. by Szoka, Hanes, Dockham, Samuelson.

Status: Ch. SL 2013-399 (House Action) (Aug 23 2013)

Bill History:

H 692/S.L. 2013-399

Bill Summaries:

  • Summary date: Sep 3 2013 - More information

    AN ACT TO AMEND THE NORTH CAROLINA ANTI-PREDATORY LENDING LAW, AND TO LIMIT THE PROVISIONS OF STATE MORTGAGE LENDING LAW TO BEING NO MORE RESTRICTIVE THAN FEDERAL LAW. Enacted August 23, 2013. Effective October 1, 2013.


  • Summary date: Jul 18 2013 - More information

    Senate amendment makes the following change to the 4th edition.

    Makes a technical change to proposed GS 24-1.1F(b1), concerning rate spread home loans, deleting a citation referring to 15 USC § 1639c(c) and replacing it with 15 USC § 1639c(a).


  • Summary date: Jul 17 2013 - More information

    The Senate committee substitute to the 3rd edition changes the effective date of the act from July 1, 2013, to October 1, 2013.


  • Summary date: May 8 2013 - More information

    House amendment makes the following changes to the 2nd edition.

    Deletes the repeal of GS 24-1.1F, Rate spread home loans.

    Instead, deletes GS 24-1.1F(a), (b), (c), and (d). Enacts new GS 24-1.1F(a1), (b1),  (c1), and (d1). GS 24-1.1F(a1) provides that a rate spread home loan is a loan with an annual percentage rate (APR) that exceeds the limits set out in 15 USC 1639c(c)(1)(B)(ii) and any additional regulations promulgated thereunder. GS 24-1.1F(b1) provides that making a rate spread home loan that violates 15 USC 1639c(c) is declared as usurious in violation of the provisions of this Chapter. GS 24-1.1F(c1) provides that any prepayment penalty in violation of 15 USC 1639c(c) will be unenforceable. GS 24-1.1F(d1) provides that a borrower is not entitled to recover twice for the same wrong. Allows the Attorney General, Commissioner of Banks, or any party to a rate spread home loan to enforce the statute. Provides that a mortgage broker who brokers a rate spread home loan that violates the statute will be jointly and severally liable with the lender.

     

     

     


  • Summary date: May 6 2013 - More information

    House committee substitute makes the following changes to the 1st edition.

    Deletes the changes to GS 24-1.1A(a) regarding contract rates on home loans secured by firstmortgages or first deeds of trust.

    Amends the definition of "points and fees" in GS 24-1.1E(a)(5) to exclude any up-front fees collected and paid to the Federal Housing Administration, the Veteran's Administration, or theU.S. Department of Agriculture to insure or guarantee a home loan, and eliminates references to the amount of the loan and to up-front payments for private mortgage insurance premiums.


  • Summary date: Apr 11 2013 - More information

    Amends GS 24-1.1A(a), regarding contract rates on home loans secured by firstmortgages or first deeds of trust. Current law provides that parties to a home loan may contract in writing for the payment of interest based on the principal amount of the loan. Provides that the payment of interest may be at a rate agreed upon by the parties (1) if the principal is $20,000 (was, $10,000) or moreor (2) if the principal is less than $20,000 (was, $10,000) and lender meets specified criteria. Provides that if the principal is less than $20,000 (was, $10,000) and lender does not meet the specified criteria, the parties may contract for the payment of interest not in excess of 16% per annum.

    Amends GS 24-1.1E(a)(5), which defines points and fees.Amends the definition to provide that the term points and feesdoes not apply to (1) up-front fees collected and paid to the Federal Housing Administration, the Veterans' Administration, or the U.S. Department of Agriculture to insure or guarantee a home loan (was, a home loan that exceeded 1.25% of the total loan amount)nor to (2) any up-front private mortgage insurance premium, charge, or fee (was, that exceeded 1.35% of the total loan amount).

    Amends the definition of thresholds (GS 24-1.1E(a)(6)) to mean the total points and fees as defined in GS 24-1.1E(a)(5) exceed 5% (was, 4%) of the total loan amount if the amount is $20,000, or more,or the lesser of 8% of the total amount or $1,000 if the total amount is less than $20,000.

    Repeals GS 24-1.1F, regarding rate spread home loans.

    Effective July 1, 2013.


Printer-friendly: Click to view