Enacts Article 21A, the Home Equity Investment Loan Act, to GS Chapter 53 construing a home equity investment loan (HEI loan) as a residential mortgage for purposes of GS Chapters 53, 24, and 45 subject to all otherwise applicable State residential mortgage laws, including licensing, collection, foreclosure, and usury laws. Prevents HEI loans from being treated as a reverse mortgage, as described, unless the transaction independently satisfies Article 21 of GS Chapter 53.  Clarifies that if the transaction meets the definition of HEI loan under the new Article, it is governed by the Article.

Defines HEI loan as a transaction or arrangement, including an option contract, futures contract, derivative, shared appreciation agreement, shared value agreement, home equity sharing agreement, home equity investment, equity investment option, or similar agreement, however  denominated, under which funds are advanced to or on behalf of a homeowner and a person obtains a right to receive from or on behalf of the homeowner, or from the proceeds of the dwelling or residential real estate, an amount determined in whole or in part by reference to the value, equity, appreciation, sale proceeds, or future value of a dwelling or of residential real estate upon which a dwelling is constructed or intended to be constructed. The term includes any transaction or arrangement described in this subdivision that is secured by a mortgage, deed of trust, or other equivalent consensual security interest in a dwelling located in this State or in residential real estate upon which there is constructed or intended to be constructed a dwelling, and any transaction or arrangement structured to evade the application of new Article 21A. The term does not include a transaction or arrangement made, insured, guaranteed, or administered by a federal, State, or local government agency, a government-sponsored enterprise, or an agency or enterprise of a political subdivision of this State.

Prevents a person from acting to make, broker, or service a HEI loan with respect to a dwelling located in the State unless the person is authorized to engage in the mortgage business under GS Chapter 53, Article 19. Effective when the act becomes law, specifies that a person authorized to engage in the mortgage business under Article 19B GS Chapter 53 cannot make an HEI loan on or after October 1, 2026, unless the person is authorized by the Commissioner to make home equity investment loans under this subsection. Provides for an application for such authorization and $500 fee. Provides for purchase and assignee responsibility of HEI loans, including being subject to new Article 21A, all affirmative claims, counterclaims, defenses, rights of setoff, and rights of recoupment with respect to the loan that the homeowner may assert against the company or any prior holder, servicer, or assignee of the loan.

Enumerates ten required disclosures in GS 53-274.5 that a company provide to the homeowner within the time specified, pertaining to an HEI loan. Authorizes the Commissioner to prescribe disclosure forms by rule. Prevents a company from closing on an HEI loan under GS 53-274.6 unless the homeowner has been represented by independent legal counsel paid for by the company, as specified as well as ensuring that the homeowner has received the housing counseling described in GS 53-274.7. Requires the company to pay closing costs under GS 53-274.8. Limits the amount of an HEI loan to the sum of the: (1) total amount of funds actually advanced to or for the benefit of the homeowner, excluding any amount the company is required to pay; (2) total amount of property taxes, insurance premiums, assessments, and other similar charges actually and reasonably advanced by the company to protect the collateral and not reimbursed by the homeowner; (3) either shared appreciation, not exceeding 10% of the increase in the value of the home as specified or shared value, not exceeding 10% of the value of the home at the time of payment. Allows for prepayment of the loan by the homeowner. Prevents company from obtaining a deficiency judgment against the homeowner if the loan payments are past due. Prevents HEI loan contracts from waiving or disclaiming any protections to the homeowner. Provides for annual statements, process in the event of company default, enforcement and civil actions. Specifies five occurrences when a HEI contract can specify that the loan becomes due. Requires company to offer refinancing, as described, if homeowner informs the company it cannot repay the loan without selling the dwelling. Requires the company to give notice to the homeowner of intent to seek foreclosure or otherwise enforce the debt.  Enumerates ten prohibited acts that the company cannot do.  Effective when the act becomes law, authorizes the Commissioner to adopt rules to enforce the new article in GS 53-274.15.

Effective October 1, 2026, and applies to home equity investment loan applications made on or after that date, except as otherwise provided.

Effective October 1, 2026, and applicable to HEI loans and contracts for deed entered into on or after that date, makes conforming change to GS 53-244.030(30) (residential mortgage loan definition).

Makes conforming change to GS 24-10.2 (definition consumer home loan).

Effective October 1, 2026, and applicable to equity lines of credit entered into on or after that date, makes equity line of credit made by a bank subject to the provisions of GS 24-10.3 (relating to certain mandatory arbitration provisions prohibited in covered mortgage transactions) in GS 24-9. Specifies that GS 24-9 (loans exempt from fee and rate limitations) does not apply to HEI loans. Makes conforming change to GS 53-244.118.

Effective October 1, 2026, and applicable to covered mortgage transactions entered into, and to contracts or other agreements relating to covered mortgage transactions executed, on or after that date, adds GS 24-10.3, describing mandatory arbitration provisions prohibited in covered mortgage transactions (residential mortgage loans and an extension of credit under an open-end consumer credit plan secured by the principal dwelling of the borrower).

Expands the definition of home loan in GS 45-101 to include HEI loans.

Until rules adopted under GS 53-274.15 become effective, specifies that a company complies with GS 53-274.5(a)(9) by providing examples of the total amount due at payment assuming (1) no appreciation, (2) annual appreciation of 3%, and (3) annual appreciation of 6%.