AN ACT TO REDUCE THE SURETY BOND REQUIREMENT FOR LICENSEES UNDER THE SECURE AND FAIR ENFORCEMENT MORTGAGE LICENSING ACT (NC S.A.F.E. ACT), AS RECOMMENDED BY THE LEGISLATIVE RESEARCH COMMISSION STUDY COMMITTEE ON BANKING LAW AMENDMENTS.
Amends GS 53-244.103, Surety bond requirements, adjusting the amount of bond required for mortgage loan originators or transitional mortgage loan originators. Establishes that a mortgage broker must post a minimum surety bond of $25,000 (was $75,000). Provides, however, that if such a broker has originated mortgage loans in North Carolina in excess of $25 million but less than $100 million, in a 12-month period ending December 31, then the broker’s minimum bond amount must be $75,000 (previously, required a $125,000 minimum bond if the broker originated loans in excess of $10 million but less than $50 million in a 12-month period ending December 31). Further provides that if a broker has originated mortgage loans, in North Carolina in a 12-month period ending December 31, of $100 million or more then the broker’s minimum bond must be $150,000 (previously, required a minimum bond of $250,000 if the broker originated more than $50 million in loans in North Carolina the specified time period).
Provides that a mortgage lender or servicer must post a minimum bond of $100,000 (was, $150,000). Provides, however, that if such a mortgage lender, in a 12-month period ending December 31, has originated mortgage loans in North Carolina of $100 million or more, then the lender’s minimum bond must be $150,000 (previously, required a bond of $250,000 for loans originated in excess of $10 million but less than $50 million, and a bond of $500,000 for a lender that has originated more than $50 million).
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