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.
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.
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