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.
Bill Summaries: H692 AMEND PREDATORY LENDING LAW.
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Tracking:
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Summary date: Sep 3 2013 - View Summary
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Bill H 692 (2013-2014)Summary date: Jul 18 2013 - View Summary
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).
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Bill H 692 (2013-2014)Summary date: Jul 17 2013 - View Summary
The Senate committee substitute to the 3rd edition changes the effective date of the act from July 1, 2013, to October 1, 2013.
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Bill H 692 (2013-2014)Summary date: May 8 2013 - View Summary
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.
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Bill H 692 (2013-2014)Summary date: May 6 2013 - View Summary
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.
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Bill H 692 (2013-2014)Summary date: Apr 11 2013 - View Summary
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.