Bill Summary for H 692 (2013-2014)

Summary date: 

Apr 11 2013

Bill Information:

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.

View: All Summaries for BillTracking:

Bill 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.

© 2021 School of Government The University of North Carolina at Chapel Hill

This work is copyrighted and subject to "fair use" as permitted by federal copyright law. No portion of this publication may be reproduced or transmitted in any form or by any means without the express written permission of the publisher. Distribution by third parties is prohibited. Prohibited distribution includes, but is not limited to, posting, e-mailing, faxing, archiving in a public database, installing on intranets or servers, and redistributing via a computer network or in printed form. Unauthorized use or reproduction may result in legal action against the unauthorized user.

Printer-friendly: Click to view