Bill Summary for S 675 (2025-2026)

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Summary date: 

Mar 31 2025

Bill Information:

View NCGA Bill Details(link is external)2025-2026 Session
Senate Bill 675 (Public) Filed Tuesday, March 25, 2025
AN ACT TO MODIFY THE MAXIMUM PERMISSIBLE FEES OR DISCOUNTS THAT CERTAIN LENDERS MAY CHARGE ON SECOND OR JUNIOR LIEN REAL ESTATE LOANS TO ALIGN MORE CLOSELY WITH FEDERAL QUALIFIED MORTGAGE STANDARDS.
Intro. by Craven, Overcash, Blue.

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Bill summary

Current law limits lenders from charging or receiving fees or discounts that total more than 2% in the aggregate on loans that are secured by a second or junior lien on real property. Amends GS 24-10, concerning maximum fees on loans secured by real property, as follows. Notwithstanding any fee limitations set forth in the statute, directs that the 2% limit discussed above does not apply to a loan secured by a second or junior lien on real property by one of the home loan lenders described in GS 24-1.1A so long as the total points and fees charged to the borrower by all lenders in connection with the loan do not exceed the lesser of (i) the amounts specified in 12 C.F.R. § 1026.43(e)(3) (federal truth in lending regulations), or (ii) 3% of the total loan amount. Applies to loans made on or after the act becomes law.