The North Carolina legislature, in its 2008 session, enacted three new laws affecting the NC “High-Cost” Loan Statute, the Mortgage Lending Act, Mortgage Servicing and Foreclosures.  These laws, in addition to several administrative rule changes, will have a significant impact on every licensee in North Carolina. 

 

…It is your responsibility to understand and comply.

 

Highlights of Significant Changes

 

1)   Yield Spread Premiums (YSP) on “Rate Spread Home Loans”, which is the new sub-prime threshold, will not be permitted after September 30th, 2008.  There were numerous misinformed press releases stating that YSP had been eliminated in North Carolina.  To better understand this new provision, click here for an explanation. 

2)   Increased Financial Requirements have been imposed on mortgage bankers, brokers and loan officers who are subject to licensing under the Mortgage Lending Act.  These changes to the administrative code are an effort to raise the bar of entry into the mortgage business and will affect your ability to maintain your license. 

      To find out the specifics and how they will impact you, click here. 

3)   Principal and Branch Offices are no longer permitted to operate out of a residential property.  This new language in the law will impact anyone currently working from home and establishes an allowable “working distance” of 60-miles from your branch office.  To fully understand what this could mean to you, click here. 

4)   LAST CALL for Transitioning your information to the Nationwide Mortgage Licensing System (NMLS) without cost.  Every licensee must transition their data over to the new NMLS on or before December 31, 2008 and there are fees involved with this process.  However, the NC Commissioner of Banks will pay these fees for you if you act on or before September 30, 2008.  To find out what you must do, and to save the cost of these fees, click here. 

      Act Now! 

 

This is just a small sampling of the recent regulatory changes.  I will be updating you on each of these new requirements in our North Carolina law update course, “NC Mortgage Lending 2008 and Beyond - New Laws for a New Era."  In this vital four-hour class, we go indepth on the six new laws that have ben enacted in the last 12 months.

 

…You should be in compliance with these laws effective: January 1, 2008.

 

I will also include many additional rule changes and new law updates passed in the 2008 legislative session, not covered in this alert.  To see the schedule of classes and to register, click here. 

 

This business has never been more challenging; I am aware of how difficult it is to close loans and make your living today.  While you had your head down working to survive, your world of compliance has changed dramatically.  What you must do to protect yourself and to close loans is all new and different today.

 

…These changes also create unprecedented opportunities.

 

To better understand these opportunities and to prepare yourself for the new era of mortgage lending click here for a special continuing education event, designed for you and these challenging times.  I hope to see you in class. 

Until then you have my very best. 

 

Paul Donohue 

 

P.S.  Please join me and a cast of uniquely experienced subject matter experts for the continuing education event of the year.  Click here.