summary
Introduced
03/25/2025
03/25/2025
In Committee
04/15/2025
04/15/2025
Crossed Over
04/14/2025
04/14/2025
Passed
Dead
Introduced Session
2025-2026 Session
Bill Summary
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.
AI Summary
This bill modifies the maximum fees that lenders can charge on second or junior lien real estate loans in North Carolina, aligning these fees more closely with federal Qualified Mortgage (QM) standards. Specifically, the bill allows lenders to charge up to 2% in fees for second or junior lien loans when the loan amount is less than $300,000. Additionally, the bill introduces a new provision that permits lenders to charge fees up to 3% of the total loan amount, as long as the total points and fees charged by all lenders do not exceed the limits specified in federal regulations (12 C.F.R. § 1026.43(e)(3)). These fees are considered fully earned when the loan is made and are not considered a prepayment penalty. The changes apply to loans made under a specific section of North Carolina law (G.S. 24-1.1) and will take effect immediately upon becoming law, applying to loans made on or after that date.
Committee Categories
Business and Industry, Government Affairs
Sponsors (5)
Last Action
Ref To Com On Rules, Calendar, and Operations of the House (on 04/15/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/S675 |
| Analysis - Summary S675-SMCM-25(e2)-v-2 | https://dashboard.ncleg.gov/api/Services/BillSummary/2025/S675-SMCM-25(e2)-v-2 |
| Analysis - Summary S675-SMCM-24(e1)-v-7 | https://dashboard.ncleg.gov/api/Services/BillSummary/2025/S675-SMCM-24(e1)-v-7 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S675v2.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S675v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/Senate/PDF/S675v0.pdf |
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