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Home » US Law » 2022 North Carolina General Statutes » Chapter 53 - Regulation of Financial Services » Article 19B - The Secure and Fair Enforcement Mortgage Licensing Act.

§ 53-244.010 – Title.

53-244.010. Title. This act may be cited as the "North Carolina Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act." (2009-374, s. 2.)

§ 53-244.020 – Purpose and construction.

53-244.020. Purpose and construction. (a) Purpose. – A primary purpose of this Article is to protect consumers seeking mortgage loans and to ensure that the mortgage lending industry operates without unfair, deceptive, and fraudulent practices on the part of mortgage loan originators. Therefore, the General Assembly establishes within this Article an effective system of supervision […]

§ 53-244.030 – Definitions.

53-244.030. Definitions. For purposes of the Article, the following definitions apply: (1) "Affiliate" means any company that controls, is controlled by, or is under common control with another company, as set forth in the Bank Holding Company Act of 1956 (12 U.S.C. 1841, et seq.), as amended from time to time. (2) "Audited Statement of […]

§ 53-244.040 – License and registration requirements.

53-244.040. License and registration requirements. (a) Except as provided in subsection (d) of this section, no person may engage in the mortgage business or act as a mortgage loan originator with respect to any dwelling located in this State without first obtaining and maintaining a license under this Article. It shall be unlawful for any […]

§ 53-244.050 – License and registration application; claim of exemption.

53-244.050. License and registration application; claim of exemption. (a) Applicants for a license or registration shall apply through the Nationwide Mortgage Licensing System and Registry on a form acceptable to the Commissioner, including the following information: (1) The applicant’s name and address, including street address, mailing address, e-mail, telephone contact information, and social security number […]

§ 53-244.060 – Issuance of license or registration.

53-244.060. Issuance of license or registration. If an applicant satisfies the requirements of G.S. 53-244.050, the Commissioner shall issue a mortgage lender, mortgage broker, mortgage servicer, mortgage loan originator, or transitional mortgage loan originator license, or a mortgage origination support registrant registration, unless the Commissioner finds any of the following: (1) The applicant has had […]

§ 53-244.070 – Educational requirements for mortgage loan originators.

53-244.070. Educational requirements for mortgage loan originators. (a) In order to be eligible to apply for a mortgage loan originator license, an individual must complete at least 24 hours of prelicensing education approved in accordance with subsection (b) of this section, which shall include: (1) Three hours of federal law and regulations; (2) Three hours […]

§ 53-244.080 – Testing requirements for mortgage loan originators.

53-244.080. Testing requirements for mortgage loan originators. (a) An individual must pass a qualified written test, as defined by subsection (b) of this section, developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry. In addition, prior to licensure in this […]

§ 53-244.090 – Application fees.

53-244.090. Application fees. (a) Every applicant for initial licensure shall pay a nonrefundable filing fee of one thousand two hundred fifty dollars ($1,250) for licensure as a mortgage broker, mortgage lender, or mortgage servicer, three hundred dollars ($300.00) for licensure as an exclusive mortgage broker, or one hundred twenty-five dollars ($125.00) for licensure as a […]

§ 53-244.100 – Active license or registration requirements and assignability.

53-244.100. Active license or registration requirements and assignability. (a) It is unlawful for any person to engage in the mortgage business without first obtaining a license as a mortgage loan originator, transitional mortgage loan originator, mortgage lender, mortgage broker, or mortgage servicer issued by the Commissioner under this Article. It is unlawful for any person […]

§ 53-244.100A – Assessments.

53-244.100A. Assessments. (a) For the purpose of meeting the cost of regulation under this Article, each mortgage lender, mortgage broker, and mortgage servicer licensed under this Article shall pay into the OCOB an assessment as provided in this subsection. The annual assessment shall consist of a base amount of two thousand dollars ($2,000) for volumes […]

§ 53-244.101 – License and registration renewal.

53-244.101. License and registration renewal. (a) All licenses and registrations issued by the Commissioner under the provisions of this Article shall expire annually on the 31st day of December following issuance or on any other date that the Commissioner may determine. The license is invalid after that date and shall remain invalid unless renewed under […]

§ 53-244.102 – Continuing education for mortgage loan originators.

53-244.102. Continuing education for mortgage loan originators. (a) A licensed mortgage loan originator shall annually complete at least eight hours of continuing education approved in accordance with subsection (b) of this section, including: (1) Three hours of federal law and regulations; (2) Two hours of ethics, including instruction on fraud, consumer protection, and fair lending […]

§ 53-244.103 – Surety bond requirements.

53-244.103. Surety bond requirements. (a) Except as provided in subsection (a1) of this section, each mortgage loan originator or transitional mortgage loan originator shall be covered by a surety bond through employment with a licensee in accordance with this section. The surety bond shall provide coverage for each mortgage loan originator or transitional mortgage loan […]

§ 53-244.104 – Minimum net worth requirements.

53-244.104. Minimum net worth requirements. (a) A minimum net worth shall be continuously maintained for licensees in accordance with this section. In the event that the mortgage loan originator or transitional mortgage loan originator is an employee or exclusive agent of a person subject to this Article, the net worth of the person subject to […]

§ 53-244.105 – Records, addresses, escrow funds, or trust accounts.

53-244.105. Records, addresses, escrow funds, or trust accounts. (a) Every licensee or registrant shall make and keep the accounts, correspondence, memoranda, papers, books, and other records as prescribed in rules adopted by the Commissioner. All records shall be preserved for three years unless the Commissioner, by rule, prescribes otherwise for particular types of records. (b) […]

§ 53-244.106 – Display of license.

53-244.106. Display of license. Each mortgage broker or mortgage lender licensed under this Article shall display, in plain public view, the certificate of licensure issued by the Commissioner in its principal office and in each branch office. Each mortgage loan originator or transitional mortgage loan originator licensed under this Article shall display, in plain public […]

§ 53-244.107 – Unique identifier shown.

53-244.107. Unique identifier shown. The unique identifier of any mortgage loan originator, transitional mortgage loan originator, or other person engaged in the mortgage business as defined in G.S. 53-244.030(11) shall be clearly shown on all residential mortgage loan application forms, solicitations, advertisements, including business cards or Web sites, and any other documents as established by […]

§ 53-244.108 – Reports.

53-244.108. Reports. Each mortgage lender, mortgage broker, mortgage servicer licensee, or mortgage origination support registrant shall submit to the Commissioner and to the Nationwide Mortgage Licensing System and Registry reports of condition and any other reports requested by the Commissioner pursuant to G.S. 53-244.115(d). The reports shall be in the form and shall contain any […]

§ 53-244.109 – Mortgage broker duties.

53-244.109. Mortgage broker duties. Any mortgage broker engaged in the mortgage business as defined by G.S. 53-244.030(11)a., in addition to duties imposed by other statutes or at common law, shall do all of the following: (1) Safeguard and account for any money handled for the borrower. (2) Follow reasonable and lawful instructions from the borrower. […]