North Carolina passed a bill modernizing the Secure and Fair Enforcement Mortgage Licensing Act (NCSFEMLA). Under the bill, the NCSFEMLA:
- Modified 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;
- Modified the definition of mortgage servicer;
- Modified surety bond requirements;
- Modified transfer of servicing notice requirements; and
- Added mortgage servicer (covered institutions) requirements related to net worth.
In addition, the bill required mortgage servicers (covered institutions) with a servicing portfolio of 2,000 or more 1- to 4- unit serviced or subserviced for others to maintain a board of directors, annually procure an external audit, and establish a risk management program. The net worth and additional requirements do not apply to mortgage servicers (covered institutions) that are a covered institution’s holding company or affiliate (unless the holding company or affiliate is also covered institution), mortgage servicers solely owning or conducting reverse mortgage servicing, the reverse mortgage portfolio administered by a mortgage servicer (covered institution), or the whole loan portion of portfolios. The revisions related to maximum permissible fees or discounts in the bill went into effect July 1, 2025. All other revisions in the bill become effective October 1, 2025.
Click to view the North Carolina House Bill 762: https://www.tenaco.com/wp-content/uploads/2025/07/NC-HB-762-07-02-25.pdf
