Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes to our document packages for loans secured by property in North Carolina.
This new document is being provided pursuant to the provisions of N.C. Gen. Stat. Ann. § 66-110, which requires the following:
“Every loan brokerage contract shall be in writing, and signed by all contracting parties. A copy of the contract shall be given to the prospective borrower at the time he signs the contract.”
However, under Ibid. § 66-106(b), this requirement (as well as all others under Article 20, Chapter 66 of North Carolina’s statutes), generally do not apply to “any part approved as a mortgagee by the Secretary of Housing and Urban Development, the Federal Housing Administration, the Veterans Administration, a National Mortgage Association or any federal agency . . . nor, with respect to residential mortgage loans, to any residential mortgage banker or mortgage broker licensed pursuant to Article 19A of Chapter 53 of the General Statutes or exempt from licensure pursuant to G.S. 53-243.01(12) and G.S. 53-243.02 . . .” (Ibid. 66-106[b]).
Since this exemption encompasses most (if not all) of our clientele, this document will only be available “upon request.” Once requested, this document will print under the following conditions:
- Document Package Type = Initial Disclosures
- Lender is a Broker? = Yes
- State Code = North Carolina
Similar to Cx20008, this document is also required under Article 20, Chapter 66 of North Carolina’s statutes, per N.C. Gen. Stat. Ann. § 66-107. This document is required to be provided “at least seven days prior to the time any person signs a contract for the services of a loan broker, or the time of the receipt of any consideration by the loan broker, whichever occurs first”. The statute sets forth a multitude of items to be disclosed, including prescribed text.
Because the same exemptions which apply to Cx20008 also apply to this document, it will only be assigned “upon request.” Once requested, it will print under the following conditions:
- Document Package Type = Pre-Disclosure
- Lender is a Broker? = Yes
- State Code = North Carolina
The aforementioned statute does require a disclosure of the names, addresses, and titles of the broker’s officers, directors, trustees, general partners, general managers, principal executives, and other persons charged with responsibility for the broker’s activities, along with a list of all the broker’s employees located in North Carolina.
Because of how cumbersome it would be to manually add this information in ConformX, clients who request this document will either need to request a custom document which lists all the above information or provide their own list separate and apart from ConformX.
N.C. Gen. Stat. Ann. § 45-80 provides for a means for a deed of trust or mortgage to “have priority and continue to have priority from the time and date of registration thereof to the extent of all principal and interest secured by said deed of trust or mortgage notwithstanding that the loan may be renewed or extended one or more times and notwithstanding that the interest rate may be increased or decreased from time to time”, including accrued interest. In order to do so, the parties must provide a written instrument agreeing that the loan may be renewed and extended.
Pursuant to this, we will be providing Cx20015. Since this document is not required, we will be providing it on an “upon request” basis. Once requested, it will print under the following conditions:
- Document Package Type = Closing
- HELOC = No
- Loan Amount Less Than 300k = Yes
- Lien Position = FirstLien
- State Code = North Carolina
We will also create a new condition based on whether interest is being charged on the loan or not (if interest is being charged, the document will print), but will not create this condition until this document is requested by a client.
We are currently providing this version of Cx2778 due to the provisions of N.C. Gen. Stat. Ann. §§ 75-17, 75-18, & 58-57-65. Minor edits are being made to include references to credit life, credit accident, and credit health insurance, and to conform the citations to Blue Book standards.
DR 187038