All Roll Calls
Yes: 252 • No: 0
North CarolinaHB 7622025-2026 SessionHouseWALLET
AN ACT TO MODERNIZE THE NORTH CAROLINA SECURE AND FAIR ENFORCEMENT (S.A.F.E) MORTGAGE LICENSING ACT.
Sponsored By: Dean Arp (Republican), Brent Jackson (Republican), Stephen M. Ross (Republican), Mitchell S. Setzer (Republican)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 2 benefits, 5 costs, 3 mixed.
Stronger mortgage protections for homeowners
The law adds strong rules to protect home borrowers. Brokers and lenders must act in your best interest, safeguard your money, and disclose their total pay at initial disclosures. Servicers must protect escrow funds, follow filed fee schedules, and work in good faith with delinquent borrowers. Prepayment penalties are not allowed on loans of $150,000 or less, or on rate‑spread home loans. Before foreclosure, you get at least 45 days’ written notice with itemized amounts and contact details.
Big servicers must keep capital and audits
Beginning October 1, 2025, mortgage servicers that service or subservice 2,000 or more one‑ to four‑unit loans for others must meet new capital, liquidity, governance, audit, and risk‑management rules. The 2,000‑loan count comes from the NMLS Mortgage Call Report and excludes whole loans owned and interim servicing before sale. Covered servicers must keep GAAP‑based capital and servicing liquidity (meeting FHFA seller/servicer standards satisfies this), notify the Commissioner within 15 days if out of compliance, and keep written policies and sufficient allowable assets. Boards must oversee internal controls; firms need an annual external audit and a risk program with a yearly board report. Holding companies and affiliates are not covered unless they meet the threshold; not‑for‑profit servicers and housing finance agencies are excluded, and certain reverse‑mortgage‑only activities are exempt from a specified section.
Bonds, net worth, and yearly fees required
All licenses and registrations expire December 31 and renew starting November 1. An originator pays a $125 renewal fee plus background‑check and NMLS costs; registrant renewals are $125 (under 5 originators), $500 (5–30), or $1,000 (over 30). Late fees apply, and missing March 1 reinstatement means meeting initial‑issuance rules again. Firms also pay an annual assessment: a $2,000 base up to $1.5 million in volume, plus tiered per‑$1,000 charges on last year’s combined loan and servicing volume. Brokers must hold at least a $75,000 bond; lenders and servicers at least $150,000. At over $10 million in NC volume the minima rise to $125,000 and $250,000; at $50 million or more they rise to $250,000 and $500,000. Increases are due by May 31; qualified firms can ask for a waiver if licensed 3+ years, net worth is at least 4× the bond, and history is satisfactory. Minimum net worth: lenders $100,000 plus $1,000,000 liquidity; servicers $100,000 (not counting escrow); brokers $25,000 with $10,000 liquidity. The Commissioner can raise net‑worth rules by regulation.
Stronger enforcement, penalties, and appeal rights
The Commissioner can deny, restrict, or revoke licenses when it is in the public interest and listed violations occur, and can issue quick cease‑and‑desist or summary suspension orders. Civil penalties can reach up to $25,000 per violation, and unlicensed mortgage activity is a Class 3 misdemeanor; each transaction is a separate offense. The Commissioner may investigate, subpoena, and charge actual costs and an hourly rate for extraordinary exams. Enforcement actions and employment history can be reported to NMLS and are public there under the law. Anyone aggrieved may appeal to the Banking Commission with written notice within 20 days stating specific grounds. In a disaster or other emergency, the Commissioner can temporarily waive or suspend compliance rules.
Who can work in mortgages and how
To work on North Carolina home loans, people and firms must be licensed and registered through NMLS and keep a valid NMLS ID. The law defines five license types, including an exclusive broker who works for one lender, is not paid based on rate or fees, and usually offers fixed‑rate, fully amortizing loans. Applicants must be at least 18, apply through NMLS, give fingerprints, and pass background checks. You must pass the NMLS test with at least 75% overall and 75% on NC law; after three failures you wait six months, and a five‑year lapse requires retesting. Licensed originators must complete 8 hours of NMLS‑approved continuing education each year (3 federal law, 2 ethics, 2 nontraditional products, 1 NC law). Out‑of‑state licensees or registered originators may get temporary authority (generally up to 120 days) if they keep an NMLS ID, submit fingerprints, and meet federal and state experience and certification rules. The Commissioner can deny a license for recent serious crimes, financial irresponsibility, or failing education, testing, bond, or net‑worth rules.
See your lender's license and ID
Lenders and brokers must show their license certificate in plain view at each office. Originators must place their unique NMLS ID on applications, ads, business cards, and websites. Lender and broker websites must link to NMLS Consumer Access so you can verify records. Firms meet data‑security rules if they follow 16 C.F.R. Part 314 and keep a written security plan.
New training and job rules for originators
The law requires at least 24 hours of approved prelicensing education. That includes 3 hours of federal law, 3 hours of ethics, 2 hours on nontraditional products, and 4 hours of North Carolina law. NMLS-approved courses from other states count, but NC law hours must meet the Commissioner’s approval. A loan originator’s license only works while you are employed by a licensed lender, broker, servicer, or registrant. If you leave, your employer must notify the Commissioner in writing within 30 days and state the reason. You cannot be employed by more than one licensee at the same time.
Upfront fees to get mortgage licenses
You pay nonrefundable application fees to get licensed. Lenders, brokers, and servicers pay $1,250; exclusive brokers pay $300; loan originators and transitional originators pay $125. Registrants pay $250 with fewer than 5 processors, $1,000 with 5–30, or $2,000 with more than 30. You also pay actual costs for credit reports, state and national criminal history checks, NMLS processing, and $300 for each principal and branch location.
Tighter record and reporting rules for firms
Licensed firms must keep books and records for at least three years and tell the Commissioner where they are stored. The Commissioner can let records be kept outside North Carolina; most licensees cannot use a home as the main office. Address changes for any office must be reported within 15 days. Lenders, brokers, servicers, and registrants must keep a current list of employed originators on file. Anyone who files with the Commissioner or NMLS must fix any material error within 30 days of finding it.
Tighter control and faster hearings for mortgage firms
Licenses are not assignable, and you must get the Commissioner’s written consent before anyone takes control of a licensed firm by stock purchase, merger, or similar deal. The Commissioner denies consent if the buyer would be disqualified under the law. A notice sent by certified mail or a federally authorized delivery service to your last known address counts as served. After a summary order, you have 20 days to ask in writing for a hearing. If you ask, the Commissioner schedules a hearing within 15 days; if you do not, the order stays in effect.
Sponsors & Cosponsors
Sponsors
Dean Arp
Republican • House
Brent Jackson
Republican • Senate
Stephen M. Ross
Republican • House
Mitchell S. Setzer
Republican • House
Cosponsors
Jerry "Alan" Branson
Republican • House
Jr. Ben T. Moss
Republican • House
Paul Scott
Republican • House
Shelly Willingham
Democratic • House
Roll Call Votes
House vote • 6/24/2025
HB 762: Modernize NC Secure and Fair Enforcement (S.A.F.E.) Act/Second Mortgage Fe
Yes: 112 • No: 0 • Other: 8
Senate vote • 6/19/2025
HB 762: Modernize NC S.A.F.E. Act/2d Mortgage Fee Act.
Yes: 41 • No: 0 • Other: 9
House vote • 4/30/2025
HB 762: Modernize NC Secure and Fair Enforcement (S.A.F.E.) Act.
Yes: 99 • No: 0 • Other: 13
Actions Timeline
Ch. SL 2025-43
7/1/2025HouseSigned by Gov. 7/1/2025
7/1/2025HousePres. To Gov. 6/26/2025
6/26/2025HouseRatified
6/25/2025HouseOrdered Enrolled
6/24/2025HouseConcurred In S Com Sub
6/24/2025HousePlaced On Cal For 06/24/2025
6/23/2025HouseCal Pursuant 36(b)
6/19/2025HouseSpecial Message Received For Concurrence in S Com Sub
6/19/2025HouseSpecial Message Sent To House
6/19/2025SenatePassed 3rd Reading
6/19/2025SenatePassed 2nd Reading
6/19/2025SenateReptd Fav
6/18/2025SenateRe-ref Com On Rules and Operations of the Senate
6/17/2025SenateReptd Fav
6/17/2025SenateRe-ref Com On Finance
6/10/2025SenateCom Substitute Adopted
6/10/2025SenateReptd Fav Com Substitute
6/10/2025SenateRe-ref to Commerce and Insurance. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the Senate
6/10/2025SenateWithdrawn From Com
6/10/2025SenateRef To Com On Rules and Operations of the Senate
5/1/2025SenatePassed 1st Reading
5/1/2025SenateRegular Message Received From House
5/1/2025SenateRegular Message Sent To Senate
5/1/2025HousePassed 3rd Reading
4/30/2025House
Bill Text
Edition 1
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Filed
Latest Edition
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