North Carolina Administrative Code

SECTION .0400 - OPERATIONS, NOTIFICATIONS, AND REPORTING 04 NCAC 03K .0401 CERTIFIED FINANCIAL STATEMENTS History Note: Authority G.S. 53-259; 53-271(a); Eff. January 1, 1995; Repealed Eff. August 1, 2018.

04 NCAC 03K .0402 RECORD AND BOOKKEEPING REQUIREMENTS (a) All NC SAFE Act authorized lenders shall maintain their books and records relating to the making of reverse mortgage loans for a period of three years after payment of the debt and make them available for inspection by the…

04 NCAC 03K .0403 EXAMINATIONS The Commissioner may make such examination of the books, records and affairs of NC SAFE Act authorized lenders pursuant to G.S. 53-244.115. History Note: Authority G.S. 53-244.115; 53-259; 53-270; 53-271(a); Eff. January 1, 1995; Readopted Eff. Augu…

04 NCAC 03K .0404 WITHDRAWAL/TERMINATION OF AUTHORIZATION AS REVERSE MORTGAGE LENDER History Note: Authority G.S. 53-259; 53-271; Eff. January 1, 1995; Repealed Eff. September 1, 2018.

04 NCAC 03K .0405 IMPAIRMENT OF SURETY BOND (a) A NC SAFE authorized lender shall notify the Commissioner in writing within three business days of any cancellation or suspension of the surety bond required by Rule .0302 of this Subchapter. (b) If an applicant fails to meet the mi…

SECTION - .0600 COUNSELING 04 NCAC 03K .0601 COUNSELING History Note: Authority G.S. 53-259; 53-260; 53-264; 53-271(a); Eff. January 1, 1995; Repealed Eff. August 1, 2018.

SECTION .0700 - PROHIBITED ACTS AND PRACTICES; ENFORCEMENT ACTIONS 04 NCAC 03K .0701 PROHIBITED ACTS History Note: Authority G.S. 53-259; 53-270; 53-271(a); Eff. January 1, 1995; Repealed Eff. August 1, 2018.

04 NCAC 03K .0702 ENFORCEMENT ACTIONS The grounds upon which the Commissioner may revoke the authorization of a lender to engage in reverse mortgage loans includes the following: (1) The making of any false statement in an application for authorization; (2) The making of any fals…

04 NCAC 03K .0703 HEARINGS History Note: Authority G.S. 53-259; 53-270; 53-271; 53-272; Eff. January 1, 1995; Repealed Eff. August 1, 2018.

SUBCHAPTER 03L - CHECK-CASHING BUSINESSES SECTION .0100 – ADMINISTRATIVE 04 NCAC 03L .0101 DEFINITIONS (a) In addition to the definitions in G.S. 53, Article 22, the following definitions apply: (1) "Any one maker" means any single signatory on a personal checking account. (2) "B…

04 NCAC 03L .0102 FILINGS Licensees may obtain from the agency's website, located at https://www.nccob.gov, information concerning applications for a license, reports, applications for annual renewal, amendments to applications, renewal notices, or other documents that are requir…

SECTION .0200 - APPLICATION 04 NCAC 03L .0201 APPLICATION FOR LICENSE (a) An application for a license as a check-cashing business shall include a financial statement that shows liquid assets of fifty thousand dollars ($50,000) as required by G.S. 53-279(a) and shall include the …

04 NCAC 03L .0202 FEES History Note: Authority G.S. 53-278; 53-288; 53C-2-1; 53C-2-2; Eff. July 1, 2000; Repealed Eff. August 1, 2018.

SECTION .0300 - LICENSING 04 NCAC 03L .0301 ISSUANCE History Note: Authority G.S. 53-278; 53-279; 53-288; 53C-2-1; 53C-2-2; Eff. July 1, 2000; Repealed Eff. August 1, 2018.

04 NCAC 03L .0302 NONTRANSFERABILITY OF LICENSE (a) A check-cashing license shall be neither transferable nor assignable. (b) A change in the licensee's organizational structure that constitutes a transfer or assignment of the license shall include the following: (1) if the licen…

04 NCAC 03L .0303 ANNUAL RENEWAL OF LICENSE A check-cashing license shall be valid from the date of issuance and, unless renewed, shall expire on September 30 of each year without further action by the Commissioner. The renewal period shall begin on July 1 of each year. Licensees…

SECTION .0400 - OPERATIONS 04 NCAC 03L .0401 POSTING OF LICENSE OR BRANCH CERTIFICATE A licensee shall obtain a branch location certificate for each location other than its principal place of business where its business of cashing checks is conducted. The license or certificate s…

04 NCAC 03L .0402 SURRENDER OF LICENSE A licensee shall notify the Commissioner in writing of its decision to cease operations as a check-cashing business in this State within seven days of the decision. A licensee shall surrender its license and branch certificates, if any, to t…

04 NCAC 03L .0403 POSTING OF FEES (a) The notice of fees required by G.S. 53-280(c) shall be conspicuously posted. (b) A licensee shall file with the Commissioner a scaled duplicate of the notice of fees on 8 1/2 x 11 inch paper. History Note: Authority G.S. 53-280; 53-288; Eff. …

SECTION .0500 - BOOKS AND RECORDS: EXAMINATIONS 04 NCAC 03L .0501 BOOKS AND RECORDS (a) Each check-cashing business licensed by the Commissioner of Banks shall record all transactions of receipts and disbursements pertaining to checks cashed. All entries shall document the date t…

04 NCAC 03L .0502 EXAMINATIONS (a) Examinations may be done with or without advance notice to the licensee. (b) In addition to examinations authorized by G.S. 53-278(b) or G.S. 53-282(c), the Commissioner may request reports from the licensee for the purpose of determining the ge…

SECTION .0600 - REPORTING AND NOTIFICATION REQUIREMENTS 04 NCAC 03L .0601 AMENDMENTS TO INFORMATION ON FILE WITH THE COMMISSIONER (a) A licensee shall notify the Commissioner within 30 days of any material change to information that it submitted to the Commissioner, whether provi…

04 NCAC 03L .0602 EXPANSION OR RELOCATION (a) A licensee shall notify the Commissioner of the opening of any new branch locations or the relocation of its principal place of business or of any branch locations at least 20 days prior to the effective date of the change. The notifi…

04 NCAC 03L .0603 IMPAIRMENT OF FINANCIAL REQUIREMENTS A licensee shall notify the Commissioner in writing within 30 days if it fails to meet the minimum liquid asset requirement of G.S. 53-279(a). History Note: Authority G.S. 53-279; 53-288; Eff. July 1, 2000; Readopted Eff. Aug…

04 NCAC 03L .0604 REPORT OF INFORMATION TO COMMISSIONER FOR THE GENERAL ASSEMBLY History Note: Authority G.S. 53-92; 53-93; Eff. July 1, 2000; Repealed Eff. November 1, 2013.

SUBCHAPTER 03M – MORTGAGE LENDING SECTION .0100 – GENERAL 04 NCAC 03M .0101 DEFINITIONS In addition to the definitions in G.S. 53, Article 19B for the purposes of this Subchapter the following definitions apply: (1) "Act" means Article 19B of Chapter 53 of the North Carolina Gene…

04 NCAC 03M .0102 NOTICES (a) Except as otherwise required by G.S. 53-244.113(b), Article 3A, Chapter 150B of the General Statutes, or by the rules of the Office of Administrative Hearings, 26 NCAC 03, which are incorporated by reference, including subsequent amendments and editi…

SECTION .0200 - LICENSING 04 NCAC 03M .0201 APPLICATION (a) Each type of application required by the rules in this Subchapter or the Act shall be filed through the NMLS&R and shall be verified by the affirmation of the applicant or a principal officer. (b) In addition to the docu…

04 NCAC 03M .0202 NONTRANSFERABILITY (a) Any attempt to transfer or assign a license or registration through a change of control without the prior consent of the Commissioner shall: (1) be ineffective; and (2) be grounds for summary suspension, revocation of the license or regist…

04 NCAC 03M .0203 NAME CHANGES A licensee or registrant may change its corporate name or the name under which it operates, provided: (1) the licensee or registrant and the proposed new name satisfies all applicable laws pertaining to assumed business names; (2) the licensee or re…

04 NCAC 03M .0204 EXPERIENCE As used in G.S. 53-244.050(b)(2), an individual is considered to have acquired "experience in residential mortgage lending" during any documented period in which: (1) more than half of the individual's employment income was derived from employment in …

04 NCAC 03M .0205 financial responsibility Financial Responsibility is an ongoing requirement and upon issuance of a license, a licensee must continue to meet the requirements of G.S. 53-244.060(4). History Note: Authority G.S. 53-244.060(4); 53-244.104; 53-244.118; Eff. July 18,…

04 NCAC 03M .0206 SURETY BOND (a) All licensees with surety bonds under G.S. 53-244.103 shall ensure that full amount of the surety bond is in effect at all times. Failure to maintain the surety bond at the level required in G.S. 53-244.103 is grounds for immediate suspension of …

SECTION .0300 - EDUCATION AND EXAMINATIONS 04 NCAC 03M .0301 APPROVAL OF PROVIDERS AND COURSES OF STUDY; PROVIDER REQUIREMENTS; QUALIFIED WRITTEN TEST History Note: Authority G.S. 53-244.060; 53-244.070; 53-244.080; 53-244.118; Temporary Adoption Eff. July 1, 2002; Eff. April 1, …

SECTION .0400 - REPORTING AND NOTIFICATION REQUIREMENTS 04 NCAC 03M .0401 REPORTING REQUIREMENTS (a) No later than 90 days after the end of the calendar year, mortgage lenders, mortgage servicers, and mortgage brokers shall file an annual report in the NMLS&R. The annual report s…

04 NCAC 03M .0402 SECURITY BREACHES (a) Upon discovery of a security breach as defined in G.S. 75-61(14), the licensee or registrant shall within one business day provide to the Commissioner a copy of any notification that is required pursuant to G.S. 75-65. (b) Notification by t…

04 NCAC 03M .0403 TERMINATION OF OPERATIONS OR EMPLOYMENT (a) A licensee or registrant shall notify the Commissioner in writing of its decision to cease operations in this State, and the anticipated effective date of the cessation of operations, at least 15 days before the cessat…

SECTION .0500 - RECORD AND BOOKKEEPING REQUIREMENTS 04 NCAC 03M .0501 RECORDS TO BE MAINTAINED (a) A licensee shall maintain or cause to be maintained a record of all cash, checks, or other monetary instruments received in connection with each mortgage loan application showing th…

04 NCAC 03M .0502 FORM AND LOCATION of records (a) The records may be maintained in any form that is convertible into legible, tangible documents by the licensee. (b) All records required by this Section shall be prepared in accordance with generally accepted accounting principle…

SECTION .0600 – ORIGINATION PRACTICES 04 NCAC 03M .0601 RESERVED FOR FUTURE CODIFICATION

04 NCAC 03M .0602 SELLER DISCOUNTS FOR USE OF AFFILIATED MORTGAGE LENDER OR BROKER (a) A mortgage lender or mortgage broker shall not originate a mortgage loan if the use of that mortgage lender or mortgage broker is a condition for the borrower to receive a discount or thing of …

SECTION .0700 - SERVICING 04 NCAC 03M .0701 transfer of servicing rights A person shall not transfer servicing rights or obligations to a person unless that person holds a mortgage servicing license or is a person exempt from the Act pursuant to G.S. 53-244.040. History Note: Aut…

04 NCAC 03M .0702 Requirements for Mortgage Servicers to Communicate Effectively with Borrowers Regarding Loss Mitigation (a) A mortgage servicer shall acknowledge in writing a borrower's loss mitigation request no later than 10 business days after the request. The acknowledgemen…

04 NCAC 03M .0703 Cessation of Foreclosure Activity During Pendency of Loss Mitigation REquest (a) A mortgage servicer shall not initiate or further a foreclosure proceeding or impose a charge incident to a foreclosure proceeding during the pendency of a loss mitigation request. …

SECTION .0300 - LICENSING: SUPERVISION AND AUDIT OF MUTUAL BURIAL ASSOCIATIONS 04 NCAC 04 .0301 MEMBERS REQUIRED BEFORE LICENSING History Note: Authority G.S. 58-241; 58-241.8; Eff. February 1, 1976; Recodified to 21 NCAC 34B .0312 Eff. January 13. 2017.

04 NCAC 04 .0302 AUDIT History Note: Authority G.S. 58-241.9; 58-241.11; Eff. February 1, 1976; Repealed Eff. May 1, 1982.

04 NCAC 04 .0306 ASSESSMENTS AGAINST ASSOCIATIONS History Note: Authority G.S. 58-241.9; 58-241.11; Eff. February 1, 1976; Repealed Eff. May 1, 1982.

CHAPTER 06 - CREDIT UNION DIVISION SUBCHAPTER 06A - ORGANIZATION SECTION .0100 - GENERAL INFORMATION 04 NCAC 06A .0101 NAME AND ADDRESS The Credit Union Division of the Department of Commerce is located in Raleigh, North Carolina. The mailing address for the Credit Union Division…

SUBCHAPTER 6B - RULE-MAKING: DECLARATORY RULINGS AND CONTESTED CASES SECTION .0100 - RULE-MAKING AND DECLARATORY RULINGS 04 NCAC 06B .0101 PETITIONS History Note: Authority G.S. 54-109.12; 150B-16; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. June 1, 1990.

04 NCAC 06B .0102 NOTICE History Note: Authority G.S. 54-109.12; 150B-12; Eff. February 1, 1976; Readopted Eff. April 4, 1978; Repealed Eff. July 16, 1988 in accordance with G.S. 150B-59(c).