Chapter 53

(a) The Commissioner may, by order, deny, suspend, revoke, or refuse to issue or renew a license or registration under this Article, or may restrict or limit the manner in which a licensee, registrant, applicant, or any person that owns an interest in, participates in, or engages…

(a) For purposes of initial licensing or registration, renewal, suspension, conditioning, revocation, termination, general or specific inquiry, investigation, or examination to determine compliance with this Article, the Commissioner may access, receive, and use any books, accoun…

(a) The Commissioner may, by order, do any of the following: (1) Take any action authorized under G.S. 53-244.113. (2) Impose a civil penalty upon a licensee, registrant, or person subject to this Article, or upon any partner, officer, director, or other individual occupying a si…

(a) The Commissioner may adopt any rules that the Commissioner deems necessary to carry out the provisions of this Article, to provide for the protection of the borrowing public, to prohibit unfair or deceptive practices, to instruct licensees or registrants in interpreting this …

(a) The Commissioner may participate in the NMLS and may require all persons to be licensed or registered through the NMLS. For this purpose, the Commissioner may establish by rule any requirements as necessary, including any of the following: (1) Background checks for the follow…

(a) Notwithstanding any State law to the contrary, the Commissioner shall report enforcement actions under this Article and may report other relevant information to the NMLS. (b) The Commissioner may enter agreements or sharing arrangements with other governmental agencies, the C…

The Banking Commission may review any rule, order, or act of the Commissioner made pursuant to or with respect to the provisions of this Article, and any person aggrieved by any rule, order, or act may, pursuant to G.S. 53C-2-6, appeal to the Banking Commission for review upon gi…

In the event of a natural disaster or other national, regional, State, or local emergency, the Commissioner may temporarily waive or suspend requirements for compliance with this Article. (2025-43, s. 1.) Part 2. Prudential Standards for Mortgage Servicers.

In addition to the definitions in Part 1 of this Article, the following definitions apply in this Part: (1) Agency. - Fannie Mae, Freddie Mac, and Ginnie Mae. (2) Allowable assets for liquidity. - Those assets that may be used to satisfy the liquidity requirements of this Part, i…

(a) In addition to the provisions of this Part, all of the provisions in Part 1 of this Article apply to covered institutions. (b) The following exclusions apply: (1) This Part does not apply to a covered institution's holding company or affiliate, unless the holding company or a…

(a) A covered institution shall maintain capital and liquidity in compliance with this section. (b) For the purposes of complying with the capital and liquidity requirements of this section, all financial data shall be determined in accordance with Generally Accepted Accounting P…

(a) Board of Directors Required. - Except as otherwise provided by subsection (b) of this section, a covered institution shall establish and maintain a board of directors responsible for oversight of the covered institution. (b) Alternative to Board of Directors. - For covered in…

(a) Title. This Article shall be known and cited as the "Refund Anticipation Loan Act". (b) Scope. No person may individually or in conjunction or cooperation with another person process, receive, or accept for delivery an application for a refund anticipation loan or a check in …

The following definitions apply in this Article: (1) Applicant. A person who applies for registration as a facilitator of refund anticipation loans. (2) Commission. The State Banking Commission. (3) Commissioner. The Commissioner of Banks. (4) Creditor. A person who makes a refun…

(a) Registration Requirement. No person may individually or in conjunction or cooperation with another person process, receive, or accept for delivery an application for a refund anticipation loan or a check in payment of refund anticipation loan proceeds without first being regi…

(a) Initial Registration. An application to become registered as a facilitator shall be in writing, under oath, and in a form prescribed by the Commissioner. The application shall contain all information prescribed by the Commissioner. Each application for registration shall be a…

(a) Filing of Fee Schedule. - On or before January 2 of each year, each registrant shall file with the Commissioner a schedule of the refund anticipation loan fees for refund anticipation loans to be facilitated by the registrant during the succeeding year. Immediately upon learn…

A facilitator of a refund anticipation loan may not engage in any of the following activities: (1) Misrepresenting a material factor or condition of a refund anticipation loan. (2) Failing to arrange for a refund anticipation loan promptly after the debtor applies for the loan. (…

(a) Cease and Desist Order. Upon the finding that any action of a registrant may be in violation of this Article or that the registrant has engaged in an unfair or deceptive act or practice, the Commissioner shall give reasonable notice to the registrant of the suspected violatio…

The Commission may review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the provisions of this Article. Any person aggrieved by any such rule, regulation, order, or act may appeal, pursuant to G.S. 53C-2-6, to the Commission for revie…

The Banking Commission may adopt reasonable rules as necessary to effectuate the purpose of this Article, to provide for the protection of the borrowing public, and to assist registrants in interpreting this Article. In order to enforce this Article, the Commissioner may make inv…

This Article does not apply to a person who does not deal directly with debtors but who acts solely as an intermediary by processing or transmitting, electronically or otherwise, tax or credit information or by preparing for a facilitator refund anticipation loan checks to be del…

This Article shall be known and may be cited as the Reverse Mortgage Act. (1991, c. 546, s. 1; 1995, c. 115, s. 1.)

It is the intent of the General Assembly that reverse mortgage loans be available so that elderly homeowners may use the equity in their homes to meet their financial needs. The General Assembly recognizes that there may be restrictions and requirements governing traditional mort…

The following definitions apply in this Article: (1) Authorized lender or lender. - The North Carolina Housing Finance Agency, any lender authorized to engage in business as a bank, savings institution, or credit union under the laws of this State or of the United States, or any …

(a) Except as provided in subsection (b1) of this section, no person, firm, or corporation shall engage in the business of making reverse mortgage loans without first being approved as an authorized reverse mortgage lender by the Commissioner. Mortgage lenders licensed under Arti…

In addition to the provisions of this Article, authorized lenders shall comply with rules adopted by the Commissioner that are reasonable and necessary to effectuate the purposes of this Article and to protect the public interest. Provided, however, that provisions in Chapters 24…

Notwithstanding any other provisions of law to the contrary, the parties to a reverse mortgage loan may contract for the payment of interest at a rate agreed to by the parties. Interest shall be deferred until the earliest occurrence of one or more events specified in the reverse…

A reverse mortgage loan contract may provide that it is the primary obligation of the borrower to pay all property taxes, insurance premiums, and assessments in a timely manner, and that the failure of the borrower to make these payments and to provide evidence of payment to the …

(a) If a reverse mortgage loan contract allows for a change in the payments or payment options, the lender may charge a reasonable fee when payments are recalculated. (b) The outstanding loan balance shall be calculated by adding the current totals of items described in subdivisi…

(a) When a reverse mortgage loan becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house then the amount owed by the borrower shall not be greater than (i) the fair market value of the house, minus sale costs, or (ii) the outstanding balan…

(a) On forms prescribed by the Commissioner, all authorized lenders shall provide all of the following information to the Commissioner for dissemination to all counselors who provide counseling to prospective reverse mortgage borrowers: (1) The borrower's rights, obligations, and…

(a) At the closing of the reverse mortgage loan, the lender shall provide to the borrower the name of the lender's employee or agent who has been designated specifically to respond to inquiries concerning reverse mortgage loans. This information shall be provided by the lender to…

(a) A lender's failure to make loan advances to the borrower under the reverse mortgage loan contract shall be deemed the lender's default of the contract. Upon the lender's default, the lender shall forfeit any right to collect interest or service charges under the contract. The…

A reverse mortgage loan contract may provide for a borrower's default, thereby triggering early repayment of the loan, based only upon one or more of the following terms and conditions: (1) The borrower fails to maintain the residence as required by the contract. (2) The borrower…

When a borrower's obligation to repay the reverse mortgage loan is triggered under G.S. 53-267, in addition to all rights conferred upon owners and borrowers under Chapter 45 of the General Statutes, the lender must give the borrower not less than 90 days' notice of its intent to…

(a) The North Carolina Housing Finance Agency shall adopt rules governing the training of counselors and necessary standards for counselor training and shall establish reasonable fees for training. The North Carolina Housing Finance Agency shall forward the names of all persons s…

Reverse mortgage lenders are prohibited from engaging in any of the following acts in connection with the making, servicing, or collecting of a reverse mortgage loan: (1) Misrepresenting material facts, making false promises, or engaging in a course of misrepresentation through a…

(a) A lender and a borrower may agree, in writing, that in addition to the principal and any interest accruing on the outstanding balance of a reverse mortgage loan, the lender may receive: (1) Shared appreciation if it is in an amount not exceeding ten percent (10%) of the incre…

(a) The Commissioner shall adopt rules necessary to implement and enforce the provisions of this Article. Upon finding probable cause to believe that an authorized lender is in violation of this Article, or of any law or any rule or regulation of this State, the United States, or…

The Banking Commission may review any rule, regulation, order, or act of the Commissioner done pursuant to or with respect to the provisions of this Article. Any person aggrieved by any such rule, regulation, order, or act may appeal, pursuant to G.S. 53C-2-6, to the Commission f…

As used in this Article, unless the context clearly requires otherwise, the term: (1) "Cashing" means providing currency for payment instruments, but does not include the bona fide sale or exchange of travelers checks and foreign denomination payment instruments. (2) "Check-cashi…

No person or other entity may engage in the business of cashing checks, drafts, or money orders for consideration without first obtaining a license under this Article. No person or other entity providing a check-cashing service may avoid the requirements of this Article by provid…

(a) This Article does not apply to any of the following: (1) A bank, savings institution, credit union, or farm credit system organized under the laws of the United States or any state. (2) Any person or entity principally engaged in the bona fide retail sale of goods or services…

(a) An application for licensure under this Article shall be in writing, under oath, and on a form prescribed by the Commissioner. The application shall set forth all of the following: (1) The name and address of the applicant. (2) If the applicant is a firm or partnership, the n…

(a) Every licensee and applicant shall have and maintain liquid assets of at least fifty thousand dollars ($50,000) per licensee. (b) Upon the filing and investigation of an application, and compliance by the applicant with G.S. 53-278, and this section, the Commissioner shall is…

(a) Notwithstanding any other provision of law, no check-cashing business licensed under this Article shall directly or indirectly charge or collect fees or other consideration for check-cashing services in excess of the following: (1) Three percent (3%) of the face amount of the…

(a) Every person required to be licensed under this Article shall maintain in its offices such books, accounts, and records as the Commissioner may reasonably require. The books, accounts, and records shall be maintained separate from any other business in which the person is eng…

No person required to be licensed under this Article shall do any of the following: (1) Charge fees in excess of those authorized under this Article. (2) Engage in the business of making loans of money, or extensions of credit, or discounting notes, bills of exchange, items, or o…

(a) The Commissioner may suspend or revoke any license or licenses issued pursuant to this Article if, after notice and opportunity for hearing, the Commissioner issues written findings that the licensee has engaged in any of the following conduct: (1) Violated this Article or ap…