Signed by Governor Bev Perdue

Vote Smart's Synopsis:

Vote to pass a bill that amends and extends the Emergency Foreclosure program concerning state lending laws.

Highlights:

-Requires mortgage services to send written notice by mail to the last known address of the borrower at least 45 days before a notice of hearing is filed to initiate foreclosure proceedings, to inform them of the availability of resources that might provide assistance against foreclosure, including, but not limited to, the following (Sec. 1). -Establishes the State Home Foreclosure Prevention Trust Fund for the operation of the State Home Foreclosure Prevention Project whose purpose is to seek solutions to avoid foreclosures for home loans (Sec. 1). - Requires the Commissioner of Banks to allocate funds from the State Home Foreclosure Prevention Trust Fund to implement aims, as follows (Sec. 1):

-A maximum amount of $2.2 million or 30 percent of the funds per year, to cover the administrative costs of the operation of the program; -A maximum amount of $3.4 million or 40 percent per year, to make grants to or reimburse nonprofit housing counseling agencies for providing foreclosure prevention counseling; -An amount not greater than 30 percent of the total funds collected per year, to make grants to or reimburse nonprofit legal service providers for services rendered on behalf of homeowners in danger of defaulting on a home loan to avoid foreclosure; and -Any remaining funds shall be directed to the North Carolina Housing Trust Fund after the expiration of the State Home Foreclosure Prevention Project.

-Requires foreclosure notices filed on home loans on or after November 1, 2010 to contain a certification by the filing party that the pre-foreclosure notice and information were provided and that the required period of time has elapsed (Sec. 1). -Specifies that each principal and each branch office of a mortgage broker/lender be issued a separate license and pay a non-refundable filing fee of $300 dollars in addition to the Nationwide Mortgage Licensing System and Registry processing fee (Sec. 4). -Establishes that "'points and fees'' will not include the following (Sec. 7):

-The portion of the up-front fees collected and paid to the Federal Housing Administration, the Veteran's Administration, or the US Department of Agriculture to insure or guarantee a home loan that exceeds 1.25 percent of the total amount; and -The portion of any up-front private mortgage insurance premium, charge, or fee that exceeds 1.25 percent of the total loan amount, provided that the private mortgage insurance premium, charge or fee is required to be refundable on a prorated basis, the refund is automatically issued upon notification of the satisfaction of the underlying mortgage loan, and the borrower has the right to request or receive a prorated refund in accordance with state or federal law.

-This is a substitute bill sponsored by Sen. Daniel Blue.

Full Bill Text