§ 45‑101. (Forexpiration date, see note) Definitions.
The following definitionsapply throughout this Article:
(1) Act as a mortgageservicer. To engage, whether for compensation or gain from another or on itsown behalf, in the business of receiving any scheduled periodic payments from aborrower pursuant to the terms of any mortgage loan, including amounts forescrow accounts, and making the payments of principal and interest and suchother payments with respect to the amounts received from the borrower as may berequired pursuant to the mortgage loan, the mortgage servicing loan documents,or servicing contract.
(1a) Annual percentagerate. Defined in G.S. 24‑1.1F.
(1b) Home loan. A loanthat has all of the following characteristics:
a. The loan is not (i)an equity line of credit as defined in G.S. 24‑9, (ii) a constructionloan as defined in G.S. 24‑10, (iii) a reverse mortgage transaction, or(iv) a bridge loan with a term of 12 months or less, such as a loan to purchasea new dwelling where the borrower plans to sell a current dwelling within 12months.
b. The borrower is anatural person.
c. The debt is incurredby the borrower primarily for personal, family, or household purposes.
d. The principal amountof the loan does not exceed the conforming loan size limit for a single‑familydwelling as established from time to time by Fannie Mae.
e. The loan is securedby (i) a security interest in a manufactured home, as defined in G.S. 143‑145,in the State which is or will be occupied by the borrower as the borrower'sprincipal dwelling, (ii) a mortgage or deed of trust on real property in theState upon which there is located an existing structure designed principallyfor occupancy of from one to four families that is or will be occupied by theborrower as the borrower's principal dwelling, or (iii) a mortgage or deed oftrust on real property in the State upon which there is to be constructed usingthe loan proceeds a structure or structures designed principally for occupancyof from one to four families which, when completed, will be occupied by theborrower as the borrower's principal dwelling.
f. A purpose of theloan is to (i) purchase the dwelling, (ii) construct, repair, rehabilitate,remodel, or improve the dwelling or the real property on which it is located,(iii) satisfy and replace an existing obligation secured by the same realproperty, or (iv) consolidate existing consumer debts into a new home loan.
(2) Mortgage lender. Aperson engaged in the business of making mortgage loans for compensation orgain.
(3) Mortgage servicer. A person who directly or indirectly acts as a mortgage servicer as that term isdefined in subdivision (1) of this section or who otherwise meets thedefinition of the term "servicer" in the Real Estate SettlementProcedures Act, 12 U.S.C. § 2605(i), with respect to mortgage loans.
(3a) Rate spread homeloan. A home loan in which all the following apply:
a. The differencebetween the annual percentage rate for the loan and the yield on U.S. Treasurysecurities having comparable periods of maturity is either equal to or greaterthan (i) three percentage points (3%), if the loan is secured by a first lienmortgage or deed of trust, or (ii) five percentage points (5%), if the loan issecured by a subordinate lien mortgage or deed of trust. Without regard towhether the loan is subject to or reportable under the provisions of the HomeMortgage Disclosure Act (12 U.S.C. § 2801, et seq.) (HMDA), the differencebetween the annual percentage rate and the yield on Treasury securities havingcomparable periods of maturity shall be determined using the same proceduresand calculation methods applicable to loans that are subject to the reportingrequirements of HMDA, as those procedures and calculation methods are amendedfrom time to time, provided that the yield on Treasury securities shall bedetermined as of the fifteenth day of the month prior to the application forthe loan.
b. The differencebetween the annual percentage rate for the loan and the conventional mortgagerate is either equal to or greater than (i) one and three‑fourthspercentage points (1.75%), if the loan is secured by a first lien mortgage ordeed of trust, or (ii) three and three‑fourths percentage points (3.75%),if the loan is secured by a subordinate lien mortgage or deed of trust. Forpurposes of this calculation, the "conventional mortgage rate" meansthe most recent daily contract interest rate on commitments for fixed‑ratefirst mortgages published by the Board of Governors of the Federal Reserve Systemin its Statistical Release H.15, or any publication that may supersede it,during the week preceding the week in which the interest rate for the loan isset.
(4) Subprime loan. Aloan, originated on or after January 1, 2005, but before December 31, 2007,that meets the definition of a rate spread home loan under this Article. Amortgage servicer may rely on a chart reflecting the appropriate interest ratetriggers for rate spread home loans for each day of the period covered by thisArticle provided by the Commissioner of Banks for the purposes of determiningif a loan is a subprime loan covered by this Article. The Commissioner shallprovide the chart at least 60 days prior to the effective date of this act. (2008‑226, s. 1; 2009‑457,s. 3.)
§ 45‑101. (Forexpiration date, see note) Definitions.
The following definitionsapply throughout this Article:
(1) Act as a mortgageservicer. To engage, whether for compensation or gain from another or on itsown behalf, in the business of receiving any scheduled periodic payments from aborrower pursuant to the terms of any mortgage loan, including amounts forescrow accounts, and making the payments of principal and interest and suchother payments with respect to the amounts received from the borrower as may berequired pursuant to the mortgage loan, the mortgage servicing loan documents,or servicing contract.
(1a) Annual percentagerate. Defined in G.S. 24‑1.1F.
(1b) Home loan. A loanthat has all of the following characteristics:
a. The loan is not (i)an equity line of credit as defined in G.S. 24‑9, (ii) a constructionloan as defined in G.S. 24‑10, (iii) a reverse mortgage transaction, or(iv) a bridge loan with a term of 12 months or less, such as a loan to purchasea new dwelling where the borrower plans to sell a current dwelling within 12months.
b. The borrower is anatural person.
c. The debt is incurredby the borrower primarily for personal, family, or household purposes.
d. The principal amountof the loan does not exceed the conforming loan size limit for a single‑familydwelling as established from time to time by Fannie Mae.
e. The loan is securedby (i) a security interest in a manufactured home, as defined in G.S. 143‑145,in the State which is or will be occupied by the borrower as the borrower'sprincipal dwelling, (ii) a mortgage or deed of trust on real property in theState upon which there is located an existing structure designed principallyfor occupancy of from one to four families that is or will be occupied by theborrower as the borrower's principal dwelling, or (iii) a mortgage or deed oftrust on real property in the State upon which there is to be constructed usingthe loan proceeds a structure or structures designed principally for occupancyof from one to four families which, when completed, will be occupied by theborrower as the borrower's principal dwelling.
f. A purpose of theloan is to (i) purchase the dwelling, (ii) construct, repair, rehabilitate,remodel, or improve the dwelling or the real property on which it is located,(iii) satisfy and replace an existing obligation secured by the same realproperty, or (iv) consolidate existing consumer debts into a new home loan.
(2) Mortgage lender. Aperson engaged in the business of making mortgage loans for compensation orgain.
(3) Mortgage servicer. A person who directly or indirectly acts as a mortgage servicer as that term isdefined in subdivision (1) of this section or who otherwise meets thedefinition of the term "servicer" in the Real Estate SettlementProcedures Act, 12 U.S.C. § 2605(i), with respect to mortgage loans.
(3a) Rate spread homeloan. A home loan in which all the following apply:
a. The differencebetween the annual percentage rate for the loan and the yield on U.S. Treasurysecurities having comparable periods of maturity is either equal to or greaterthan (i) three percentage points (3%), if the loan is secured by a first lienmortgage or deed of trust, or (ii) five percentage points (5%), if the loan issecured by a subordinate lien mortgage or deed of trust. Without regard towhether the loan is subject to or reportable under the provisions of the HomeMortgage Disclosure Act (12 U.S.C. § 2801, et seq.) (HMDA), the differencebetween the annual percentage rate and the yield on Treasury securities havingcomparable periods of maturity shall be determined using the same proceduresand calculation methods applicable to loans that are subject to the reportingrequirements of HMDA, as those procedures and calculation methods are amendedfrom time to time, provided that the yield on Treasury securities shall bedetermined as of the fifteenth day of the month prior to the application forthe loan.
b. The differencebetween the annual percentage rate for the loan and the conventional mortgagerate is either equal to or greater than (i) one and three‑fourthspercentage points (1.75%), if the loan is secured by a first lien mortgage ordeed of trust, or (ii) three and three‑fourths percentage points (3.75%),if the loan is secured by a subordinate lien mortgage or deed of trust. Forpurposes of this calculation, the "conventional mortgage rate" meansthe most recent daily contract interest rate on commitments for fixed‑ratefirst mortgages published by the Board of Governors of the Federal Reserve Systemin its Statistical Release H.15, or any publication that may supersede it,during the week preceding the week in which the interest rate for the loan isset.
(4) Subprime loan. Aloan, originated on or after January 1, 2005, but before December 31, 2007,that meets the definition of a rate spread home loan under this Article. Amortgage servicer may rely on a chart reflecting the appropriate interest ratetriggers for rate spread home loans for each day of the period covered by thisArticle provided by the Commissioner of Banks for the purposes of determiningif a loan is a subprime loan covered by this Article. The Commissioner shallprovide the chart at least 60 days prior to the effective date of this act. (2008‑226, s. 1; 2009‑457,s. 3.)
§ 45‑101. (Forexpiration date, see note) Definitions.
The following definitionsapply throughout this Article:
(1) Act as a mortgageservicer. To engage, whether for compensation or gain from another or on itsown behalf, in the business of receiving any scheduled periodic payments from aborrower pursuant to the terms of any mortgage loan, including amounts forescrow accounts, and making the payments of principal and interest and suchother payments with respect to the amounts received from the borrower as may berequired pursuant to the mortgage loan, the mortgage servicing loan documents,or servicing contract.
(1a) Annual percentagerate. Defined in G.S. 24‑1.1F.
(1b) Home loan. A loanthat has all of the following characteristics:
a. The loan is not (i)an equity line of credit as defined in G.S. 24‑9, (ii) a constructionloan as defined in G.S. 24‑10, (iii) a reverse mortgage transaction, or(iv) a bridge loan with a term of 12 months or less, such as a loan to purchasea new dwelling where the borrower plans to sell a current dwelling within 12months.
b. The borrower is anatural person.
c. The debt is incurredby the borrower primarily for personal, family, or household purposes.
d. The principal amountof the loan does not exceed the conforming loan size limit for a single‑familydwelling as established from time to time by Fannie Mae.
e. The loan is securedby (i) a security interest in a manufactured home, as defined in G.S. 143‑145,in the State which is or will be occupied by the borrower as the borrower'sprincipal dwelling, (ii) a mortgage or deed of trust on real property in theState upon which there is located an existing structure designed principallyfor occupancy of from one to four families that is or will be occupied by theborrower as the borrower's principal dwelling, or (iii) a mortgage or deed oftrust on real property in the State upon which there is to be constructed usingthe loan proceeds a structure or structures designed principally for occupancyof from one to four families which, when completed, will be occupied by theborrower as the borrower's principal dwelling.
f. A purpose of theloan is to (i) purchase the dwelling, (ii) construct, repair, rehabilitate,remodel, or improve the dwelling or the real property on which it is located,(iii) satisfy and replace an existing obligation secured by the same realproperty, or (iv) consolidate existing consumer debts into a new home loan.
(2) Mortgage lender. Aperson engaged in the business of making mortgage loans for compensation orgain.
(3) Mortgage servicer. A person who directly or indirectly acts as a mortgage servicer as that term isdefined in subdivision (1) of this section or who otherwise meets thedefinition of the term "servicer" in the Real Estate SettlementProcedures Act, 12 U.S.C. § 2605(i), with respect to mortgage loans.
(3a) Rate spread homeloan. A home loan in which all the following apply:
a. The differencebetween the annual percentage rate for the loan and the yield on U.S. Treasurysecurities having comparable periods of maturity is either equal to or greaterthan (i) three percentage points (3%), if the loan is secured by a first lienmortgage or deed of trust, or (ii) five percentage points (5%), if the loan issecured by a subordinate lien mortgage or deed of trust. Without regard towhether the loan is subject to or reportable under the provisions of the HomeMortgage Disclosure Act (12 U.S.C. § 2801, et seq.) (HMDA), the differencebetween the annual percentage rate and the yield on Treasury securities havingcomparable periods of maturity shall be determined using the same proceduresand calculation methods applicable to loans that are subject to the reportingrequirements of HMDA, as those procedures and calculation methods are amendedfrom time to time, provided that the yield on Treasury securities shall bedetermined as of the fifteenth day of the month prior to the application forthe loan.
b. The differencebetween the annual percentage rate for the loan and the conventional mortgagerate is either equal to or greater than (i) one and three‑fourthspercentage points (1.75%), if the loan is secured by a first lien mortgage ordeed of trust, or (ii) three and three‑fourths percentage points (3.75%),if the loan is secured by a subordinate lien mortgage or deed of trust. Forpurposes of this calculation, the "conventional mortgage rate" meansthe most recent daily contract interest rate on commitments for fixed‑ratefirst mortgages published by the Board of Governors of the Federal Reserve Systemin its Statistical Release H.15, or any publication that may supersede it,during the week preceding the week in which the interest rate for the loan isset.
(4) Subprime loan. Aloan, originated on or after January 1, 2005, but before December 31, 2007,that meets the definition of a rate spread home loan under this Article. Amortgage servicer may rely on a chart reflecting the appropriate interest ratetriggers for rate spread home loans for each day of the period covered by thisArticle provided by the Commissioner of Banks for the purposes of determiningif a loan is a subprime loan covered by this Article. The Commissioner shallprovide the chart at least 60 days prior to the effective date of this act. (2008‑226, s. 1; 2009‑457,s. 3.)
