In addition to the activitiesprohibited under other provisions of this Article, it shall be unlawful for anyperson in the course of any residential mortgage loan transaction:
(1) To misrepresent orconceal the material facts or make false promises likely to influence,persuade, or induce an applicant for a mortgage loan or a mortgagor to take amortgage loan, or to pursue a course of misrepresentation through agents orotherwise.
(2) To improperly refuseto issue a satisfaction of a mortgage.
(3) To fail to accountfor or to deliver to any person any funds, documents, or other thing of valueobtained in connection with a mortgage loan, including money provided by aborrower for a real estate appraisal or a credit report, which the mortgagelender, mortgage broker, mortgage servicer, or mortgage loan originator is notentitled to retain under the circumstances.
(4) To pay, receive, orcollect in whole or in part any commission, fee, or other compensation forbrokering or servicing a mortgage loan in violation of this Article, includinga mortgage loan brokered or serviced by any unlicensed person other than anexempt person.
(5) To charge or collectany fee or rate of interest or to make or broker or service any mortgage loan withterms or conditions or in a manner contrary to the provisions of Chapter 24,45, or 54 of the General Statutes.
(6) To advertisemortgage loans, including rates, margins, discounts, points, fees, commissions,or other material information, including material limitations on the loans,unless the person is able to make the mortgage loans available to a reasonablenumber of qualified applicants.
(7) To fail to disbursefunds in accordance with a written commitment or agreement to make a mortgageloan.
(8) To engage in anytransaction, practice, or course of business that is not in good faith or fairdealing or that constitutes a fraud upon any person in connection with thebrokering or making or servicing of, or purchase or sale of, any mortgage loan.
(9) To fail to paypromptly when due reasonable fees to a licensed appraiser for appraisalservices that are:
a. Requested from theappraiser in writing by the mortgage broker or mortgage lender or an employeeof the mortgage broker or mortgage lender; and
b. Performed by theappraiser in connection with the origination or closing of a mortgage loan fora customer or the mortgage broker or mortgage lender.
(10) To broker a mortgageloan that contains a prepayment penalty if the principal amount of the loan isone hundred fifty thousand dollars ($150,000) or less or if the loan is a ratespread home loan as defined in G.S. 24‑1.1F.
(11) To improperlyinfluence or attempt to improperly influence the development, reporting,result, or review of a real estate appraisal sought in connection with amortgage loan. Nothing in this subdivision shall be construed to prohibit amortgage lender, mortgage broker, or mortgage servicer from asking theappraiser to do one or more of the following:
a. Consider additionalappropriate property information.
b. Provide furtherdetail, substantiation, or explanation for the appraiser's value conclusion.
c. Correct errors inthe appraisal report.
(12) To fail to complywith the mortgage loan servicing transfer, escrow account administration, orborrower inquiry response requirements imposed by sections 6 and 10 of RESPAand regulations adopted thereunder.
(13) To broker a ratespread adjustable rate mortgage loan without disclosing to the borrower theterms and costs associated with a fixed rate loan from the same lender at thelowest annual percentage rate for which the borrower qualifies.
(14) To fail to complywith applicable State and federal laws and regulations related to mortgagelending or mortgage servicing.
(15) To engage in unfair,misleading, or deceptive advertising related to a solicitation for a mortgageloan.
(16) In connection withthe brokering or making of a rate spread home loan as defined under G.S. 24‑1.1F,no lender shall provide nor shall any broker receive any compensation thatchanges based on the terms of the loan. This subdivision shall not prohibitcompensation based on the principal balance of the loan.
(17) For a mortgageservicer to fail to comply with the mortgage servicer's obligations underArticle 10 of Chapter 45 of the General Statutes.
(18) For a mortgageservicer to fail to provide written notice to a borrower upon taking action toplace hazard, homeowner's, or flood insurance on the mortgaged property or toplace such insurance when the mortgage servicer knows or has reason to knowthat the insurance is in effect.
(19) For a mortgageservicer to place hazard, homeowner's, or flood insurance on a mortgagedproperty for an amount that exceeds either the value of the insurableimprovements or the last known coverage amount of insurance.
(20) For a mortgageservicer to fail to provide to the borrower a refund of unearned premiums paidby a borrower or charged to the borrower for hazard, homeowner's, or floodinsurance placed by a mortgage lender or mortgage servicer if the borrowerprovides reasonable proof that the borrower has obtained coverage such that theforced placement is no longer necessary and the property is insured. If theborrower provides reasonable proof within 12 months of the placement that nolapse in coverage occurred such that the forced placement was not necessary,the mortgage servicer shall refund the entire premium.
(21) For a mortgageservicer to refuse to reinstate a delinquent loan upon a tender of payment madetimely under the contract which is sufficient in amount, based upon the lastwritten statement received by the borrower, to pay all past due amounts,outstanding or overdue charges, and restore the loan to a nondelinquent status,but this reinstatement shall be available to a borrower no more than twice inany 24‑month period.
(22) For a person actingas a mortgage servicer to fail to mail, at least 45 days before foreclosure isinitiated, a notice addressed to the borrower at the borrower's last knownaddress with the following information:
a. An itemization ofall past due amounts causing the loan to be in default.
b. An itemization ofany other charges that must be paid in order to bring the loan current.
c. A statement that theborrower may have options available other than foreclosure and that theborrower may discuss the options with the mortgage lender, the mortgageservicer, or a counselor approved by the U.S. Department of Housing and UrbanDevelopment (HUD).
d. The address,telephone number, and other contact information for the mortgage lender, themortgage servicer, or the agent for either of them who is authorized to attemptto work with the borrower to avoid foreclosure.
e. The name, address,telephone number, and other contact information for one or more HUD‑approvedcounseling agencies operating to assist borrowers in North Carolina to avoidforeclosure.
f. The address,telephone number, and other contact information for the consumer complaintsection of the Office of the Commissioner of Banks.
(23) To fail to make allpayments from any escrow account held for the borrower for insurance, taxes,and other charges with respect to the property in a timely manner so as toensure that no late penalties are assessed or other negative consequencesresult regardless of whether the loan is delinquent, unless there are notsufficient funds in the account to cover the payments and the mortgage servicerhas a reasonable basis to believe that recovery of the funds will not bepossible. (2009‑374,s. 2.)
In addition to the activitiesprohibited under other provisions of this Article, it shall be unlawful for anyperson in the course of any residential mortgage loan transaction:
(1) To misrepresent orconceal the material facts or make false promises likely to influence,persuade, or induce an applicant for a mortgage loan or a mortgagor to take amortgage loan, or to pursue a course of misrepresentation through agents orotherwise.
(2) To improperly refuseto issue a satisfaction of a mortgage.
(3) To fail to accountfor or to deliver to any person any funds, documents, or other thing of valueobtained in connection with a mortgage loan, including money provided by aborrower for a real estate appraisal or a credit report, which the mortgagelender, mortgage broker, mortgage servicer, or mortgage loan originator is notentitled to retain under the circumstances.
(4) To pay, receive, orcollect in whole or in part any commission, fee, or other compensation forbrokering or servicing a mortgage loan in violation of this Article, includinga mortgage loan brokered or serviced by any unlicensed person other than anexempt person.
(5) To charge or collectany fee or rate of interest or to make or broker or service any mortgage loan withterms or conditions or in a manner contrary to the provisions of Chapter 24,45, or 54 of the General Statutes.
(6) To advertisemortgage loans, including rates, margins, discounts, points, fees, commissions,or other material information, including material limitations on the loans,unless the person is able to make the mortgage loans available to a reasonablenumber of qualified applicants.
(7) To fail to disbursefunds in accordance with a written commitment or agreement to make a mortgageloan.
(8) To engage in anytransaction, practice, or course of business that is not in good faith or fairdealing or that constitutes a fraud upon any person in connection with thebrokering or making or servicing of, or purchase or sale of, any mortgage loan.
(9) To fail to paypromptly when due reasonable fees to a licensed appraiser for appraisalservices that are:
a. Requested from theappraiser in writing by the mortgage broker or mortgage lender or an employeeof the mortgage broker or mortgage lender; and
b. Performed by theappraiser in connection with the origination or closing of a mortgage loan fora customer or the mortgage broker or mortgage lender.
(10) To broker a mortgageloan that contains a prepayment penalty if the principal amount of the loan isone hundred fifty thousand dollars ($150,000) or less or if the loan is a ratespread home loan as defined in G.S. 24‑1.1F.
(11) To improperlyinfluence or attempt to improperly influence the development, reporting,result, or review of a real estate appraisal sought in connection with amortgage loan. Nothing in this subdivision shall be construed to prohibit amortgage lender, mortgage broker, or mortgage servicer from asking theappraiser to do one or more of the following:
a. Consider additionalappropriate property information.
b. Provide furtherdetail, substantiation, or explanation for the appraiser's value conclusion.
c. Correct errors inthe appraisal report.
(12) To fail to complywith the mortgage loan servicing transfer, escrow account administration, orborrower inquiry response requirements imposed by sections 6 and 10 of RESPAand regulations adopted thereunder.
(13) To broker a ratespread adjustable rate mortgage loan without disclosing to the borrower theterms and costs associated with a fixed rate loan from the same lender at thelowest annual percentage rate for which the borrower qualifies.
(14) To fail to complywith applicable State and federal laws and regulations related to mortgagelending or mortgage servicing.
(15) To engage in unfair,misleading, or deceptive advertising related to a solicitation for a mortgageloan.
(16) In connection withthe brokering or making of a rate spread home loan as defined under G.S. 24‑1.1F,no lender shall provide nor shall any broker receive any compensation thatchanges based on the terms of the loan. This subdivision shall not prohibitcompensation based on the principal balance of the loan.
(17) For a mortgageservicer to fail to comply with the mortgage servicer's obligations underArticle 10 of Chapter 45 of the General Statutes.
(18) For a mortgageservicer to fail to provide written notice to a borrower upon taking action toplace hazard, homeowner's, or flood insurance on the mortgaged property or toplace such insurance when the mortgage servicer knows or has reason to knowthat the insurance is in effect.
(19) For a mortgageservicer to place hazard, homeowner's, or flood insurance on a mortgagedproperty for an amount that exceeds either the value of the insurableimprovements or the last known coverage amount of insurance.
(20) For a mortgageservicer to fail to provide to the borrower a refund of unearned premiums paidby a borrower or charged to the borrower for hazard, homeowner's, or floodinsurance placed by a mortgage lender or mortgage servicer if the borrowerprovides reasonable proof that the borrower has obtained coverage such that theforced placement is no longer necessary and the property is insured. If theborrower provides reasonable proof within 12 months of the placement that nolapse in coverage occurred such that the forced placement was not necessary,the mortgage servicer shall refund the entire premium.
(21) For a mortgageservicer to refuse to reinstate a delinquent loan upon a tender of payment madetimely under the contract which is sufficient in amount, based upon the lastwritten statement received by the borrower, to pay all past due amounts,outstanding or overdue charges, and restore the loan to a nondelinquent status,but this reinstatement shall be available to a borrower no more than twice inany 24‑month period.
(22) For a person actingas a mortgage servicer to fail to mail, at least 45 days before foreclosure isinitiated, a notice addressed to the borrower at the borrower's last knownaddress with the following information:
a. An itemization ofall past due amounts causing the loan to be in default.
b. An itemization ofany other charges that must be paid in order to bring the loan current.
c. A statement that theborrower may have options available other than foreclosure and that theborrower may discuss the options with the mortgage lender, the mortgageservicer, or a counselor approved by the U.S. Department of Housing and UrbanDevelopment (HUD).
d. The address,telephone number, and other contact information for the mortgage lender, themortgage servicer, or the agent for either of them who is authorized to attemptto work with the borrower to avoid foreclosure.
e. The name, address,telephone number, and other contact information for one or more HUD‑approvedcounseling agencies operating to assist borrowers in North Carolina to avoidforeclosure.
f. The address,telephone number, and other contact information for the consumer complaintsection of the Office of the Commissioner of Banks.
(23) To fail to make allpayments from any escrow account held for the borrower for insurance, taxes,and other charges with respect to the property in a timely manner so as toensure that no late penalties are assessed or other negative consequencesresult regardless of whether the loan is delinquent, unless there are notsufficient funds in the account to cover the payments and the mortgage servicerhas a reasonable basis to believe that recovery of the funds will not bepossible. (2009‑374,s. 2.)
In addition to the activitiesprohibited under other provisions of this Article, it shall be unlawful for anyperson in the course of any residential mortgage loan transaction:
(1) To misrepresent orconceal the material facts or make false promises likely to influence,persuade, or induce an applicant for a mortgage loan or a mortgagor to take amortgage loan, or to pursue a course of misrepresentation through agents orotherwise.
(2) To improperly refuseto issue a satisfaction of a mortgage.
(3) To fail to accountfor or to deliver to any person any funds, documents, or other thing of valueobtained in connection with a mortgage loan, including money provided by aborrower for a real estate appraisal or a credit report, which the mortgagelender, mortgage broker, mortgage servicer, or mortgage loan originator is notentitled to retain under the circumstances.
(4) To pay, receive, orcollect in whole or in part any commission, fee, or other compensation forbrokering or servicing a mortgage loan in violation of this Article, includinga mortgage loan brokered or serviced by any unlicensed person other than anexempt person.
(5) To charge or collectany fee or rate of interest or to make or broker or service any mortgage loan withterms or conditions or in a manner contrary to the provisions of Chapter 24,45, or 54 of the General Statutes.
(6) To advertisemortgage loans, including rates, margins, discounts, points, fees, commissions,or other material information, including material limitations on the loans,unless the person is able to make the mortgage loans available to a reasonablenumber of qualified applicants.
(7) To fail to disbursefunds in accordance with a written commitment or agreement to make a mortgageloan.
(8) To engage in anytransaction, practice, or course of business that is not in good faith or fairdealing or that constitutes a fraud upon any person in connection with thebrokering or making or servicing of, or purchase or sale of, any mortgage loan.
(9) To fail to paypromptly when due reasonable fees to a licensed appraiser for appraisalservices that are:
a. Requested from theappraiser in writing by the mortgage broker or mortgage lender or an employeeof the mortgage broker or mortgage lender; and
b. Performed by theappraiser in connection with the origination or closing of a mortgage loan fora customer or the mortgage broker or mortgage lender.
(10) To broker a mortgageloan that contains a prepayment penalty if the principal amount of the loan isone hundred fifty thousand dollars ($150,000) or less or if the loan is a ratespread home loan as defined in G.S. 24‑1.1F.
(11) To improperlyinfluence or attempt to improperly influence the development, reporting,result, or review of a real estate appraisal sought in connection with amortgage loan. Nothing in this subdivision shall be construed to prohibit amortgage lender, mortgage broker, or mortgage servicer from asking theappraiser to do one or more of the following:
a. Consider additionalappropriate property information.
b. Provide furtherdetail, substantiation, or explanation for the appraiser's value conclusion.
c. Correct errors inthe appraisal report.
(12) To fail to complywith the mortgage loan servicing transfer, escrow account administration, orborrower inquiry response requirements imposed by sections 6 and 10 of RESPAand regulations adopted thereunder.
(13) To broker a ratespread adjustable rate mortgage loan without disclosing to the borrower theterms and costs associated with a fixed rate loan from the same lender at thelowest annual percentage rate for which the borrower qualifies.
(14) To fail to complywith applicable State and federal laws and regulations related to mortgagelending or mortgage servicing.
(15) To engage in unfair,misleading, or deceptive advertising related to a solicitation for a mortgageloan.
(16) In connection withthe brokering or making of a rate spread home loan as defined under G.S. 24‑1.1F,no lender shall provide nor shall any broker receive any compensation thatchanges based on the terms of the loan. This subdivision shall not prohibitcompensation based on the principal balance of the loan.
(17) For a mortgageservicer to fail to comply with the mortgage servicer's obligations underArticle 10 of Chapter 45 of the General Statutes.
(18) For a mortgageservicer to fail to provide written notice to a borrower upon taking action toplace hazard, homeowner's, or flood insurance on the mortgaged property or toplace such insurance when the mortgage servicer knows or has reason to knowthat the insurance is in effect.
(19) For a mortgageservicer to place hazard, homeowner's, or flood insurance on a mortgagedproperty for an amount that exceeds either the value of the insurableimprovements or the last known coverage amount of insurance.
(20) For a mortgageservicer to fail to provide to the borrower a refund of unearned premiums paidby a borrower or charged to the borrower for hazard, homeowner's, or floodinsurance placed by a mortgage lender or mortgage servicer if the borrowerprovides reasonable proof that the borrower has obtained coverage such that theforced placement is no longer necessary and the property is insured. If theborrower provides reasonable proof within 12 months of the placement that nolapse in coverage occurred such that the forced placement was not necessary,the mortgage servicer shall refund the entire premium.
(21) For a mortgageservicer to refuse to reinstate a delinquent loan upon a tender of payment madetimely under the contract which is sufficient in amount, based upon the lastwritten statement received by the borrower, to pay all past due amounts,outstanding or overdue charges, and restore the loan to a nondelinquent status,but this reinstatement shall be available to a borrower no more than twice inany 24‑month period.
(22) For a person actingas a mortgage servicer to fail to mail, at least 45 days before foreclosure isinitiated, a notice addressed to the borrower at the borrower's last knownaddress with the following information:
a. An itemization ofall past due amounts causing the loan to be in default.
b. An itemization ofany other charges that must be paid in order to bring the loan current.
c. A statement that theborrower may have options available other than foreclosure and that theborrower may discuss the options with the mortgage lender, the mortgageservicer, or a counselor approved by the U.S. Department of Housing and UrbanDevelopment (HUD).
d. The address,telephone number, and other contact information for the mortgage lender, themortgage servicer, or the agent for either of them who is authorized to attemptto work with the borrower to avoid foreclosure.
e. The name, address,telephone number, and other contact information for one or more HUD‑approvedcounseling agencies operating to assist borrowers in North Carolina to avoidforeclosure.
f. The address,telephone number, and other contact information for the consumer complaintsection of the Office of the Commissioner of Banks.
(23) To fail to make allpayments from any escrow account held for the borrower for insurance, taxes,and other charges with respect to the property in a timely manner so as toensure that no late penalties are assessed or other negative consequencesresult regardless of whether the loan is delinquent, unless there are notsufficient funds in the account to cover the payments and the mortgage servicerhas a reasonable basis to believe that recovery of the funds will not bepossible. (2009‑374,s. 2.)
