State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_53 > GS_53-258

§ 53‑258.  Authority andprocedures governing reverse mortgage loans.

(a)        Except as providedin subsection (b1) of this section, no person, firm, or corporation shallengage in the business of making reverse mortgage loans without first beingapproved as an authorized reverse mortgage lender by the Commissioner. Mortgagelenders licensed under Article 19A of this Chapter must also be authorizedunder this Article before making reverse mortgage loans.

(b)        An application forauthorization to make reverse mortgage loans shall be in writing to theCommissioner and in the form prescribed by the Commissioner. The applicationshall contain the name and complete business address or addresses of theapplicant. The application shall also include affirmation of financial solvencyand all capitalization requirements that are required by the Commissioner. Theapplication shall be accompanied by a nonrefundable fee, payable to theCommissioner, of five hundred dollars ($500.00).

(b1)      Each of thefollowing lenders shall be considered authorized to engage in the business ofmaking reverse mortgage loans without being required to apply pursuant tosubsection (b) of this section and may represent to the public that it is soauthorized:

(1)        The North CarolinaHousing Finance Agency.

(2)        A bank, savingsinstitution, or credit union formed under the laws of this or any other stateor of the United States.

(3)        A wholly ownedsubsidiary of an entity described in subdivision (2) of this subsection.

Each lender listed in thissubsection may, upon written request to the Commissioner of Banks, obtainwritten confirmation of its authority to engage in the business of makingreverse mortgage loans. In the case of lenders listed in subdivisions (2) and(3) of this subsection, the request shall be accompanied by the fee set forthin subsection (d) of this section.

(c)        Repealed by SessionLaws 2004‑171, s. 16, effective October 1, 2004, and applicable to actsoccurring and transactions or agreements entered into on or after that date.

(d)        The Commissionershall, upon determination that an applicant should be authorized to makereverse mortgage loans, issue notice of this authority to the lender. Theauthority to issue reverse mortgage loans is valid for the period of timespecified by the Commissioner. A lender to whom a notice of authority is issuedshall display the notice prominently in any and all offices of the lender thatmake reverse mortgage loans. Authorizations issued under this section arenontransferable. Except for lenders described in subsection (b1) of thissection, each lender to which an authorization is issued shall pay an annualrenewal fee of two hundred fifty dollars ($250.00). (1991, c. 546, s. 1; 1995, c.115, s. 1; 2004‑171, s. 16.)