North Carolina's High Cost Home Loan Law
Effective January 1, 2008, North Carolina's High Cost Home Loan Law is amended to include all Yield Spread Premiums (YSPs) paid to the broker in the high cost points and fees test. Owner-occupied primary residence loans with loan amounts of equal to or less than $300,000 are affected by this change.
North Carolina Rate Spread Home Loan Law
A new Rate Spread Home Loan Law creates restrictions relating to certain loan documentation types AND restrictions on prepayment fees. These changes apply to all conforming owner-occupied primary residence purchase or refinance loans secured by property located in North Carolina that are funded on or after January 1, 2008. Home equity products are excluded from these requirements.
Effective December 3, 2007, WaMu will no longer price conforming owner-occupied primary residence loans originated in North Carolina with a prepayment fee feature. Home equity products and non- conforming loans may continue to be priced with a prepayment fee. Affected loans with a prepayment fee must close and fund by December 31, 2007.
Way to go North Carolina! Pre-payment penalties suck!