North Carolina’s High Cost Home Loan Law

Mortgage and Lending with Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL

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!



Comments (2)

Ruby Ellis
Vista Financial Services, Inc. - Fayetteville, NC

Mr. Krajecki:

I could not agree more about the pre-payment penalties!  Here we have contradicting status with pre-payment penalties - pay us, but don't pay us early.  I am not North Carolina and I am glad to see that our state has stepped up to the plate to protect homeowners. 


Ruby Ellis

Dec 03, 2007 02:15 PM
Eleanor Thorne
Equity Resources - Cary, NC
Equity Resources 919-649-5058
Yes - NC has a GREAT law - but our legislators are the ones that propsed the new preditory lending laws - unfortunately our legislators did not recommend our EXACT law - that would have been BETTER.
Dec 05, 2007 03:20 AM