Here is the new law
SECTION 3. G.S. 53‑243.11 is amended by adding a new subdivision to read:
"(16) In connection with the 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 that changes based on the terms of the loan. This subdivision shall not prohibit compensation based on the principal balance of the loan."
SECTION 4. This act becomes effective October 1, 2008.
I was wondering what this part means.
Does it mean that we are not allowed to changed the YSP after we quoted it to the borrower? For example, if the YSP is 1%, and we're going to be making 2% for the same rate....are we allowed to receive the extra YSP or will we need to be capped at 1%? (There are some states like Maine that enforces this) I'm assuming that this may also apply to points in the front.
I haven't heard from my Corporate legal department yet, but was wondering if anyone has contacted NCCOB for clarification?