| 12 | 12 | | A BILL TO BE ENTITLED 1 |
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| 13 | 13 | | AN ACT TO MODIFY THE MAXIMUM PERMISSIBLE FEES OR DISCOUNTS THAT 2 |
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| 14 | 14 | | CERTAIN LENDERS MAY CHARGE ON SECOND OR JUNIOR LIEN REAL ESTATE 3 |
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| 15 | 15 | | LOANS TO ALIGN MORE CLOSELY WITH FEDERAL QUALIFIED MORTGAGE 4 |
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| 16 | 16 | | STANDARDS. 5 |
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| 17 | 17 | | The General Assembly of North Carolina enacts: 6 |
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| 18 | 18 | | SECTION 1. G.S. 24-10 reads as rewritten: 7 |
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| 19 | 19 | | "§ 24-10. Maximum fees on loans secured by real property. 8 |
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| 20 | 20 | | (a) No lender on loans made under G.S. 24-1.1 shall charge or receive from any borrower 9 |
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| 21 | 21 | | or any agent for a borrower, any fees or discounts unless otherwise allowed where the principal 10 |
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| 22 | 22 | | amount is less than three hundred thousand dollars ($300,000) and is secured by real property, 11 |
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| 23 | 23 | | which fees or discounts in the aggregate shall exceed two percent (2%) if a construction loan on 12 |
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| 24 | 24 | | other than a one or two family dwelling, and one percent (1%) on any other type of loan; 13 |
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| 25 | 25 | | provided, however, if a single lender makes both the construction loan and a permanent loan 14 |
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| 26 | 26 | | utilizing one note, the lender may collect the fees as if they were two separate loans. Except as 15 |
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| 27 | 27 | | provided herein or otherwise allowed, no party shall pay for the benefit of the lender any other 16 |
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| 28 | 28 | | fees or discounts. 17 |
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| 29 | 29 | | … 18 |
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| 30 | 30 | | (g) Second or Junior Lien Fees. – 19 |
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| 31 | 31 | | (1) Notwithstanding the limitations contained in subsection (a) of this section, a 20 |
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| 32 | 32 | | lender described in G.S. 24-1.1A(a)(2) may charge or receive from any 21 |
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| 33 | 33 | | borrower, or any agent for a borrower, fees or discounts which in the aggregate 22 |
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| 34 | 34 | | do not exceed two percent (2%) on loans made under G.S. 24-1.1 when the 23 |
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| 35 | 35 | | loans are secured by a second or junior lien on real property. The fees or 24 |
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| 36 | 36 | | discounts are fully earned when the loan is made and are not a prepayment 25 |
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| 37 | 37 | | penalty under this Chapter or any other law of this State. 26 |
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| 38 | 38 | | (2) Notwithstanding the limitations contained in subsection (a) of this section, the 27 |
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| 39 | 39 | | limitation in subdivision (1) of this subsection shall not apply to a loan secured 28 |
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| 40 | 40 | | by a second or junior lien on real property made under G.S. 24-1.1 by a lender 29 |
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| 41 | 41 | | described in G.S. 24-1.1A(a)(2), provided the total points and fees charged to 30 |
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| 42 | 42 | | the borrower by all lenders in connection with the loan do not exceed the lesser 31 |
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| 43 | 43 | | of (i) the amounts specified in 12 C.F.R. § 1026.43(e)(3), or (ii) three percent 32 |
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