North Carolina Modifies Fee Notice Requirements for Loan Servicers
The General Assembly of North Carolina has enacted Senate Law 2017-10, which streamlines mortgage notice requirements, effective immediately.
North Carolina G.S. § 45-91 requires that any fee incurred by the servicer must be:
- Assessed within 45 days of the date on which the fee was incurred, and;
- Explained clearly and conspicuously in a statement mailed to the borrower at the borrower’s last known address within 30 days after assessing the fee, provided the servicer shall not be required to take any action in violation of the provisions of the federal bankruptcy code.
Senate Law 2017-10 modifies North Carolina G.S. § 45-91 to state that the servicer shall not be required to send such a statement if the fee is included in a periodic statement sent to the borrower that complies with paragraphs (b), (c), and (d) of 12 C.F.R. § 1026.41, or if the fee “results from a service that is affirmatively requested by the borrower, is paid for by the borrower at the time the service is provided, and is not charged to the borrower’s loan account.”
For the full text of Senate Law 2017-10, please refer to: http://www.ncleg.net/Sessions/2017/Bills/Senate/PDF/S131v7.pdf
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