How does the law strengthen the 2001 N.C. Mortgage Lending Law?
The 2001 NC Mortgage Lending Law (SB 904) includes a broker duty to provide borrowers with a “reasonably advantageous loan from lenders with whom the broker regularly does business.” This loophole allowed brokers who did business only with high-cost subprime lenders to place borrowers in a more expensive loan, rather than a better loan from another lender. HB 1817 strengthens this duty by removing the language that limited it to “lenders with whom the broker regularly does business”, clarifying that the broker’s duty goes beyond simply connecting a borrower with a lender that will make a loan.
