I notice that the Act prohibits brokering of loans of under $150,000 that contain a prepayment penalty. May I as a Mortgage Lender make such loans?
For loans made directly (not through a broker), you should consult qualified legal counsel for guidance as to whether you as a lender are subject to North Carolina laws limiting prepayment penalties. The brokering of such loans is a “prohibited activity” under the Act. Any Mortgage Lender licensee or exempt Lender which knowingly deals with a Broker whom it knows is engaged in prohibited activities may itself be subject to discipline. Q: My company uses self-employed sales representatives to call on Real Estate Agents. Our representative leaves loan application forms and information regarding our loans. A potential borrower never sees one of our representatives. They call us or contact us via the Internet to file their loan application. Do these sales representatives need a Mortgage Loan Originator license? A: No. It appears that these sales representatives have no contact with a borrower and do not explain the terms of or otherwise solicit the loan. Therefore they would not need to be
