GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
SESSION LAW 2012-37
SENATE BILL 806
AN ACT to make changes to the law dealing with the annual assessments of mortgage bankers, mortgage brokers, and mortgage servicers, as recommended by the joint legislative Commission on the modernization of north carolina banking laws.
The General Assembly of North Carolina enacts:
SECTION 1. Article 19B of Chapter 53 of the General Statutes is amended by adding a new section to read:
"§ 53-244.100A. Assessments.
(a) For the purpose of meeting the cost of regulation under this Article, each mortgage lender, mortgage broker, and mortgage servicer licensed under this Article shall pay into the OCOB an assessment as provided in this subsection. The annual assessment shall consist of a base amount of two thousand dollars ($2,000) for volumes of no more than one million five hundred thousand dollars ($1,500,000) plus an additional sum, calculated on the loan and servicing dollar volume reported by the licensee to the OCOB for the previous calendar year. If a licensee has both loan and servicing volume, those amounts shall be added together and the assessment shall be calculated from the table below as follows:
Loan and/or Servicing Dollar Volume Per Thousand
$1,500,001 to $2,500,000 $0.07
$2,500,001 to $5,000,000 $0.06
$5,000,001 to $10,000,000 $0.05
$10,000,001 to $30,000,000 $0.04
$30,000,001 to $100,000,000 $0.03
$100,000,001 to $1,300,000,000 $0.02
More Than $1,300,000,001 $0.01
(b) The Commissioner may collect the assessment provided for in subsection (a) of this section annually or in periodic installments as approved by the Commission."
SECTION 2. G.S. 53-244.101 reads as rewritten:
"§ 53-244.101. License renewal.
(a) All licenses issued by the Commissioner under the provisions of this Article shall expire annually on the 31st day of December following issuance or on any other date that the Commissioner may determine. The license is invalid after that date and shall remain invalid unless renewed under subsection (b) of this section.
(b)
A license may be renewed on or after November 1 of each year by complying with
the requirements of subsection (c) of this section section. A
mortgage loan originator shall pay a nonrefundable renewal fee of one hundred
twenty-five dollars ($125.00) and by paying to the Commissioner, in
addition toplus the actual cost of obtaining credit reports and
State and national criminal history record checks and of processing
fees of for the nationwide system Nationwide
Mortgage Licensing System and Registry as the Commissioner shall require,
nonrefundable renewal fees as follows: require.
(1)
Licensed mortgage lenders, licensed mortgage brokers, and licensed mortgage
servicers shall pay an annual renewal fee of six hundred twenty-five dollars ($625.00),
licensed exclusive mortgage brokers shall pay an annual renewal fee of three
hundred dollars ($300.00), and licensed mortgage lenders and mortgage brokers
shall pay three hundred dollars ($300.00) for each licensed branch office.
(2)
Licensed mortgage loan originators shall pay an annual renewal fee of one
hundred twenty-five dollars ($125.00).
(c) Licensees may apply to renew a mortgage loan originator, mortgage lender, mortgage broker, and mortgage servicer license. The application for renewal shall demonstrate that:
(1) The licensee continues to meet the initial minimum standards for licensure under G.S. 53-244.060;
(2) The mortgage loan originator has satisfied the annual continuing education requirements described in G.S. 53-244.102; and
(3)
The licensee has paid all required fees for renewal of the license.and
assessments.
(d)
If a mortgage lender, mortgage broker, or mortgage servicer's license is not
renewed prior to the expiration date, then the licensee shall pay two hundred
fifty dollars ($250.00) as a nonrefundable late fee in addition to the
renewal fee set forth in subsection (b) of this section. fee. If a
mortgage loan originator's license is not renewed prior to the expiration date,
then the licensee shall pay a nonrefundable late fee of one hundred dollars
($100.00) in addition to the renewal fee set forth in subsection (b) of this
section. In the event a licensee fails to obtain a reinstatement of the license
prior to March 1, the Commissioner shall require the licensee to comply with
the requirements for the initial issuance of a license under the provisions of
this Article.
(e) When required by the Commissioner, each person shall furnish to the Commissioner the person's consent to a criminal history record check and a set of the person's fingerprints in a form acceptable to the Commissioner or to the Nationwide Mortgage Licensing System and Registry. Refusal to consent to a criminal history record check shall constitute grounds for the Commissioner to deny renewal of the license of the person as well as the license of any other person by whom the person is employed, over which the person has control, or as to which the person is the current or proposed qualifying individual or current or proposed branch manager."
SECTION 3. G.S. 53-244.115 reads as rewritten:
"§ 53-244.115. Investigation and examination authority.
(a)
For purposes of initial licensing, license renewal, suspension, conditioning,
revocation, or termination, or general or specific inquiry, investigation, or
examination to determine compliance with this Article, the Commissioner may,
at the expense of the applicant or licensee,may access, receive, and
use any books, accounts, records, files, documents, information, or evidence,
including:
(1) Criminal, civil, and administrative history information, including nonconviction data;
(2) Personal history and experience information, including independent credit reports obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act; and
(3) Any other documents, information, or evidence the Commissioner deems relevant to the inquiry, investigation, or examination regardless of the location, possession, control, or custody of the documents, information, or evidence.
(b)
For purposes of investigating violations or complaints arising under this
Article, or for the purposes of examination, the Commissioner may review,
investigate, or examine any licensee, individual, or person subject to this
Article as often as necessary in order to carry out the purposes of this
Article. The Commissioner may interview the officer, principals, person with
control, qualified individual, mortgage loan originators, employees, independent
contractors, agents, and customers of the licensee, individual, or person
concerning their business. The Commissioner may direct, subpoena, or order the
attendance of and examine under oath all persons whose testimony may be
required about the loans or the business or subject matter of any examination
or investigation and may direct, subpoena, or order the person to produce
books, accounts, records, files, and any other documents the Commissioner deems
relevant to the inquiry. The reasonable cost of the investigation or
examination shall be charged against the licensee, individual, or person
subject to this Article. The assessment set forth in G.S. 53-244.100A
is for the purpose of meeting the cost of regulation under this Article. Any
investigation or examination that, in the opinion of the Commissioner of Banks,
requires extraordinary review, investigation, or special examination shall be
subject to the actual costs of additional expenses and the hourly rate for the
staff's time, to be determined annually by the Banking Commission.
(c) Each licensee, individual, or person subject to this Article shall make available to the Commissioner upon request the books and records relating to the operations of the licensee, individual, or person. No licensee, individual, or person subject to investigation or examination under this section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information. Each licensee, individual, or person subject to this Article shall also make available for interview by the Commissioner the officers, principals, persons with control, qualified individuals, mortgage loan originators, employees, independent contractors, agents, and customers of the licensee, individual, or person concerning their business.
(d) Each licensee, individual, or person subject to this Article shall make or compile such reports or prepare other information as may be directed or requested by the Commissioner in order to carry out the purposes of this section, including:
(1) Accounting compilations;
(2) Information lists and data concerning loan transactions in a format prescribed by the Commissioner;
(3) Periodic reports, including:
a. Annual Report Questionnaire,
b. Servicer Activity Report,
c. Servicer Schedule of the Ranges of Costs and Fees,
d. Lender/Servicer Audited Statements of Financial Condition,
e. Broker Certified Statements of Financial Condition, and
f. Quarterly Loan Origination Reports.
(4) Any other information deemed necessary to carry out the purposes of this section.
(e) In making any examination or investigation authorized by this Article, the Commissioner may control access to any documents and records of the licensee or person under examination or investigation. The Commissioner may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no individual or person shall remove or attempt to remove any of the documents and records except pursuant to a court order or with the consent of the Commissioner. Unless the Commissioner has reasonable grounds to believe the documents or records of the licensee have been or are at risk of being altered or destroyed for purposes of concealing a violation of this Article, the licensee or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business.
(f) In order to carry out the purposes of this section, the Commissioner may:
(1) Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
(2) Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, documents, records, information, or evidence obtained under this section;
(3) Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate the licensee, individual, or person subject to this Article;
(4) Accept and rely on examination or investigation reports made by other government officials, within or without this State; or
(5) Accept audit reports made by an independent certified public accountant for the licensee, individual, or person in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of the examination, report of investigation, or other writing of the Commissioner.
(g) In addition to the authority granted by G.S. 53-244.113 and G.S. 53-244.115, the Commissioner is authorized to take action, including summary suspension of the license, if the licensee fails, within 20 days or a lesser time if specifically requested for good cause, to:
(1) Respond to inquiries from the Commissioner or the Commissioner's designee regarding any complaints filed against the licensee that allege or appear to involve violation of this Article or any law or rule affecting the mortgage lending business;
(2) Respond to and cooperate fully with notices from the Commissioner or the Commissioner's designee relating to the scheduling and conducting of an examination or investigation under this Article; or
(3) Consent to a criminal history record check. The refusal shall constitute grounds for the Commissioner to deny licensure to the applicant as well as to any entity:
a. By whom or by which the applicant is employed,
b. Over which the applicant has control, or
c. As to which the applicant is the current or proposed qualifying individual or a current or proposed branch manager.
(h) The authority of this section shall remain in effect, whether a licensee, individual, or person subject to this Article acts or claims to act under any licensing law of the State, or claims to act without such authority."
SECTION 4. G.S. 53-244.119(e) is repealed.
SECTION 5. This act becomes effective October 1, 2012.
In the General Assembly read three times and ratified this the 14th day of June, 2012.
s/ Walter H. Dalton
President of the Senate
s/ Thom Tillis
Speaker of the House of Representatives
s/ Beverly E. Perdue
Governor
Approved 11:57 p.m. this 20th day of June, 2012