1 Hour NC SAFE: North Carolina Mortgage Lending Compliance

The North Carolina Commissioner of Banks (NCCOB) requires mortgage licensees in this state to take a one-hour course on North Carolina mortgage lending rules as part of the licensees' annual continuing education requirement for license renewal. This course covers four North Carolina mortgage topics for licensee continuing education.

The first module of this course reviews conduct and behavior that is prohibited by North Carolina laws. This includes the fees that can be charged on a mortgage loan transactions and the limits for those fees.

The second module describes the various disciplinary actions the Commissioner of Banks may issue against licensees who violate state law.

The third module outlines the North Carolina Reverse Mortgage Act, found in NCGS Chapter 53, Article 21. We'll review how a reverse mortgage is defined, how a lender is granted authority by the Commissioner to issue reverse mortgages, the state limitations on this type of loans, and at what point a borrower is required to repay the reverse mortgage.

The last module of this course explains the North Carolina Residential Mortgage Fraud Act (RMFA), NCGS Chapter 14, Article 20A. We'll learn about the definition of mortgage fraud and identify various tasks that would qualify as mortgage fraud.

Topics and Learning Objectives

This course is broken down into several learning topics. At the end of the course a 15-question final exam will be given. The topics included in this course are:

1. Module 1: Required Conduct and Prohibited Conduct (10 minutes)
2. Module 2: Disciplinary Action (15 minutes)
3. Module 3: The North Carolina Reverse Mortgage Act (10 minutes)
4. Module 4: The North Carolina Residential Mortgage Fraud Act (5 minutes)
5. Final exam (10 minutes)

This course will prepare North Carolina-licensed MLOs to:

• Outline the duties required of mortgage brokers when working with consumers.
• List conduct that is prohibited by the Commissioner during the practice of mortgage loan origination.
• Describe the limitations on fees, interest, late payments, and other financial payments.
• State how the Commissioner initiates disciplinary hearings against licensees and the possible penalties.
• Explain the state laws to comply with when working with applicants for reverse mortgages.
• Paraphrase the definition of mortgage fraud and the penalties for fraud convictions.

Total study time: 1 clock hour

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID but don't remember what it is:

• Login into NMLS
• Click on the Composite View tab.
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center.