SECTION .0400 - REPORTING AND NOTIFICATION REQUIREMENTS
04 NCAC 03M .0401 REPORTING REQUIREMENTS
(a) No later than 90 days after the end of the calendar
year, mortgage lenders, mortgage servicers and mortgage brokers shall file an
annual report in a format required by the NMLS&R unless the Commissioner
determines that the report is not in the public interest. The annual report
shall be supplemented with additional information about operations,
characteristics of loans made, or other similar composite data if the
Commissioner determines that this additional information is necessary in order
to safeguard the interests of the borrowing public (See N.C. Gen. Stat.
53-244.118). Mortgage brokers shall as a part of the annual report provide
certification from the insured financial institution holding the account
required under 04 NCAC 03M .0205(a)(2)(C) that the account exists and that the
account has contained an average daily balance, for the previous year covered
by the annual report of ten thousand dollars $10,000 or more. Failure to
timely submit an annual report is grounds for summary suspension pursuant to
G.S. 53-244.114.
(b) Mortgage lenders, mortgage servicers, and mortgage
brokers shall provide an audited statement of financial condition or a certified
statement of financial condition as required by 04 NCAC 03M.0205(a) within 90
days of the end of the licensee's fiscal year. If not shown in the audited
statement of financial condition, mortgage lenders shall provide evidence of
available warehouse lines of credit or other funding facilities.
(c) Beginning on January 1, 2011, mortgage lenders and
mortgage brokers shall provide information on the characteristics of loan
originations in an electronic format prescribed by the Commissioner on a quarterly
basis within 45 days after the close of the calendar quarter. Mortgage lenders
shall provide:
(1) Information sufficient to identify the mortgage
loan and the unique identifier of the mortgage loan originator, mortgage broker
(if applicable), and mortgage lender for the loan;
(2) Information sufficient to enable a computation of
key items in the federal Truth in Lending disclosures, including the annual
percentage rate, finance charge, and a schedule of payments, and any deviations
between the final disclosures and the most recent disclosures issued prior to
the final disclosures;
(3) Information included in the "Good Faith
Estimate" (GFE) disclosure required under the federal Real Estate
Settlement Procedures Act including the rate, the date of any interest rate
lock, itemization of settlement charges and all broker compensation;
(4) Information included in the final HUD-1 Settlement
Statement, if maintained by the mortgage lender in an electronic format;
(5) Information related to the terms of the loans,
including adjustable rate loan features (including timing of adjustments,
indices used in setting rates, maximum and minimum adjustments, floors and
ceilings of adjustments), the undiscounted interest rate (if maintained by the
mortgage lender in an electronic format), penalties for late payments, and
penalties for prepayment (including computation of the penalty amount, duration
of prepayment penalty, the maximum amount of penalty);
(6) Information typically used in underwriting,
including the appraised value of the property, sales price of the property (if
a purchase loan), borrowers' income, monthly payment amount, housing
debt-to-income ratio, total debt-to-income ratio, and credit score(s) of
borrowers; and
(7) Information included in a Loan Application Register
for mortgage lenders required to submit information pursuant to the federal
Home Mortgage Disclosure Act,
Mortgage brokers shall provide information identified above
unless such information is not prepared or known by the mortgage broker and the
mortgage broker does not reasonably have access to the information in an
electronic format. The Commissioner shall permit mortgage lenders and mortgage
brokers to utilize compatible third-party software to provide information
required under this Paragraph.
(d) On a quarterly basis, mortgage lenders and mortgage
brokers shall provide call reports containing financial and loan activity
information in an electronic format through the NMLS&R.
(e) Mortgage lenders, mortgage servicers, mortgage brokers,
exclusive mortgage brokers, and mortgage loan originators shall report within
30 days the name of any person suspected of making a material misstatement in
connection with the mortgage lending or servicing process to the Commissioner.
Mortgage lenders and mortgage brokers shall report within 30 days any loan
repurchased due to a material misstatement made in connection with the mortgage
lending process.
(f) Mortgage lenders, mortgage servicers, mortgage brokers,
exclusive mortgage broker, and mortgage loan originators shall report within 30
days the name of any person suspected of making a material misstatement in
connection with an inquiry, investigation, or examination to the Commissioner.
History Note: Authority G.S. 53-244.108; 53-244.118;
Eff. April 1, 2003;
Amended Eff. July 1, 2010; July 3, 2008.