Section .0400 - Reporting And Notification Requirements

Link to law: http://reports.oah.state.nc.us/ncac/title 04 - commerce/chapter 03 - banking commission/subchapter m/04 ncac 03m .0401.html
Published: 2015

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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.