Governor Easley signed into law on August 18, 2008 several bills that can help homeowners with subprime loans stay in their homes, and prevent future abuses in the mortgage lending industry. Here are the details of those new laws:
“Emergency Foreclosure Reduction Program” (HB 2623)
For homeowners with high interest loans originated between Jan 1, 2005 and Dec 31, 2007, mortgage lenders must give to the homeowner and the NC Commissioner of Banks 45 days notice before beginning any foreclosure procedures. The Commissioner’s office will work with the homeowner and lender to try to arrive at a new interest rate loan that is acceptable to both parties. The Commissioner has the authority to provide a 30 day extension to the foreclosure date to facilitate a workout. The law goes into effect Nov 1, 2008.
Regulation of Mortgage Servicers (HB 2463)
This bill provides stronger safeguards in North Carolina against loan servicing abuses. It requires that individuals and companies that service mortgage loans must register with and report to the Commissioner of Banks. The law goes into effect in its entirety on Jan 1, 2009.
Elimination of Yield Spread Premiums (HB 2188)
This bill eliminates kickbacks that certain mortgage brokers had received for steering customers into high interest loans. These kickbacks are noted as YSP (for Yield Spread Premiums) on the HUD-1 settlement statement all homeowners must receive at closing. The law goes into effect on Oct 1, 2008.
If you have any questions about your specific loan or whether there are any programs available to help you avoid foreclosure, we are a HUD-approved housing counseling agency and may be able to help. Call us at (919) 821-1770 to make an appointment.
