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.