NC S559

Excludes federal agency fees (such as those charged by Fannie Mae, Freddie Mac, VA, and USDA) from the definition of "discount points" and "points and fees" in mortgage lending calculations.

Reduces surety bond requirements for mortgage brokers and lenders: brokers from $75,000 to $50,000 minimum; lenders from $150,000 to $75,000 minimum, with proportional reductions for higher-volume originators.

Prohibits the Commissioner from denying license renewal based solely on credit score; allows only refusal if the applicant demonstrates material disregard for creditors' rights and debtors' obligations.

Requires the Commissioner to notify examined parties of examination findings and initiate any disciplinary action within 12 months or forfeit the right to pursue such action.

Becomes effective October 1, 2011.