NC H762

Modernizes North Carolina's Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act by updating definitions, streamlining terminology, and aligning state requirements with federal standards under 12 U.S.C. and 12 C.F.R.

Establishes new "Part 2" prudential standards for mortgage servicers with 2,000+ residential loans, requiring capital/liquidity requirements aligned with FHFA eligibility standards, board of directors oversight, annual external audits, and formal risk management programs.

Eliminates the "transitional mortgage loan originator" license category and instead recognizes temporary authority for out-of-state licensed originators under federal law (12 U.S.C. § 5117).

Expands exemptions from licensing to include bona fide 501(c)(3) nonprofits promoting home ownership, trust institutions acting in fiduciary capacity, and trustees making loans to trust beneficiaries or immediate family members of grantors.

Modifies maximum permissible fees on second or junior lien real estate loans, allowing fees up to the lesser of federal qualified mortgage thresholds under 12 C.F.R. § 1026.43(e)(3) or 3% of total loan amount, effective upon enactment.