NC S675

Allows certain lenders to charge fees or discounts up to 2% on second or junior lien real estate loans, overriding the standard 1% cap for non-construction loans under $300,000

Creates an alternative fee structure permitting lenders to exceed the 2% cap if total points and fees do not exceed either federal Qualified Mortgage standards (12 C.F.R. § 1026.43(e)(3)) or 3% of the total loan amount, whichever is less

Specifies that fees or discounts on second lien loans are fully earned when the loan is made and do not constitute prepayment penalties

Applies to lenders described in G.S. 24-1.1A(a)(2) making loans under G.S. 24-1.1

Effective upon becoming law and applies to loans made on or after that date