GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
H 1
HOUSE BILL 717
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Short Title: Private Mortgage Insurance Premiums. |
(Public) |
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Sponsors: |
Representative Wray (Primary Sponsor). For a complete list of Sponsors, see Bill Information on the NCGA Web Site. |
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Referred to: |
Banking. |
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April 7, 2011
A BILL TO BE ENTITLED
AN ACT to exclude any private MORTGAGE insurance premiums in excess of one and one-quarter percent of the loan amount from the definition of "points and fees" in high-cost home loans.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 24-1.1E(a)(5) reads as rewritten:
"(5) 'Points and fees is defined as provided in this subdivision.
a. The term includes all of the following:
1. All items
paid by a borrower at or before closing and that are required to be disclosed
under sections 226.4(a) and 226.4(b) of Title 12 of the Code of Federal
Regulations, as amended from time to time, except interest or the time-price
differential. However, the meaning of the term "points and fees" shall
not include either (i) the portion of the up-front fees collected and paid to
the Federal Housing Administration, the Veterans' Administration, or the U.S.
Department of Agriculture to insure or guarantee a home loan that exceeds one
and one-quarter percent (1.25%) of the total loan amount or (ii) the portion of
any up-front private mortgage insurance premium, charge, or fee that exceeds
one and one-quarter percent (1.25%) of the total loan amount, provided that
the private mortgage insurance premium, charge or fee is required to be
refundable on a prorated basis, the refund is automatically issued upon
notification of the satisfaction of the underlying mortgage loan, and the
borrower has the right to request or receive a prorated refund in accordance with
state or federal law. amount.
.…"
SECTION 2. This act becomes effective October 1, 2011.