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.
.…"
SECTION 2.  This act becomes effective October 1, 2011.