Any person or business that is involved in mortgage lending must be licensed by
the N.C. Office of the Commissioner of Banks (NCCOB) as a mortgage lender, mortgage broker, mortgage
servicer or exclusive mortgage broker. In addition, any individual employed by one
of these businesses who acts as a mortgage loan originator must have a license.
There are some exceptions. For example, some lenders, primarily banks and credit
unions, are already regulated under a different set of laws and can follow a procedure
to claim an exemption from this licensure requirement.
Mortgage Loan Originators – With some exceptions, a mortgage loan originator is
generally any individual who as part of his or her job meets with borrowers and
helps them complete an application for a home loan or negotiates the terms of a
Mortgage Lenders – A mortgage lender is a person or business who for compensation
or gain, closes a mortgage loan, advances funds, offers to advance funds, or makes
a commitment to advance funds to a borrower under a mortgage loan on residential
real property located in North Carolina.
Mortgage Brokers – A mortgage broker is a person or business who for compensation
or gain, either directly or indirectly, accepts or offers to accept an application
for a mortgage loan, solicits or offers to solicit a mortgage loan, negotiates the
terms or conditions of a mortgage loan, issues mortgage loan commitments or interest
rate guarantee agreements to borrowers, whether done through contact by telephone,
by electronic means, by mail, or in person with the borrowers or potential borrowers
on residential real property located in North Carolina.
Mortgage Servicers – A mortgage servicer is the person or business that receives
payments from a borrower under the terms of any home loan.
Reverse Mortgages - Are loans that are secured by home equity. These loans are commonly referred
to as Home Equity Conversion Mortgage (HECM) and are available to borrowers age 62 years of
age or older. These loans allow homeowners the option to use the equity in their homes to meet
their financial needs. The NCCOB regulates and approves North Carolina mortgage lenders to make these
reverse mortgage loans. Certain entities are exempt from approval; however, exempt entities
must notify the Commissioner of their intent to conduct reverse mortgage business in North Carolina.
NCCOB is a member of the Nationwide Mortgage Licensing System.