Mortgage Overview

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 home loan.

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.