New Laws Require Lenders To Disclose More Information, Prevents Sub Prime Loan Abuses

Gov. Mike Easley announced today he has signed legislation to reign in abusive lending practices, provide consumers with more information and protect unsuspecting homebuyers and tenants from unfair fees and penalties. The three bills signed into law are:

House Bill 1374: ''An act to overturn the Shepard case and amend the limitation regarding actions to recover for usury; to overturn the Skinner case and amend the long-arm statute to allow North Carolina courts to exercise personal jurisdiction over certain nonresidential defendants; to require that a notice of foreclosure contain certain information; and to provide for mortgage debt collection and servicing.''

House Bill 1817: ''An act to protect consumers regarding covered loans and to increase the Banking Commissioner’s disciplinary authority over licensees under the Mortgage Lending Act.''

House Bill 947: ''An act to require that notice of sale in foreclosure proceedings be sent to certain tenants residing in the property to be sold, to allow those tenants after receiving the notice to terminate the rental agreement upon ten days written notice to the landlord, to require that those tenants be given thirty days notice of an application for an order of possession, and to clarify that the proceeds in the automation enhancement and preservation fund may be used for the preservation and storage of public records.''

''Purchasing a home is the most significant, and often most confusing, financial obligation most North Carolinians will ever make,'' said Easley. ''Our state has been the national leader in protecting home ownership. Our 1999 predatory lending law was the nation’s first, and is still the national standard. But the volatile sub-prime lending market has presented new challenges. These new laws will give North Carolinians additional protections from unfair and deceptive lending practices.''