This is not legal advice for your situation*

DocMagic to Add North Carolina Rate Spread Home Loan Audit

North Carolina has created a new category of predatory loan, the so-called "rate spread home loan."  The new law is contained in North Carolina G.S. Section 24-1.1F (a copy of the bill enacting this new section is available here). 

In response to this new law, DocMagic, Inc.'s Compliance Department is in the process of creating an audit specifically to identify if a loan is a rate spread loan.  If the security property is located in North Carolina, and the loan meets the definitional requirements of a "home loan," then at the time that a worksheet is audited, if both conditions for a rate spread home loan of that lien position are satisfied, then a warning substantially similar to the following will display:

WARNING: THIS IS A NC RATE SPREAD HOME LOAN (NC G.S. 24-1.1F)

The Compliance Department will advise when the audit has been implemented and will provide further details about this new law and audit at that time.

Back to Top



*This article is distributed to provide general information about the subject matter covered and should not be utilized as a substitute for professional advice in specific situations. If you require such advice, please consult with your own professional advisers.


Syndicate content RSS