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At Your Service: DocMagic, Inc., Modifies North Carolina Deeds of Trust; Adds Default Closing Instruction

North Carolina deeds of trust securing single-family dwellings of 1-4 units were recently modified in time for the April 1, 2008 effective date of House Bill 313. In addition, a default closing instruction was added to the Addendum to Specific Closing Instructions (ATCI.MSC) to comply with HB 313.

HB 313 adds a subsection (b) to North Carolina General Statutes Section 45A-4 to require the settlement agent to place an entry on page 1 of the deed of trust showing the name of the mortgage broker or other person who acted as a mortgage broker in the origination of the loan if the settlement agent receives information from the lender as provided in G.S. 45A?5(b) or otherwise has actual knowledge that a mortgage broker or other person acted as a mortgage broker in the origination of the loan.

In addition, HB 313 adds a new subsection (b) to North Carolina General Statutes Section 45A-5, requiring the lender to include closing instructions advising the settlement agent of the name of the mortgage broker or other person, if any, who acted as a mortgage broker in the origination of the loan.

To comply with Section 45A-4(b), DocMagic, Inc.'s Compliance Department has added "Mortgage Broker: ____________" at the top of Page 1 of each deed of trust so that if a DocMagic user enters the name of a mortgage broker, the name will populate accordingly. If no name is entered, then "N/A" will populate after "Mortgage Broker."

Additionally, the Compliance Department has added a default closing instruction to the Addendum to Specific Closing Instructions (ATCI.MSC) that states: "____________ is the name of the mortgage broker or other person, if any, who acted as a mortgage broker in the origination of this loan." If the name of a mortgage broker has been entered in the DocMagic worksheet, the name of the broker will populate in the instruction; otherwise, "N/A" will populate.

If you have any questions regarding the contents of this article, please contact DocMagic's Compliance Department.

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*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.


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