North Carolina has amended the definition of "points and fees" in its High-Cost Home Loan Law effective for loans entered into on or after January 1, 2008.  Under the current high-cost home loan law (North Carolina General Statutes Section 24-1.1E), only compensation paid directly by a borrower to a mortgage broker is included in the definition of "points and fees."  Lender-paid compensation to a mortgage broker (e.g., yield spread premiums) is not a point and fee.  However, for loans entered into on or after January 1, 2008, points and fees include "all compensation paid from any source to a mortgage broker," including compensation in a table-funded transaction.  As a result of this change, yield spread premiums and other forms of lender-paid compensation are treated as a point and fee.  To view a copy of our North Carolina predatory lending memorandum (which has been updated to reflect the above information and to make minor editorial changes), click here.  Please contact the DocMagic Compliance Department if you have any questions or comments.