§ 122A-5.14. Home Protection Program and Fund. - North Carolina Statutes

§ 122A‑5.14.  HomeProtection Program and Fund.

(a)        The North CarolinaHousing Finance Agency shall establish and administer the Home ProtectionProgram ("Program") to assist North Carolina workers who have lostjobs as a result of changing economic conditions in North Carolina when theworkers are in need of assistance to avoid losing their homes to foreclosure.The Agency shall do all of the following:

(1)        Develop andadminister the Home Protection Program Fund ("Fund") to ensure thatworkers in North Carolina have assistance to avoid losing their homes toforeclosure.

(2)        Make loans securedby liens on residential real property located in North Carolina to propertyowners who are eligible for those loans.

(3)        Develop andadminister procedures by which property owners at risk of being foreclosed uponmay qualify for assistance.

(4)        Designate, approve,and fund nonprofit counseling agencies in North Carolina to be available toassist the Agency in implementing the provisions of this section, provideservices such as direct mortgagee negotiations on behalf of unemployed workers,and process loan applications for the Agency.

(5)        Develop and fundenhanced methods by which workers may be notified of foreclosure mitigationservices, may easily contact local nonprofit counseling agencies, and may applyfor loans from the Agency.

(b)        Home ProtectionPeriod. – Notwithstanding Chapters 23, 24, and 45 of the General Statutes orany other provision of law, upon the proper filing of an application for loanassistance by a mortgagor under this section, a mortgagee shall not do thefollowing for a period of 120 days following the date of the mortgagor'sproperly filed application:

(1)        Accelerate thematurity of any mortgage obligation covered under this section.

(2)        Commence or continueany legal action, including mortgage foreclosure pursuant to Chapter 45 of theGeneral Statutes, to recover the mortgage obligation.

(3)        Take possession ofany security of the mortgagor for the mortgage obligation.

(4)        Procure or receive adeed in lieu of foreclosure.

(5)        Enter judgment byconfession pursuant to a note accompanying a mortgage.

(6)        Proceed to enforcethe mortgage obligation pursuant to applicable rules of civil procedure.

The provisions of this sectionshall not apply if the mortgagee receives notice from the Agency that themortgagor's application has been denied.

If a mortgagee acts asproscribed in subdivisions (1) through (6) of this subsection, a mortgagorshall be entitled to injunctive relief without the necessity of providing abond. This relief shall be in addition to any defenses available under G.S. 45‑21.16(d)and any other remedies at law or equity.

Upon the Agency's receipt of aproperly filed mortgagor's application for loan assistance, the Agency shallmail notice of the application to the mortgagor's mortgagee within 10 businessdays of the Agency's receipt of the application. The Agency shall also mailnotice of the acceptance or denial of the mortgagor's application to themortgagee within five days of the Agency's determination. Notice shall bedeemed sufficient if sent to the last known address of the mortgagee.

(c)        Rule Making. – Solelywith respect to the adoption of procedures for the program by which propertyowners at risk of being foreclosed upon may qualify for assistance, the Agencyis exempt from the requirements of Article 2A of Chapter 150B of the GeneralStatutes. Prior to adoption or amendment of procedures, the Agency shall:

(1)        Publish the proposedprocedures in the North Carolina Register at least 30 days prior to theadoption of the final procedures.

(2)        Accept oral andwritten comments on the proposed procedures.

(3)        Hold at least onepublic hearing on the proposed procedures.

(d)        Annual Report. – ByApril 1 of each year, the Agency shall report to the House AppropriationsSubcommittee on General Government and Senate Appropriations Subcommittee onGeneral Government and Information Technology on the effectiveness of theProgram in accomplishing its purposes and provide any other information the Agencydetermines is pertinent or that the General Assembly requests.  (2008‑107, s.21.1(c).)