§ 53-244.040. License and registration requirements. - North Carolina Statutes

§ 53‑244.040.  Licenseand registration requirements.

(a)        Except as providedin subsection (d) of this section, no person may engage in the mortgagebusiness or act as a mortgage loan originator with respect to any dwellinglocated in this State without first obtaining and maintaining a license underthis Article. It shall be unlawful for any person, other than an exempt person,to act as a mortgage loan originator without a mortgage loan originatorlicense, which authorizes an individual who is employed by a licensee holding alicense as provided in subsection (b) of this section to conduct the businessof a mortgage loan originator.

(b)        Four types oflicenses are granted to entities under this Article, and it shall be unlawfulfor any person, other than an exempt person, to engage in the mortgage businesswithout one of the following licenses:

(1)        A mortgage brokerlicense authorizes a person to act as a mortgage broker as defined in G.S. 53‑244.030(19).

(2)        A mortgage lenderlicense authorizes a person to act as a mortgage lender as defined in G.S. 53‑244.030(20),a mortgage broker as defined under G.S. 53‑244.030(19), and upon noticeto the Commissioner, a mortgage servicer as defined in G.S. 53‑244.030(22).

(3)        A mortgage servicerlicense authorizes a person to act only as a mortgage servicer as defined inG.S. 53‑244.030(22).

(4)        An exclusivemortgage broker license authorizes a person to act as an exclusive mortgagebroker as defined in G.S. 53‑244.030(11a).

(c)        Each mortgage loanoriginator and person engaged in the mortgage business must register with andmaintain a valid unique identifier issued by the Nationwide Mortgage LicensingSystem and Registry.

(d)        The following areexempt from all provisions of this Article except the provisions of G.S. 53‑244.111:

(1)        Registered mortgageloan originators as defined in G.S. 53‑244.030(29);

(2)        Any individual whooffers or negotiates terms of a residential mortgage loan with or on behalf ofan immediate family member of the individual when making the family member aresidential mortgage loan;

(3)        Any individualseller who offers or negotiates terms and makes a residential mortgage loansecured by the dwelling that served as the selling individual's residence;

(4)        An attorney licensedpursuant to Chapter 84 of the General Statutes who negotiates the terms of aresidential mortgage loan on behalf of a client in the course of and incidentto the attorney's representation of the client, so long as the attorney doesnot hold himself out as engaged in the mortgage business and is not compensatedby a mortgage lender, a mortgage broker, or other mortgage loan originator whennegotiating the terms of a residential mortgage loan;

(5)        Any entity describedin G.S. 53‑244.030(29)a., b., or c., upon acceptance of the notice of exemptionfiled with the Commissioner as specified in G.S. 53‑244.050(g);

(6)        Any officer oremployee of an entity described in subdivision (5) of this subsection whenacting within the scope of his or her employment;

(7)        A State or federallychartered credit union, upon filing of a notice of exemption with theAdministrator of the Credit Union Division of the Department of Commerce asspecified in G.S. 53‑244.050(g); or

(8)        Any person who, asseller, receives in one calendar year no more than five residential mortgageloans as security for purchase money obligations, unless the United StatesDepartment of Housing and Urban Development has expressly and definitivelydetermined that such persons are loan originators as the term is defined by §1503 of Title V of the Housing and Economic Recovery Act of 2008, Public Law110‑289, and such determination is in effect on July 31, 2010.

(e)        Each mortgagebroker, mortgage lender, or mortgage servicer licensed under this Article shallhave a qualifying individual who operates the business under that person's fullcharge, control, and supervision. Each mortgage broker, mortgage lender, ormortgage servicer licensed under this Article shall file through the NationwideMortgage Licensing System and Registry a form acceptable to the Commissionerindicating the licensee's designation of qualifying individual and eachqualifying individual's acceptance of the responsibility. Each mortgage broker,mortgage lender, or mortgage servicer licensed under this Article shall notifythe Commissioner within 15 days of any change in its designated qualifyingindividual. Any individual licensee who operates as a sole proprietorship shallqualify as and be considered the qualifying individual for the purposes of thissubsection.

(f)         Mortgage lendersand mortgage brokers may not operate branch offices, except as permitted bythis Article. Each principal office and each branch office of a mortgage brokeror mortgage lender licensed under this Article shall have a branch manager whomeets the experience requirements under G.S. 53‑244.050(b). Thequalifying individual for a licensee's business also may serve as the branchmanager of one of the licensee's branch offices. Each mortgage broker ormortgage lender licensed under this Article shall file through the NationwideMortgage Licensing System and Registry a form acceptable to the Commissionerindicating the licensee's designation of branch manager for each branch. Eachmortgage broker or mortgage lender licensed under this Article shall notify theCommissioner within 15 days of the change of any branch manager.  (2009‑374, s. 2; 2009‑570,s. 48.)