1999 - Consumer Home Loan Protection Provisions of Predatory Lending Act

Policy Name: Consumer Home Loan Protection Provisions of Predatory Lending Act

Date:  Enacted in 1999; last revised in 2007

Code Location: Article 10.2 of Chapter 24 of North Carolina General Statutes: Consumer protections in certain home loans. (N.C. G.S. § 24-10.2)

Summary:

The North Carolina Predatory Lending Law established Article 10.2 of Chapter 24 of the North Carolina General Statutes. This article protects homeowners by prohibiting the predatory practice of loan flipping – the practice of refinancing a loan when that transaction provides no net benefit to the borrower. Predatory lenders rely on loan flipping to generate fees and strip equity from a borrower’s home.

Article 10.2 of Chapter 24 declares loan flipping as “usurious” in violation of Chapter 24 and unlawful as an unfair or deceptive act in violation of Chapter 75.