Exemptions from Licensing

North Carolina General Statutes Chapter 53, Article 19A (Mortgage Lending Act "MLA") requires that residential Mortgage Lenders, Brokers and Loan Officers engaged in making residential mortgages secured by NC real estate be licensed by the Commissioner of Banks unless exempt by law.

Exempt entities are nonetheless required by law to file a Claim of Exemption. There is no fee for filing; however, failure to file for an exemption may result in a penalty of $250 for each year of non-compliance. Exempt entities already engaged in the mortgage lending business when the law takes effect on July 1, 2002 must file by October 1, 2002. All forms are available on this website.

Exempt entities are primarily banks, thrifts, credit unions and their wholly owned subsidiaries. The various bases for claiming exemption are set out in the Mortgage Lending Act, Section 53-243.01(8). Note that employees of exempt entities are also exempt from the MLA's Loan Officer licensure requirement and will be treated as exempt without filing individually to claim exempt status.

The Office of Commissioner of Banks may take up to 45 days to process claims of exemption. If there are questions regarding your application, you may be requested to furnish additional information. If the OCOB agrees with your claim, you will be notified by letter that you do appear to be exempt and you have filed..

Claimants are required to keep all information on file with the Commissioner current. If the information contained in an initial claim of exemption filing changes in any material respect, the Claimant must notify the Commissioner within 15 days of the effective date of such change.