The North Carolina General Assembly enacted a law requiring lenders to provide to natural person applicants for home loans, primarily for personal, family or household purposes, certain information prepared by the Commissioner of Banks about how a loan is amortized. The law was passed as Senate Bill 815 in 2001 and signed into law by the governor.

Thereafter, it was amended several times in two different bills and became effective on July 1, 2002.

Click here to view the final version of Senate Bill 815.

Generally, the law requires that all natural person applicants for a home loan of less than $300,000 (except an equity line) receive from the lender or maker of such loan one or two disclosures as follows:

First, all lenders are required to provide information and examples of amortization of loans on different terms as developed by the Commissioner of Banks. Lenders may deliver this information to applicants at the time of taking of the loan application or within three business days thereafter.

Click here to view the required "Notice of Information and Examples of Amortization of Home Loans" promulgated by the Commissioner for lenders to use to comply with N.C. General Statute 24-1.1A(a1)(1).

Secondly, if the loan extended is a fixed rate loan requiring periodic payments, the lender or maker of the loan is required to provide the borrower with an amortization schedule of his/her specific loan at closing or within three business days thereafter by mail to comply with N.C. General Statute 24-1.1A(a1)(2).

Click here to view Frequently Asked Questions about this law.

Rev. 4/11/2005