North Carolina Modernizes Origination Fees and Adjusts Late Payment Charges

North Carolina Governor Roy Cooper signed into law on April 1, 2019, Senate Bill 162 (SB 162), enacting changes to modernize loan origination fees and adjust late payment charges for certain loans.  The bill became effective on that date.  

The changes include, among other items, the following:

• Publishing new maximum origination fee limits for loans made by federal or North Carolina banks or savings institutions that are not secured by real property.
• Publishing new maximum late payment charges that may be applied to loans or extensions of credit made by federal or North Carolina banks or savings institutions that are not secured by real property, and are otherwise governed by N.C. Gen. Stat. § 24-1.1.
• Clarifying that a late payment charge may not exceed, among other items, the amount disclosed with particularity to the borrower pursuant to TILA and its implementing regulations, if that act applies to the transaction.