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North Carolina Promulgates Rules Regarding Seller-Affiliate Providing Discounts or Other Thing of Value

The North Carolina Rules Review Commissions approves rule prohibiting the making of a loan by a mortgage lender or broker whose seller-affiliate provides a discount or other thing of value greater than 3% of the final sales price. The rule also sets conditions related to such discounts from a seller-affiliate, and provides guidance for mortgage lenders and brokers regarding documentation, disclosures, and written policies and procedures relating to a discount or thing of value and the retention of such information. This rule is effective on April 1, 2011. Please see the memo and the rule at 04 NCAC 03M .0602.

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