North Carolina passed a bill modifying the index used when determining whether discount points may be excluded from the points and fees calculation for high-cost loans. When determining whether the points and fees for a loan exceed the high-cost points and fees threshold, up to 2 bona fide discount points may be excluded from the determination as long as the discounted interest rate does not exceed a specified index plus a margin. Currently, the specified index is the Federal National Mortgage Association net yield for a 90-day standard mandatory delivery commitment for a reasonably comparable loan from either Fannie Mae or the Federal Home Loan Mortgage Corporation (whichever is greater). Under the bill, the existing index is replaced with the average prime offer rate that applies to a comparable transaction as published by the Consumer Financial Protection Bureau as of the last date the discounted interest rate for the transaction is set before consummation. The bill went into effect June 1, 2024.
Click to view the NC HB 228: https://www.tenaco.com/wp-content/uploads/2024/08/NC-HB-228-06-04-24.pdf
