HB 2463 has also become law.  It is effective January 1, 2009. This is a comprehensive mortgage servicing law, which contains extensive licensing requirements for "mortgage servicers".  In addition, it imposes unprecedented requirements and prohibitions on foreclosure-related conduct.

Included in the legislation are;

• Definition of "mortgage servicer" significantly broader than under RESPA. Defined as a person who directly or indirectly "acts as a mortgage servicer."  To "act as a mortgage servicer" means engaging, whether for another or on its own behalf, "in the business of receiving any scheduled periodic payments from a borrower pursuant to a mortgage loan."  This includes receiving escrow amounts, and making payments of principal and interest and other payments received from the borrower pursuant to the mortgage documents or the servicing contract. 
• Reporting requirements as to number of loans serviced, type and charachteristics of the loans, number of loans in default broken down by 30,60 and 90 day delinquencies, loss mitigation activities and commenced foreclosures
• Reporting requirements to the borrower at acceptance of servicing rights any notice required by RESPA, schedule of ranges and categories of its servicing related costs and fees, proper notice that the servicer is licensed with the Office of the Commissioner of Banks, ("The Commissioner"), complaints may be submitted to the Commissioner and additional notices required by other NC statutes.
• Mandatory loss mitigation requirements

New prohibitions/restrictions are being placed on "mortgage servicers" pertaining to

• Forced place insurance coverage
• Forced place insurance rebates
• Borrower reinstatement
• Borrower notification
• Escrow payments

The Commissioner has the authority to suspend any foreclosure proceeding for 60 days in specific circumstances.

To view the bill the entirety, please click here

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 500 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.