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NC Mortgage Lender/Broker Examinations

Examination Overview

Pursuant to N.C. Gen. Stat. § 53-244.115, the NC Commissioner of Banks ("NCCOB") may conduct routine examinations of the books and records of any licensee to determine compliance with the NC SAFE Act rules adopted pursuant to N.C. Gen. Stat. 53-244.118(a), and federal laws and regulations.

Licensees should develop internal procedures concerning state examinations and make sure all staff members are aware of what must be done to facilitate the examination process.

North Carolina law requires licensees to provide the NCCOB with full access to all premises, books, records and information that the examiner deems necessary. Failure to comply may result in disciplinary action including the assessment of civil penalties pursuant to N.C. Gen. Stat. § 53-244.116.

Click here to view Frequently Asked Questions.

Examination Process

  1. Notification

    Typically, licensees will receive an Examination Notification Entry Letter as shown here.


    Accompanying the notification will be the Managers Questionnaire and Document Request which should be completed and returned by the requested date.

  2. Scheduling

    An examiner will contact person identified as the Qualifying Individual in NMLS to schedule an examination date.

  3. Examination Location

    Examinations can be conducted on-site or digitally. Most examinations include an on-site portion and are conducted where the examination documentation is stored. Typically, this is the licensee’s main office.

    An examination of a licensee with corporate headquarters located out-of-state is usually conducted at the Corporate office but can be conducted at a branch office located in North Carolina.

  4. Examination Types

    The purpose of an examination is to determine a licensee’s compliance with state and federal mortgage lending laws and regulations. There are three different types of examinations:

    1. Entrance examinations are typically conducted within the first 18 months of licensure.
    2. Limited scope examinations are a targeted scope based upon the licensee’s electronic submission of loan level data or pre-determined topics. Licensees are generally required to provide a small sample of loan level documentation and select policies and procedures.
    3. A full-scope examination involves both off-site and on-site functions. A full scope examination will include loan level documentation, policies, procedures, and interviews with operational leads. Examiners will request and review information prior to going on-site.
  5. Examination Report

    The licensee will receive an Examination Report upon completion of the examination. A response may be required from the Licensee if examination findings so require.

  6. Frequency

    Examinations of mortgage lenders, brokers, and servicers licensed by the State of North Carolina are conducted approximately every 60 months.

  7. Survey

    Licensees will be asked to complete a post-examination survey. The survey form will be sent electronically and may be completed online. Access post-examination survey here.

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