NCCOB
NCCOB

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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

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

    **EXAMINATIONS ARE NOT REQUIRED TO BE SCHEDULED IN ADVANCE.**

    Accompanying the notification will be the Managers Questionnaire and Document Request which should be completed by the Qualifying Individual.

  2. Scheduling

    An examiner will contact the Qualifying Individual to schedule a date.

  3. Examination Location

    Most examinations are conducted where the examination documentation is stored. Normally, this is the licensee’s main office.

    An examination of a licensee with corporate headquarters located out-of-state is conducted at the Corporate office or a branch office located in North Carolina. Such an examination may also be conducted at the NCCOB's office; the licensee is required to deliver examination documentation to the NCCOB.

  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. Electronic examinations (E-Exams) are limited in scope based upon the licensee’s electronic submission of loan level data using compliance software. Licensees are generally required to submit a small sample of closed and adverse action files for validation purposes.
    3. A full-scope examination involves both off-site and on-site functions.
  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 and brokers 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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