NC Mortgage Lender/Broker Examinations
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.
Typically, licensees will receive an Examination Notification Entry Letter as shown
**EXAMINATIONS ARE NOT REQUIRED TO BE SCHEDULED IN ADVANCE.**
Accompanying the notification will be the
Managers Questionnaire and Document Request
which should be completed and returned by the requested date.
An examiner will contact person identified as the Qualifying Individual in NMLS to schedule an examination date.
- 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.
- 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:
Entrance examinations are typically conducted within the first 18 months of licensure.
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.
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.
- 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.
Examinations of mortgage lenders, brokers, and servicers licensed by the State of North Carolina are conducted
approximately every 60 months.
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