A North Carolina affiliate pays part of a 2026 charge that would otherwise breach a legal cap. Can an affiliate’s payment make a charge exceeding a state or federal limit permissible?
Correct Answer
D) Still barred: the discount may not be applied to exceed those limits
The discount shall not be applied in a manner that would exceed amounts that may be imposed under North Carolina or federal law related to mortgage lending or servicing, regardless of whether a party affiliated with the lender directly or indirectly pays for any portion of such charges. Other choices: the rule names indirect payment by an affiliate expressly; and disclosure does not lift a statutory cap. Source: 04 NCAC 03M .0602(d)
Why This Is the Correct Answer
The discount shall not be applied in a manner that would exceed amounts that may be imposed under North Carolina or federal law related to mortgage lending or servicing, regardless of whether a party affiliated with the lender directly or indirectly pays for any portion of such charges. Other choices: the rule names indirect payment by an affiliate expressly; and disclosure does not lift a statutory cap. Source: 04 NCAC 03M .0602(d)
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