GREENSBORO, N.C. (7/20/10)--The North Carolina General Assembly adjourned July 10 ending its 2009-2010 session, and Gov. Beverly Perdue signed the budget. Many of the pieces of legislation that were passed will impact credit unions, according to the North Carolina Credit Union League. Reducing the number of foreclosures in North Carolina was a priority for legislators in the session and several measures aimed to help borrowers stay in their homes were passed (Weekly Update
July 16). Bills affecting North Carolina credit unions include:
* Senate Bill 1216--Will extend the State Home Foreclosure Prevention Program--set to end this fall--until May 2013 and expand the program to all borrowers at risk--not just those with subprime loans. Proceeds from the $75 fee assessed prior to filing the notice of hearing will fund the expansion and support counseling and nonprofit legal services. The league secured changes to the legislation making the Credit Union Division an active participant in the foreclosure prevention program. * Senate Bill 1015--Will limit foreclosure rescue scams by tightening North Carolina laws, including significant restrictions on two types of real estate transactions: lease-purchase contracts and contracts for deed/land installment sales. The league said it closely monitored the bill to ensure that credit union transactions remained exempt. * Senate Bill 1400--Will prohibit a power of sale foreclosure while the mortgagor is on active military duty or within 90 days after a period of military service. A judicial foreclosure would still be permitted. The bill works in conjunction with the federal Service Members Civil Relief Act and will take effect in January.