The North Carolina Office of the Commissioner of Banks recently updated its FAQs to specifically address the need for a Servicer license for entities that merely hold mortgage servicing rights. This reflects a change in the office’s position on the need for a license to own mortgage servicing rights and is, to our knowledge, the only public guidance clarifying the office’s position on this issue. The updated FAQ:
Q: Does a company need to be licensed as a lender or servicer to sell or purchase residential mortgage loans on the secondary market?
A: Although a license is not required to sell or purchase such loans on the secondary market, a buyer who intends to service North Carolina residential mortgage loans must be licensed as a servicer or be exempt under the NC SAFE Act. There is no de minimus servicing exemption in North Carolina. A “master servicer” is a company that contracts with a third party to service residential mortgage loans on its behalf. The third-party servicer is a sub-servicer. In North Carolina, master servicers and sub-servicers must hold a servicer license under the NC SAFE Act.
