Foreclosure Headaches in North Carolina

If mortgage companies in North Carolina – in particular mortgage insurers headquartered there – thought the state was "pro-business" they may want to rethink that. (I believe Genworth's MI unit is headquartered there.) Some servicers are up in arms because the state is imposing new foreclosure-related fees. A memo written by The Caudle Law Firm of Charlotte notes that a new state Senate bill (1216) imposes a $75 fee on all mortgage servicers upon filing a pre-foreclosure notice for any type of loan. New registration fees are involved too. The new law also forces servicers to register troubled loans in a state database and send out new pre-foreclosure notices to borrowers. One specialty servicer told me, "This is a vindictive curse and it's not just North Carolina. It's Maryland and Florida too." Of course, foreclosures are no longer a "business issue." It's a political issue…