Can anyone confirm whether loans above $300,000 are exempt from the 4% late fee limitation in NC? I'm trying to determine if you read section 24-10.1 in conjunction with 24-1.1(f).

Thank you in advance.

That's always been my interpretation. Generally, over $300,000 and North Carolina's usury and fee limitations go away.

There are some statutes that apply fee limitations regardless or loan amount, or have different threshold loan amounts (Fannie's conforming loan size, for instance):

• NCGS 24-10.2 Protections in Certain Consumer Home Loans;
• NCGS 24-1.1E High-Cost Home Loans; and
• NCGS 24-1.1F Rate Spread Home Loans.

But these do not mention any limitations on late fees above the specific loan threshold. Just wanted to point out that not all loans above $300,000 are completely exempt from everything.

Another exemption in NC are loans to non-natural persons. The usury and fee limitations do not apply.

FWIW, we never differentiated our late fees based on loan amount. It was easier on our frontline, back room staff, and our system to have one late fee per state.

MarkB