Rep. Setzer files bill in North Carolina House to update mortgage licensing act

A new bill filed by State Rep. Mitchell S. Setzer seeks to update the North Carolina Secure and Fair Enforcement Mortgage Licensing Act to improve oversight and consumer safeguards, according to the North Carolina State House.

The bill, filed as HB 762 on April 2 during the 2025 regular session, was formally listed with the short title: ‘Modernize NC S.A.F.E. Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill seeks to modernize the North Carolina Secure and Fair Enforcement (S.A.F.E.) Mortgage Licensing Act with comprehensive revisions to ensure consumer protection in residential mortgage loans. It aims to streamline licensing and registration requirements, mandate prelicensing and continuing education, and specify duties for mortgage brokers, lenders, servicers, and originators. The bill introduces prudential standards for mortgage servicers, requiring them to maintain certain capital and liquidity levels, establish a board of directors or equivalent oversight structure, and implement thorough risk management programs. This act, effective Oct. 1, 2025, enhances oversight by the Commissioner of Banks and provides specific exemptions and requirements for financial institutions.

Of the four sponsors of this bill, Setzer and Neal Jackson proposed the most bills (32) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Setzer graduated from the University of North Carolina, Greensboro in 1987 with a BA.

Setzer, a Republican, was elected to the North Carolina State House in 1999 to represent the state’s 89th House district, replacing previous state representative Robert Brawley.