North Carolina Rep. Arp’s mortgage licensing modernization bill passes House and Senate

Passed bill sponsored by State Rep. Dean Arp seeks to modernize mortgage licensing laws to enhance consumer protection and improve regulatory oversight in North Carolina, according to the North Carolina State House.

In the House, 38 Democrats and 61 Republicans voted in favor of the bill.

Meanwhile, in the Senate, 15 Democrats and 26 Republicans voted in favor of the bill.

Arp filed the bill in the North Carolina House on April 2 during the 2025 regular session.

The legislation, known as HB 762, was passed on June 19 during the 2025 regular session.

According to the North Carolina General Assembly site, the bill’s official text 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.

The bill was sponsored by Rep. Mitchell S. Setzer (Republican-89th District), Rep. Dean Arp (Republican-69th District), and Rep. Neal Jackson (Republican-78th District), along with one other sponsor.

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.

Arp graduated from The Military College of South Carolina in 1988 with a BS.

Arp, a Republican, was elected to the North Carolina State House in 2013 to represent the state’s 69th House district, replacing previous state representative Frank McGuirt.

Under North Carolina law, bills must receive three readings in each chamber. According to the UNC School of Government, once a bill “passes its constitutionally required second reading and moves to its constitutionally required third reading,” additional debate can occur, but the final stage is often treated as a formality. Unless a legislator requests a roll-call, the third reading may be approved by voice vote or unanimous consent without a separate recorded tally.