In Re Foreclosure of a Deed of Trust Executed by Bradburn

JACKSON, Judge.

Paragon Mortgage Holdings, LLC (“PMH”) and Paragon Mortgage, Inc. (“PMI”) (collectively “Paragon”) appeal the trial court’s order declaring as illegal and unenforceable the Deed of Trust upon which they sought to foreclose. For the reasons stated below, we remand.

On or about 22 December 2006, PMI filed an application with the North Carolina Commissioner of Banks (“the COB”) to act as a mortgage banker pursuant to section 53-243.05 of the Mortgage Lending Act (“MLA”). On 4 January 2007, Loren L. and Lorie C. Bradbum (“the Bradburns”) executed a Balloon Adjustable Rate Note (the…