Governor to Sign Sub. H.B. 199
“OHIO MORTGAGE LENDING ACT”
On November 29, 2017, the Ohio House of Representatives approved an amended version of H.B. 199, as passed by the Ohio Senate. This final approval clears the way for Governor Kasich to sign the bill into law. The bill, a working project of OMBA’s for several years, modernizes the licensing and company registration process. Some key provisions of the bill are:
- All loans secured by 1-4 unit residential property, both first and subordinate liens, will fall under Section 1322 of the Ohio Revised Code, requiring only one company registration and one state license per loan officer;
- All non-depository companies will become registrants, including mortgage banking companies that are currently exempt from registration when lending solely within their federal agency approvals, alleviating the possibility of unknowingly engaging in unlicensed activity;
- Special accounts will no longer be required; and
- Only unsecured loans and loans secured by collateral other than real estate will require a license under Section 1321 of the Ohio Revised Code.
IMPORTANT INFORMATION: The new law will become effective 90 days after the Governor signs the legislation. Because it is currently renewal season, and rules must still be written, there will be no immediate change in the current requirements. An amendment was added in the Senate, and approved by the House, that would allow the Department of Commerce Division of Financial Institutions and lenders/brokers to operate under the new law without having to make any registration or licensing status changes until the next renewal date after the legislation is effective. The amendment reads as follows:
Section 3. (A) The Superintendent of Financial Institutions may take actions necessary to ensure full compliance with this act, including actions to facilitate the transition of existing registrants and licensees and those persons holding valid letters of exemption as of the effective date of this act.
B) Persons holding a valid mortgage lender certificate of registration or mortgage loan originator license issued under sections 1321.51 to 1321.60 of the Revised Code as of the effective date of this act and persons holding a valid mortgage broker certificate of registration or loan originator license issued under Chapter 1322. of the Revised Code as of the effective date of this act, shall not be required to be registered or licensed under section 1322.07 or 1322.20 of the Revised Code, as amended by this act, until the first renewal of that certificate of registration or license after that date. The Superintendent may treat the applications submitted by those persons as renewal applications, and may use prior application materials as the basis for issuing registrations, licenses, and
letters of exemption after the effective date of this act.
To view the final bill click HERE.
New Closing Disclosure Effective 7/20/17
On 7/10/2017 the Ohio Department of Commerce Division of Financial Institutions posted a new closing disclosure, effective with closings on and after July 20, 2017. A copy of the posting and disclosure can be obtained by clicking HERE.
DIAMOND, PLATINUM and GOLD