2018 CONVENTION SPONSORS
House Bill 199 Signed by Governor Kasich
On December 22, 2017 Governor Kasich signed House Bill 199, the “Ohio Residential Mortgage Lending Act”. The bill, a working project of OMBA’s for several years, modernizes the licensing and company registration process. The effective date of the legislation is March 23, 2018. 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 from the date of the Governor’s signing. There will be no immediate change in the current requirements. Once the law becomes effective, the Department of Commerce Division of Financial Institutions will allow lenders/brokers to operate under the new law without having to make any registration or licensing status changes until the next renewal date after. That provision 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.