As Reported by the Committee of Conference

126th General Assembly Regular Session 2005-2006

Am. Sub. S. B. No. 185

Senators Padgett, Schuring, Roberts, Carey, Amstutz, Armbruster, Brady, Dann, Fedor, Fingerhut, Grendell, Hagan, Harris, Jacobson, Miller, Prentiss, Spada, Zurz, Mumper, Clancy, Cates, Wilson, Kearney, Miller, D. 

Representatives Coley, Smith, G., Wagoner, Hagan, Schneider, Evans, C., Patton, T., White, Smith, S., Stewart, J., Stewart, D., Allen, Healy, Koziura, Boccieri, Widener, Aslanides, Barrett, Beatty, Blessing, Book, Chandler, Collier, DeBose, DeGeeter, Distel, Dolan, Domenick, Driehaus, Evans, D., Fende, Fessler, Flowers, Garrison, Gilb, Hartnett, Harwood, Hughes, Key, Kilbane, Martin, Mason, McGregor, J., McGregor, R., Mitchell, Oelslager, Otterman, Patton, S., Perry, Peterson, Redfern, Reidelbach, Sayre, Schaffer, Schlichter, Skindell, Strahorn, Sykes, Ujvagi, Widowfield, Williams, Woodard, Yates, Yuko 

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A BILL

To amend sections 109.572, 1321.57, 1322.02, 1322.03,

1

1322.031, 1322.04, 1322.041, 1322.051, 1322.06,

2

1322.061, 1322.062, 1322.07, 1322.10, 1322.11,

3

1322.99, 1343.011, 1345.01, 1345.02, 1345.03,

4

1345.05, 1345.07, 1345.09, 1349.25, 1349.27,

5

1349.31, 3953.23, 4735.05, 4763.03, 4763.05,

6

4763.06, 4763.12, 4763.13, and 4763.99 and to

7

enact sections 1321.541, 1322.063, 1322.064,

8

1322.074, 1322.075, 1322.081, 1345.031, 1345.091,

9

1349.271, 1349.41, 1349.43, 1349.44, 1349.71,

10

1349.72, 3953.30, 3953.32, 3953.33, 3953.35, and

11

4763.19 of the Revised Code to modify the

12

application of the Consumer Sales Practices Act

13

and the Consumer Credit Mortgage Loan Law; to

14

generally prohibit the appraisal of real estate

15

for a mortgage loan without state certification or

16

licensure; to require that a national criminal

17

background check be conducted on all applicants

18

for a mortgage broker certificate of registration,

19

loan officer license, or real estate appraiser

20

certificate or license; to modify the Mortgage

21

Broker/Loan Officer Law with respect to disclosure

22

of information, duties and standards of care,

23

prohibited acts, record keeping, educational

24

requirements, and pre-licensure examination; to

25

modify the Title Insurance Agent Law; to establish

26

the Consumer Education Finance Board; and to make

27

other changes relative to mortgage lending.

28

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 109.572, 1321.57, 1322.02, 1322.03,	29
1322.031, 1322.04, 1322.041, 1322.051, 1322.06, 1322.061,	30
1322.062, 1322.07, 1322.10, 1322.11, 1322.99, 1343.011, 1345.01,	31
1345.02, 1345.03, 1345.05, 1345.07, 1345.09, 1349.25, 1349.27,	32
1349.31, 3953.23, 4735.05, 4763.03, 4763.05, 4763.06, 4763.12,	33
4763.13, and 4763.99 be amended and sections 1321.541, 1322.063,	34
1322.064, 1322.074, 1322.075, 1322.081, 1345.031, 1345.091,	35
1349.271, 1349.41, 1349.43, 1349.44, 1349.71, 1349.72, 3953.30,	36
3953.32, 3953.33, 3953.35, and 4763.19 of the Revised Code be	37
enacted to read as follows:	38

Sec. 109.572. (A)(1) Upon receipt of a request pursuant to	39
section 121.08, 3301.32, 3301.541, 3319.39, 5104.012, 5104.013, or	40
5153.111 of the Revised Code, a completed form prescribed pursuant	41
to division (C)(1) of this section, and a set of fingerprint	42
impressions obtained in the manner described in division (C)(2) of	43
this section, the superintendent of the bureau of criminal	44
identification and investigation shall conduct a criminal records	45
check in the manner described in division (B) of this section to	46
determine whether any information exists that indicates that the	47
person who is the subject of the request previously has been	48
convicted of or pleaded guilty to any of the following:	49

(a) A violation of section 2903.01, 2903.02, 2903.03,	50
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	51
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	52
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	53
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01,	54
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,	55
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,	56
2925.06, or 3716.11 of the Revised Code, felonious sexual	57
penetration in violation of former section 2907.12 of the Revised	58
Code, a violation of section 2905.04 of the Revised Code as it	59
existed prior to July 1, 1996, a violation of section 2919.23 of	60
the Revised Code that would have been a violation of section	61
2905.04 of the Revised Code as it existed prior to July 1, 1996,	62
had the violation been committed prior to that date, or a	63
violation of section 2925.11 of the Revised Code that is not a	64
minor drug possession offense;	65

(b) A violation of an existing or former law of this state,	66
any other state, or the United States that is substantially	67
equivalent to any of the offenses listed in division (A)(1)(a) of	68
this section.	69

(2) On receipt of a request pursuant to section 5123.081 of	70
the Revised Code with respect to an applicant for employment in	71
any position with the department of mental retardation and	72
developmental disabilities, pursuant to section 5126.28 of the	73
Revised Code with respect to an applicant for employment in any	74
position with a county board of mental retardation and	75
developmental disabilities, or pursuant to section 5126.281 of the	76
Revised Code with respect to an applicant for employment in a	77
direct services position with an entity contracting with a county	78
board for employment, a completed form prescribed pursuant to	79
division (C)(1) of this section, and a set of fingerprint	80
impressions obtained in the manner described in division (C)(2) of	81
this section, the superintendent of the bureau of criminal	82
identification and investigation shall conduct a criminal records	83
check. The superintendent shall conduct the criminal records check	84
in the manner described in division (B) of this section to	85
determine whether any information exists that indicates that the	86
person who is the subject of the request has been convicted of or	87
pleaded guilty to any of the following:	88

(a) A violation of section 2903.01, 2903.02, 2903.03,	89
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	90
2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03,	91
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12,	92
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	93
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12,	94
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02,	95
2925.03, or 3716.11 of the Revised Code;	96

(b) An existing or former municipal ordinance or law of this	97
state, any other state, or the United States that is substantially	98
equivalent to any of the offenses listed in division (A)(2)(a) of	99
this section.	100

(3) On receipt of a request pursuant to section 173.27,	101
173.394, 3712.09, 3721.121, or 3722.151 of the Revised Code, a	102
completed form prescribed pursuant to division (C)(1) of this	103
section, and a set of fingerprint impressions obtained in the	104
manner described in division (C)(2) of this section, the	105
superintendent of the bureau of criminal identification and	106
investigation shall conduct a criminal records check with respect	107
to any person who has applied for employment in a position for	108
which a criminal records check is required by those sections. The	109
superintendent shall conduct the criminal records check in the	110
manner described in division (B) of this section to determine	111
whether any information exists that indicates that the person who	112
is the subject of the request previously has been convicted of or	113
pleaded guilty to any of the following:	114

(a) A violation of section 2903.01, 2903.02, 2903.03,	115
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	116
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	117
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	118
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	119
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	120
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	121
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	122
2925.22, 2925.23, or 3716.11 of the Revised Code;	123

(b) An existing or former law of this state, any other state,	124
or the United States that is substantially equivalent to any of	125
the offenses listed in division (A)(3)(a) of this section.	126

(4) On receipt of a request pursuant to section 3701.881 of	127
the Revised Code with respect to an applicant for employment with	128
a home health agency as a person responsible for the care,	129
custody, or control of a child, a completed form prescribed	130
pursuant to division (C)(1) of this section, and a set of	131
fingerprint impressions obtained in the manner described in	132
division (C)(2) of this section, the superintendent of the bureau	133
of criminal identification and investigation shall conduct a	134
criminal records check. The superintendent shall conduct the	135
criminal records check in the manner described in division (B) of	136
this section to determine whether any information exists that	137
indicates that the person who is the subject of the request	138
previously has been convicted of or pleaded guilty to any of the	139
following:	140

(a) A violation of section 2903.01, 2903.02, 2903.03,	141
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	142
2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04,	143
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21,	144
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322,	145
2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	146
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	147
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a	148
violation of section 2925.11 of the Revised Code that is not a	149
minor drug possession offense;	150

(b) An existing or former law of this state, any other state,	151
or the United States that is substantially equivalent to any of	152
the offenses listed in division (A)(4)(a) of this section.	153

(5) On receipt of a request pursuant to section 5111.95 or	154
5111.96 of the Revised Code with respect to an applicant for	155
employment with a waiver agency participating in a department of	156
job and family services administered home and community-based	157
waiver program or an independent provider participating in a	158
department administered home and community-based waiver program in	159
a position that involves providing home and community-based waiver	160
services to consumers with disabilities, a completed form	161
prescribed pursuant to division (C)(1) of this section, and a set	162
of fingerprint impressions obtained in the manner described in	163
division (C)(2) of this section, the superintendent of the bureau	164
of criminal identification and investigation shall conduct a	165
criminal records check. The superintendent shall conduct the	166
criminal records check in the manner described in division (B) of	167
this section to determine whether any information exists that	168
indicates that the person who is the subject of the request	169
previously has been convicted of or pleaded guilty to any of the	170
following:	171

(a) A violation of section 2903.01, 2903.02, 2903.03,	172
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21,	173
2903.34, 2905.01, 2905.02, 2905.05, 2905.11, 2905.12, 2907.02,	174
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	175
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	176
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13,	177
2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, 2913.40,	178
2913.43, 2913.47, 2913.51, 2919.12, 2919.24, 2919.25, 2921.36,	179
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,	180
2925.06, 2925.11, 2925.13, 2925.22, 2925.23, or 3716.11 of the	181
Revised Code, felonious sexual penetration in violation of former	182
section 2907.12 of the Revised Code, a violation of section	183
2905.04 of the Revised Code as it existed prior to July 1, 1996, a	184
violation of section 2919.23 of the Revised Code that would have	185
been a violation of section 2905.04 of the Revised Code as it	186
existed prior to July 1, 1996, had the violation been committed	187
prior to that date;	188

(b) An existing or former law of this state, any other state,	189
or the United States that is substantially equivalent to any of	190
the offenses listed in division (A)(5)(a) of this section.	191

(6) On receipt of a request pursuant to section 3701.881 of	192
the Revised Code with respect to an applicant for employment with	193
a home health agency in a position that involves providing direct	194
care to an older adult, a completed form prescribed pursuant to	195
division (C)(1) of this section, and a set of fingerprint	196
impressions obtained in the manner described in division (C)(2) of	197
this section, the superintendent of the bureau of criminal	198
identification and investigation shall conduct a criminal records	199
check. The superintendent shall conduct the criminal records check	200
in the manner described in division (B) of this section to	201
determine whether any information exists that indicates that the	202
person who is the subject of the request previously has been	203
convicted of or pleaded guilty to any of the following:	204

(a) A violation of section 2903.01, 2903.02, 2903.03,	205
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	206
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	207
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	208
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	209
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	210
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	211
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	212
2925.22, 2925.23, or 3716.11 of the Revised Code;	213

(b) An existing or former law of this state, any other state,	214
or the United States that is substantially equivalent to any of	215
the offenses listed in division (A)(6)(a) of this section.	216

(7) When conducting a criminal records check upon a request	217
pursuant to section 3319.39 of the Revised Code for an applicant	218
who is a teacher, in addition to the determination made under	219
division (A)(1) of this section, the superintendent shall	220
determine whether any information exists that indicates that the	221
person who is the subject of the request previously has been	222
convicted of or pleaded guilty to any offense specified in section	223
3319.31 of the Revised Code.	224

(8) On a request pursuant to section 2151.86 of the Revised	225
Code, a completed form prescribed pursuant to division (C)(1) of	226
this section, and a set of fingerprint impressions obtained in the	227
manner described in division (C)(2) of this section, the	228
superintendent of the bureau of criminal identification and	229
investigation shall conduct a criminal records check in the manner	230
described in division (B) of this section to determine whether any	231
information exists that indicates that the person who is the	232
subject of the request previously has been convicted of or pleaded	233
guilty to any of the following:	234

(a) A violation of section 2903.01, 2903.02, 2903.03,	235
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	236
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	237
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	238
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,	239
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	240
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	241
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code, a	242
violation of section 2905.04 of the Revised Code as it existed	243
prior to July 1, 1996, a violation of section 2919.23 of the	244
Revised Code that would have been a violation of section 2905.04	245
of the Revised Code as it existed prior to July 1, 1996, had the	246
violation been committed prior to that date, a violation of	247
section 2925.11 of the Revised Code that is not a minor drug	248
possession offense, or felonious sexual penetration in violation	249
of former section 2907.12 of the Revised Code;	250

(b) A violation of an existing or former law of this state,	251
any other state, or the United States that is substantially	252
equivalent to any of the offenses listed in division (A)(8)(a) of	253
this section.	254

(9) When conducting a criminal records check on a request	255
pursuant to section 5104.013 of the Revised Code for a person who	256
is an owner, licensee, or administrator of a child day-care center	257
or type A family day-care home or an authorized provider of a	258
certified type B family day-care home, the superintendent, in	259
addition to the determination made under division (A)(1) of this	260
section, shall determine whether any information exists that	261
indicates that the person has been convicted of or pleaded guilty	262
to any of the following:	263

(a) A violation of section 2913.02, 2913.03, 2913.04,	264
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	265
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,	266
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2921.11,	267
2921.13, or 2923.01 of the Revised Code, a violation of section	268
2923.02 or 2923.03 of the Revised Code that relates to a crime	269
specified in this division or division (A)(1)(a) of this section,	270
or a second violation of section 4511.19 of the Revised Code	271
within five years of the date of application for licensure or	272
certification.	273

(b) A violation of an existing or former law of this state,	274
any other state, or the United States that is substantially	275
equivalent to any of the offenses or violations described in	276
division (A)(9)(a) of this section.	277

(10) On receipt of a request for a criminal records check	278
from an individual pursuant to section 4749.03 or 4749.06 of the	279
Revised Code, accompanied by a completed copy of the form	280
prescribed in division (C)(1) of this section and a set of	281
fingerprint impressions obtained in a manner described in division	282
(C)(2) of this section, the superintendent of the bureau of	283
criminal identification and investigation shall conduct a criminal	284
records check in the manner described in division (B) of this	285
section to determine whether any information exists indicating	286
that the person who is the subject of the request has been	287
convicted of or pleaded guilty to a felony in this state or in any	288
other state. If the individual indicates that a firearm will be	289
carried in the course of business, the superintendent shall	290
require information from the federal bureau of investigation as	291
described in division (B)(2) of this section. The superintendent	292
shall report the findings of the criminal records check and any	293
information the federal bureau of investigation provides to the	294
director of public safety.	295

(11) On receipt of a request pursuant to section 1322.03,	296
1322.031, or 4763.05 of the Revised Code, a completed form	297
prescribed pursuant to division (C)(1) of this section, and a set	298
of fingerprint impressions obtained in the manner described in	299
division (C)(2) of this section, the superintendent of the bureau	300
of criminal identification and investigation shall conduct a	301
criminal records check with respect to any person who has applied	302
for a license, permit, or certification from the department of	303
commerce or a division in the department. The superintendent shall	304
conduct the criminal records check in the manner described in	305
division (B) of this section to determine whether any information	306
exists that indicates that the person who is the subject of the	307
request previously has been convicted of or pleaded guilty to any	308
of the following: a violation of section 2913.02, 2913.11,	309
2913.31, 2913.51, or 2925.03 of the Revised Code; any other	310
criminal offense involving theft, receiving stolen property,	311
embezzlement, forgery, fraud, passing bad checks, money	312
laundering, or drug trafficking, or any criminal offense involving	313
money or securities, as set forth in Chapters 2909., 2911., 2913.,	314
2915., 2921., 2923., and 2925. of the Revised Code; or any	315
existing or former law of this state, any other state, or the	316
United States that is substantially equivalent to those offenses.	317

(12) Not later than thirty days after the date the	318
superintendent receives the request, completed form, and	319
fingerprint impressions, the superintendent shall send the person,	320
board, or entity that made the request any information, other than	321
information the dissemination of which is prohibited by federal	322
law, the superintendent determines exists with respect to the	323
person who is the subject of the request that indicates that the	324
person previously has been convicted of or pleaded guilty to any	325
offense listed or described in division (A)(1), (2), (3), (4),	326
(5), (6), (7), (8), (9), or (10), or (11) of this section, as	327
appropriate. The superintendent shall send the person, board, or	328
entity that made the request a copy of the list of offenses	329
specified in division (A)(1), (2), (3), (4), (5), (6), (7), (8),	330
(9), or (10), or (11) of this section, as appropriate. If the	331
request was made under section 3701.881 of the Revised Code with	332
regard to an applicant who may be both responsible for the care,	333
custody, or control of a child and involved in providing direct	334
care to an older adult, the superintendent shall provide a list of	335
the offenses specified in divisions (A)(4) and (6) of this	336
section.	337

(B) The superintendent shall conduct any criminal records	338
check requested under section 121.08, 173.27, 173.394, 1322.03,	339
1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09,	340
3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013,	341
5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or 5153.111 of the	342
Revised Code as follows:	343

(1) The superintendent shall review or cause to be reviewed	344
any relevant information gathered and compiled by the bureau under	345
division (A) of section 109.57 of the Revised Code that relates to	346
the person who is the subject of the request, including any	347
relevant information contained in records that have been sealed	348
under section 2953.32 of the Revised Code;	349

(2) If the request received by the superintendent asks for	350
information from the federal bureau of investigation, the	351
superintendent shall request from the federal bureau of	352
investigation any information it has with respect to the person	353
who is the subject of the request and shall review or cause to be	354
reviewed any information the superintendent receives from that	355
bureau.	356

(3) The superintendent or the superintendent's designee may	357
request criminal history records from other states or the federal	358
government pursuant to the national crime prevention and privacy	359
compact set forth in section 109.571 of the Revised Code.	360

(C)(1) The superintendent shall prescribe a form to obtain	361
the information necessary to conduct a criminal records check from	362
any person for whom a criminal records check is required by	363
section 121.08, 173.27, 173.394, 1322.03, 1322.031, 2151.86,	364
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151,	365
4749.03, 4749.06, 4763.05, 5104.012, 5104.013, 5111.95, 5111.96,	366
5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. The	367
form that the superintendent prescribes pursuant to this division	368
may be in a tangible format, in an electronic format, or in both	369
tangible and electronic formats.	370

(2) The superintendent shall prescribe standard impression	371
sheets to obtain the fingerprint impressions of any person for	372
whom a criminal records check is required by section 121.08,	373
173.27, 173.394, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541,	374
3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06,	375
4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28,	376
5126.281, or 5153.111 of the Revised Code. Any person for whom a	377
records check is required by any of those sections shall obtain	378
the fingerprint impressions at a county sheriff's office,	379
municipal police department, or any other entity with the ability	380
to make fingerprint impressions on the standard impression sheets	381
prescribed by the superintendent. The office, department, or	382
entity may charge the person a reasonable fee for making the	383
impressions. The standard impression sheets the superintendent	384
prescribes pursuant to this division may be in a tangible format,	385
in an electronic format, or in both tangible and electronic	386
formats.	387

(3) Subject to division (D) of this section, the	388
superintendent shall prescribe and charge a reasonable fee for	389
providing a criminal records check requested under section 121.08,	390
173.27, 173.394, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541,	391
3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06,	392
4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28,	393
5126.281, or 5153.111 of the Revised Code. The person making a	394
criminal records request under section 121.08, 173.27, 173.394,	395
1322.03, 1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881,	396
3712.09, 3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012,	397
5104.013, 5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or	398
5153.111 of the Revised Code shall pay the fee prescribed pursuant	399
to this division. A person making a request under section 3701.881	400
of the Revised Code for a criminal records check for an applicant	401
who may be both responsible for the care, custody, or control of a	402
child and involved in providing direct care to an older adult	403
shall pay one fee for the request.	404

(4) The superintendent of the bureau of criminal	405
identification and investigation may prescribe methods of	406
forwarding fingerprint impressions and information necessary to	407
conduct a criminal records check, which methods shall include, but	408
not be limited to, an electronic method.	409

(D) A determination whether any information exists that	410
indicates that a person previously has been convicted of or	411
pleaded guilty to any offense listed or described in division	412
(A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or	413
(b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7)(a) or (b),	414
(A)(8)(a) or (b), or (A)(9)(a) or (b), or (A)(11) of this section	415
that is made by the superintendent with respect to information	416
considered in a criminal records check in accordance with this	417
section is valid for the person who is the subject of the criminal	418
records check for a period of one year from the date upon which	419
the superintendent makes the determination. During the period in	420
which the determination in regard to a person is valid, if another	421
request under this section is made for a criminal records check	422
for that person, the superintendent shall provide the information	423
that is the basis for the superintendent's initial determination	424
at a lower fee than the fee prescribed for the initial criminal	425
records check.	426

(E) As used in this section:

427

(1) "Criminal records check" means any criminal records check	428
conducted by the superintendent of the bureau of criminal	429
identification and investigation in accordance with division (B)	430
of this section.	431

(2) "Home and community-based waiver services" and "waiver	432
agency" have the same meanings as in section 5111.95 of the	433
Revised Code.	434

(3) "Independent provider" has the same meaning as in section	435
5111.96 of the Revised Code.	436

(4) "Minor drug possession offense" has the same meaning as	437
in section 2925.01 of the Revised Code.	438

(5) "Older adult" means a person age sixty or older.

439

Sec. 1321.541.  (A) The attorney general may directly bring	440
an action to enjoin a violation of sections 1321.51 to 1321.60 of	441
the Revised Code with the same rights, privileges, and powers as	442
those described in section 1345.06 of the Revised Code. The	443
prosecuting attorney of the county in which the action may be	444
brought may bring an action to enjoin a violation of sections	445
1321.51 to 1321.60 of the Revised Code only if the prosecuting	446
attorney first presents any evidence of the violation to the	447
attorney general and, within a reasonable period of time, the	448
attorney general has not agreed to bring the action.	449

(B)(1) The prosecuting attorney of the county in which an	450
alleged offense may be prosecuted may initiate criminal	451
proceedings under sections 1321.51 to 1321.60 of the Revised Code.	452

(2) In order to initiate criminal proceedings under sections	453
1321.51 to 1321.60 of the Revised Code, the attorney general shall	454
first present any evidence of criminal violations to the	455
prosecuting attorney of the county in which the alleged offense	456
may be prosecuted. If, within a reasonable period of time, the	457
prosecuting attorney has not agreed to prosecute the violations,	458
the attorney general may proceed in the prosecution with all the	459
rights, privileges, and powers conferred by law on prosecuting	460
attorneys, including the power to appear before grand juries and	461
to interrogate witnesses before such grand juries.	462

(C) These powers of the attorney general shall be in addition	463
to any other applicable powers of the attorney general.	464

Sec. 1321.57.  (A) Notwithstanding any other provisions of	465
the Revised Code, a registrant may contract for and receive	466
interest, calculated according to the actuarial method, at a rate	467
or rates not exceeding twenty-one per cent per year on the unpaid	468
principal balances of the loan. Loans may be interest-bearing or	469
precomputed.	470

(B) For purposes of computation of time on interest-bearing	471
and precomputed loans, including, but not limited to, the	472
calculation of interest, a month is considered one-twelfth of a	473
year, and a day is considered one three hundred sixty-fifth of a	474
year when calculation is made for a fraction of a month. A year is	475
as defined in section 1.44 of the Revised Code. A month is that	476
period described in section 1.45 of the Revised Code.	477
Alternatively, a registrant may consider a day as one three	478
hundred sixtieth of a year and each month as having thirty days.	479

(C) With respect to interest-bearing loans:

480

(1)(a) Interest shall be computed on unpaid principal	481
balances outstanding from time to time, for the time outstanding.	482

(b) As an alternative to the method of computing interest set	483
forth in division (C)(1)(a) of this section, a registrant may	484
charge and collect interest for the first installment period based	485
on elapsed time from the date of the loan to the first scheduled	486
payment due date, and for each succeeding installment period from	487
the scheduled payment due date to the next scheduled payment due	488
date, regardless of the date or dates the payments are actually	489
made.	490

(c) Whether a registrant computes interest pursuant to	491
division (C)(1)(a) or (b) of this section, each payment shall be	492
applied first to unpaid charges, then to interest, and the	493
remainder to the unpaid principal balance. However, if the amount	494
of the payment is insufficient to pay the accumulated interest,	495
the unpaid interest continues to accumulate to be paid from the	496
proceeds of subsequent payments and is not added to the principal	497
balance.	498

(2) Interest shall not be compounded, collected, or paid in	499
advance. However, both of the following apply:	500

(a) Interest may be charged to extend the first monthly	501
installment period by not more than fifteen days, and the interest	502
charged for the extension may be added to the principal amount of	503
the loan.	504

(b) If part or all of the consideration for a new loan	505
contract is the unpaid principal balance of a prior loan, the	506
principal amount payable under the new loan contract may include	507
any unpaid interest that has accrued. The resulting loan contract	508
shall be deemed a new and separate loan transaction for purposes	509
of this section. The unpaid principal balance of a precomputed	510
loan is the balance due after refund or credit of unearned	511
interest as provided in division (D)(3) of this section.	512

(D) With respect to precomputed loans:

513

(1) Loans shall be repayable in monthly installments of	514
principal and interest combined, except that the first installment	515
period may exceed one month by not more than fifteen days, and the	516
first installment payment amount may be larger than the remaining	517
payments by the amount of interest charged for the extra days; and	518
provided further that monthly installment payment dates may be	519
omitted to accommodate borrowers with seasonal income.	520

(2) Payments may be applied to the combined total of	521
principal and precomputed interest until maturity of the loan. A	522
registrant may charge interest after the original or deferred	523
maturity of a precomputed loan at the rate specified in division	524
(A) of this section on all unpaid principal balances for the time	525
outstanding.	526

(3) When any loan contract is paid in full by cash, renewal,	527
refinancing, or a new loan, one month or more before the final	528
installment due date, the registrant shall refund, or credit the	529
borrower with, the total of the applicable charges for all fully	530
unexpired installment periods, as originally scheduled or as	531
deferred, that follow the day of prepayment. If the prepayment is	532
made other than on a scheduled installment due date, the nearest	533
scheduled installment due date shall be used in such computation.	534
If the prepayment occurs prior to the first installment due date,	535
the registrant may retain one-thirtieth of the applicable charge	536
for a first installment period of one month for each day from date	537
of loan to date of prepayment, and shall refund, or credit the	538
borrower with, the balance of the total interest contracted for.	539
If the maturity of the loan is accelerated for any reason and	540
judgment is entered, the registrant shall credit the borrower with	541
the same refund as if prepayment in full had been made on the date	542
the judgment is entered.	543

(4) If the parties agree in writing, either in the loan	544
contract or in a subsequent agreement, to a deferment of wholly	545
unpaid installments, a registrant may grant a deferment and may	546
collect a deferment charge as provided in this section. A	547
deferment postpones the scheduled due date of the earliest unpaid	548
installment and all subsequent installments as originally	549
scheduled, or as previously deferred, for a period equal to the	550
deferment period. The deferment period is that period during which	551
no installment is scheduled to be paid by reason of the deferment.	552
The deferment charge for a one-month period may not exceed the	553
applicable charge for the installment period immediately following	554
the due date of the last undeferred installment. A proportionate	555
charge may be made for deferment for periods of more or less than	556
one month. A deferment charge is earned pro rata during the	557
deferment period and is fully earned on the last day of the	558
deferment period. If a loan is prepaid in full during a deferment	559
period, the registrant shall make, or credit to the borrower, a	560
refund of the unearned deferment charge in addition to any other	561
refund or credit made for prepayment of the loan in full.	562

(E) A registrant, at the request of the borrower, may obtain,	563
on one or more borrowers, credit life insurance, credit accident	564
and health insurance, and unemployment insurance. The premium or	565
identifiable charge for the insurance may be included in the	566
principal amount of the loan and may not exceed the premium rate	567
filed by the insurer with the superintendent of insurance and not	568
disapproved by the superintendent. If a registrant obtains the	569
insurance at the request of the borrower, the borrower shall have	570
the right to cancel the insurance for a period of twenty-five days	571
after the loan is made. If the borrower chooses to cancel the	572
insurance, the borrower shall give the registrant written notice	573
of this choice and shall return all of the policies or	574
certificates of insurance or notices of proposed insurance to the	575
registrant during such period, and the full premium or	576
identifiable charge for the insurance shall be refunded to the	577
borrower by the registrant. If the borrower requests, in the	578
notice to cancel the insurance, that this refund be applied to	579
reduce the balance of a precomputed loan, the registrant shall	580
credit the amount of the refund plus the amount of interest	581
applicable to the refund to the loan balance.	582

If the registrant obtains the insurance at the request of the	583
borrower, the registrant shall not charge or collect interest on	584
any insured amount that remains unpaid after the insured	585
borrower's date of death.	586

(F) A registrant may require the borrower to provide	587
insurance or a loss payable endorsement covering reasonable risks	588
of loss, damage, and destruction of property used as security for	589
the loan and with the consent of the borrower such insurance may	590
cover property other than that which is security for the loan. The	591
amount and term of required property insurance shall be reasonable	592
in relation to the amount and term of the loan contract and the	593
type and value of the security, and the insurance shall be	594
procured in accordance with the insurance laws of this state. The	595
purchase of this insurance through the registrant or an agent or	596
broker designated by the registrant shall not be a condition	597
precedent to the granting of the loan. If the borrower purchases	598
the insurance from or through the registrant or from another	599
source, the premium may be included in the principal amount of the	600
loan.	601

(G) On loans secured by an interest in real estate, all of	602
the following apply:	603

(1) A registrant may charge and receive up to two points, and	604
a prepayment penalty not in excess of one per cent of the original	605
principal amount of the loan. Points may be paid by the borrower	606
at the time of the loan or may be included in the principal amount	607
of the loan. On a refinancing, a registrant may not charge under	608
division (G)(1) of this section either of the following:	609

(a) Points on the portion of the principal amount that is	610
applied to the unpaid principal amount of the refinanced loan, if	611
the refinancing occurs within one year after the date of the	612
refinanced loan on which points were charged;	613

(b) A prepayment penalty.

614

(2) As an alternative to the prepayment penalty described in	615
division (G)(1) of this section, a registrant may contract for,	616
charge, and receive the prepayment penalty described in division	617
(G)(2) of this section for the prepayment of a loan prior to three	618
two years after the date the loan contract is executed. This	619
prepayment penalty shall not exceed threetwo per cent of the	620
original principal amount of the loan if the loan is paid in full	621
prior to one year after the date the loan contract is executed.	622
The penalty shall not exceed twoone per cent of the original	623
principal amount of the loan if the loan is paid in full at any	624
time from one year, but prior to two years, after the date the	625
loan contract is executed. The penalty shall not exceed one per	626
cent of the original principal amount of the loan if the loan is	627
paid in full at any time from two years, but prior to three years,	628
after the date the loan contract is executed. A registrant shall	629
not charge or receive a prepayment penalty under division (G)(2)	630
of this section if any of the following applies:	631

(a) The loan is a refinancing by the same registrant or a	632
registrant to whom the loan has been assigned;	633

(b) The loan is paid in full as a result of the sale of the	634
real estate that secures the loan;	635

(c) The loan is paid in full with the proceeds of an	636
insurance claim against an insurance policy that insures the life	637
of the borrower or an insurance policy that covers loss, damage,	638
or destruction of the real estate that secures the loan.	639

(3) Division (G) of this section is not a limitation on	640
discount points or other charges for purposes of section 501(b)(4)	641
of the "Depository Institutions Deregulation and Monetary Control	642
Act of 1980," 94 Stat. 161, 12 U.S.C.A. 1735f-7 note.	643

(H)(1) In addition to the interest and charges provided for	644
by this section, no further or other amount, whether in the form	645
of broker fees, placement fees, or any other fees whatsoever,	646
shall be charged or received by the registrant, except costs and	647
disbursements in connection with any suit to collect a loan or any	648
lawful activity to realize on a security interest or mortgage	649
after default, including reasonable attorney fees incurred by the	650
registrant as a result of the suit or activity and to which the	651
registrant becomes entitled by law, and except the following	652
additional charges which may be included in the principal amount	653
of the loan or collected at any time after the loan is made:	654

(a) The amounts of fees authorized by law to record, file, or	655
release security interests and mortgages on a loan;	656

(b) With respect to a loan secured by an interest in real	657
estate, the following closing costs, if they are bona fide,	658
reasonable in amount, and not for the purpose of circumvention or	659
evasion of this section:	660

(i) Fees or premiums for title examination, abstract of	661
title, title insurance, surveys, title endorsements, title	662
binders, title commitments, home inspections, or pest inspections;	663
settlement or closing costs; courier fees; and any federally	664
mandated flood plain certification fee;	665

(ii) If not paid to the registrant, an employee of the	666
registrant, or a person related to the registrant, fees for	667
preparation of a mortgage, settlement statement, or other	668
documents, fees for notarizing mortgages and other documents,	669
appraisal fees, and fees for any federally mandated inspection of	670
home improvement work financed by a second mortgage loan;	671

(c) Fees for credit investigations not exceeding ten dollars.

672

(2) Division (H)(1) of this section does not limit the rights	673
of registrants to engage in other transactions with borrowers,	674
provided the transactions are not a condition of the loan.	675

(I) If the loan contract or security instrument contains	676
covenants by the borrower to perform certain duties pertaining to	677
insuring or preserving security and the registrant pursuant to the	678
loan contract or security instrument pays for performance of the	679
duties on behalf of the borrower, the registrant may add the	680
amounts paid to the unpaid principal balance of the loan or	681
collect them separately. A charge for interest may be made for	682
sums advanced not exceeding the rate of interest permitted by	683
division (A) of this section. Within a reasonable time after	684
advancing a sum, the registrant shall notify the borrower in	685
writing of the amount advanced, any interest charged with respect	686
to the amount advanced, any revised payment schedule, and shall	687
include a brief description of the reason for the advance.	688

(J)(1) In addition to points authorized under division (G) of	689
this section, a registrant may charge and receive the following:	690

(a) With respect to secured loans: if the principal amount of	691
the loan is less than five hundred dollars, loan origination	692
charges not exceeding fifteen dollars; if the principal amount of	693
the loan is at least five hundred dollars but less than one	694
thousand dollars, loan origination charges not exceeding thirty	695
dollars; if the principal amount of the loan is at least one	696
thousand dollars but less than two thousand dollars, loan	697
origination charges not exceeding one hundred dollars; if the	698
principal amount of the loan is at least two thousand dollars but	699
less than five thousand dollars, loan origination charges not	700
exceeding two hundred dollars; and if the principal amount of the	701
loan is at least five thousand dollars, loan origination charges	702
not exceeding the greater of two hundred fifty dollars or one per	703
cent of the principal amount of the loan.	704

(b) With respect to unsecured loans: if the principal amount	705
of the loan is less than five hundred dollars, loan origination	706
charges not exceeding fifteen dollars; if the principal amount of	707
the loan is at least five hundred dollars but less than one	708
thousand dollars, loan origination charges not exceeding thirty	709
dollars; if the principal amount of the loan is at least one	710
thousand dollars but less than five thousand dollars, loan	711
origination charges not exceeding one hundred dollars; and if the	712
principal amount of the loan is at least five thousand dollars,	713
loan origination charges not exceeding the greater of two hundred	714
fifty dollars or one per cent of the principal amount of the loan.	715

(2) If a refinancing occurs within ninety days after the date	716
of the refinanced loan, a registrant may not impose loan	717
origination charges on the portion of the principal amount that is	718
applied to the unpaid principal amount of the refinanced loan.	719

(3) Loan origination charges may be paid by the borrower at	720
the time of the loan or may be included in the principal amount of	721
the loan.	722

(K) A registrant may charge and receive check collection	723
charges not greater than twenty dollars plus any amount passed on	724
from other financial institutions for each check, negotiable order	725
of withdrawal, share draft, or other negotiable instrument	726
returned or dishonored for any reason.	727

(L) If the loan contract so provides, a registrant may	728
collect a default charge on any installment not paid in full	729
within ten days after its due date. For this purpose, all	730
installments are considered paid in the order in which they become	731
due. Any amounts applied to an outstanding loan balance as a	732
result of voluntary release of a security interest, sale of	733
security on the loan, or cancellation of insurance shall be	734
considered payments on the loan, unless the parties otherwise	735
agree in writing at the time the amounts are applied. The amount	736
of the default charge shall not exceed the greater of five per	737
cent of the scheduled installment or fifteen dollars.	738

Sec. 1322.02.  (A)(1) No person, on the person's own behalf	739
or on behalf of any other person, shall act as a mortgage broker	740
without first having obtained a certificate of registration from	741
the superintendent of financial institutions for every office to	742
be maintained by the person for the transaction of business as a	743
mortgage broker in this state. A registrant shall maintain an	744
office location in this state for the transaction of business as a	745
mortgage broker in this state.	746

(2) No person shall act or hold that person's self out as a	747
mortgage broker under the authority or name of a registrant or	748
person exempt from sections 1322.01 to 1322.12 of the Revised Code	749
without first having obtained a certificate of registration from	750
the superintendent for every office to be maintained by the person	751
for the transaction of business as a mortgage broker in this	752
state.	753

(B) No person, on the person's own behalf or on behalf of any	754
other person, shall act as a loan officer without first having	755
obtained a license from the superintendent. A loan officer shall	756
not be employed by more than one mortgage broker at any one time.	757

(C)(1) The following persons are exempt from sections 1322.01	758
to 1322.12 of the Revised Code only with respect to business	759
engaged in or authorized by their charter, license, authority,	760
approval, or certificate, or as otherwise authorized by division	761
(C)(1)(g) of this section:	762

(a) A bank, savings bank, savings and loan association, or	763
credit union, or credit union service organization organized under	764
the laws of this state, another state, or the United States, or a	765
subsidiary or affiliate of a bank, savings bank, savings and loan	766
association, or credit union;, or credit union service	767
organization. As used in this division, "affiliate" means an	768
entity that controls, is controlled by, or is under common control	769
with, a bank, savings bank, savings and loan association, credit	770
union, or credit union service organization and that the board of	771
governors of the federal reserve system, the comptroller of the	772
currency, the office of thrift supervision, the federal deposit	773
insurance corporation, or the national credit union administration	774
has the authority to examine, supervise, and regulate including	775
with respect to the affiliate's compliance with applicable	776
consumer protection requirements.	777

(b) A budget and debt counseling service, as defined in	778
division (D) of section 2716.03 of the Revised Code, provided that	779
the service is a nonprofit organization exempt from taxation under	780
section 501(c)(3) of the "Internal Revenue Code of 1986," 100	781
Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service is	782
in compliance with Chapter 4710. of the Revised Code;	783

(c) A consumer reporting agency that is in substantial	784
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128, 15	785
U.S.C.A. 1681a, as amended;	786

(d) Any political subdivision, or any governmental or other	787
public entity, corporation, or agency, in or of the United States	788
or any state of the United States;	789

(e) A college or university, or controlled entity of a	790
college or university, as defined in section 1713.05 of the	791
Revised Code;	792

(f) A person registered under sections 1321.51 to 1321.60 of	793
the Revised Code, provided that not more than five per cent of the	794
person's mortgage loans constitute table-funding mortgage loans or	795
warehouse-lending mortgage loans. Division (C)(1)(f) of this	796
section does not include any person that is also registered or	797
licensed under sections 1322.01 to 1322.12 of the Revised Code.	798

(g) A mortgage banker. For purposes of division (C)(1)(g) of	799
this section, "mortgage banker" means any person that makes,	800
services, buys, or sells mortgage loans, that underwrites the	801
loans, and that meets at least one of the following criteria:	802

(i) The person has been directly approved by the United	803
States department of housing and urban development as a	804
nonsupervised mortgagee with participation in the direct	805
endorsement program. Division (C) (1) (g) (i) of this section	806
includes a person that has been directly approved by the United	807
States department of housing and urban development as a	808
nonsupervised mortgagee with participation in the direct	809
endorsement program and that makes loans in excess of the	810
applicable loan limit set by the federal national mortgage	811
association, provided that the loans in all respects, except loan	812
amounts, comply with the underwriting and documentation	813
requirements of the United States department of housing and urban	814
development. Division (C)(1)(g)(i) of this section does not	815
include a mortgagee approved as a loan correspondent.	816

(ii) The person has been directly approved by the federal	817
national mortgage association as a seller/servicer. Division (C)	818
(1) (g) (ii) of this section includes a person that has been	819
directly approved by the federal national mortgage association as	820
a seller/servicer and that makes loans in excess of the applicable	821
loan limit set by the federal national mortgage association,	822
provided that the loans in all respects, except loan amounts,	823
comply with the underwriting and documentation requirements of the	824
federal national mortgage association.	825

(iii) The person has been directly approved by the federal	826
home loan mortgage corporation as a seller/servicer. Division (C)	827
(1) (g) (iii) of this section includes a person that has been	828
directly approved by the federal home loan mortgage corporation as	829
a seller/servicer and that makes loans in excess of the applicable	830
loan limit set by the federal home loan mortgage corporation,	831
provided that the loans in all respects, except loan amounts,	832
comply with the underwriting and documentation requirements of the	833
federal home loan mortgage corporation.	834

(iv) The person has been directly approved by the United	835
States department of veterans affairs as a nonsupervised automatic	836
lender. Division (C)(1)(g)(iv) of this section does not include a	837
person directly approved by the United States department of	838
veterans affairs as a nonsupervised lender, an agent of a	839
nonsupervised automatic lender, or an agent of a nonsupervised	840
lender.	841

(h) A person created solely for the purpose of securitizing	842
loans secured by an interest in real estate, provided the person	843
does not service the loans. For purposes of division (C)(1)(h) of	844
this section, "securitizing" means the packaging and sale of	845
mortgage loans as a unit for sale as investment securities, but	846
only to the extent of those activities.	847

(2) Any individual who is employed by a person exempt from	848
sections 1322.01 to 1322.12 of the Revised Code is also exempt	849
from those sections to the extent the individual is acting within	850
the scope of the individual's employment and within the scope of	851
the exempt person's charter, license, authority, approval, or	852
certificate.	853

Sec. 1322.03.  (A) An application for a certificate of	854
registration as a mortgage broker shall be in writing, under oath,	855
and in the form prescribed by the superintendent of financial	856
institutions. The application shall be accompanied by a	857
nonrefundable application fee of three hundred fifty dollars for	858
each location of an office to be maintained by the applicant in	859
accordance with division (A) of section 1322.02 of the Revised	860
Code; however, an applicant that is registered under sections	861
1321.51 to 1321.60 of the Revised Code shall not be required to	862
pay an application fee. The application shall provide all of the	863
following:	864

(1) The location or locations where the business is to be	865
transacted and whether any location is a residence. If any	866
location where the business is to be transacted is a residence,	867
the application shall be accompanied by a certified copy of a	868
zoning permit authorizing the use of the residence for commercial	869
purposes, or shall be accompanied by a written opinion or other	870
document issued by the county or political subdivision where the	871
residence is located certifying that the use of the residence to	872
transact business as a mortgage broker is not prohibited by the	873
county or political subdivision. The application also shall be	874
accompanied by a photograph of each location at which the business	875
will be transacted.	876

(2)(a) In the case of a sole proprietor, the name and address	877
of the sole proprietor;	878

(b) In the case of a partnership, the name and address of	879
each partner;	880

(c) In the case of a corporation, the name and address of	881
each shareholder owning five per cent or more of the corporation;	882

(d) In the case of any other entity, the name and address of	883
any person that owns five per cent or more of the entity that will	884
transact business as a mortgage broker.	885

(3) If the applicant is a partnership, corporation, limited	886
liability company, or any other business entity or association,	887
the applicant shall designate an employee or owner of the	888
applicant as the applicant's operations manager. While acting as	889
the operations manager, the employee or owner shall not be	890
employed by any other mortgage broker.	891

(4) Evidence that the sole proprietor or the person	892
designated on the application pursuant to division (A)(3) of this	893
section, as applicable, possesses at least three years of	894
experience in the mortgage and lending field, which experience may	895
include employment with or as a mortgage broker or with a	896
financial institution, mortgage lending institution, or other	897
lending institution, or possesses at least three years of other	898
experience related specifically to the business of mortgage loans	899
that the superintendent determines meets the requirements of	900
division (A)(4) of this section;	901

(5) On or after January 1, 2007, evidence that the sole	902
proprietor or the person designated on the application pursuant to	903
division (A)(3) of this section has successfully completed either	904
of the following:	905

(a) At least twenty-four hours of live classroom instruction	906
in a course or program of study approved by the superintendent	907
that consists of at least all of the following:	908

(i) Four hours of instruction concerning state and federal	909
mortgage lending laws, which shall include no less than two hours	910
on this chapter;	911

(ii) Four hours of instruction concerning the Ohio consumer	912
sales practices act, Chapter 1345. of the Revised Code, as it	913
applies to registrants and licensees;	914

(iii) Four hours of instruction concerning the loan	915
application process;	916

(iv) Two hours of instruction concerning the underwriting	917
process;	918

(v) Two hours of instruction concerning the secondary market	919
for mortgage loans;	920

(vi) Four hours of instruction concerning the loan closing	921
process;	922

(vii) Two hours of instruction covering basic mortgage	923
financing concepts and terms;	924

(viii) Two hours of instruction concerning the ethical	925
responsibilities of a registrant, including with respect to	926
confidentiality, consumer counseling, and the duties and standards	927
of care created in section 1322.081 of the Revised Code.	928

(b) Other post-secondary education related specifically to	929
the business of mortgage loans that the superintendent determines	930
meets the requirements of division (A)(5)(a) of this section.	931

Division (A)(5) of this section does not apply to any	932
applicant who has an application on file with the division of	933
financial institutions prior to January 1, 2007.	934

The evidence submitted by the applicant pursuant to division	935
(A)(5) of this section may be in the form of transcripts or a	936
statement indicating that the applicant has, and will maintain,	937
transcripts at the applicant's place of business for a period of	938
five years for inspection by the superintendent at the	939
superintendent's request.	940

(6) Evidence of compliance with the surety bond requirements	941
of section 1322.05 of the Revised Code and with sections 1322.01	942
to 1322.12 of the Revised Code;	943

(6)(7) In the case of a foreign business entity, evidence	944
that it maintains a license or registration pursuant to Chapter	945
1703., 1705., 1775., 1777., 1782., or 1783. of the Revised Code to	946
transact business in this state;	947

(7)(8) A statement as to whether the applicant or, to the	948
best of the applicant's knowledge, any shareholder, member,	949
partner, operations manager, or employee of the applicant has been	950
convicted of or pleaded guilty to any criminal offense involving	951
theft, receiving stolen property, embezzlement, forgery, fraud,	952
passing bad checks, money laundering, or drug trafficking, or any	953
criminal offense involving money or securities;	954

(8)(9) A statement as to whether the applicant or, to the	955
best of the applicant's knowledge, any shareholder, member,	956
partner, operations manager, or employee of the applicant has been	957
subject to any adverse judgment for conversion, embezzlement,	958
misappropriation of funds, fraud, misfeasance or malfeasance, or	959
breach of fiduciary duty;	960

(9)(10) Evidence that the applicant's operations manager has	961
successfully completed the examination required under division (A)	962
of section 1322.051 of the Revised Code;	963

(10)(11) Any further information that the superintendent	964
requires.	965

(B) Upon the filing of the application and payment of the	966
application fee, the superintendent of financial institutions	967
shall investigate the applicant as set forth in division (B) of	968
this section. The investigation shall include	969

(1) The superintendent shall request the superintendent of	970
the bureau of criminal identification and investigation, or a	971
vendor approved by the bureau, to conduct a criminal records check	972
based on the applicant's fingerprints of the applicant andin	973
accordance with division (A)(11) of section 109.572 of the Revised	974
Code. Notwithstanding division (J) of section 121.08 of the	975
Revised Code, the superintendent of financial institutions shall	976
request that criminal record information from the federal bureau	977
of investigation be obtained as part of the criminal records	978
check. Any fee required under division (C)(3) of section 109.572	979
of the Revised Code shall be paid by the applicant.	980

(2) The superintendent shall conduct a civil records check.	981
If,	982

(3) If, in order to issue a certificate of registration to an	983
applicant, additional investigation by the superintendent outside	984
this state is necessary, the superintendent may require the	985
applicant to advance sufficient funds to pay the actual expenses	986
of the investigation, if it appears that these expenses will	987
exceed three hundred fifty dollars. The superintendent shall	988
provide the applicant with an itemized statement of the actual	989
expenses that the applicant is required to pay.	990

(C) AllThe superintendent shall pay all funds advanced and	991
application and renewal fees and penalties paid to the	992
superintendent underreceives pursuant to this section and section	993
1322.04 of the Revised Code shall be paid by the superintendent to	994
the treasurer of state to the credit of the consumer finance fund	995
created in section 1321.21 of the Revised Code.	996

(D) If an application for a certificate of registration does	997
not contain all of the information required under division (A) of	998
this section, and if that information is not submitted to the	999
superintendent within ninety days after the superintendent	1000
requests the information in writing, the superintendent may	1001
consider the application withdrawn.	1002

(E) A certificate of registration, orand the authority	1003
granted under such athat certificate, is not transferable or	1004
assignable and cannot be franchised by contract or any other	1005
means.	1006

(F) The registration requirements of this chapter apply to	1007
any person acting as a mortgage broker, and no person is exempt	1008
from the requirements of this chapter on the basis of prior work	1009
or employment as a mortgage broker.	1010

Sec. 1322.031. (A) An application for a license as a loan	1011
officer shall be in writing, under oath, and in the form	1012
prescribed by the superintendent of financial institutions. The	1013
application shall be accompanied by a nonrefundable application	1014
fee of one hundred dollars and shall provide all of the following:	1015

(1) The name and address of the applicant;

1016

(2) A statement as to whether the applicant has been	1017
convicted of or pleaded guilty to any criminal offense involving	1018
theft, receiving stolen property, embezzlement, forgery, fraud,	1019
passing bad checks, money laundering, or drug trafficking, or any	1020
criminal offense involving money or securities;	1021

(3) A statement as to whether the applicant has been subject	1022
to an adverse judgment for conversion, embezzlement,	1023
misappropriation of funds, fraud, misfeasance or malfeasance, or	1024
breach of fiduciary duty;	1025

(4) For loan officer applications submitted on or after	1026
January 1, 2007, proof, as determined by the superintendent, that	1027
the applicant has successfully completed at least twenty-four	1028
hours of live classroom instruction in a course or program of	1029
study approved by the superintendent that consists of at least all	1030
of the following:	1031

(a) Four hours of instruction concerning state and federal	1032
mortgage lending laws, which shall include no less than two hours	1033
on this chapter;	1034

(b) Four hours of instruction concerning the Ohio consumer	1035
sales practices act, Chapter 1345. of the Revised Code, as it	1036
applies to registrants and licensees;	1037

(c) Four hours of instruction concerning the loan application	1038
process;	1039

(d) Two hours of instruction concerning the underwriting	1040
process;	1041

(e) Two hours of instruction concerning the secondary market	1042
for mortgage loans;	1043

(f) Four hours of instruction concerning the loan closing	1044
process;	1045

(g) Two hours of instruction covering basic mortgage	1046
financing concepts and terms;	1047

(h) Two hours of instruction concerning the ethical	1048
responsibilities of a licensee, including with respect to	1049
confidentiality, consumer counseling, and the duties and standards	1050
of care created in section 1322.081 of the Revised Code.	1051

Division (A)(4) of this section does not apply to any	1052
applicant who has an application on file with the division of	1053
financial institutions prior to January 1, 2007.	1054

The proof submitted by the applicant pursuant to division	1055
(A)(4) of this section may be in the form of transcripts or a	1056
statement indicating that the applicant has, and will maintain,	1057
transcripts at the applicant's place of business for a period of	1058
five years for inspection by the superintendent at the	1059
superintendent's request.	1060

(5) Any further information that the superintendent requires.

1061

(B) Upon the filing of the application and payment of the	1062
application fee, the superintendent of financial institutions	1063
shall investigate the applicant as set forth in division (B) of	1064
this section. The investigation shall include	1065

(1) The superintendent shall request the superintendent of	1066
the bureau of criminal identification and investigation, or a	1067
vendor approved by the bureau, to conduct a criminal records check	1068
based on the applicant's fingerprints of the applicant andin	1069
accordance with division (A)(11) of section 109.572 of the Revised	1070
Code. Notwithstanding division (J) of section 121.08 of the	1071
Revised Code, the superintendent of financial institutions shall	1072
request that criminal record information from the federal bureau	1073
of investigation be obtained as part of the criminal records	1074
check. Any fee required under division (C)(3) of section 109.572	1075
of the Revised Code shall be paid by the applicant.	1076

(2) The superintendent shall conduct a civil records check.	1077
If	1078

(3) If, in order to issue a license to an applicant,	1079
additional investigation by the superintendent outside this state	1080
is necessary, the superintendent may require the applicant to	1081
advance sufficient funds to pay the actual expenses of the	1082
investigation, if it appears that these expenses will exceed one	1083
hundred dollars. The superintendent shall provide the applicant	1084
with an itemized statement of the actual expenses that the	1085
applicant is required to pay.	1086

(C) AllThe superintendent shall pay all funds advanced and	1087
application and renewal fees and penalties paid to the	1088
superintendent underreceives pursuant to this section and section	1089
1322.041 of the Revised Code shall be paid by the superintendent	1090
to the treasurer of state to the credit of the consumer finance	1091
fund created in section 1321.21 of the Revised Code.	1092

(D) If an application for a license does not contain all of	1093
the information required under division (A) of this section, and	1094
if that information is not submitted to the superintendent within	1095
ninety days after the superintendent requests the information in	1096
writing, the superintendent may consider the application	1097
withdrawn.	1098

(E)(1) The business of a loan officer shall principally be	1099
transacted at an office of the employing mortgage broker, which	1100
office is registered in accordance with division (A) of section	1101
1322.02 of the Revised Code. Each original license shall be	1102
deposited with and maintained by the employing mortgage broker at	1103
the mortgage broker's main office. A copy of the license shall be	1104
maintained and displayed at the office where the loan officer	1105
principally transacts business.	1106

(2) If a loan officer's employment is terminated, the	1107
mortgage broker shall return the original license to the	1108
superintendent within five business days after the termination.	1109
The licensee may request the transfer of the license to another	1110
mortgage broker by submitting a relocation application, along with	1111
a fifteen dollar fee, to the superintendent or may request the	1112
superintendent in writing to hold the license in escrow for a	1113
period not to exceed one year. Any licensee whose license is held	1114
in escrow shall cease activity as a loan officer.	1115

A mortgage broker may employ a loan officer on a temporary	1116
basis pending the transfer of the loan officer's license to the	1117
mortgage broker, if the mortgage broker receives written	1118
confirmation from the superintendent that the loan officer is	1119
licensed under sections 1322.01 to 1322.12 of the Revised Code.	1120

(F) A license, or the authority granted under such athat	1121
license, is not assignable and cannot be franchised by contract or	1122
any other means.	1123

Sec. 1322.04.  (A) Upon the conclusion of the investigation	1124
required under division (B) of section 1322.03 of the Revised	1125
Code, the superintendent of financial institutions shall issue a	1126
certificate of registration to the applicant if the superintendent	1127
finds that the following conditions are met:	1128

(1) Except as otherwise provided in division (A) of section	1129
1322.03 of the ReviseRevised Code, the application is accompanied	1130
by the application fee. If a check or other draft instrument is	1131
returned to the superintendent for insufficient funds, the	1132
superintendent shall notify the registrant by certified mail,	1133
return receipt requested, that the certificate of registration	1134
issued in reliance on the check or other draft instrument will be	1135
canceled unless the registrant, within thirty days after receipt	1136
of the notice, submits the application fee and a	1137
one-hundred-dollar penalty to the superintendent. If the	1138
registrant does not submit the application fee and penalty within	1139
that time period, or if any check or other draft instrument used	1140
to pay the fee or penalty is returned to the superintendent for	1141
insufficient funds, the certificate of registration shall be	1142
canceled immediately without a hearing, and the registrant shall	1143
cease activity as a mortgage broker.	1144

(2) If the application is for a location that is a residence,	1145
that the applicant has obtained a valid zoning permit authorizing	1146
the use of the residence for commercial purposes, or has obtained	1147
a valid written opinion or other document issued by the county or	1148
political subdivision where the residence is located certifying	1149
that the use of the residence to transact business as a mortgage	1150
broker is not prohibited by the county or political subdivision.	1151
The application also is accompanied by a photograph of each	1152
location at which the mortgage broker's business will be	1153
transacted.	1154

(3) The sole proprietor or the person designated on the	1155
application pursuant to division (A)(3) of section 1322.03 of the	1156
Revised Code, as applicable, meets the experience requirements	1157
provided in division (A)(4) of section 1322.03 of the Revised Code	1158
and the education requirements set forth in division (A)(5) of	1159
section 1322.03 of the Revised Code.	1160

(4) The applicant maintains all licenses and registrations	1161
required by the secretary of state.	1162

(5) The applicant complies with the surety bond requirements	1163
of section 1322.05 of the Revised Code.	1164

(6) The applicant complies with sections 1322.01 to 1322.12	1165
of the Revised Code.	1166

(7) Neither the applicant nor any shareholder, member,	1167
partner, operations manager, or employee of the applicant has	1168
pleaded guilty to or been convicted of any criminal offense	1169
described in division (A)(7)(8) of section 1322.03 of the Revised	1170
Code, or any violation of an existing or former law of this state,	1171
any other state, or the United States that substantially is	1172
equivalent to a criminal offense described in that division.	1173
However, if the applicant or any of those other persons has	1174
pleaded guilty to or been convicted of any such an offense other	1175
than theft, the superintendent shall not consider the offense if	1176
the applicant has proven to the superintendent, by a preponderance	1177
of the evidence, that the applicant's or other person's activities	1178
and employment record since the conviction show that the applicant	1179
or other person is honest, truthful, and of good reputation, and	1180
there is no basis in fact for believing that the applicant or	1181
other person will commit such an offense again.	1182

(8) Neither the applicant nor any shareholder, member,	1183
partner, operations manager, or employee of the applicant has been	1184
subject to any adverse judgment for conversion, embezzlement,	1185
misappropriation of funds, fraud, misfeasance or malfeasance, or	1186
breach of fiduciary duty, or, if the applicant or any of those	1187
other persons has been subject to such a judgment, the applicant	1188
has proven to the superintendent, by a preponderance of the	1189
evidence, that the applicant's or other person's activities and	1190
employment record since the judgment show that the applicant or	1191
other person is honest, truthful, and of good reputation, and	1192
there is no basis in fact for believing that the applicant or	1193
other person will be subject to such a judgment again.	1194

(9) The applicant's operations manager successfully completed	1195
the examination required under division (A) of section 1322.051 of	1196
the Revised Code.	1197

(10) The applicant's financial responsibility, experience,	1198
character, and general fitness command the confidence of the	1199
public and warrant the belief that the business will be operated	1200
honestly and fairly in compliance with the purposes of sections	1201
1322.01 to 1322.12 of the Revised Code.	1202

For purposes of determining whether an applicant that is a	1203
partnership, corporation, or other business entity or association	1204
has met the conditions set forth in divisions (A)(7), (A)(8), and	1205
(A)(10) of this section, the superintendent shall determine which	1206
partners, shareholders, or persons named in the application	1207
pursuant to division (A)(2) of section 1322.03 of the Revised Code	1208
must meet the conditions set forth in divisions (A)(7), (A)(8),	1209
and (A)(10) of this section. This determination shall be based on	1210
the extent and nature of the partner's, shareholder's, or person's	1211
ownership interest in the partnership, corporation, or other	1212
business entity or association that is the applicant.	1213

(B) The certificate of registration issued pursuant to	1214
division (A) of this section may be renewed annually on or before	1215
the thirtieth day of April if the superintendent finds that all of	1216
the following conditions are met:	1217

(1) The renewal application is accompanied by a nonrefundable	1218
renewal fee of three hundred fifty dollars for each location of an	1219
office to be maintained by the applicant in accordance with	1220
division (A) of section 1322.02 of the Revised Code; however, an	1221
applicant that is registered under sections 1321.51 to 1321.60 of	1222
the Revised Code shall not be required to pay a renewal fee. If a	1223
check or other draft instrument is returned to the superintendent	1224
for insufficient funds, the superintendent shall notify the	1225
registrant by certified mail, return receipt requested, that the	1226
certificate of registration renewed in reliance on the check or	1227
other draft instrument will be canceled unless the registrant,	1228
within thirty days after receipt of the notice, submits the	1229
renewal fee and a one-hundred-dollar penalty to the	1230
superintendent. If the registrant does not submit the renewal fee	1231
and penalty within that time period, or if any check or other	1232
draft instrument used to pay the fee or penalty is returned to the	1233
superintendent for insufficient funds, the certificate of	1234
registration shall be canceled immediately without a hearing and	1235
the registrant shall cease activity as a mortgage broker.	1236

(2) On and after January 1, 2003, the operations manager	1237
designated under division (A)(3) of section 1322.03 of the Revised	1238
Code has completed, during the immediately preceding calendar	1239
year, at least six hours of continuing education as required under	1240
section 1322.052 of the Revised Code.	1241

(3) The applicant meets the conditions set forth in divisions	1242
(A)(2) to (10) of this section.	1243

(4) The applicant's certificate of registration is not	1244
subject to an order of suspension or revocation by the	1245
superintendent.	1246

(C)(1) Subject to division (C)(2) of this section, if a	1247
renewal fee is received by the superintendent after the thirtieth	1248
day of April, the certificate of registration shall not be	1249
considered renewed, and the applicant shall cease activity as a	1250
mortgage broker and apply for a certificate of registration as a	1251
mortgage broker.	1252

(2) Division (C)(1) of this section shall not apply if the	1253
applicant, no later than the thirty-first day of May, submits the	1254
renewal fee and a one-hundred-dollar penalty to the	1255
superintendent.	1256

(D) If the person designated as the operations manager	1257
pursuant to division (A)(3) of section 1322.03 of the Revised Code	1258
is no longer the operations manager, the registrant shall do all	1259
of the following:	1260

(1) Designate another person as the operations manager;

1261

(2) Within ten days after the designation described in	1262
division (D)(1) of this section, notify the superintendent in	1263
writing of the designation;	1264

(3) Submit any additional information that the superintendent	1265
requires to establish that the newly designated operations manager	1266
complies with the experience requirements set forth in division	1267
(A)(4) of section 1322.03 of the Revised Code.	1268

Sec. 1322.041. (A) Upon the conclusion of the investigation	1269
required under division (B) of section 1322.031 of the Revised	1270
Code, the superintendent of financial institutions shall issue a	1271
loan officer license to the applicant if the superintendent finds	1272
that the following conditions are met:	1273

(1) The application is accompanied by the application fee. If	1274
a check or other draft instrument is returned to the	1275
superintendent for insufficient funds, the superintendent shall	1276
notify the licensee by certified mail, return receipt requested,	1277
that the license issued in reliance on the check or other draft	1278
instrument will be canceled unless the licensee, within thirty	1279
days after receipt of the notice, submits the application fee and	1280
a one-hundred-dollar penalty to the superintendent. If the	1281
licensee does not submit the application fee and penalty within	1282
that time period, or if any check or other draft instrument used	1283
to pay the fee or penalty is returned to the superintendent for	1284
insufficient funds, the license shall be canceled immediately	1285
without a hearing, and the licensee shall cease activity as a loan	1286
officer.	1287

(2) The applicant complies with sections 1322.01 to 1322.12	1288
of the Revised Code.	1289

(3) The applicant has not been convicted of or pleaded guilty	1290
to any criminal offense described in division (A)(2) of section	1291
1322.031 of the Revised Code, orand the applicant has not pleaded	1292
guilty to or been convicted of a violation of an existing or	1293
former law of this state, any other state, or the United States	1294
that substantially is equivalent to a criminal offense described	1295
in that division. However, if the applicant has been convicted of	1296
or pleaded guilty to any such an offense other than theft, the	1297
superintendent shall not consider the offense if the applicant has	1298
proven to the superintendent, by a preponderance of the evidence,	1299
that the applicant's activities and employment record since the	1300
conviction show that the applicant is honest, truthful, and of	1301
good reputation, and there is no basis in fact for believing that	1302
the applicant will commit such an offense again.	1303

(4) The applicant has not been subject to an adverse judgment	1304
for conversion, embezzlement, misappropriation of funds, fraud,	1305
misfeasance or malfeasance, or breach of fiduciary duty, or, if	1306
the applicant has been subject to such a judgment, the applicant	1307
has proven to the superintendent, by a preponderance of the	1308
evidence, that the applicant's activities and employment record	1309
since the judgment show that the applicant is honest, truthful,	1310
and of good reputation, and there is no basis in fact for	1311
believing that the applicant will be subject to such a judgment	1312
again.	1313

(5) The applicant successfully completed the examination	1314
required under division (B) of section 1322.051 of the Revised	1315
Code and the education requirements set forth in division (A)(4)	1316
of section 1322.031 of the Revised Code.	1317

(6) The applicant's character and general fitness command the	1318
confidence of the public and warrant the belief that the business	1319
will be operated honestly and fairly in compliance with the	1320
purposes of sections 1322.01 to 1322.12 of the Revised Code.	1321

(B) The license issued under division (A) of this section may	1322
be renewed annually on or before the thirtieth day of April if the	1323
superintendent finds that all of the following conditions are met:	1324

(1) The renewal application is accompanied by a nonrefundable	1325
renewal fee of one hundred dollars. If a check or other draft	1326
instrument is returned to the superintendent for insufficient	1327
funds, the superintendent shall notify the licensee by certified	1328
mail, return receipt requested, that the license renewed in	1329
reliance on the check or other draft instrument will be canceled	1330
unless the licensee, within thirty days after receipt of the	1331
notice, submits the renewal fee and a one-hundred-dollar penalty	1332
to the superintendent. If the licensee does not submit the renewal	1333
fee and penalty within that time period, or if any check or other	1334
draft instrument used to pay the fee or penalty is returned to the	1335
superintendent for insufficient funds, the license shall be	1336
canceled immediately without a hearing, and the licensee shall	1337
cease activity as a loan officer.	1338

(2) On and after January 1, 2003, the loan officer has	1339
completed, during the immediately preceding calendar year, at	1340
least six hours of continuing education as required under section	1341
1322.052 of the Revised Code.	1342

(3) The applicant meets the conditions set forth in divisions	1343
(A)(2) to (5)(6) of this section.	1344

(4) The applicant's license is not subject to an order of	1345
suspension or revocation by the superintendent.	1346

(C)(1) Subject to division (C)(2) of this section, if a	1347
license renewal application or renewal fee is received by the	1348
superintendent after the thirtieth day of April, the license shall	1349
not be considered renewed, and the applicant shall cease activity	1350
as a loan officer.	1351

(2) Division (C)(1) of this section shall not apply if the	1352
applicant, no later than the thirty-first day of May, submits the	1353
renewal application and fee and a one-hundred-dollar penalty to	1354
the superintendent.	1355

Sec. 1322.051.  (A) Each person designated under division	1356
(A)(3) of section 1322.03 of the Revised Code to act as operations	1357
manager for a mortgage broker business shall submit to an	1358
examination approved by the superintendent of financial	1359
institutions.	1360

(B) Each licensee, within ninety days after the original	1361
issuance of theapplicant for a loan officer license, shall	1362
successfully completesubmit to an examination approved by the	1363
superintendent. Failure to comply with this division results in	1364
the termination of the license by operation of law.	1365

Sec. 1322.06.  (A) As often as the superintendent of	1366
financial institutions considers it necessary, the superintendent	1367
may examine the registrant's records pertaining to business	1368
transacted pursuant to sections 1322.01 to 1322.12 of the Revised	1369
Code.	1370

(B) A registrant shall maintain records pertaining to	1371
business transacted pursuant to sections 1322.01 to 1322.12 of the	1372
Revised Code, including copies of all mortgage loan origination	1373
disclosure statements prepared in accordance with section 1322.062	1374
of the Revised Code, for four years. No registrant shall fail to	1375
comply with this division.	1376

Sec. 1322.061. (A)(1) The following information is privileged	1377
and confidential:	1378

(a) Examination information, and any information leading to	1379
or arising from an examination;	1380

(b) Investigation information, and any information arising	1381
from or leading to an investigation.	1382

(2) The information described in division (A)(1) of this	1383
section shall remain privileged and confidential for all purposes	1384
except when it is necessary for the superintendent of financial	1385
institutions to take official action regarding the affairs of a	1386
registrant or licensee, or in connection with criminal or civil	1387
proceedings to be initiated by a prosecuting attorney or the	1388
attorney general. This information may also be introduced into	1389
evidence or disclosed when and in the manner authorized by section	1390
1181.25 of the Revised Code.	1391

(B) All application information, except social security	1392
numbers, employer identification numbers, financial account	1393
numbers, the identity of the institution where financial accounts	1394
are maintained, personal financial information, fingerprint cards	1395
and the information contained on such cards, and criminal	1396
background information, is a public record as defined in section	1397
149.43 of the Revised Code.	1398

(C) This section does not prevent the division of financial	1399
institutions from releasing to or exchanging with other financial	1400
institution regulatory authorities information relating to	1401
registrants and licensees. For this purpose, a "financial	1402
institution regulatory authority" includes a regulator of a	1403
business activity in which a registrant or licensee is engaged, or	1404
has applied to engage in, to the extent that the regulator has	1405
jurisdiction over a registrant or licensee engaged in that	1406
business activity. A registrant or licensee is engaged in a	1407
business activity, and a regulator of that business activity has	1408
jurisdiction over the registrant or licensee, whether the	1409
registrant or licensee conducts the activity directly or a	1410
subsidiary or affiliate of the registrant or licensee conducts the	1411
activity.	1412

(D) This section does not prevent the division from releasing	1413
information relating to registrants and licensees to the attorney	1414
general for purposes relating to the attorney general's	1415
administration of Chapter 1345. of the Revised Code, to the	1416
superintendent of real estate and professional licensing for	1417
purposes relating to the administration of Chapters 4735. and	1418
4763. of the Revised Code, to the superintendent of insurance for	1419
purposes relating to the administration of Chapter 3953. of the	1420
Revised Code, or to local law enforcement agencies and local	1421
prosecutors. Information the division releases to the attorney	1422
general pursuant to this section remains privileged and	1423
confidential, and the attorney general may not disclose the	1424
information or introduce the information into evidence unless the	1425
superintendent authorizes the disclosure or introduction into	1426
evidence in connection with the attorney general's administration	1427
of Chapter 1345. of the Revised Code.	1428

Sec. 1322.062. (A)(1) Within three business days after taking	1429
an application for a loan from a buyer, a registrant shall deliver	1430
to the buyer a mortgage loan origination disclosure statement that	1431
contains all of the following:	1432

(a) The name, address, and telephone number of the buyer;

1433

(b) The typewritten name of the loan officer and the number	1434
designated on the loan officer's license;	1435

(c) The street address, telephone number, and facsimile	1436
number of the registrant and the number designated on the	1437
registrant's certificate of registration;	1438

(d) The signature of the loan officer or registrant;

1439

(e) A statement indicating whether the buyer is to pay for	1440
the services of a bona fide third party if the registrant is	1441
unable to assist the buyer in obtaining a mortgage;	1442

(f) A statement that describes the method by which the fee to	1443
be paid by the buyer to the registrant will be calculated and a	1444
good faith estimate of the total amount of that fee;	1445

(g) A statement that the lender may pay compensation to the	1446
registrant;	1447

(h) A description of all the services the registrant has	1448
agreed to perform for the buyer;	1449

(i) A statement that the buyer has not entered into an	1450
exclusive agreement for brokerage services;	1451

(j) If the loan applied for will exceed ninety per cent of	1452
the value of the real property, a statement, printed in boldface	1453
type of the minimum size of sixteen points, as follows: "You are	1454
applying for a loan that is more than 90% of your home's value. It	1455
will be hard for you to refinance this loan. If you sell your	1456
home, you might owe more money on the loan than you get from the	1457
sale."	1458

(k) To acknowledge receipt, the signature of the buyer.

1459

(2) If the loan is a covered loan as defined in section	1460
1349.25 of the Revised Code, the registrant shall also deliver a	1461
copy of the mortgage loan origination disclosure statement to the	1462
lender.	1463

(B) If there is any change in the information provided under	1464
division (A)(1)(f) or (h) of this section, the registrant shall	1465
provide the buyer with the revised mortgage loan origination	1466
disclosure statement and a written explanation of why the change	1467
occurred no later than three daystwenty-four hours after the	1468
change occurs, or the datetwenty-four hours before the loan is	1469
closed, whichever is earlier.	1470

(C) A registrant shall deliver to the buyer, immediately upon	1471
receipt, a copy of any nonproprietary or publicly available credit	1472
score and report obtained regarding the buyer by the registrant	1473
for the purpose of the mortgage loan application;	1474

If the loan officer or registrant uses an automated valuation	1475
model to determine an appraisal report, the registrant also shall	1476
include a copy of the automated valuation model report.	1477

(D) A registrant shall deliver to the buyer, at the same time	1478
that the registrant delivers the mortgage loan origination	1479
disclosure statement pursuant to division (A) of this section, a	1480
good faith estimate statement that discloses the amount of or	1481
range of charges for the specific settlement services the buyer is	1482
likely to incur in connection with the mortgage loan. The good	1483
faith estimate statement shall meet the requirements of the "Real	1484
Estate Settlement Procedures Act," 88 Stat. 1724 (1974). 12	1485
U.S.C.A. 2601 et seq., and shall include the following underlined	1486
notice in at least ten point type, new roman style:	1487

"Nature of Relationship: In connection with this residential	1488
mortgage loan, you, the borrower(s), has/have requested assistance	1489
from ............ (company name) in arranging credit. We do not	1490
distribute all products in the marketplace and cannot guarantee	1491
the lowest rate.	1492

Termination: This agreement will continue until one of the	1493
following events occur:	1494

1. The loan closes.

1495

2. The request is denied.

1496

3. The borrower withdraws the request.

1497

4. The borrower decides to use another source for	1498
origination.	1499

5. The borrower is provided a revised good faith estimate	1500
statement.	1501

Notice to borrower(s): Signing this document does not obligate you	1502
to obtain a mortgage loan through this mortgage originator nor is	1503
this a loan commitment or an approval; nor is your interest rate	1504
locked at this time unless otherwise disclosed on a separate Rate	1505
Lock Disclosure Form. Do not sign this document until you have	1506
read and understood the information in it. You will receive a	1507
re-disclosure of any increase in interest rate or if the total sum	1508
of disclosed settlement/closing costs increases by 10% or more of	1509
the original estimate. Should any such increase occur; mandatory	1510
re-disclosure must occur prior to the settlement or close of	1511
escrow."	1512

(E) No registrant shall fail to comply with this section.

1513

Sec. 1322.063. (A) In addition to the disclosures required	1514
under section 1322.062 of the Revised Code, a registrant shall,	1515
not later than twenty-four hours before a loan is closed, deliver	1516
to the buyer a written disclosure that includes the following:	1517

(1) A statement indicating whether property taxes will be	1518
escrowed;	1519

(2) A description of what is covered by the regular monthly	1520
payment, including principal, interest, taxes, and insurance, as	1521
applicable.	1522

(B) No registrant shall fail to comply with this section.

1523

Sec. 1322.064. (A) No registrant or licensee shall fail to do	1524
either of the following:	1525

(1) Timely inform the buyer of any material change in the	1526
terms of the loan. For purposes of division (A)(1) of this	1527
section, "material change" means the following:	1528

(a) A change in the type of loan being offered, such as a	1529
fixed or variable rate loan or a loan with a balloon payment;	1530

(b) A change in the term of the loan, as reflected in the	1531
number of monthly payments due before a final payment is scheduled	1532
to be made;	1533

(c) A change in the interest rate of more than 0.15%;

1534

(d) A change in the regular monthly payment of principal and	1535
interest of more than five per cent;	1536

(e) A change regarding the escrow of taxes or insurance;

1537

(f) A change regarding the payment of private mortgage	1538
insurance.	1539

(2) Timely inform the buyer if any fees payable by the buyer	1540
to the registrant or lender increase by more than ten per cent or	1541
one hundred dollars, whichever is greater.	1542

(B) The disclosures required by this section shall be deemed	1543
timely if the registrant provides the buyer with the revised	1544
information not later than twenty-four hours after the change	1545
occurs, or twenty-four hours before the loan is closed, whichever	1546
is earlier.	1547

(C) If an increase in the total amount of the fee to be paid	1548
by the buyer to the registrant is not disclosed in accordance with	1549
division (A)(2) of this section, the registrant shall refund to	1550
the buyer the amount by which the fee was increased. If the fee is	1551
financed into the loan, the registrant shall also refund to the	1552
buyer the interest that would accrue over the term of the loan on	1553
that excess amount.	1554

Sec. 1322.07.  No mortgage broker, registrant, licensee, or	1555
applicant for a certificate of registration or license under	1556
sections 1322.01 to 1322.12 of the Revised Code shall do any of	1557
the following:	1558

(A) Obtain a certificate of registration or license through	1559
any false or fraudulent representation of a material fact or any	1560
omission of a material fact required by state law, or make any	1561
substantial misrepresentation in any registration or license	1562
application;	1563

(B) Make false or misleading statements of a material fact,	1564
omissions of statements required by state law, or false promises	1565
regarding a material fact, through advertising or other means, or	1566
engage in a continued course of misrepresentations;	1567

(C) Engage in conduct that constitutes improper, fraudulent,	1568
or dishonest dealings;	1569

(D) Fail to notify the division of financial institutions	1570
within thirty days after the registrant, licensee, or applicant,	1571
in a court of competent jurisdiction of this state or any other	1572
state, is convicted of or pleads guilty to any criminal offense	1573
involving theft, receiving stolen property, embezzlement, forgery,	1574
fraud, passing bad checks, money laundering, or drug trafficking,	1575
or any criminal offense involving money or securities;	1576

(E) Knowingly make, propose, or solicit fraudulent, false, or	1577
misleading statements on any mortgage document or on any document	1578
related to a mortgage, including a mortgage application, real	1579
estate appraisal, or real estate settlement or closing document.	1580
For purposes of this division, "fraudulent, false, or misleading	1581
statements" does not include mathematical errors, inadvertent	1582
transposition of numbers, typographical errors, or any other bona	1583
fide error.	1584

(F) Knowingly instruct, solicit, propose, or otherwise cause	1585
a buyer to sign in blank a mortgage related document;	1586

(G) Knowingly compensate, instruct, induce, coerce, or	1587
intimidate, or attempt to compensate, instruct, induce, coerce, or	1588
intimidate, a person licensed or certified under Chapter 4763. of	1589
the Revised Code for the purpose of corrupting or improperly	1590
influencing the independent judgment of the person with respect to	1591
the value of the dwelling offered as security for repayment of a	1592
mortgage loan;	1593

(H) Promise to refinance a loan in the future at a lower	1594
interest rate or with more favorable terms, unless the promise is	1595
set forth in writing and is initialed by the buyer.	1596

Sec. 1322.074. (A) As used in this section and section	1597
1322.075 of the Revised Code:	1598

(1) "Appraisal company" means a sole proprietorship,	1599
partnership, corporation, limited liability company, or any other	1600
business entity or association, that employs or retains the	1601
services of a person licensed or certified under Chapter 4763. of	1602
the Revised Code for purposes of performing residential real	1603
estate appraisals for mortgage loans.	1604

(2) "Immediate family" means a spouse residing in the	1605
person's household and any dependent child.	1606

(B) Except as otherwise provided in division (C) of this	1607
section, no registrant, or any member of the registrant's	1608
immediate family, shall own or control a majority interest in an	1609
appraisal company.	1610

(C) Division (B) of this section shall not apply to any	1611
registrant, or any member of the registrant's immediate family,	1612
who, on the effective date of this section, owns or controls a	1613
majority interest in an appraisal company. However, such ownership	1614
or control is subject to the following conditions:	1615

(1) The registrant and members of the registrant's immediate	1616
family shall not increase their interest in the company.	1617

(2) The interest is not transferable to a member of the	1618
registrant's immediate family.	1619

(3) If the registrant is convicted of or pleads guilty to a	1620
criminal violation of sections 1322.01 to 1322.12 of the Revised	1621
Code or any criminal offense described in division (A)(1)(b) of	1622
section 1322.10 of the Revised Code, the superintendent of	1623
financial institutions may, as an alternative to any of the	1624
actions authorized under section 1322.10 of the Revised Code,	1625
order the registrant or members of the registrant's immediate	1626
family to divest their interest in the company.	1627

Sec. 1322.075.  (A) No registrant or licensee or person	1628
required to be registered or licensed under this chapter shall	1629
refer a buyer to any settlement service provider, including any	1630
title insurance company, without providing the buyer with written	1631
notice disclosing all of the following:	1632

(1) Any business relationship that exists between the	1633
registrant, licensee, or person required to be registered or	1634
licensed under this chapter, and the provider to which the buyer	1635
is being referred, and any financial benefit that the registrant,	1636
licensee, or person may be provided because of the relationship;	1637

(2) The percentage of ownership interest the registrant,	1638
licensee, or person required to be registered or licensed under	1639
this chapter has in the provider to which the buyer is being	1640
referred;	1641

(3) The estimated charge or range of charges for the	1642
settlement service listed;	1643

(4) The following statement, printed in boldface type of the	1644
minimum size of sixteen points: "There are frequently other	1645
settlement service providers available with similar services. You	1646
are free to shop around to determine that you are receiving the	1647
best services and the best rate for these services."	1648

(B) No registrant or licensee shall refer a buyer to an	1649
appraisal company, if the registrant or licensee, or a member of	1650
the registrant's or licensee's immediate family, has either of the	1651
following financial relationships with the appraisal company:	1652

(1) An ownership or investment interest in the company,	1653
whether through debt, equity, or other means;	1654

(2) Any compensation arrangement involving any remuneration,	1655
directly or indirectly, overtly or covertly, in cash or in kind.	1656

(C) No registrant or licensee shall knowingly enter into an	1657
arrangement or scheme, including a cross-referral arrangement,	1658
that has a principal purpose of assuring referrals by a registrant	1659
or licensee to a particular appraisal company that would violate	1660
division (B) of this section.	1661

(D) The registrant, licensee, or person required to be	1662
registered or licensed under this chapter shall retain proof that	1663
the buyer received the written disclosures required by division	1664
(A) of this section for four years.	1665

Sec. 1322.081. (A) A registrant, licensee, and any person	1666
required to be registered or licensed under this chapter, in	1667
addition to duties imposed by other statutes or common law, shall	1668
do all of the following:	1669

(1) Safeguard and account for any money handled for the	1670
borrower;	1671

(2) Follow reasonable and lawful instructions from the	1672
borrower;	1673

(3) Act with reasonable skill, care, and diligence;

1674

(4) Act in good faith and with fair dealing in any	1675
transaction, practice, or course of business in connection with	1676
the brokering or originating of any mortgage loan;	1677

(5) Make reasonable efforts to secure a mortgage loan, from	1678
lenders with whom the registrant, licensee, or person regularly	1679
does business, with rates, charges, and repayment terms that are	1680
advantageous to the borrower.	1681

(B) Division (A) of this section shall not apply to wholesale	1682
lenders. However, wholesale lenders are subject to all other	1683
requirements applicable to mortgage brokers and nonbank mortgage	1684
lenders. For purposes of this division, "wholesale lender" means a	1685
company that has been issued a mortgage broker certificate of	1686
registration and that enters into transactions with buyers	1687
exclusively through unaffiliated third-party mortgage brokers.	1688

(C) The duties and standards of care created in this section	1689
cannot be waived or modified.	1690

(D)(1) A buyer injured by a violation of this section may	1691
bring an action for recovery of damages.	1692

(2) Damages awarded under division (D)(1) of this section	1693
shall not be less than all compensation paid directly or	1694
indirectly to a mortgage broker from any source, plus reasonable	1695
attorney's fees and court costs.	1696

(3) The buyer may be awarded punitive damages.

1697

(E) A buyer injured by a violation of this section is	1698
precluded from recovering any damages, plus reasonable attorney's	1699
fees and costs, if the buyer has also recovered any damages in a	1700
cause of action initiated under section 1322.11 of the Revised	1701
Code and the recovery of damages for a violation of this section	1702
is based on the same acts or circumstances as the basis for	1703
recovery of damages in section 1322.11 of the Revised Code.	1704

Sec. 1322.10.  (A) After notice and opportunity for a hearing	1705
conducted in accordance with Chapter 119. of the Revised Code, the	1706
superintendent of financial institutions may do the following:	1707

(1) Suspend, revoke, or refuse to issue or renew a	1708
certificate of registration or license if the superintendent finds	1709
either of the following:	1710

(a) A violation of or failure to comply with any provision of	1711
sections 1322.01 to 1322.12 of the Revised Code or the rules	1712
adopted under those sections or any other law applicable to the	1713
business conducted under a certificate of registration;	1714

(b) A conviction of or guilty plea to any criminal offense	1715
involving theft, receiving stolen property, embezzlement, forgery,	1716
fraud, passing bad checks, money laundering, or drug trafficking,	1717
or any criminal offense involving money or securities.	1718

(2) Impose a fine of not more than one thousand dollars, for	1719
each day a violation of a law or rule is committed, repeated, or	1720
continued. If the registrant or licensee engages in a pattern of	1721
repeated violations of a law or rule, the superintendent may	1722
impose a fine of not more than two thousand dollars for each day	1723
the violation is committed, repeated, or continued. All fines	1724
collected pursuant to this division shall be paid to the treasurer	1725
of state to the credit of the consumer finance fund created in	1726
section 1321.21 of the Revised Code. In determining the amount of	1727
a fine to be imposed pursuant to this division, the superintendent	1728
shall consider all of the following:	1729

(a) The seriousness of the violation;

1730

(b) The registrant's or licensee's good faith efforts to	1731
prevent the violation;	1732

(c) The registrant's or licensee's history regarding	1733
violations and compliance with division orders;	1734

(d) The registrant's or licensee's financial resources;

1735

(e) Any other matters the superintendent considers	1736
appropriate in enforcing sections 1322.01 to 1322.12 of the	1737
Revised Code.	1738

(B) The superintendent may investigate alleged violations of	1739
sections 1322.01 to 1322.12 of the Revised Code or the rules	1740
adopted under those sections or complaints concerning any such	1741
violation. The superintendent may make application to the court	1742
of common pleas for an order enjoining any such violation, and,	1743
upon a showing by the superintendent that a person has committed	1744
or is about to commit such a violation, the court shall grant an	1745
injunction, restraining order, or other appropriate relief.	1746

(C) In conducting any investigation pursuant to this section,	1747
the superintendent may compel, by subpoena, witnesses to testify	1748
in relation to any matter over which the superintendent has	1749
jurisdiction and may require the production of any book, record,	1750
or other document pertaining to that matter. If a person fails to	1751
file any statement or report, obey any subpoena, give testimony,	1752
produce any book, record, or other document as required by a	1753
subpoena, or permit photocopying of any book, record, or other	1754
document subpoenaed, the court of common pleas of any county in	1755
this state, upon application made to it by the superintendent,	1756
shall compel obedience by attachment proceedings for contempt, as	1757
in the case of disobedience of the requirements of a subpoena	1758
issued from the court or a refusal to testify therein.	1759

(D) If the superintendent determines that a person is engaged	1760
in or is believed to be engaged in activities that may constitute	1761
a violation of sections 1322.01 to 1322.12 of the Revised Code,	1762
the superintendent, after notice and a hearing conducted in	1763
accordance with Chapter 119. of the Revised Code, may issue a	1764
cease and desist order. Such an order shall be enforceable in the	1765
court of common pleas.	1766

(E) If the superintendent revokes the certificate of	1767
registration or license of a registrant or licensee who is	1768
convicted of or pleads guilty to a criminal violation of any	1769
provision of sections 1322.01 to 1322.12 of the Revised Code or	1770
any criminal offense described in division (A)(1)(b) of this	1771
section, the revocation shall be permanent.	1772

(F)(1) To protect the public interest, the superintendent	1773
may, without a prior hearing, do any of the following:	1774

(a) Suspend the certificate of registration or license of a	1775
registrant or licensee who is convicted of or pleads guilty to a	1776
criminal violation of any provision of sections 1322.01 to 1322.12	1777
of the Revised Code or any criminal offense described in division	1778
(A)(1)(b) of this section;	1779

(b) Suspend the certificate of registration of a registrant	1780
who violates division (F) of section 1322.05 of the Revised Code;	1781

(c) Suspend the certificate of registration or license of a	1782
registrant or licensee who fails to comply with a request made by	1783
the superintendent under section 1322.03 or 1322.031 of the	1784
Revised Code to inspect qualifying education transcripts located	1785
at the registrant's or licensee's place of business.	1786

(2) The superintendent shall, without a prior hearing,	1787
suspend the certificate of registration of a registrant whose	1788
operations manager has failed to fulfill the continuing education	1789
requirements of section 1322.052 of the Revised Code and suspend	1790
the license of a licensee who has failed to fulfill those	1791
continuing education requirements. The suspension shall continue	1792
until such time as the required continuing education is completed	1793
and a fine of five hundred dollars is paid to the treasurer of	1794
state to the credit of the consumer finance fund.	1795

(3) The superintendent may, in accordance with Chapter 119.	1796
of the Revised Code, subsequently revoke any registration or	1797
license suspended under division (F)(1) of this section.	1798

(4) The superintendent shall, in accordance with Chapter 119.	1799
of the Revised Code, adopt rules establishing the maximum amount	1800
of time a suspension under division (F) of this section may	1801
continue before a hearing is conducted.	1802

Sec. 1322.11.  (A)(1) A buyer injured by a violation of	1803
section 1322.02, 1322.062, 1322.063, 1322.064, 1322.07, 1322.071,	1804
1322.08, or 1322.09 of the Revised Code may bring an action for	1805
recovery of damages.	1806

(2) Damages awarded under division (A)(1) of this section	1807
shall not be less than the amount paid by the buyer to the	1808
mortgage brokerall compensation paid directly and indirectly to a	1809
mortgage broker from any source, plus reasonable attorney's fees	1810
and court costs.	1811

(3) The buyer may be awarded punitive damages.

1812

(B)(1) The superintendent of financial institutions, the	1813
attorney general, or a buyer may directly bring an action to	1814
enjoin a violation of sections 1322.01 to 1322.12 of the Revised	1815
Code. The attorney general may directly bring an action to enjoin	1816
a violation of sections 1322.01 to 1322.12 of the Revised Code	1817
with the same rights, privileges, and powers as those described in	1818
section 1345.06 of the Revised Code. The prosecuting attorney of	1819
the county in which the action may be brought may bring an action	1820
to enjoin a violation of sections 1322.01 to 1322.12 of the	1821
Revised Code only if the prosecuting attorney first presents any	1822
evidence of the violation to the attorney general and, within a	1823
reasonable period of time, the attorney general has not agreed to	1824
bring the action.	1825

(2) The superintendent may initiate criminal proceedings	1826
under sections 1322.01 to 1322.12 of the Revised Code by	1827
presenting any evidence of criminal violation to the prosecuting	1828
attorney of the county in which the offense may be prosecuted. If	1829
the prosecuting attorney does not prosecute the violations, or at	1830
the request of the prosecuting attorney, the superintendent shall	1831
present any evidence of criminal violations to the attorney	1832
general, who may proceed in the prosecution with all the rights,	1833
privileges, and powers conferred by law on prosecuting attorneys,	1834
including the power to appear before grand juries and to	1835
interrogate witnesses before such grand juries. These powers of	1836
the attorney general shall be in addition to any other applicable	1837
powers of the attorney general.	1838

(3) The prosecuting attorney of the county in which an	1839
alleged offense may be prosecuted may initiate criminal	1840
proceedings under sections 1322.01 to 1322.12 of the Revised Code.	1841

(4) In order to initiate criminal proceedings under sections	1842
1322.01 to 1322.12 of the Revised Code, the attorney general shall	1843
first present any evidence of criminal violations to the	1844
prosecuting attorney of the county in which the alleged offense	1845
may be prosecuted. If, within a reasonable period of time, the	1846
prosecuting attorney has not agreed to prosecute the violations,	1847
the attorney general may proceed in the prosecution with all the	1848
rights, privileges, and powers described in division (B)(2) of	1849
this section.	1850

(5) When a judgment under this section becomes final, the	1851
clerk of court shall mail a copy of the judgment, including	1852
supporting opinions, to the superintendent.	1853

(C) The remedies provided by this section are in addition to	1854
any other remedy provided by law.	1855

(D) In any proceeding or action brought under sections	1856
1322.01 to 1322.12 of the Revised Code, the burden of proving an	1857
exemption under those sections is on the person claiming the	1858
benefit of the exemption.	1859

(E) No person shall be deemed to violate sections 1322.01 to	1860
1322.12 of the Revised Code with respect to any act taken or	1861
omission made in reliance on a written notice, written	1862
interpretation, or written report from the superintendent, unless	1863
there is a subsequent amendment to those sections, or rules	1864
promulgated thereunder, that affects the superintendent's notice,	1865
interpretation, or report.	1866

(F) Upon disbursement of mortgage loan proceeds to or on	1867
behalf of the buyer, the registrant that assisted the buyer to	1868
obtain the mortgage loan is deemed to have completed the	1869
performance of the registrant's services for the buyer and owes no	1870
additional duties or obligations to the buyer with respect to the	1871
mortgage loan. However, nothing in this division shall be	1872
construed to limit or preclude the civil or criminal liability of	1873
a registrant for failing to comply with sections 1322.01 to	1874
1322.12 of the Revised Code or any rule adopted under those	1875
sections, for failing to comply with any provision of or duty	1876
arising under an agreement with a buyer or lender under sections	1877
1322.01 to 1322.12 of the Revised Code, or for violating any other	1878
provision of state or federal law.	1879

(G) A buyer injured by a violation of any of the sections	1880
specified in division (A)(1) of this section is precluded from	1881
recovering any damages, plus reasonable attorney's fees and costs,	1882
if the buyer has also recovered any damages in a cause of action	1883
initiated under section 1322.081 of the Revised Code and the	1884
recovery of damages for a violation of any of the sections	1885
specified in division (A)(1) of this section is based on the same	1886
acts or circumstances as the basis for recovery of damages in	1887
section 1322.081 of the Revised Code.	1888

Sec. 1322.99. (A) Whoever violates division (A)(1) or (2) of	1889
section 1322.02, division (E) or, (F), or (G) of section 1322.07,	1890
division (B)(1) or (2) of section 1322.071, or section 1322.08 of	1891
the Revised Code is guilty of a felony of the fifth degree.	1892

(B) Whoever violates division (B)(3) of section 1322.071 of	1893
the Revised Code is guilty of a felony of the fourth degree.	1894

(C) Whoever violates division (B) of section 1322.02 of the	1895
Revised Code is guilty of a misdemeanor of the first degree.	1896

Sec. 1343.011.  (A) As used in this section:

1897

(1) "Discount points" means any charges, whether or not	1898
actually denominated as "discount points," that are paid by the	1899
seller or the buyer of residential real property to a residential	1900
mortgage lender or that are deducted and retained by a residential	1901
mortgage lender from the proceeds of the residential mortgage.	1902
"Discount points" does not include the costs associated with	1903
settlement services as defined in the "Real Estate Settlement	1904
Procedures Act of 1974," 88 Stat. 1724, 12 U.S.C. 2601, amendments	1905
thereto, reenactments thereof, enactments parallel thereto, or in	1906
substitution therefor, or regulations issued thereunder.	1907

(2) "Residential mortgage" means an obligation to pay a sum	1908
of money evidenced by a note and secured by a lien upon real	1909
property located within this state containing two or fewer	1910
residential units or on which two or fewer residential units are	1911
to be constructed and includes such an obligation on a residential	1912
condominium or cooperative unit.	1913

(3) "Residential mortgage lender" means any person, bank, or	1914
savings and loan association that lends money or extends or grants	1915
credit and obtains a residential mortgage to assure payment of the	1916
debt. The term also includes the holder at any time of a	1917
residential mortgage obligation.	1918

(B) Except residential mortgage loans described in division	1919
(B)(3) of section 1343.01 of the Revised Code, no residential	1920
mortgage lender shall receive either directly or indirectly from a	1921
seller or buyer of real estate any discount points in excess of	1922
two per cent of the original principal amount of the residential	1923
mortgage. This division is not a limitation on discount points or	1924
other charges for purposes of section 501(b)(4) of the "Depository	1925
Institutions Deregulation and Monetary Control Act of 1980," 94	1926
Stat. 161, 12 U.S.C.A. 1735f-7a.	1927

(C) Residential(1) Except as provided in division (C)(2) of	1928
this section, residential mortgage obligations contracted for on	1929
or after November 4, 1975, may be prepaid or refinanced without	1930
penalty at any time after five years from the execution date of	1931
the mortgage. Prior to such time a prepayment or refinancing	1932
penalty may be provided not in excess of one per cent of the	1933
original principal amount of the residential mortgage.	1934

(2)(a) No penalty may be charged for the prepayment or	1935
refinancing of a residential mortgage obligation of less than	1936
seventy-five thousand dollars that is made or arranged by a	1937
mortgage broker, loan officer, or nonbank mortgage lender, as	1938
those terms are defined in section 1345.01 of the Revised Code,	1939
and that is secured by a mortgage on a borrower's real estate that	1940
is a first lien on the real estate.	1941

(b) The amount specified in division (C)(2)(a) of this	1942
section shall be adjusted annually on the first day of January by	1943
the annual percentage change in the consumer price index for all	1944
urban consumers, midwest region, all items, as determined by the	1945
bureau of labor statistics of the United States department of	1946
labor or, if that index is no longer published, a generally	1947
available comparable index, as reported on the first day of June	1948
of the year preceding the adjustment. The department of commerce	1949
shall publish the adjusted amounts on its official web site.	1950

Sec. 1345.01.  As used in sections 1345.01 to 1345.13 of the	1951
Revised Code:	1952

(A) "Consumer transaction" means a sale, lease, assignment,	1953
award by chance, or other transfer of an item of goods, a service,	1954
a franchise, or an intangible, to an individual for purposes that	1955
are primarily personal, family, or household, or solicitation to	1956
supply any of these things. "Consumer transaction" does not	1957
include transactions between persons, defined in sections 4905.03	1958
and 5725.01 of the Revised Code, and their customers, except for	1959
transactions in connection with residential mortgages between loan	1960
officers, mortgage brokers, or nonbank mortgage lenders and their	1961
customers; transactions between certified public accountants or	1962
public accountants and their clients; transactions between	1963
attorneys, physicians, or dentists and their clients or patients;	1964
and transactions between veterinarians and their patients that	1965
pertain to medical treatment but not ancillary services.	1966

(B) "Person" includes an individual, corporation, government,	1967
governmental subdivision or agency, business trust, estate, trust,	1968
partnership, association, cooperative, or other legal entity.	1969

(C) "Supplier" means a seller, lessor, assignor, franchisor,	1970
or other person engaged in the business of effecting or soliciting	1971
consumer transactions, whether or not the person deals directly	1972
with the consumer. If the consumer transaction is in connection	1973
with a residential mortgage, "supplier" does not include an	1974
assignee or purchaser of the loan for value, except as otherwise	1975
provided in section 1345.091 of the Revised Code. For purposes of	1976
this division, in a consumer transaction in connection with a	1977
residential mortgage, "seller" means a loan officer, mortgage	1978
broker, or nonbank mortgage lender.	1979

(D) "Consumer" means a person who engages in a consumer	1980
transaction with a supplier.	1981

(E) "Knowledge" means actual awareness, but such actual	1982
awareness may be inferred where objective manifestations indicate	1983
that the individual involved acted with such awareness.	1984

(F) "Natural gas service" means the sale of natural gas,	1985
exclusive of any distribution or ancillary service.	1986

(G) "Public telecommunications service" means the	1987
transmission by electromagnetic or other means, other than by a	1988
telephone company as defined in section 4927.01 of the Revised	1989
Code, of signs, signals, writings, images, sounds, messages, or	1990
data originating in this state regardless of actual call routing.	1991
"Public telecommunications service" excludes a system, including	1992
its construction, maintenance, or operation, for the provision of	1993
telecommunications service, or any portion of such service, by any	1994
entity for the sole and exclusive use of that entity, its parent,	1995
a subsidiary, or an affiliated entity, and not for resale,	1996
directly or indirectly; the provision of terminal equipment used	1997
to originate telecommunications service; broadcast transmission by	1998
radio, television, or satellite broadcast stations regulated by	1999
the federal government; or cable television service.	2000

(H) "Loan officer" has the same meaning as in section 1322.01	2001
of the Revised Code, except that it does not include an employee	2002
of a bank, savings bank, savings and loan association, credit	2003
union, or credit union service organization organized under the	2004
laws of this state, another state, or the United States; an	2005
employee of a subsidiary of such a bank, savings bank, savings and	2006
loan association, or credit union; or an employee of an affiliate	2007
that (1) controls, is controlled by, or is under common control	2008
with, such a bank, savings bank, savings and loan association, or	2009
credit union and (2) is subject to examination, supervision, and	2010
regulation, including with respect to the affiliate's compliance	2011
with applicable consumer protection requirements, by the board of	2012
governors of the federal reserve system, the comptroller of the	2013
currency, the office of thrift supervision, the federal deposit	2014
insurance corporation, or the national credit union	2015
administration.	2016

(I) "Residential mortgage" or "mortgage" means an obligation	2017
to pay a sum of money evidenced by a note and secured by a lien	2018
upon real property located within this state containing two or	2019
fewer residential units or on which two or fewer residential units	2020
are to be constructed and includes such an obligation on a	2021
residential condominium or cooperative unit.	2022

(J) "Mortgage broker" has the same meaning as in section	2023
1322.01 of the Revised Code, except that it does not include a	2024
bank, savings bank, savings and loan association, credit union, or	2025
credit union service organization organized under the laws of this	2026
state, another state, or the United States; a subsidiary of such a	2027
bank, savings bank, savings and loan association, or credit union;	2028
an affiliate that (1) controls, is controlled by, or is under	2029
common control with, such a bank, savings bank, savings and loan	2030
association, or credit union and (2) is subject to examination,	2031
supervision, and regulation, including with respect to the	2032
affiliate's compliance with applicable consumer protection	2033
requirements, by the board of governors of the federal reserve	2034
system, the comptroller of the currency, the office of thrift	2035
supervision, the federal deposit insurance corporation, or the	2036
national credit union administration; or an employee of any such	2037
entity.	2038

(K) "Nonbank mortgage lender" means any person that engages	2039
in a consumer transaction in connection with a residential	2040
mortgage, except for a bank, savings bank, savings and loan	2041
association, credit union, or credit union service organization	2042
organized under the laws of this state, another state, or the	2043
United States; a subsidiary of such a bank, savings bank, savings	2044
and loan association, or credit union; or an affiliate that (1)	2045
controls, is controlled by, or is under common control with, such	2046
a bank, savings bank, savings and loan association, or credit	2047
union and (2) is subject to examination, supervision, and	2048
regulation, including with respect to the affiliate's compliance	2049
with applicable consumer protection requirements, by the board of	2050
governors of the federal reserve system, the comptroller of the	2051
currency, the office of thrift supervision, the federal deposit	2052
insurance corporation, or the national credit union	2053
administration.	2054

(L) For purposes of divisions (H), (J), and (K) of this	2055
section:	2056

(1) "Control" of another entity means ownership, control, or	2057
power to vote twenty-five per cent or more of the outstanding	2058
shares of any class of voting securities of the other entity,	2059
directly or indirectly or acting through one or more other	2060
persons.	2061

(2) "Credit union service organization" means a CUSO as	2062
defined in 12 C.F.R. 702.2.	2063

Sec. 1345.02.  (A) No supplier shall commit an unfair or	2064
deceptive act or practice in connection with a consumer	2065
transaction. Such an unfair or deceptive act or practice by a	2066
supplier violates this section whether it occurs before, during,	2067
or after the transaction.	2068

(B) Without limiting the scope of division (A) of this	2069
section, the act or practice of a supplier in representing any of	2070
the following is deceptive:	2071

(1) That the subject of a consumer transaction has	2072
sponsorship, approval, performance characteristics, accessories,	2073
uses, or benefits that it does not have;	2074

(2) That the subject of a consumer transaction is of a	2075
particular standard, quality, grade, style, prescription, or	2076
model, if it is not;	2077

(3) That the subject of a consumer transaction is new, or	2078
unused, if it is not;	2079

(4) That the subject of a consumer transaction is available	2080
to the consumer for a reason that does not exist;	2081

(5) That the subject of a consumer transaction has been	2082
supplied in accordance with a previous representation, if it has	2083
not, except that the act of a supplier in furnishing similar	2084
merchandise of equal or greater value as a good faith substitute	2085
does not violate this section;	2086

(6) That the subject of a consumer transaction will be	2087
supplied in greater quantity than the supplier intends;	2088

(7) That replacement or repair is needed, if it is not;

2089

(8) That a specific price advantage exists, if it does not;

2090

(9) That the supplier has a sponsorship, approval, or	2091
affiliation that the supplier does not have;	2092

(10) That a consumer transaction involves or does not involve	2093
a warranty, a disclaimer of warranties or other rights, remedies,	2094
or obligations if the representation is false.	2095

(C) In construing division (A) of this section, the court	2096
shall give due consideration and great weight to federal trade	2097
commission orders, trade regulation rules and guides, and the	2098
federal courts' interpretations of subsection 45 (a)(1) of the	2099
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.	2100
41, as amended.	2101

(D) No supplier shall offer to a consumer or represent that a	2102
consumer will receive a rebate, discount, or other benefit as an	2103
inducement for entering into a consumer transaction in return for	2104
giving the supplier the names of prospective consumers, or	2105
otherwise helping the supplier to enter into other consumer	2106
transactions, if earning the benefit is contingent upon an event	2107
occurring after the consumer enters into the transaction.	2108

(E)(1) No supplier, in connection with a consumer transaction	2109
involving natural gas service or public telecommunications service	2110
to a consumer in this state, shall request or submit, or cause to	2111
be requested or submitted, a change in the consumer's provider of	2112
natural gas service or public telecommunications service, without	2113
first obtaining, or causing to be obtained, the verified consent	2114
of the consumer. For the purpose of this division and with respect	2115
to public telecommunications service only, the procedures	2116
necessary for verifying the consent of a consumer shall be those	2117
prescribed by rule by the public utilities commission for public	2118
telecommunications service under division (D) of section 4905.72	2119
of the Revised Code. Also, for the purpose of this division, the	2120
act, omission, or failure of any officer, agent, or other	2121
individual, acting for or employed by another person, while acting	2122
within the scope of that authority or employment, is the act or	2123
failure of that other person.	2124

(2) Consistent with the exclusion, under 47 C.F.R.	2125
64.1100(a)(3), of commercial mobile radio service providers from	2126
the verification requirements adopted in 47 C.F.R. 64.1100,	2127
64.1150, 64.1160, 64.1170, 64.1180, and 64.1190 by the federal	2128
communications commission, division (E)(1) of this section does	2129
not apply to a provider of commercial mobile radio service insofar	2130
as such provider is engaged in the provision of commercial mobile	2131
radio service. However, when that exclusion no longer is in	2132
effect, division (E)(1) of this section shall apply to such a	2133
provider.	2134

(3) The attorney general may initiate criminal proceedings	2135
for a prosecution under division (C) of section 1345.99 of the	2136
Revised Code by presenting evidence of criminal violations to the	2137
prosecuting attorney of any county in which the offense may be	2138
prosecuted. If the prosecuting attorney does not prosecute the	2139
violations, or at the request of the prosecuting attorney, the	2140
attorney general may proceed in the prosecution with all the	2141
rights, privileges, and powers conferred by law on prosecuting	2142
attorneys, including the power to appear before grand juries and	2143
to interrogate witnesses before grand juries.	2144

(F) Concerning a consumer transaction in connection with a	2145
residential mortgage, and without limiting the scope of division	2146
(A) or (B) of this section, the act of a supplier in doing either	2147
of the following is deceptive:	2148

(1) Knowingly failing to provide disclosures required under	2149
state and federal law;	2150

(2) Knowingly providing a disclosure that includes a material	2151
misrepresentation.	2152

Sec. 1345.03.  (A) No supplier shall commit an unconscionable	2153
act or practice in connection with a consumer transaction. Such an	2154
unconscionable act or practice by a supplier violates this section	2155
whether it occurs before, during, or after the transaction.	2156

(B) In determining whether an act or practice is	2157
unconscionable, the following circumstances shall be taken into	2158
consideration:	2159

(1) Whether the supplier has knowingly taken advantage of the	2160
inability of the consumer reasonably to protect histhe consumer's	2161
interests because of histhe consumer's physical or mental	2162
infirmities, ignorance, illiteracy, or inability to understand the	2163
language of an agreement;	2164

(2) Whether the supplier knew at the time the consumer	2165
transaction was entered into that the price was substantially in	2166
excess of the price at which similar property or services were	2167
readily obtainable in similar consumer transactions by like	2168
consumers;	2169

(3) Whether the supplier knew at the time the consumer	2170
transaction was entered into of the inability of the consumer to	2171
receive a substantial benefit from the subject of the consumer	2172
transaction;	2173

(4) Whether the supplier knew at the time the consumer	2174
transaction was entered into that there was no reasonable	2175
probability of payment of the obligation in full by the consumer;	2176

(5) Whether the supplier required the consumer to enter into	2177
a consumer transaction on terms the supplier knew were	2178
substantially one-sided in favor of the supplier;	2179

(6) Whether the supplier knowingly made a misleading	2180
statement of opinion on which the consumer was likely to rely to	2181
histhe consumer's detriment;	2182

(7) Whether the supplier has, without justification, refused	2183
to make a refund in cash or by check for a returned item that was	2184
purchased with cash or by check, unless the supplier had	2185
conspicuously posted in the establishment at the time of the sale	2186
a sign stating the supplier's refund policy.	2187

(C) This section does not apply to a consumer transaction in	2188
connection with a residential mortgage.	2189

Sec. 1345.031.  (A) No supplier shall commit an	2190
unconscionable act or practice concerning a consumer transaction	2191
in connection with a residential mortgage. Such an unconscionable	2192
act or practice by a supplier violates this section whether it	2193
occurs before, during, or after the transaction.	2194

(B) For purposes of division (A) of this section, the	2195
following acts or practices of a supplier in connection with such	2196
a transaction are unconscionable:	2197

(1) Arranging for or making a mortgage loan that provides for	2198
an interest rate applicable after default that is higher than the	2199
interest rate that applies before default, excluding rates of	2200
interest for judgments applicable to the mortgage loan under	2201
section 1343.02 or 1343.03 of the Revised Code and also excluding	2202
interest rate changes in a variable rate loan transaction	2203
otherwise consistent with the provisions of the loan documents;	2204

(2) Engaging in a pattern or practice of providing consumer	2205
transactions to consumers based predominantly on the supplier's	2206
realization of the foreclosure or liquidation value of the	2207
consumer's collateral without regard to the consumer's ability to	2208
repay the loan in accordance with its terms, provided that the	2209
supplier may use any reasonable method to determine a borrower's	2210
ability to repay;	2211

(3) Making a consumer transaction that permits the creditor	2212
to demand repayment of the outstanding balance of a mortgage loan,	2213
in advance of the original maturity date unless the creditor does	2214
so in good faith due to the consumer's failure to abide by the	2215
material terms of the loan.	2216

(4) Knowingly replacing, refinancing, or consolidating a zero	2217
interest rate or other low-rate mortgage loan made by a	2218
governmental or nonprofit lender with another loan unless the	2219
current holder of the loan consents in writing to the refinancing	2220
and the consumer presents written certification from a third-	2221
party nonprofit organization counselor approved by the United	2222
States department of housing and urban development or the	2223
superintendent of financial institutions that the consumer	2224
received counseling on the advisability of the loan transaction.	2225
For purposes of division (B)(4) of this section, a "low-rate	2226
mortgage loan" means a mortgage loan that carries a current	2227
interest rate two percentage points or more below the current	2228
yield on United States treasury securities with a comparable	2229
maturity. If the loan's current interest rate is either a	2230
discounted introductory rate or a rate that automatically steps up	2231
over time, the fully indexed rate or the fully stepped-up rate, as	2232
applicable, shall be used, in lieu of the current rate, to	2233
determine whether a loan is a low-rate mortgage loan.	2234

(5) Instructing the consumer to ignore the supplier's written	2235
information regarding the interest rate and dollar value of points	2236
because they would be lower for the consumer's consumer	2237
transaction;	2238

(6) Recommending or encouraging a consumer to default on a	2239
mortgage or any consumer transaction or revolving credit loan	2240
agreement;	2241

(7) Charging a late fee more than once with respect to a	2242
single late payment. If a late payment fee is deducted from a	2243
payment made on the loan and such deduction causes a subsequent	2244
default on a subsequent payment, no late payment fee may be	2245
imposed for such default. If a late payment fee has been imposed	2246
once with respect to a particular late payment, no such fee may be	2247
imposed with respect to any future payment that would have been	2248
timely and sufficient but for the previous default.	2249

(8) Failing to disclose to the consumer at the closing of the	2250
consumer transaction that a consumer is not required to complete a	2251
consumer transaction merely because the consumer has received	2252
prior estimates of closing costs or has signed an application and	2253
should not close a loan transaction that contains different terms	2254
and conditions than those the consumer was promised;	2255

(9) Arranging for or making a consumer transaction that	2256
includes terms under which more than two periodic payments	2257
required under the consumer transaction are consolidated and paid	2258
in advance from the loan proceeds provided to the consumer;	2259

(10) Knowingly compensating, instructing, inducing, coercing,	2260
or intimidating, or attempting to compensate, instruct, induce,	2261
coerce, or intimidate, a person licensed or certified under	2262
Chapter 4763. of the Revised Code for the purpose of corrupting or	2263
improperly influencing the independent judgment of the person with	2264
respect to the value of the dwelling offered as security for	2265
repayment of a mortgage loan;	2266

(11) Financing, directly or indirectly, any credit, life,	2267
disability, or unemployment insurance premiums, any other life or	2268
health insurance premiums, or any debt collection agreement.	2269
Insurance premiums calculated and paid on a monthly basis shall	2270
not be considered financed by the lender.	2271

(12) Knowingly or intentionally engaging in the act or	2272
practice of "flipping" a mortgage loan. "Flipping" a mortgage loan	2273
is making a mortgage loan that refinances an existing mortgage	2274
loan when the new loan does not have reasonable, tangible net	2275
benefit to the consumer considering all of the circumstances,	2276
including the terms of both the new and refinanced loans, the cost	2277
of the new loan, and the consumer's circumstances. This provision	2278
applies regardless of whether the interest rate, points, fees, and	2279
charges paid or payable by the consumer in connection with the	2280
refinancing exceed any thresholds specified in any section of the	2281
Revised Code.	2282

(13) Knowingly taking advantage of the inability of the	2283
consumer to reasonably protect the consumer's interests because of	2284
the consumer's known physical or mental infirmities or illiteracy;	2285

(14) Entering into the consumer transaction knowing there was	2286
no reasonable probability of payment of the obligation by the	2287
consumer;	2288

(15) Attempting to enforce, by means not limited to a court	2289
action, a prepayment penalty in violation of division (C)(2) of	2290
section 1343.011 of the Revised Code;	2291

(16) Engaging in an act or practice deemed unconscionable by	2292
rules adopted by the attorney general pursuant to division (B)(2)	2293
of section 1345.05 of the Revised Code.	2294

(C)(1) Any unconscionable arbitration clause, unconscionable	2295
clause requiring the consumer to pay the supplier's attorney's	2296
fees, or unconscionable liquidated damages clause included in a	2297
mortgage loan contract is unenforceable.	2298

(2) No supplier shall do either of the following:

2299

(a) Attempt to enforce, by means not limited to a court	2300
action, any clause described in division (C)(1) of this section;	2301

(b) By referring to such a clause, attempt to induce the	2302
consumer to take any action desired by the supplier.	2303

Sec. 1345.05.  (A) The attorney general shall:

2304

(1) Adopt, amend, and repeal procedural rules;

2305

(2) Adopt as a rule a description of the organization of his	2306
the attorney general's office, stating the general courses and	2307
methods of operation of the section of the office of the attorney	2308
general, which is to administer Chapter 1345. of the Revised Code	2309
and methods whereby the public may obtain information or make	2310
submissions or requests, including a description of all forms and	2311
instructions used by that office;	2312

(3) Make available for public inspection all rules and all	2313
other written statements of policy or interpretations adopted or	2314
used by himthe attorney general in the discharge of histhe	2315
attorney general's functions, together with all judgments,	2316
including supporting opinions, by courts of this state that	2317
determine the rights of the parties and concerning which appellate	2318
remedies have been exhausted, or lost by the expiration of the	2319
time for appeal, determining that specific acts or practices	2320
violate section 1345.02 or, 1345.03, or 1345.031 of the Revised	2321
Code;	2322

(4) Inform consumers and suppliers on a continuing basis of	2323
acts or practices whichthat violate Chapter 1345. of the Revised	2324
Code by, among other things, publishing an informational document	2325
describing acts and practices in connection with residential	2326
mortgages that are unfair, deceptive, or unconscionable, and by	2327
making that information available on the attorney general's	2328
official web site;	2329

(5) Cooperate with state and local officials, officials of	2330
other states, and officials of the federal government in the	2331
administration of comparable statutes;	2332

(6) Report annually on or before the first day of January to	2333
the governor and the general assembly on the operations of the	2334
attorney general in respect to Chapter 1345. of the Revised Code,	2335
and on the acts or practices occurring in this state that violate	2336
such chapter. The report shall include a statement of	2337
investigatory and enforcement procedures and policies, of the	2338
number of investigations and enforcement proceedings instituted	2339
and of their disposition, and of other activities of the state and	2340
of other persons to promote the purposes of Chapter 1345. of the	2341
Revised Code.	2342

(7) In carrying out hisofficial duties, the attorney general	2343
shall not disclose publicly the identity of suppliers investigated	2344
or the facts developed in investigations unless these matters have	2345
become a matter of public record in enforcement proceedings, in	2346
public hearings conducted pursuant to division (B)(1) of this	2347
section, or the suppliers investigated have consented in writing	2348
to public disclosure.	2349

(B) The attorney general may:

2350

(1) Conduct research, make inquiries, hold public hearings,	2351
and publish studies relating to consumer transactions;	2352

(2) Adopt, amend, and repeal substantive rules defining with	2353
reasonable specificity acts or practices that violate sections	2354
1345.02 and, 1345.03, and 1345.031 of the Revised Code. In	2355
adopting, amending, or repealing substantive rules defining acts	2356
or practices that violate section 1345.02 of the Revised Code, due	2357
consideration and great weight shall be given to federal trade	2358
commission orders, trade regulation rules and guides, and the	2359
federal courts' interpretations of subsection 45 (a)(1) of the	2360
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.	2361
41, as amended.	2362

In adopting, amending, or repealing such rules concerning a	2363
consumer transaction in connection with a residential mortgage,	2364
the attorney general shall consult with the superintendent of	2365
financial institutions and shall give due consideration to state	2366
and federal statutes, regulations, administrative agency	2367
interpretations, and case law.	2368

(C) In the conduct of public hearings authorized by this	2369
section, the attorney general may administer oaths, subpoena	2370
witnesses, adduce evidence, and require the production of relevant	2371
material. Upon failure of a person without lawful excuse to obey a	2372
subpoena or to produce relevant matter, the attorney general may	2373
apply to a court of common pleas for an order compelling	2374
compliance.	2375

(D) The attorney general may request that an individual who	2376
refuses to testify or to produce relevant material on the ground	2377
that the testimony or matter may incriminate himthe individual be	2378
ordered by the court to provide the testimony or matter. With the	2379
exception of a prosecution for perjury and an action for damages	2380
under section 1345.07 or 1345.09 of the Revised Code, an	2381
individual who complies with a court order to provide testimony or	2382
matter, after asserting a privilege against self incrimination to	2383
which hethe individual is entitled by law, shall not be subjected	2384
to a criminal proceeding on the basis of the testimony or matter	2385
discovered through that testimony or matter.	2386

(E) Any person may petition the attorney general requesting	2387
the adoption, amendment, or repeal of a rule. The attorney general	2388
shall prescribe by rule the form for such petitions and the	2389
procedure for their submission, consideration, and disposition.	2390
Within sixty days of submission of a petition, the attorney	2391
general shall either deny the petition in writing, stating histhe	2392
reasons for the denial, or initiate rule-making proceedings. There	2393
is no right to appeal from such denial of a petition.	2394

(F) All rules shall be adopted subject to Chapter 119. of the	2395
Revised Code.	2396

(G) The informational document published in accordance with	2397
division (A)(4) of this section shall be made available for	2398
distribution to consumers who are applying for a mortgage loan. An	2399
acknowledgement of receipt shall be retained by the lender,	2400
mortgage broker, and loan officer, as applicable, subject to	2401
review by the attorney general and the department of commerce.	2402

Sec. 1345.07.  (A) If the attorney general, by histhe	2403
attorney general's own inquiries or as a result of complaints, has	2404
reasonable cause to believe that a supplier has engaged or is	2405
engaging in an act or practice that violates this chapter, and	2406
that the action would be in the public interest, hethe attorney	2407
general may bring any of the following:	2408

(1) An action to obtain a declaratory judgment that the act	2409
or practice violates section 1345.02 or, 1345.03, or 1345.031 of	2410
the Revised Code;	2411

(2) An action, with notice as required by Civil Rule 65, to	2412
obtain a temporary restraining order, preliminary injunction, or	2413
permanent injunction to restrain the act or practice. If the	2414
attorney general shows by a preponderance of the evidence that the	2415
supplier has violated or is violating section 1345.02 or, 1345.03,	2416
or 1345.031 of the Revised Code, the court may issue a temporary	2417
restraining order, preliminary injunction, or permanent injunction	2418
to restrain and prevent the act or practice. On motion of the	2419
attorney general, or on its own motion, the court may impose a	2420
civil penalty of not more than five thousand dollars for each day	2421
of violation of a temporary restraining order, preliminary	2422
injunction, or permanent injunction issued under this section, if	2423
the supplier received notice of the action. The civil penalties	2424
shall be paid as provided in division (G) of this section. Upon	2425
the commencement of an action under division (A)(2) of this	2426
section against a supplier who operates under a license, permit,	2427
certificate, commission, or other authorization issued by the	2428
supreme court or by a board, commission, department, division, or	2429
other agency of this state, the attorney general shall immediately	2430
notify the supreme court or agency that such an action has been	2431
commenced against the supplier.	2432

(3) A class action under Civil Rule 23, as amended, on behalf	2433
of consumers who have engaged in consumer transactions in this	2434
state for damage caused by:	2435

(a) An act or practice enumerated in division (B) or (D) of	2436
section 1345.02 of the Revised Code;	2437

(b) Violation of a rule adopted under division (B)(2) of	2438
section 1345.05 of the Revised Code before the consumer	2439
transaction on which the action is based;	2440

(c) An act or practice determined by a court of this state to	2441
violate section 1345.02 or, 1345.03, or 1345.031 of the Revised	2442
Code and committed after the decision containing the determination	2443
has been made available for public inspection under division	2444
(A)(3) of section 1345.05 of the Revised Code.	2445

(B) On motion of the attorney general and without bond, in	2446
the attorney general's action under this section, the court may	2447
make appropriate orders, including appointment of a referee or a	2448
receiver, for sequestration of assets, to reimburse consumers	2449
found to have been damaged, to carry out a transaction in	2450
accordance with a consumer's reasonable expectations, to strike or	2451
limit the application of unconscionable clauses of contracts so as	2452
to avoid an unconscionable result, or to grant other appropriate	2453
relief. The court may assess the expenses of a referee or receiver	2454
against the supplier.	2455

(C) Any moneys or property recovered by the attorney general	2456
in an action under this section that cannot with due diligence	2457
within five years be restored by a referee to consumers shall be	2458
unclaimed funds reportable under Chapter 169. of the Revised Code.	2459

(D) In addition to the other remedies provided in this	2460
section, if the violation is an act or practice that was declared	2461
to be unfair, deceptive, or unconscionable by a rule adopted	2462
pursuant to division (B)(2) of section 1345.05 of the Revised Code	2463
before the consumer transaction on which the action is based	2464
occurred or an act or practice that was determined by a court of	2465
this state to violate section 1345.02 or, 1345.03, or 1345.031 of	2466
the Revised Code and committed after the decision containing the	2467
court's determination was made available for public inspection	2468
pursuant to division (A)(3) of section 1345.05 of the Revised	2469
Code, the attorney general may request and the court may impose a	2470
civil penalty of not more than twenty-five thousand dollars	2471
against the supplier. The civil penalties shall be paid as	2472
provided in division (G) of this section.	2473

(E) No action may be brought by the attorney general under	2474
this section to recover for a transaction more than two years	2475
after the occurrence of a violation.	2476

(F) If a court determines that provision has been made for	2477
reimbursement or other appropriate corrective action, insofar as	2478
practicable, with respect to all consumers damaged by a violation,	2479
or in any other appropriate case, the attorney general, with court	2480
approval, may terminate enforcement proceedings brought by himthe	2481
attorney general upon acceptance of an assurance from the supplier	2482
of voluntary compliance with Chapter 1345. of the Revised Code,	2483
with respect to the alleged violation. The assurance shall be	2484
filed with the court and entered as a consent judgment. Except as	2485
provided in division (A) of section 1345.10 of the Revised Code, a	2486
consent judgment is not evidence of prior violation of such	2487
chapter. Disregard of the terms of a consent judgment entered upon	2488
an assurance shall be treated as a violation of an injunction	2489
issued under this section.	2490

(G) Civil penalties ordered pursuant to divisions (A) and (D)	2491
of this section shall be paid as follows: one-fourth of the amount	2492
to the treasurer of the county in which the action is brought and	2493
three-fourths to the consumer protection enforcement fund created	2494
by section 1345.51 of the Revised Code.	2495

(H) The remedies available to the attorney general under this	2496
section are cumulative and concurrent, and the exercise of one	2497
remedy by the attorney general does not preclude or require the	2498
exercise of any other remedy. The attorney general is not required	2499
to use any procedure set forth in section 1345.06 of the Revised	2500
Code prior to the exercise of any remedy set forth in this	2501
section.	2502

Sec. 1345.09.  For a violation of Chapter 1345. of the	2503
Revised Code, a consumer has a cause of action and is entitled to	2504
relief as follows:	2505

(A) Where the violation was an act prohibited by section	2506
1345.02 or, 1345.03, or 1345.031 of the Revised Code, the consumer	2507
may, in an individual action, rescind the transaction or recover	2508
histhe consumer's damages.	2509

(B) Where the violation was an act or practice declared to be	2510
deceptive or unconscionable by rule adopted under division (B) (2)	2511
of section 1345.05 of the Revised Code before the consumer	2512
transaction on which the action is based, or an act or practice	2513
determined by a court of this state to violate section 1345.02 or,	2514
1345.03, or 1345.031 of the Revised Code and committed after the	2515
decision containing the determination has been made available for	2516
public inspection under division (A)(3) of section 1345.05 of the	2517
Revised Code, the consumer may rescind the transaction or recover,	2518
but not in a class action, three times the amount of histhe	2519
consumer's actual damages or two hundred dollars, whichever is	2520
greater, or recover damages or other appropriate relief in a class	2521
action under Civil Rule 23, as amended.	2522

(C) In(1) Except as otherwise provided in division (C)(2) of	2523
this section, in any action for rescission, revocation of the	2524
consumer transaction must occur within a reasonable time after the	2525
consumer discovers or should have discovered the ground for it and	2526
before any substantial change in condition of the subject of the	2527
consumer transaction.	2528

(2) If a consumer transaction between a loan officer,	2529
mortgage broker, or nonbank mortgage lender and a customer is in	2530
connection with a residential mortgage, revocation of the consumer	2531
transaction in an action for rescission is only available to a	2532
consumer in an individual action, and shall occur for no reason	2533
other than one or more of the reasons set forth in the "Truth in	2534
Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635, not later than	2535
the time limit within which the right of rescission under section	2536
125(f) of the "Truth in Lending Act" expires.	2537

(D) Any consumer may seek a declaratory judgment, an	2538
injunction, or other appropriate relief against an act or practice	2539
that violates this chapter.	2540

(E) When a consumer commences an individual action for a	2541
declaratory judgment or an injunction or a class action under this	2542
section, the clerk of court shall immediately mail a copy of the	2543
complaint to the attorney general. Upon timely application, the	2544
attorney general may be permitted to intervene in any private	2545
action or appeal pending under this section. When a judgment under	2546
this section becomes final, the clerk of court shall mail a copy	2547
of the judgment including supporting opinions to the attorney	2548
general for inclusion in the public file maintained under division	2549
(A)(3) of section 1345.05 of the Revised Code.	2550

(F) The court may award to the prevailing party a reasonable	2551
attorney's fee limited to the work reasonably performed, if either	2552
of the following apply:	2553

(1) The consumer complaining of the act or practice that	2554
violated this chapter has brought or maintained an action that is	2555
groundless, and the consumer filed or maintained the action in bad	2556
faith;	2557

(2) The supplier has knowingly committed an act or practice	2558
that violates this chapter.	2559

Sec. 1345.091.  No claim or defense under this chapter may be	2560
asserted by the attorney general or any consumer against an	2561
assignee or purchaser of a mortgage loan for value unless any one	2562
of the following applies:	2563

(A) The violation was committed by the assignee or purchaser.

2564

(B) The assignee or purchaser is affiliated by common control	2565
with the seller of the loan at the time of such assignment or	2566
purchase.	2567

Sec. 1349.25. As used in sections 1349.25 to 1349.37 of the	2568
Revised Code:	2569

(A) "Actuarial method" means the method of allocating	2570
payments made on a debt between the amount financed and the	2571
finance charge pursuant to which a payment is applied first to the	2572
accumulated finance charge and any remainder is subtracted from,	2573
or any deficiency is added to, the unpaid balance of the amount	2574
financed.	2575

(B) "Consumer" means a natural person to whom credit is	2576
offered or extended primarily for personal, family, or household	2577
purposes.	2578

(C) "Consummation" means the time that a consumer becomes	2579
contractually obligated on a credit transaction.	2580

(D) "Covered loan" means a consumer credit mortgage loan	2581
transaction, including an open end credit plan, that meets both of	2582
the following criteria:	2583

(1) The loan involves property located within this state., is	2584
secured by the consumer's principal dwelling, and meets either of	2585
the following criteria:	2586

(2)(1) The loan is considered a mortgageannual percentage	2587
rate at consummation of the transaction exceeds the amount	2588
established under section 152(a) of the "Home Ownership and Equity	2589
Protection Act of 1994," 108 Stat. 2190, 15 U.S.C.A. 1602(aa), as	2590
amended, and the regulations adopted thereunder by the federal	2591
reserve board, as amended.	2592

(2) If the total loan amount is twenty-five thousand dollars	2593
or more, the total points and fees payable by the consumer at or	2594
before loan closing exceed five per cent of the total loan amount.	2595
If the total loan amount is less than twenty-five thousand	2596
dollars, the total points and fees payable by the consumer at or	2597
before loan closing exceed eight per cent of the total loan	2598
amount.	2599

For purposes of division (D) of this section:

2600

(a) "Points and fees" has the same meaning as in section	2601
152(a) of the "Home Ownership and Equity Protection Act of 1994,"	2602
108 Stat. 2190, 15 U.S.C. 1602(aa), as amended, and the	2603
regulations adopted thereunder by the federal reserve board, as	2604
amended, and includes single premium credit insurance and all	2605
compensation paid directly or indirectly to a mortgage broker from	2606
any source. For transactions under an open end credit plan,	2607
"points and fees" includes fees paid for the ability to access the	2608
line of credit and fees paid in order to utilize the maximum	2609
amount of credit available.	2610

"Points and fees" does not include fees paid to a federal or	2611
state government agency that insures payment of some portion of a	2612
home loan, including the federal housing administration and the	2613
United States department of veterans affairs, or an amount not to	2614
exceed one percentage point in indirect mortgage broker	2615
compensation paid by any source.	2616

(b) "Total loan amount" means the principal of the loan minus	2617
points and fees that are included in the principal amount. For	2618
transactions under an open end credit plan, "total loan amount"	2619
shall be calculated by using the total line of credit allowed	2620
under the loan at closing.	2621

(c) "Consumer credit mortgage loan transaction" does not	2622
include a residential mortgage transaction or a reverse mortgage	2623
transaction.	2624

Nothing in division (D) of this section shall be construed to	2625
authorize a consumer or any other party to pay compensation to a	2626
creditor for services provided by the creditor in connection with	2627
a covered loan, or to prohibit a creditor from charging or	2628
receiving such compensation.	2629

(E) "Credit" means the right granted by a creditor to a	2630
debtor to defer payment of debt or to incur debt and defer its	2631
payment.	2632

(F) "Creditor" has the same meaning as in section 152(c) of	2633
the "Home Ownership and Equity Protection Act of 1994," 108 Stat.	2634
2190, 15 U.S.C.A. 1602(f), as amended, and the regulations adopted	2635
thereunder by the federal reserve board, as amended.	2636

(G) "Person" means a natural person, partnership,	2637
association, trust, corporation, or any other legal entity.	2638

(H) The terms "open end credit plan," "residential mortgage	2639
transaction," and "reverse mortgage transaction" have the same	2640
meanings as in section 152(a) of the "Home Ownership and Equity	2641
Protection Act of 1994," 108 Stat. 2190, 15 U.S.C. 1602, as	2642
amended, and the regulations adopted thereunder by the federal	2643
reserve board, as amended.	2644

Sec. 1349.27. A creditor shall not do any of the following:

2645

(A) Make a covered loan that includes any of the following:

2646

(1) Terms under which a consumer must pay a prepayment	2647
penalty for paying all or part of the principal before the date on	2648
which the principal is due. For purposes of division (A)(1) of	2649
this section, any method of computing a refund of unearned	2650
scheduled interest is a prepayment penalty if it is less favorable	2651
to the consumer than the actuarial method.	2652

Division (A)(1) of this section does not apply to a	2653
prepayment penalty imposed in accordance with section 129(c)(2) of	2654
the "Home Ownership and Equity Protection Act of 1994," 108 Stat.	2655
2190, 15 U.S.C.A. 1639(c)(2), as amended, and the regulations	2656
adopted thereunder by the federal reserve board, as amended.	2657

(2) Terms under which the outstanding principal balance will	2658
increase at any time over the course of the loan because the	2659
regular periodic payments do not cover the full amount of interest	2660
due;	2661

(3) Terms under which more than two periodic payments	2662
required under the loan are consolidated and paid in advance from	2663
the loan proceeds provided to the consumer;	2664

(4) Terms under which a rebate of interest arising from a	2665
loan acceleration due to default is calculated by a method less	2666
favorable than the actuarial method.	2667

(B) Make a covered loan that provides for an interest rate	2668
applicable after default that is higher than the interest rate	2669
that applies before default;	2670

(C) Make a covered loan having a term of less than five years	2671
that includes terms under which the aggregate amount of the	2672
regular periodic payments would not fully amortize the outstanding	2673
principal balance. This division does not apply to any covered	2674
loan with a maturity of less than one year, if the purpose of the	2675
loan is a "bridge" loan connected with the acquisition or	2676
construction of a dwelling intended to become the consumer's	2677
principal dwelling.	2678

(D) Engage in a pattern or practice of extending credit to	2679
consumers under covered loans based on the consumers' collateral	2680
without regard to the consumers' repayment ability, including the	2681
consumers' current and expected income, current obligations, and	2682
employment;	2683

(E) Make a payment to a contractor under a home improvement	2684
contract from amounts extended as credit under a covered loan,	2685
except in either of the following ways:	2686

(1) By an instrument that is payable to the consumer or	2687
jointly to the consumer and the contractor;	2688

(2) At the election of the consumer, by a third party escrow	2689
agent in accordance with terms established in a written agreement	2690
signed by the consumer, the creditor, and the contractor before	2691
the date of payment.	2692

(F) On or after October 1, 2002, make a covered loan that	2693
includes a demand feature that permits the creditor to terminate	2694
the loan in advance of the original maturity date and to demand	2695
repayment of the entire outstanding balance, except in any of the	2696
following circumstances:	2697

(1) There is fraud or material misrepresentation by the	2698
consumer in connection with the loan.	2699

(2) The consumer fails to meet the repayment terms of the	2700
agreement for any outstanding balance.	2701

(3) There is any action or inaction by the consumer that	2702
adversely affects the creditor's security for the loan or any	2703
right of the creditor in that security.	2704

(G)(1) Within one year after having made a covered loan,	2705
refinance a covered loan to the same borrower into another covered	2706
loan, unless the refinancing is in the consumer's interest. An	2707
assignee holding or servicing a covered loan shall not, for the	2708
remainder of the one-year period following the date of origination	2709
of the covered loan, refinance any covered loan to the same	2710
consumer into another covered loan, unless the refinancing is in	2711
the consumer's interest.	2712

A creditor or assignee shall not engage in acts or practices	2713
to evade division (G)(1) of this section, including a pattern or	2714
practice of arranging for the refinancing of its own loans by	2715
affiliated or unaffiliated creditors, or modifying a loan	2716
agreement, whether or not the existing loan is satisfied and	2717
replaced by the new loan, and charging a fee.	2718

(2) Division (G)(1) of this section shall apply on and after	2719
October 1, 2002.	2720

(H) Make a covered loan without first obtaining a copy of the	2721
mortgage loan origination disclosure statement that was delivered	2722
to the buyer in accordance with division (A)(1) of section	2723
1322.062 of the Revised Code;	2724

(I) Finance, directly or indirectly, into a covered loan or	2725
finance to the same borrower within thirty days of a covered loan	2726
any credit life or credit disability insurance premiums sold in	2727
connection with the covered loan, provided that any credit life or	2728
credit disability insurance premiums calculated and paid on a	2729
monthly or other periodic basis shall not be considered financed	2730
by the person originating the loan. For purposes of this division,	2731
credit life or credit disability insurance does not include a	2732
contract issued by a government agency or private mortgage	2733
insurance company to insure the lender against loss caused by a	2734
mortgagor's default.	2735

(J) Replace or consolidate a zero interest rate or other	2736
low-rate loan made by a governmental or nonprofit lender with a	2737
covered loan within the first ten years of the low-rate loan	2738
unless the current holder of the loan consents in writing to the	2739
refinancing. For purposes of this division, a "low-rate loan"	2740
means a loan that carries a current interest rate two percentage	2741
points or more below the current yield on United States treasury	2742
securities with a comparable maturity. If the loan's current	2743
interest rate is either a discounted introductory rate or a rate	2744
that automatically steps up over time, the fully indexed rate or	2745
the fully stepped-up rate, as applicable, shall be used, in lieu	2746
of the current rate, to determine whether a loan is a low-rate	2747
loan.	2748

(K) Make a covered loan if, at the time the loan was	2749
consummated, the consumer's total monthly debt, including amounts	2750
owed under the loan, exceed fifty per cent of the consumer's	2751
monthly gross income, as verified by the credit application, the	2752
consumer's financial statement, a credit report, financial	2753
information provided to the person originating the loan by or on	2754
behalf of the consumer, or any other reasonable means, unless the	2755
consumer submits both of the following:	2756

(1) Verification that the consumer received prepurchase	2757
counseling from a counseling service that meets the criteria	2758
established by the superintendent of financial institutions under	2759
section 1349.271 of the Revised Code;	2760

(2) A disclosure, signed by the consumer, that acknowledges	2761
the risk of entering into such a loan.	2762

Sec. 1349.271. (A) The superintendent of financial	2763
institutions shall, in accordance with Chapter 119. of the Revised	2764
Code, adopt rules that establish criteria for purposes of	2765
qualifying counseling services that provide prepurchase counseling	2766
to consumers.	2767

(B) Any not-for-profit credit counseling service approved by	2768
an agency of the federal government shall be deemed to meet the	2769
criteria established by the superintendent under this section.	2770

Sec. 1349.31.  (A)(1) No creditor shall willfully and	2771
knowingly fail to comply with section 1349.26 or 1349.27 of the	2772
Revised Code. For purposes of division (A)(1) of this section,	2773
"willfully and knowingly" has the same meaning as in section 112	2774
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.	2775
1611, as amended.	2776

(2) Whoever violates division (A)(1) of this section is	2777
guilty of a felony of the fifth degree.	2778

(B) The superintendent of financial institutions may directly	2779
bring an action to enjoin a violation of this section. The	2780
attorney general may directly bring an action against a mortgage	2781
broker, loan officer, or nonbank mortgage lender to enjoin a	2782
violation of this section with the same rights, privileges, and	2783
powers as those described in section 1345.06 of the Revised Code.	2784
The prosecuting attorney of the county in which the action may be	2785
brought may bring an action against a mortgage broker, loan	2786
officer, or nonbank mortgage lender to enjoin a violation of this	2787
section only if the prosecuting attorney first presents any	2788
evidence of the violation to the attorney general and, within a	2789
reasonable period of time, the attorney general has not agreed to	2790
bring the action.	2791

For purposes of this division, "loan officer," "mortgage	2792
broker," and "nonbank mortgage lender" have the same meanings as	2793
in section 1345.01 of the Revised Code.	2794

(C)(1) The superintendent of financial institutions may	2795
initiate criminal proceedings under this section by presenting any	2796
evidence of criminal violations to the prosecuting attorney of the	2797
county in which the offense may be prosecuted. If the prosecuting	2798
attorney does not prosecute the violations, or at the request of	2799
the prosecuting attorney, the superintendent shall present any	2800
evidence of criminal violations to the attorney general, who may	2801
proceed in the prosecution with all the rights, privileges, and	2802
powers conferred by law on prosecuting attorneys, including the	2803
power to appear before grand juries and to interrogate witnesses	2804
before such grand juries. These powers of the attorney general	2805
shall be in addition to any other applicable powers of the	2806
attorney general.	2807

(2) The prosecuting attorney of the county in which an	2808
alleged offense may be prosecuted may initiate criminal	2809
proceedings under this section.	2810

(3) In order to initiate criminal proceedings under this	2811
section, the attorney general shall first present any evidence of	2812
criminal violations to the prosecuting attorney of the county in	2813
which the alleged offense may be prosecuted. If, within a	2814
reasonable period of time, the prosecuting attorney has not agreed	2815
to prosecute the violations, the attorney general may proceed in	2816
the prosecution with all the rights, privileges, and powers	2817
described in division (C)(1) of this section.	2818

Sec. 1349.41. (A) As used in this section:

2819

(1) "Consumer" means an individual to whom credit is offered	2820
or extended primarily for personal, family, or household purposes.	2821

(2) "Lender" means a nonbank mortgage lender as defined in	2822
section 1345.01 of the Revised Code. "Lender" does not include a	2823
person that purchases or is assigned a loan or that functions	2824
solely as the servicer of a loan.	2825

(3) "Mortgage" has the same meaning as in section 1322.01 of	2826
the Revised Code.	2827

(B) A lender shall not engage in a transaction, practice, or	2828
course of business that is not in good faith or fair dealing, or	2829
that operates a fraud upon any person, in connection with the	2830
attempted or actual making, purchase, or sale of any mortgage	2831
loan.	2832

(C) If a lender fails to comply with division (B) of this	2833
section, the affected consumer may recover damages of not less	2834
than all compensation paid directly or indirectly to the lender	2835
from any source, plus reasonable attorney's fees and court costs.	2836

(D) The duty created by this section shall not be waived or	2837
modified.	2838

Sec. 1349.43. (A) As used in this section, "loan officer,"	2839
"mortgage broker," and "nonbank mortgage lender" have the same	2840
meanings as in section 1345.01 of the Revised Code.	2841

(B) The department of commerce shall establish and maintain	2842
an electronic database accessible through the internet that	2843
contains information on all of the following:	2844

(1) The enforcement actions taken by the superintendent of	2845
financial institutions for each violation of or failure to comply	2846
with any provision of sections 1322.01 to 1322.12 of the Revised	2847
Code, upon final disposition of the action;	2848

(2) The enforcement actions taken by the attorney general	2849
under Chapter 1345. of the Revised Code against loan officers,	2850
mortgage brokers, and nonbank mortgage lenders, upon final	2851
disposition of each action;	2852

(3) All judgments by courts of this state, concerning which	2853
appellate remedies have been exhausted or lost by the expiration	2854
of the time for appeal, finding either of the following:	2855

(a) A violation of any provision of sections 1322.01 to	2856
1322.12 of the Revised Code;	2857

(b) That specific acts or practices by a loan officer,	2858
mortgage broker, or nonbank mortgage lender violate section	2859
1345.02, 1345.03, or 1345.031 of the Revised Code.	2860

(C) The attorney general shall submit to the department, on	2861
the first day of each January, April, July, and October, a list of	2862
all enforcement actions and judgments described in divisions	2863
(B)(2) and (3)(b) of this section.	2864

(D) The department may adopt rules in accordance with Chapter	2865
119. of the Revised Code that are necessary to implement this	2866
section.	2867

(E) The electronic database maintained by the department in	2868
accordance with this section shall not include information that,	2869
pursuant to section 1322.061 of the Revised Code, is confidential.	2870

Sec. 1349.44. (A) The superintendent of financial	2871
institutions shall report semiannually to the governor and the	2872
general assembly on the operations of the division of financial	2873
institutions with respect to the following:	2874

(1) Enforcement actions instituted by the superintendent for	2875
a violation of or failure to comply with any provision of sections	2876
1322.01 to 1322.12 of the Revised Code, and their final	2877
dispositions;	2878

(2) Suspensions, revocations, or refusals to issue or renew	2879
certificates of registration and licenses under sections 1322.01	2880
to 1322.12 of the Revised Code;	2881

(3) Outreach efforts of the office of consumer affairs to	2882
provide education regarding predatory lending, borrowing, and	2883
related financial topics.	2884

(B) The information required under divisions (A)(1) and (2)	2885
of this section does not include information that, pursuant to	2886
section 1322.061 of the Revised Code, is confidential.	2887

Sec. 1349.71.  (A) There is hereby created a consumer finance	2888
education board, consisting of twelve members, appointed jointly	2889
by the governor, the speaker of the house of representatives, and	2890
the president of the senate with the advice and consent of the	2891
house and senate. One member shall be appointed from, or as a	2892
representative of, each of the following:	2893

(1) The Ohio attorney general's office;

2894

(2) The department of commerce;

2895

(3) The Ohio housing finance agency;

2896

(4) Ohio minority advocacy groups;

2897

(5) The Ohio bankers league;

2898

(6) The Ohio mortgage bankers association;

2899

(7) The Ohio credit union league;

2900

(8) Ohio community bankers association;

2901

(9) The Ohio real estate industry;

2902

(10) The Ohio mortgage brokers association;

2903

(11) The financial services industry;

2904

(12) Consumer advocacy organizations.

2905

(B) Geographically diverse representation of the state shall	2906
be considered in making appointments. Of the initial appointments	2907
to the board, four shall be for a term ending December 31, 2008,	2908
four shall be for a term ending December 31, 2009, and four shall	2909
be for a term ending December 31, 2010. Thereafter, terms of	2910
office are for three years, commencing on the first day of January	2911
and ending on the thirty-first day of December. Each member shall	2912
hold office from the date of the member's appointment until the	2913
end of the term for which the member is appointed. Prior to	2914
assuming the duties of office, each member shall subscribe to, and	2915
file with the secretary of state, the constitutional oath of	2916
office. Vacancies that occur on the board shall be filled in the	2917
manner prescribed for regular appointments to the board. A member	2918
appointed to fill a vacancy occurring prior to the expiration of	2919
the term for which the member's predecessor was appointed shall	2920
hold office for the remainder of that predecessor's term. A member	2921
shall continue in office subsequent to the expiration date of the	2922
member's term until the member's successor takes office or until	2923
sixty days have elapsed, whichever occurs first. No person shall	2924
serve as a member of the board for more than two consecutive	2925
terms. The governor may remove a member pursuant to section 3.04	2926
of the Revised Code.	2927

(C) Annually, upon the qualification of the members appointed	2928
in that year, the board shall organize by selecting from its	2929
members a chairperson. The board shall meet at least once each	2930
calendar quarter to conduct its business with the place of future	2931
meetings to be decided by a vote of its members. Each member shall	2932
be provided with written notice of the time and place of each	2933
board meeting at least ten days prior to the scheduled date of the	2934
meeting. A majority of the members of the board constitutes a	2935
quorum to transact and vote on all business coming before the	2936
board.	2937

(D)(1) The governor shall call the first meeting of the	2938
consumer finance education board. At that meeting, and annually	2939
thereafter, the board shall elect a chairperson for a one-year	2940
term and may elect members to other positions on the board as the	2941
board considers necessary or appropriate.	2942

(2) Each member of the board shall receive an amount fixed	2943
pursuant to division (J) of section 124.15 of the Revised Code for	2944
each day employed in the discharge of the member's official	2945
duties, and the member's actual and necessary expenses incurred in	2946
the discharge of those duties.	2947

(E) The board may obtain services from any state agency	2948
including but not limited to the department of commerce or its	2949
successor agency.	2950

(F) The board shall assemble an advisory committee of	2951
representatives from the following organizations or groups for the	2952
purpose of receiving recommendations on policy, rules, and	2953
activities of the board:	2954

(1) The department of aging;

2955

(2) The department of rehabilitation and correction;

2956

(3) The department of development;

2957

(4) The department of job and family services;

2958

(5) The Ohio treasurer of state's office;

2959

(6) The county treasurers association of Ohio;

2960

(7) Ohio college professors;

2961

(8) Ohio university professors;

2962

(9) The Ohio board of regents;

2963

(10) The Ohio community development corporations association;

2964

(11) The Ohio council for economic education;

2965

(12) The Ohio state university extension service.

2966

Sec. 1349.72.  (A) In addition to any other duties imposed on	2967
the consumer finance education board by section 1349.71 of the	2968
Revised Code, the board shall:	2969

(1) Analyze and investigate, on its own initiative, the	2970
policies and practices of state agencies, nonprofit entities, and	2971
businesses, inasmuch as such policies and practices address	2972
financial literacy, access by state residents to financial	2973
information, education, and resources, prevention of foreclosures	2974
and bankruptcies, and prepurchase and postpurchase counseling and	2975
education for homebuyers;	2976

(2) Provide an annual report and consultation and	2977
recommendations to the governor, the general assembly, state	2978
agencies, nonprofit entities, and businesses based on the board's	2979
findings;	2980

(3) Coordinate and provide resources and assistance to state	2981
agencies, nonprofit entities, and businesses in the furtherance of	2982
those entities' efforts to improve financial literacy, access by	2983
state residents to financial information, education, and	2984
resources, prevention of foreclosures and bankruptcies, and	2985
prepurchase and postpurchase counseling and education for	2986
homebuyers.	2987

(4) Provide financial assistance to Ohioans through grants	2988
funded through the consumer finance fund created under section	2989
1321.21 of the Revised Code and utilize these same funds to	2990
provide grants to design, develop, and implement any other	2991
programs described in this section.	2992

(5) Receive grants from the consumer finance fund for the	2993
implementation of this section.	2994

(B) The board may assign and delegate the execution of its	2995
duties to smaller groups of its own members, which shall include	2996
committees specifically chartered to address all of the following	2997
issues:	2998

(1) The needs of persons, ages eighteen to twenty-five, in	2999
the context of the objectives enumerated in division (A) of this	3000
section;	3001

(2) The needs of persons, classified as needy, based on a	3002
household adjusted gross income equal to or less than two hundred	3003
per cent of the poverty level, as determined by the Ohio office of	3004
budget and management, or the earned income amount described in	3005
section thirty-two of the Internal Revenue Code of 1986, taking	3006
into account the size of the household, in the context of the	3007
objectives enumerated in division (A) of this section;	3008

(3) The needs of persons, previously convicted of one or more	3009
felonies, in the context of the objectives enumerated in division	3010
(A) of this section;	3011

(4) The needs of persons, characterized as vulnerable by	3012
reason of advanced age, disability, minority, or other demographic	3013
consideration, in the context of the objectives enumerated in	3014
division (A) of this section;	3015

(5) Any other group or issue identified by the board as	3016
worthy of particular attention.	3017

(C) The board shall create a pilot financial literacy and	3018
counseling program funded through the consumer finance fund, to be	3019
operated in the five counties with the highest mortgage	3020
foreclosure rates as of the effective date of this section, and	3021
completion of which shall be recommended by mortgage brokers and	3022
loan officers for any consumer seeking a mortgage loan with	3023
origination fees greater than five per cent. Before a mortgage	3024
broker permits a consumer to commit to such a loan, the broker	3025
shall notify the consumer that the loan may have attributes that	3026
are predatory. No person who offers education, advice, or	3027
counseling through the financial literacy and counseling program	3028
shall be held liable for any damages incurred from actions taken	3029
based on the education, advice, or counseling given.	3030

Sec. 3953.23.  (A) Every title insurance agent shall keep	3031
books of account and record and vouchers pertaining to the	3032
business of title insurance in such manner that the title	3033
insurance company may readily ascertain from time to time whether	3034
the agent has complied with this chapter.	3035

(B) A title insurance agent may engage in the business of	3036
handling escrows of real property transactions directly connected	3037
with the business of title insurance, provided that the agent	3038
shall maintain a separate record of all receipts and disbursements	3039
of escrow funds and shall not commingle any such funds with the	3040
agent's own funds or with funds held by the agent in any other	3041
capacity; and if at any time the superintendent of insurance	3042
determines that an agent has failed to comply with any of the	3043
provisions of this section, the superintendent may revoke the	3044
license of the agent pursuant to section 3905.14 of the Revised	3045
Code, subject to review as provided for in Chapter 119. of the	3046
Revised Code. All agents shall be covered by a fidelity bond in an	3047
amount and with a company satisfactory to the principal.	3048

(C) All title insurance agents or agencies that handle	3049
escrows in real property transactions not involving the issuance	3050
of title insurance shall have coverage that protects the parties	3051
to such transactions against theft, misappropriation, fraud, or	3052
any other failure to properly disburse settlement, closing, or	3053
escrow funds. The superintendent shall adopt rules under Chapter	3054
119. of the Revised Code setting forth the minimum requirements	3055
for such coverage, including, but not limited to, the minimum	3056
amounts, terms, and conditions of such coverage.	3057

(D) The superintendent shall require every title insurance	3058
agent or agency and any subcontractors to maintain an errors and	3059
omissions policy, in any amount exceeding minimum limits	3060
established by the superintendent, that includes but is not	3061
limited to coverage for the agent's or agency's delegation of any	3062
agent or agency function. The superintendent shall adopt rules	3063
under Chapter 119. of the Revised Code setting forth the minimum	3064
requirements for that coverage, including but not limited to the	3065
minimum amounts, terms, and conditions of the coverage.	3066

Sec. 3953.30. (A) As used in this section:

3067

(1) "Residential mortgage loan" means an obligation to pay a	3068
sum of money evidenced by a note and secured by a lien upon real	3069
property located within this state containing two or fewer	3070
residential units or on which two or fewer residential units are	3071
to be constructed and includes such an obligation on a residential	3072
condominium or cooperative unit.	3073

(2) "Residential mortgage lender" means any person,	3074
including, but not limited to, banks, savings and loan	3075
associations, mortgage brokers, credit unions, or savings banks,	3076
that lends money or extends or grants credit and obtains a	3077
residential mortgage to assure payment of the debt.	3078

(B) A title insurance agent issuing a lender's title	3079
insurance policy in conjunction with a residential mortgage loan	3080
made simultaneously with the purchase of all or part of the real	3081
property securing the loan, where no owner's title insurance	3082
policy has been requested, shall give written notice, on a form	3083
prescribed or approved by the superintendent of insurance, to the	3084
mortgagor at the time the commitment is prepared. The notice shall	3085
explain that a lender's title insurance policy is to be issued	3086
protecting the residential mortgage lender, and that the policy	3087
does not provide title insurance protection to the mortgagor as	3088
the owner of the property being purchased. The notice shall	3089
explain what an owner's title insurance policy insures against and	3090
what possible exposures exist for the mortgagor that could be	3091
insured against through the purchase of an owner's title insurance	3092
policy. The notice shall state that the mortgagor may obtain an	3093
owner's title insurance policy protecting the mortgagor as the	3094
owner of the property, either at a specified cost or at an	3095
approximate cost if the proposed coverages or amount of insurance	3096
is not then known. The title insurance agent shall maintain a copy	3097
of the notice, signed by the mortgagor, in the relevant	3098
underwriting file for at least ten years after the effective date	3099
of the lender's title insurance policy.	3100

Sec. 3953.32. (A) At the time of close with a title insurance	3101
company for issuance of a title insurance policy, the title	3102
insurance company or the title insurance agent shall offer closing	3103
or settlement protection to the lender, borrower, and seller of	3104
the property, and to any applicant for title insurance.	3105

(B) The closing or settlement protection offered pursuant to	3106
this section shall indemnify any lender, borrower, seller, and	3107
applicant that has requested the protection, both individually and	3108
collectively, against the loss of settlement funds resulting from	3109
any of the following acts of the title insurance company's named	3110
title insurance agent or anyone acting on the agent's behalf:	3111

(1) Theft, misappropriation, fraud, or any other failure to	3112
properly disburse settlement, closing, or escrow funds;	3113

(2) Failure to comply with any applicable written closing	3114
instructions, when agreed to by the title insurance agent.	3115

(C) The issuance of closing or settlement protection by a	3116
title insurance company pursuant to division (A) of this section	3117
is part of the business of title insurance for purposes of Chapter	3118
3953. of the Revised Code.	3119

(D) Except as provided in division (A) of this section, a	3120
title insurance company shall not offer or issue any coverage	3121
purporting to indemnify against a person's improper acts or	3122
omissions in connection with escrow, settlement, or closing	3123
services.	3124

(E) The superintendent of insurance may adopt rules in	3125
accordance with Chapter 119. of the Revised Code as the	3126
superintendent considers necessary to carry out the purposes of	3127
this section, including, but not limited to, rules that detail the	3128
specific language that must be included in the written document	3129
offering closing or settlement protection as provided for in	3130
division (A) of this section.	3131

Sec. 3953.33. (A) Every title insurance agent or agency that	3132
handles escrow, settlement, closing, or security deposit accounts	3133
shall have an annual independent review made of its escrow,	3134
settlement, closing, and security deposit accounts on a	3135
calendar-year basis within ninety days after the close of the	3136
previous fiscal year. The title insurance agent or agency shall	3137
provide proof of the annual review to each title insurance company	3138
that it represents. The superintendent of insurance shall	3139
promulgate rules under Chapter 119. of the Revised Code setting	3140
forth the minimum threshold level at which a review is required,	3141
the standards of the review, the minimum qualifications of the	3142
independent party conducting the review, and the form of the	3143
report that is required. The superintendent may also require title	3144
insurance agents or agencies to provide a copy of their annual	3145
review reports to the superintendent. The annual review required	3146
by this division does not apply to interest on lawyer's trust	3147
accounts established and maintained by an attorney pursuant to	3148
sections 4705.09 and 4705.10 of the Revised Code.	3149

(B) Title insurance agents and agencies shall allow the	3150
superintendent and each and every title insurer that they	3151
represent reasonable access to all of their escrow, settlement,	3152
closing, and security deposit accounts and any and all supporting	3153
account information in order to ascertain the safety and security	3154
of the funds held by the title insurance agent or agency.	3155

(C) Title insurance agents and agencies shall maintain	3156
sufficient records of their affairs, including their escrow	3157
operations and escrow trust accounts, so that the superintendent	3158
may adequately ensure that the title insurance agent or agency is	3159
in compliance of this chapter. Records kept pursuant to this	3160
section shall be kept for a period of not less than ten years	3161
following the transactions to which the records relate. The	3162
superintendent may prescribe the specific records and documents to	3163
be kept.	3164

Sec. 3953.35. (A) No title insurance agent shall do any of	3165
the following in connection with a mortgage loan of seventy-five	3166
thousand dollars or less:	3167

(1) Knowingly coerce or wrongfully instruct the consumer to	3168
enter into the loan;	3169

(2) Knowingly fail to disclose to the consumer that the	3170
consumer does not have to close on the loan;	3171

(3) Knowingly make a material misrepresentation to the	3172
consumer regarding the terms of the loan.	3173

(B) A violation of this section is deemed an unfair and	3174
deceptive act or practice in violation of section 1345.02 of the	3175
Revised Code.	3176

Sec. 4735.05.  (A) The Ohio real estate commission is a part	3177
of the department of commerce for administrative purposes. The	3178
director of commerce is ex officio the executive officer of the	3179
commission, or the director may designate any employee of the	3180
department as superintendent of real estate and professional	3181
licensing to act as executive officer of the commission.	3182

The commission and the real estate appraiser board created	3183
pursuant to section 4763.02 of the Revised Code shall each submit	3184
to the director a list of three persons whom the commission and	3185
the board consider qualified to be superintendent within sixty	3186
days after the office of superintendent becomes vacant. The	3187
director shall appoint a superintendent from the lists submitted	3188
by the commission and the board, and the superintendent shall	3189
serve at the pleasure of the director.	3190

(B) The superintendent, except as otherwise provided, shall	3191
do all of the following in regard to this chapter:	3192

(1) Administer this chapter;

3193

(2) Issue all orders necessary to implement this chapter;

3194

(3) Investigate complaints concerning the violation of this	3195
chapter or the conduct of any licensee;	3196

(4) Establish and maintain an investigation and audit section	3197
to investigate complaints and conduct inspections, audits, and	3198
other inquiries as in the judgment of the superintendent are	3199
appropriate to enforce this chapter. The investigators or auditors	3200
have the right to review and audit the business records of	3201
licensees and continuing education course providers during normal	3202
business hours.	3203

(5) Appoint a hearing examiner for any proceeding involving	3204
disciplinary action under section 3123.47 or 4735.18 of the	3205
Revised Code;	3206

(6) Administer the real estate recovery fund.

3207

(C) The superintendent may do all of the following:

3208

(1) In connection with investigations and audits under	3209
division (B) of this section, subpoena witnesses as provided in	3210
section 4735.04 of the Revised Code;	3211

(2) Apply to the appropriate court to enjoin any violation of	3212
this chapter. Upon a showing by the superintendent that any person	3213
has violated or is about to violate any provision of this chapter,	3214
the court shall grant an injunction, restraining order, or other	3215
appropriate order.	3216

(3) Upon the death of a licensed broker or the revocation or	3217
suspension of the broker's license, if there is no other licensed	3218
broker within the business entity of the broker, appoint upon	3219
application by any interested party, or, in the case of a deceased	3220
broker, subject to the approval by the appropriate probate court,	3221
recommend the appointment of, an ancillary trustee who is	3222
qualified as determined by the superintendent to conclude the	3223
business transactions of the deceased, revoked, or suspended	3224
broker;	3225

(4) In conjunction with the enforcement of this chapter, when	3226
the superintendent of real estate has reasonable cause to believe	3227
that an applicant or licensee has committed a criminal offense,	3228
the superintendent of real estate may request the superintendent	3229
of the bureau of criminal identification and investigation to	3230
conduct a criminal records check of the applicant or licensee. The	3231
superintendent of the bureau of criminal identification and	3232
investigation shall obtain information from the federal bureau of	3233
investigation as part of the criminal records check of the	3234
applicant or licensee. The superintendent of real estate may	3235
assess the applicant or licensee a fee equal to the fee assessed	3236
for the criminal records check.	3237

(D) All information that is obtained by investigators and	3238
auditors performing investigations or conducting inspections,	3239
audits, and other inquiries pursuant to division (B)(4) of this	3240
section, from licensees, complainants, or other persons, and all	3241
reports, documents, and other work products that arise from that	3242
information and that are prepared by the investigators, auditors,	3243
or other personnel of the department, shall be held in confidence	3244
by the superintendent, the investigators and auditors, and other	3245
personnel of the department. Notwithstanding division (D) of	3246
section 2317.023 of the Revised Code, all information obtained by	3247
investigators or auditors from an informal mediation meeting held	3248
pursuant to section 4735.051 of the Revised Code, including but	3249
not limited to the agreement to mediate and the accommodation	3250
agreement, shall be held in confidence by the superintendent,	3251
investigators, auditors, and other personnel of the department.	3252

(E) This section does not prevent the division of real estate	3253
and professional licensing from releasing information relating to	3254
licensees to the superintendent of financial institutions for	3255
purposes relating to the administration of sections 1322.01 to	3256
1322.12 of the Revised Code, to the superintendent of insurance	3257
for purposes relating to the administration of Chapter 3953. of	3258
the Revised Code, to the attorney general, or to local law	3259
enforcement agencies and local prosecutors. Information released	3260
by the division pursuant to this section remains confidential.	3261

Sec. 4763.03.  (A) In addition to any other duties imposed on	3262
the real estate appraiser board under this chapter, the board	3263
shall:	3264

(1) Adopt rules, in accordance with Chapter 119. of the	3265
Revised Code, in furtherance of this chapter, including, but not	3266
limited to, all of the following:	3267

(a) Defining, with respect to state-certified general real	3268
estate appraisers, state-certified residential real estate	3269
appraisers, and state-licensed residential real estate appraisers,	3270
the type of educational experience, appraisal experience, and	3271
other equivalent experience that satisfy the requirements of this	3272
chapter. The rules shall require that all appraisal experience	3273
performed after January 1, 1996, meet the uniform standards of	3274
professional practice established by the appraisal foundation.	3275

(b) Establishing the examination specifications for	3276
state-certified general real estate appraisers, state-certified	3277
residential real estate appraisers, and state-licensed residential	3278
real estate appraisers;	3279

(c) Relating to disciplinary proceedings conducted in	3280
accordance with section 4763.11 of the Revised Code, including	3281
rules governing the reinstatement of certificates, registrations,	3282
and licenses that have been suspended pursuant to those	3283
proceedings;	3284

(d) Identifying any additional information to be included on	3285
the forms specified in division (C) of section 4763.12 of the	3286
Revised Code, provided that the rules shall not require any less	3287
information than is required in that division;	3288

(e) Establishing the fees set forth in section 4763.09 of the	3289
Revised Code;	3290

(f) Establishing the amount of the assessment required by	3291
division (A)(2) of section 4763.05 of the Revised Code. The board	3292
annually shall determine the amount due from each applicant for an	3293
initial certificate, registration, and license in an amount that	3294
will maintain the real estate appraiser recovery fund at the level	3295
specified in division (A) of section 4763.16 of the Revised Code.	3296
The board may, if the fund falls below that amount, require	3297
current certificate holders, registrants, and licensees to pay an	3298
additional assessment.	3299

(g) Defining, with respect to state-registered real estate	3300
appraiser assistants, the educational and experience requirements	3301
of division (C)(1)(d) of section 4763.05 of the Revised Code;	3302

(h) Establishing a real estate appraiser assistant program	3303
for the registration of real estate appraiser assistants.	3304

(2) Provide or procure appropriate examination questions and	3305
answers for the examinations required by division (D) of section	3306
4763.05 of the Revised Code, and establish the criteria for	3307
successful completion of those examinations;	3308

(3) Periodically review the standards for preparation and	3309
reporting of real estate appraisals provided in this chapter and	3310
adopt rules explaining and interpreting those standards;	3311

(4) Hear appeals, pursuant to Chapter 119. of the Revised	3312
Code, from decisions and orders the superintendent of real estate	3313
issues pursuant to this chapter;	3314

(5) Request the initiation by the superintendent of	3315
investigations of violations of this chapter or the rules adopted	3316
pursuant thereto, as the board determines appropriate;	3317

(6) Determine the appropriate disciplinary actions to be	3318
taken against certificate holders, registrants, and licensees	3319
under this chapter as provided in section 4763.11 of the Revised	3320
Code.	3321

(B) In addition to any other duties imposed on the	3322
superintendent of real estate under this chapter, the	3323
superintendent shall:	3324

(1) Prescribe the form and content of all applications	3325
required by this chapter;	3326

(2) Receive applications for certifications, registrations,	3327
and licenses and renewal thereof under this chapter and establish	3328
the procedures for processing, approving, and disapproving those	3329
applications;	3330

(3) Retain records and all application materials submitted to	3331
the superintendent;	3332

(4) Establish the time and place for conducting the	3333
examinations required by division (D) of section 4763.05 of the	3334
Revised Code;	3335

(5) Issue certificates, registrations, and licenses and	3336
maintain a register of the names and addresses of all persons	3337
issued a certificate, registration, or license under this chapter;	3338

(6) Perform any other functions and duties, including the	3339
employment of staff, necessary to administer this chapter;	3340

(7) Administer this chapter;

3341

(8) Issue all orders necessary to implement this chapter;

3342

(9) Investigate complaints, upon the superintendent's own	3343
motion or upon receipt of a complaint or upon a request of the	3344
board, concerning any violation of this chapter or the rules	3345
adopted pursuant thereto or the conduct of any person holding a	3346
certificate, registration, or license issued pursuant to this	3347
chapter;	3348

(10) Establish and maintain an investigation and audit	3349
section to investigate complaints and conduct inspections, audits,	3350
and other inquiries as in the judgment of the superintendent are	3351
appropriate to enforce this chapter. The investigators and	3352
auditors have the right to review and audit the business records	3353
of certificate holders, registrants, and licensees during normal	3354
business hours. The superintendent may utilize the investigators	3355
and auditors employed pursuant to division (B)(4) of section	3356
4735.05 of the Revised Code or currently licensed certificate	3357
holders or licensees to assist in performing the duties of this	3358
division.	3359

(11) Appoint a referee or examiner for any proceeding	3360
involving the revocation or suspension of a certificate,	3361
registration, or license under section 3123.47 or 4763.11 of the	3362
Revised Code;	3363

(12) Administer the real estate appraiser recovery fund;

3364

(13) Conduct the examinations required by division (D) of	3365
section 4763.05 of the Revised Code at least four times per year.	3366

(C) The superintendent may do all of the following:

3367

(1) In connection with investigations and audits under	3368
division (B) of this section, subpoena witnesses as provided in	3369
section 4763.04 of the Revised Code;	3370

(2) Apply to the appropriate court to enjoin any violation of	3371
this chapter. Upon a showing by the superintendent that any person	3372
has violated or is about to violate this chapter, the court shall	3373
grant an injunction, restraining order, or other appropriate	3374
relief, or any combination thereof.	3375

(D) All information that is obtained by investigators and	3376
auditors performing investigations or conducting inspections,	3377
audits, and other inquiries pursuant to division (B)(10) of this	3378
section, from certificate holders, registrants, licensees,	3379
complainants, or other persons, and all reports, documents, and	3380
other work products that arise from that information and that are	3381
prepared by the investigators, auditors, or other personnel of the	3382
department of commerce, shall be held in confidence by the	3383
superintendent, the investigators and auditors, and other	3384
personnel of the department.	3385

(E) This section does not prevent the division of real estate	3386
and professional licensing from releasing information relating to	3387
certificate holders, registrants, and licensees to the	3388
superintendent of financial institutions for purposes relating to	3389
the administration of sections 1322.01 to 1322.12 of the Revised	3390
Code, to the superintendent of insurance for purposes relating to	3391
the administration of Chapter 3953. of the Revised Code, to the	3392
attorney general, or to local law enforcement agencies and local	3393
prosecutors. Information released by the division pursuant to this	3394
section remains confidential.	3395

Sec. 4763.05. (A)(1)(a) A person shall make application for	3396
an initial state-certified general real estate appraiser	3397
certificate, an initial state-certified residential real estate	3398
appraiser certificate, an initial state-licensed residential real	3399
estate appraiser license, or an initial state-registered real	3400
estate appraiser assistant registration in writing to the	3401
superintendent of real estate on a form the superintendent	3402
prescribes. The application shall include the address of the	3403
applicant's principal place of business and all other addresses at	3404
which the applicant currently engages in the business of preparing	3405
real estate appraisals and the address of the applicant's current	3406
residence. The superintendent shall retain the applicant's current	3407
residence address in a separate record which shall not constitute	3408
a public record for purposes of section 149.03 of the Revised	3409
Code. The application shall indicate whether the applicant seeks	3410
certification as a general real estate appraiser or as a	3411
residential real estate appraiser, licensure as a residential real	3412
estate appraiser, or registration as a real estate appraiser	3413
assistant and be accompanied by the prescribed examination and	3414
certification, registration, or licensure fees set forth in	3415
section 4763.09 of the Revised Code. The application also shall	3416
include a fingerprint of the applicant; a pledge, signed by the	3417
applicant, that the applicant will comply with the standards set	3418
forth in this chapter; and a statement that the applicant	3419
understands the types of misconduct for which disciplinary	3420
proceedings may be initiated against the applicant pursuant to	3421
this chapter.	3422

(b) Upon the filing of an application and payment of any	3423
examination and certification, registration, or licensure fees,	3424
the superintendent of real estate shall request the superintendent	3425
of the bureau of criminal identification and investigation, or a	3426
vendor approved by the bureau, to conduct a criminal records check	3427
based on the applicant's fingerprints in accordance with division	3428
(A)(11) of section 109.572 of the Revised Code. Notwithstanding	3429
division (J) of section 121.08 of the Revised Code, the	3430
superintendent of real estate shall request that criminal record	3431
information from the federal bureau of investigation be obtained	3432
as part of the criminal records check. Any fee required under	3433
division (C)(3) of section 109.572 of the Revised Code shall be	3434
paid by the applicant.	3435

(2) For purposes of providing funding for the real estate	3436
appraiser recovery fund established by section 4763.16 of the	3437
Revised Code, the real estate appraiser board shall levy an	3438
assessment against each person issued an initial certificate,	3439
registration, or license and against current licensees,	3440
registrants, and certificate holders, as required by board rule.	3441
The assessment is in addition to the application and examination	3442
fees for initial applicants required by division (A)(1) of this	3443
section and the renewal fees required for current certificate	3444
holders, registrants, and licensees. The superintendent of real	3445
estate shall deposit the assessment into the state treasury to the	3446
credit of the real estate appraiser recovery fund. The assessment	3447
for initial certificate holders, registrants, and licensees shall	3448
be paid prior to the issuance of a certificate, registration, or	3449
license, and for current certificate holders, registrants, and	3450
licensees, at the time of renewal.	3451

(B) An applicant for an initial general real estate appraiser	3452
certificate shall possess at least thirty months of experience in	3453
real estate appraisal, or any equivalent experience the board	3454
prescribes. An applicant for a residential real estate appraiser	3455
certificate or residential real estate appraiser license shall	3456
possess at least two years of experience in real estate appraisal,	3457
or any equivalent experience the board prescribes. In addition to	3458
any other information required by the board, the applicant shall	3459
furnish, under oath, a detailed listing of the appraisal reports	3460
or file memoranda for each year for which experience is claimed	3461
and, upon request of the superintendent or the board, shall make	3462
available for examination a sample of the appraisal reports	3463
prepared by the applicant in the course of the applicant's	3464
practice.	3465

(C)(1) Except as provided in division (C)(2) of this section,	3466
an applicant for an initial certificate, registration, or license	3467
shall be at least eighteen years of age, honest, truthful, and of	3468
good reputation and shall present satisfactory evidence to the	3469
superintendent of the following, as appropriate:	3470

(a) If the applicant is seeking a state-certified general	3471
real estate appraiser certificate, that the applicant has	3472
successfully completed at least one hundred sixty-five classroom	3473
hours of courses in subjects related to real estate appraisal,	3474
including at least one course devoted exclusively to federal,	3475
state, and municipal fair housing law, presented by a nationally	3476
recognized appraisal organization, an institution of higher	3477
education, a career school registered by the state board of career	3478
colleges and schools, a state or federal commission or agency, or	3479
any other organization that represents the interests of financial	3480
institutions or real estate brokers, appraisers, or agents and	3481
that provides appraisal education, plus fifteen classroom hours	3482
related to standards of professional practice and the provisions	3483
of this chapter;	3484

(b) If the applicant is seeking a state-certified residential	3485
real estate appraiser certificate, that the applicant has	3486
successfully completed at least one hundred five classroom hours	3487
of courses in subjects related to real estate appraisal, including	3488
at least one course devoted exclusively to federal, state, and	3489
municipal fair housing law, presented by a nationally recognized	3490
appraisal organization, an institution of higher education, a	3491
career school registered by the state board of career colleges and	3492
schools, or any other organization that represents the interests	3493
of financial institutions or real estate brokers, appraisers, or	3494
agents and that provides appraisal education, plus fifteen	3495
classroom hours related to standards of professional practice and	3496
the provisions of this chapter;	3497

(c) If the applicant is seeking a state-licensed residential	3498
real estate appraiser license, that the applicant has successfully	3499
completed at least seventy-five classroom hours of courses in	3500
subjects related to real estate appraisal, including at least one	3501
course devoted exclusively to federal, state, and municipal fair	3502
housing law, presented by a nationally recognized appraisal	3503
organization, an institution of higher education, a career school	3504
registered by the state board of career colleges and schools, a	3505
state or federal commission or agency, or any other organization	3506
that represents the interests of financial institutions or real	3507
estate brokers, appraisers, or agents and that provides appraisal	3508
education, plus fifteen classroom hours related to standards of	3509
professional practice and the provisions of this chapter;	3510

(d) If the applicant is seeking a state-registered real	3511
estate appraiser assistant registration, that the applicant has	3512
successfully completed at least seventy-five classroom hours of	3513
courses in subjects related to real estate appraisal, including at	3514
least one course devoted exclusively to federal, state, and	3515
municipal fair housing law, presented by a nationally recognized	3516
appraisal organization, an institution of higher education, a	3517
career school registered by the state board of career colleges and	3518
schools, or any other organization that represents the interests	3519
of financial institutions or real estate brokers, appraisers, or	3520
agents, and that provides appraisal education that included at	3521
least fifteen classroom hours of instruction related to standards	3522
of professional practice and the requirements of this chapter and	3523
the rules adopted under this chapter.	3524

(2) Each person who files an application for an initial	3525
certificate or license within one year of the date established by	3526
the board as the first date on which applications will be accepted	3527
under this section, which date shall be no later than September 1,	3528
1990, and who, at the time of filing that application, does not	3529
satisfy the educational requirements for the certification or	3530
licensure sought of either division (C)(1)(a) or (b) of this	3531
section is exempt from those educational requirements for the term	3532
of the initial certification or licensure. In applying for a	3533
renewal certificate or license pursuant to section 4763.06 of the	3534
Revised Code, a certificate holder or licensee who was exempted	3535
from the educational requirements of division (C)(1)(a) or (b) of	3536
this section when applying for the initial certificate or license	3537
shall present satisfactory evidence to the superintendent that the	3538
certificate holder or licensee has completed the educational	3539
requirements for the certification or licensure to be renewed of	3540
one of those divisions before the renewal certificate or license	3541
may be issued.	3542

(D) An applicant for an initial general real estate appraiser	3543
or residential real estate appraiser certificate or residential	3544
real estate appraiser license shall take and successfully complete	3545
a written examination in order to qualify for the certificate or	3546
license. The examination shall require the applicant to	3547
demonstrate all of the following:	3548

(1) Appropriate knowledge of technical terms commonly used in	3549
or related to real estate appraising, appraisal report writing,	3550
and the economic concepts applicable to real estate;	3551

(2) Understanding of the principles of land economics, real	3552
estate appraisal processes, and problems likely to be encountered	3553
in gathering, interpreting, and processing of data in carrying out	3554
appraisal disciplines;	3555

(3) Understanding of the standards for the development and	3556
communication of real estate appraisals as provided in this	3557
chapter and the rules adopted thereunder;	3558

(4) Knowledge of theories of depreciation, cost estimating,	3559
methods of capitalization, direct sales comparison, and the	3560
mathematics of real estate appraisal that are appropriate for the	3561
certification or licensure for which the applicant has applied;	3562

(5) Knowledge of other principles and procedures as	3563
appropriate for the certification or license;	3564

(6) Basic understanding of real estate law;

3565

(7) Understanding of the types of misconduct for which	3566
disciplinary proceedings may be initiated against a certificate	3567
holder and licensee.	3568

(E)(1) A nonresident, natural person of this state who has	3569
complied with this section may obtain a certificate, registration,	3570
or license. The board shall adopt rules relating to the	3571
certification, registration, and licensure of a nonresident	3572
applicant whose state of residence the board determines to have	3573
certification, registration, or licensure requirements that are	3574
substantially similar to those set forth in this chapter and the	3575
rules adopted thereunder.	3576

(2) The board shall recognize on a temporary basis a	3577
certification or license issued in another state and shall	3578
register on a temporary basis an appraiser who is certified or	3579
licensed in another state if all of the following apply:	3580

(a) The temporary registration is to perform an appraisal	3581
assignment that is part of a federally related transaction;.	3582

(b) The appraiser's business in this state is of a temporary	3583
nature;.	3584

(c) The appraiser registers with the board pursuant to this	3585
division.	3586

An appraiser who is certified or licensed in another state	3587
shall register with the board for temporary practice before	3588
performing an appraisal assignment in this state in connection	3589
with a federally related transaction.	3590

The board shall adopt rules relating to registration for the	3591
temporary recognition of certification and licensure of appraisers	3592
from another state. The registration for temporary recognition of	3593
certified or licensed appraisers from another state shall not	3594
authorize completion of more than one appraisal assignment in this	3595
state. The board shall not issue more than two registrations for	3596
temporary practice to any one applicant in any calendar year.	3597

(3) In addition to any other information required to be	3598
submitted with the nonresident applicant's or appraiser's	3599
application for a certificate, registration, license, or temporary	3600
recognition of a certificate or license, each nonresident	3601
applicant or appraiser shall submit a statement consenting to the	3602
service of process upon the nonresident applicant or appraiser by	3603
means of delivering that process to the secretary of state if, in	3604
an action against the applicant, certificate holder, registrant,	3605
or licensee arising from the applicant's, certificate holder's,	3606
registrant's, or licensee's activities as a certificate holder,	3607
registrant, or licensee, the plaintiff, in the exercise of due	3608
diligence, cannot effect personal service upon the applicant,	3609
certificate holder, registrant, or licensee.	3610

(F) The superintendent shall not issue a certificate,	3611
registration, or license to, or recognize on a temporary basis an	3612
appraiser from another state that is a corporation, partnership,	3613
or association. This prohibition shall not be construed to prevent	3614
a certificate holder or licensee from signing an appraisal report	3615
on behalf of a corporation, partnership, or association.	3616

(G) Every person licensed, registered, or certified under	3617
this chapter shall notify the superintendent, on a form provided	3618
by the superintendent, of a change in the address of the	3619
licensee's, registrant's, or certificate holder's principal place	3620
of business or residence within thirty days of the change. If a	3621
licensee's, registrant's, or certificate holder's license,	3622
registration, or certificate is revoked or not renewed, the	3623
licensee, registrant, or certificate holder immediately shall	3624
return the annual and any renewal certificate, registration, or	3625
license to the superintendent.	3626

(H)(1) The superintendent shall not issue a certificate,	3627
registration, or license to any person, or recognize on a	3628
temporary basis an appraiser from another state, who does not meet	3629
applicable minimum criteria for state certification, registration,	3630
or licensure prescribed by federal law or rule.	3631

(2) The superintendent shall not issue a general real estate	3632
appraiser certificate, residential real estate appraiser	3633
certificate, residential real estate appraiser license, or real	3634
estate appraiser assistant registration to any person who has been	3635
convicted of or pleaded guilty to any criminal offense involving	3636
theft, receiving stolen property, embezzlement, forgery, fraud,	3637
passing bad checks, money laundering, or drug trafficking, or any	3638
criminal offense involving money or securities, including a	3639
violation of an existing or former law of this state, any other	3640
state, or the United States that substantially is equivalent to	3641
such an offense. However, if the applicant has pleaded guilty to	3642
or been convicted of such an offense, the superintendent shall not	3643
consider the offense if the applicant has proven to the	3644
superintendent, by a preponderance of the evidence, that the	3645
applicant's activities and employment record since the conviction	3646
show that the applicant is honest, truthful, and of good	3647
reputation, and there is no basis in fact for believing that the	3648
applicant will commit such an offense again.	3649

Sec. 4763.06.  (A) A person licensed, registered, or	3650
certified under this chapter may obtain a renewal certificate,	3651
registration, or license by filing a renewal application with and	3652
paying the renewal fee set forth in section 4763.09 of the Revised	3653
Code and any amount assessed pursuant to division (A)(2) of	3654
section 4763.05 of the Revised Code to the superintendent of real	3655
estate. The renewal application shall include a statement, signed	3656
by the certificate holder, registrant, or licensee, that the	3657
certificate holder, registrant, or licensee has not, during the	3658
immediately preceding twelve-month period, been convicted of or	3659
pleaded guilty to any criminal offense described in division	3660
(H)(2) of section 4763.05 of the Revised Code. The certificate	3661
holder, registrant, or licensee shall file the renewal application	3662
at least thirty days, but no earlier than one hundred twenty days,	3663
prior to expiration of the certificate holder's, registrant's, or	3664
licensee's current certificate, registration, or license. A	3665
certificate holder or licensee who applies for a renewal	3666
certificate or license who, pursuant to division (C)(2) of section	3667
4763.05 of the Revised Code, was exempted from the educational	3668
requirements of division (C)(1) of that section during the term of	3669
the initial certificate or license, as a condition of renewal,	3670
also shall present satisfactory evidence of having completed the	3671
appropriate educational requirements of either division (C)(1)(a)	3672
or (b) of that section since the effective date of the initial	3673
certificate or license.	3674

(B) A certificate holder, registrant, or licensee who fails	3675
to renew a certificate, registration, or license prior to its	3676
expiration is ineligible to obtain a renewal certificate,	3677
registration, or license and shall comply with section 4763.05 of	3678
the Revised Code in order to regain his certification or	3679
licensure, except that a certificate holder, registrant, or	3680
licensee may, within three months after the expiration of the	3681
certificate holder's, registrant's, or licensee's certificate,	3682
registration, or license, renew the certificate, registration, or	3683
license without having to comply with section 4763.05 of the	3684
Revised Code by payment of all fees for renewal and payment of the	3685
late filing fee set forth in section 4763.09 of the Revised Code.	3686
A certificate holder, registrant, or licensee who applies for late	3687
renewal of the certificate holder's, registrant's, or licensee's	3688
certificate, registration, or license may engage in all activities	3689
permitted by the certification, registration, or license being	3690
renewed for the three-month period following the certificate's,	3691
registration's, or license's normal expiration date.	3692

Sec. 4763.12.  (A) A person licensed or certified under this	3693
chapter may be retained or employed to act as a disinterested	3694
third party in rendering an unbiased valuation or analysis of real	3695
estate or to provide specialized services to facilitate the client	3696
or employer's objectives. An appraisal or appraisal report	3697
rendered by a certificate holder or licensee shall comply with	3698
this chapter. A certified appraisal or certified appraisal report	3699
represents to the public that it satisfies the standards set forth	3700
in this chapter.	3701

(B) No certificate holder or licensee shall accept a fee for	3702
an appraisal assignment that is contingent, in whole or in part,	3703
upon the reporting of a predetermined estimate, analysis, or	3704
opinion or upon the opinion, conclusion, or valuation reached, or	3705
upon consequences resulting from the appraisal assignment. A	3706
certificate holder or licensee who enters into an agreement to	3707
provide specialized services may charge a fixed fee or a fee that	3708
is contingent upon the results achieved by the specialized	3709
services, provided that this fact is clearly stated in each oral	3710
report rendered pursuant to the agreement, and the existence of	3711
the contingent fee arrangement is clearly stated in a prominent	3712
place on each written report and in each letter of transmittal and	3713
certification statement made by the certificate holder or licensee	3714
within that report.	3715

(C) Every written report rendered by a certificate holder or	3716
licensee in conjunction with an appraisal assignment or	3717
specialized service performed shall include the following	3718
information:	3719

(1) The name of the certificate holder or licensee;

3720

(2) The class of certification or licensure held by and the	3721
certification or licensure number of the certificate holder or	3722
licensee;	3723

(3) Whether the appraisal or specialized service is performed	3724
within the scope of the certificate holder's or licensee's	3725
certification or licensure;	3726

(4) Whether the appraisal or specialized service is provided	3727
by a certificate holder or licensee as a disinterested and	3728
unbiased third party or as a person on an interested and biased	3729
basis or as an interested third party on a contingent fee basis;	3730

(5) The signature of the person preparing and reporting the	3731
appraisal or specialized service.	3732

If the certificate holder or licensee provides an oral real	3733
estate appraisal or specialized service, the certificate holder or	3734
licensee shall send, within seven days of providing the oral	3735
report, a form to the client containing the appropriate	3736
information specified in this division and the rules adopted	3737
pursuant theretoto this division.	3738

(D) Nothing in this chapter shall be construed as requiring a	3739
certificate holder or licensee to provide a client with a copy of	3740
any writing prepared in support of an oral appraisal report except	3741
as provided in division (C) of this section or as agreed to	3742
between the certificate holder or licensee and the certificate	3743
holder's or licensee's client.	3744

(E) No person, directly or indirectly, shall knowingly	3745
compensate, instruct, induce, coerce, or intimidate, or attempt to	3746
compensate, instruct, induce, coerce, or intimidate, a certificate	3747
holder or licensee for the purpose of corrupting or improperly	3748
influencing the independent judgment of the certificate holder or	3749
licensee with respect to the value of the dwelling offered as	3750
security for repayment of a mortgage loan.	3751

Sec. 4763.13.  (A) In engaging in appraisal activities, a	3752
person certified, registered, or licensed under this chapter shall	3753
comply with the applicable standards prescribed by the board of	3754
governors of the federal reserve system, the federal deposit	3755
insurance corporation, the comptroller of the currency, the office	3756
of thrift supervision, the national credit union administration,	3757
and the resolution trust corporation in connection with federally	3758
related transactions under the jurisdiction of the applicable	3759
agency or instrumentality. A certificate holder, registrant, and	3760
licensee also shall comply with the uniform standards of	3761
professional appraisal practice, as adopted by the appraisal	3762
standards board of the appraisal foundation and such other	3763
standards adopted by the real estate appraiser board, to the	3764
extent that those standards do not conflict with applicable	3765
federal standards in connection with a particular federally	3766
related transaction.	3767

(B) The terms "state-licensed residential real estate	3768
appraiser," "state-certified residential real estate appraiser,"	3769
"state-certified general real estate appraiser," and	3770
"state-registered real estate appraiser assistant" shall be used	3771
to refer only to those persons who have been issued the applicable	3772
certificate, registration, or license or renewal certificate,	3773
registration, or license pursuant to this chapter. None of these	3774
terms shall be used following or in connection with the name or	3775
signature of a partnership, corporation, or association or in a	3776
manner that could be interpreted as referring to a person other	3777
than the person to whom the certificate, registration, or license	3778
has been issued. No person shall fail to comply with this	3779
division.	3780

(C) No person, other than a certificate holder, a registrant,	3781
or a licensee, shall assume or use a title, designation, or	3782
abbreviation that is likely to create the impression that the	3783
person possesses certification, registration, or licensure under	3784
this chapter, provided that professional designations containing	3785
the term "certified appraiser" and being used on or before July	3786
26, 1989, shall not be construed as being misleading under this	3787
division. No person other than a person certified or licensed	3788
under this chapter shall describe or refer to an appraisal or	3789
other evaluation of real estate located in this state as being	3790
certified.	3791

(D) The terms "state-certified or state-licensed real estate	3792
appraisal report," "state-certified or state-licensed appraisal	3793
report," or "state-certified or state-licensed appraisal" shall be	3794
used to refer only to those real estate appraisals conducted by a	3795
certificate holder or licensee as a disinterested and unbiased	3796
third party provided that the certificate holder or licensee	3797
provides certification with the appraisal and provided further	3798
that if a licensee is providing the appraisal, such terms shall	3799
only be used if the licensee is acting within the scope of the	3800
licensee's license. No person shall fail to comply with this	3801
division.	3802

(E) Nothing in this chapter shall preclude a partnership,	3803
corporation, or association which employs or retains the services	3804
of a certificate holder or licensee to advertise that the	3805
partnership, corporation, or association offers state-certified or	3806
state-licensed appraisals through a certificate holder or licensee	3807
if the advertisement clearly states such fact in accordance with	3808
guidelines for such advertisements established by rule of the real	3809
estate appraiser board.	3810

(F) NothingExcept as otherwise provided in section 4763.19	3811
of the Revised Code, nothing in this chapter shall preclude a	3812
person who is not licensed or certified under this chapter from	3813
appraising real estate for compensation.	3814

Sec. 4763.19.  (A) Subject to division (B) of this section,	3815
no person shall perform a real estate appraisal for a mortgage	3816
loan if the person is not licensed or certified under this chapter	3817
to do the appraisal.	3818

(B) Division (A) of this section does not apply to a lender	3819
using a market analysis or price opinion, an internal valuation	3820
analysis, or an automated valuation model or report based on an	3821
automated valuation model, and any person providing that report to	3822
the lender, in performing a valuation for purposes of a loan	3823
application, as long as the lender does both of the following:	3824

(1) Gives the consumer loan applicant a copy of any written	3825
market analysis or price opinion or valuation report based on an	3826
automated valuation model;	3827

(2) Includes a disclaimer on the consumer's copy specifying	3828
that the valuation used for purposes of the application was	3829
obtained from a market analysis or price opinion or automated	3830
valuation model report and not from a person licensed or certified	3831
under this chapter.	3832

Sec. 4763.99. (A) Whoever violates division (B) of section	3833
4763.12 or, division (B), (C), or (D) of section 4763.13, or	3834
section 4763.19 of the Revised Code is guilty of a misdemeanor of	3835
the first degree.	3836

(B) Whoever violates division (E) of section 4763.12 of the	3837
Revised Code is guilty of a felony of the fifth degree.	3838

Section 2. That existing sections 109.572, 1321.57, 1322.02,	3839
1322.03, 1322.031, 1322.04, 1322.041, 1322.051, 1322.06, 1322.061,	3840
1322.062, 1322.07, 1322.10, 1322.11, 1322.99, 1343.011, 1345.01,	3841
1345.02, 1345.03, 1345.05, 1345.07, 1345.09, 1349.25, 1349.27,	3842
1349.31, 3953.23, 4735.05, 4763.03, 4763.05, 4763.06, 4763.12,	3843
4763.13, and 4763.99 of the Revised Code are hereby repealed.	3844

Section 3.  (A) Sections 1 and 2 of this act shall take	3845
effect January 1, 2007.	3846

(B) It is the intent of the General Assembly that the	3847
Attorney General, upon this act's effective date, begin the	3848
rulemaking process for purposes of division (B) of section	3849
1345.031 of the Revised Code, as enacted by this act. Rules so	3850
adopted by the Attorney General shall not, however, take effect	3851
until January 1, 2007.	3852