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To amend sections 109.572 and 1321.52 and to enact | 1 |
sections 1323.01 to 1323.11, 1323.20 to 1323.36, | 2 |
1323.361, 1323.37, 1323.99, 2303.33, 2308.01, | 3 |
2308.02, 2308.03, and 2308.04 of the Revised | 4 |
Code to declare a six-month moratorium on | 5 |
mortgage foreclosures, to provide courts | 6 |
authority to modify mortgage payments on | 7 |
foreclosures of subprime mortgages, to require | 8 |
registration of residential mortgage servicers, | 9 |
to regulate residential mortgage servicers, to | 10 |
adopt procedures and requirements related to | 11 |
residential foreclosure actions, to adopt civil | 12 |
and criminal penalties for violations of the | 13 |
bill's provisions, to terminate provisions of | 14 |
this act six months after its effective date by | 15 |
repealing section 2308.03 of the Revised Code on | 16 |
that date, to terminate certain provisions of | 17 |
this act three years after its effective date by | 18 |
repealing section 2308.04 of the Revised Code on | 19 |
that date, and to declare an emergency. | 20 |
Section 1. That sections 109.572 and 1321.52 be amended and | 21 |
sections 1323.01, 1323.02, 1323.04, 1323.05, 1323.06, 1323.07, | 22 |
1323.08, 1323.09, 1323.10, 1323.11, 1323.20, 1323.21, 1323.22, | 23 |
1323.23, 1323.24, 1323.25, 1323.26, 1323.27, 1323.28, 1323.29, | 24 |
1323.30, 1323.31, 1323.32, 1323.33, 1323.34, 1323.35, 1323.36, | 25 |
1323.361, 1323.37, 1323.99, 2303.33, 2308.01, 2308.02, 2308.03, | 26 |
and 2308.04 of the Revised Code be enacted to read as follows: | 27 |
Sec. 109.572. (A)(1) Upon receipt of a request pursuant to | 28 |
section 121.08, 3301.32, 3301.541, or 3319.39 of the Revised | 29 |
Code, a completed form prescribed pursuant to division (C)(1) of | 30 |
this section, and a set of fingerprint impressions obtained in | 31 |
the manner described in division (C)(2) of this section, the | 32 |
superintendent of the bureau of criminal identification and | 33 |
investigation shall conduct a criminal records check in the | 34 |
manner described in division (B) of this section to determine | 35 |
whether any information exists that indicates that the person who | 36 |
is the subject of the request previously has been convicted of or | 37 |
pleaded guilty to any of the following: | 38 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 39 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, | 40 |
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05, | 41 |
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, | 42 |
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, | 43 |
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25, | 44 |
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, | 45 |
2925.06, or 3716.11 of the Revised Code, felonious sexual | 46 |
penetration in violation of former section 2907.12 of the Revised | 47 |
Code, a violation of section 2905.04 of the Revised Code as it | 48 |
existed prior to July 1, 1996, a violation of section 2919.23 of | 49 |
the Revised Code that would have been a violation of section | 50 |
2905.04 of the Revised Code as it existed prior to July 1, 1996, | 51 |
had the violation been committed prior to that date, or a | 52 |
violation of section 2925.11 of the Revised Code that is not a | 53 |
minor drug possession offense; | 54 |
(b) A violation of an existing or former law of this state, | 55 |
any other state, or the United States that is substantially | 56 |
equivalent to any of the offenses listed in division (A)(1)(a) of | 57 |
this section. | 58 |
(2) On receipt of a request pursuant to section 5123.081 of | 59 |
the Revised Code with respect to an applicant for employment in | 60 |
any position with the department of mental retardation and | 61 |
developmental disabilities, pursuant to section 5126.28 of the | 62 |
Revised Code with respect to an applicant for employment in any | 63 |
position with a county board of mental retardation and | 64 |
developmental disabilities, or pursuant to section 5126.281 of the | 65 |
Revised Code with respect to an applicant for employment in a | 66 |
direct services position with an entity contracting with a county | 67 |
board for employment, a completed form prescribed pursuant to | 68 |
division (C)(1) of this section, and a set of fingerprint | 69 |
impressions obtained in the manner described in division (C)(2) of | 70 |
this section, the superintendent of the bureau of criminal | 71 |
identification and investigation shall conduct a criminal records | 72 |
check. The superintendent shall conduct the criminal records check | 73 |
in the manner described in division (B) of this section to | 74 |
determine whether any information exists that indicates that the | 75 |
person who is the subject of the request has been convicted of or | 76 |
pleaded guilty to any of the following: | 77 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 78 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, | 79 |
2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, | 80 |
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, | 81 |
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, | 82 |
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, | 83 |
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, | 84 |
2925.03, or 3716.11 of the Revised Code; | 85 |
(b) An existing or former municipal ordinance or law of this | 86 |
state, any other state, or the United States that is substantially | 87 |
equivalent to any of the offenses listed in division (A)(2)(a) of | 88 |
this section. | 89 |
(3) On receipt of a request pursuant to section 173.27, | 90 |
173.394, 3712.09, 3721.121, or 3722.151 of the Revised Code, a | 91 |
completed form prescribed pursuant to division (C)(1) of this | 92 |
section, and a set of fingerprint impressions obtained in the | 93 |
manner described in division (C)(2) of this section, the | 94 |
superintendent of the bureau of criminal identification and | 95 |
investigation shall conduct a criminal records check with respect | 96 |
to any person who has applied for employment in a position for | 97 |
which a criminal records check is required by those sections. The | 98 |
superintendent shall conduct the criminal records check in the | 99 |
manner described in division (B) of this section to determine | 100 |
whether any information exists that indicates that the person who | 101 |
is the subject of the request previously has been convicted of or | 102 |
pleaded guilty to any of the following: | 103 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 104 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, | 105 |
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05, | 106 |
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31, | 107 |
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, | 108 |
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, | 109 |
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36, | 110 |
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13, | 111 |
2925.22, 2925.23, or 3716.11 of the Revised Code; | 112 |
(b) An existing or former law of this state, any other state, | 113 |
or the United States that is substantially equivalent to any of | 114 |
the offenses listed in division (A)(3)(a) of this section. | 115 |
(4) On receipt of a request pursuant to section 3701.881 of | 116 |
the Revised Code with respect to an applicant for employment with | 117 |
a home health agency as a person responsible for the care, | 118 |
custody, or control of a child, a completed form prescribed | 119 |
pursuant to division (C)(1) of this section, and a set of | 120 |
fingerprint impressions obtained in the manner described in | 121 |
division (C)(2) of this section, the superintendent of the bureau | 122 |
of criminal identification and investigation shall conduct a | 123 |
criminal records check. The superintendent shall conduct the | 124 |
criminal records check in the manner described in division (B) of | 125 |
this section to determine whether any information exists that | 126 |
indicates that the person who is the subject of the request | 127 |
previously has been convicted of or pleaded guilty to any of the | 128 |
following: | 129 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 130 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, | 131 |
2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04, | 132 |
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21, | 133 |
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, | 134 |
2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22, | 135 |
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, | 136 |
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a | 137 |
violation of section 2925.11 of the Revised Code that is not a | 138 |
minor drug possession offense; | 139 |
(b) An existing or former law of this state, any other state, | 140 |
or the United States that is substantially equivalent to any of | 141 |
the offenses listed in division (A)(4)(a) of this section. | 142 |
(5) On receipt of a request pursuant to section 5111.032, | 143 |
5111.033, or 5111.034 of the Revised Code, a completed form | 144 |
prescribed pursuant to division (C)(1) of this section, and a set | 145 |
of fingerprint impressions obtained in the manner described in | 146 |
division (C)(2) of this section, the superintendent of the bureau | 147 |
of criminal identification and investigation shall conduct a | 148 |
criminal records check. The superintendent shall conduct the | 149 |
criminal records check in the manner described in division (B) of | 150 |
this section to determine whether any information exists that | 151 |
indicates that the person who is the subject of the request | 152 |
previously has been convicted of, has pleaded guilty to, or has | 153 |
been found eligible for intervention in lieu of conviction for | 154 |
any of the following: | 155 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 156 |
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, | 157 |
2903.34, 2905.01, 2905.02, 2905.05, 2905.11, 2905.12, 2907.02, | 158 |
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, | 159 |
2907.21, 2907.22, 2907.23, 2907.24, 2907.25, 2907.31, 2907.32, | 160 |
2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, | 161 |
2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, | 162 |
2913.40, 2913.43, 2913.47, 2913.48, 2913.49, 2913.51, 2917.11, | 163 |
2919.12, 2919.22, 2919.24, 2919.25, 2921.13, 2921.36, 2923.02, | 164 |
2923.12, 2923.13, 2923.161, 2923.32, 2925.02, 2925.03, 2925.04, | 165 |
2925.05, 2925.06, 2925.11, 2925.13, 2925.14, 2925.22, 2925.23, or | 166 |
3716.11 of the Revised Code, felonious sexual penetration in | 167 |
violation of former section 2907.12 of the Revised Code, a | 168 |
violation of section 2905.04 of the Revised Code as it existed | 169 |
prior to July 1, 1996, a violation of section 2919.23 of the | 170 |
Revised Code that would have been a violation of section 2905.04 | 171 |
of the Revised Code as it existed prior to July 1, 1996, had the | 172 |
violation been committed prior to that date; | 173 |
(b) An existing or former law of this state, any other state, | 174 |
or the United States that is substantially equivalent to any of | 175 |
the offenses listed in division (A)(5)(a) of this section. | 176 |
(6) On receipt of a request pursuant to section 3701.881 of | 177 |
the Revised Code with respect to an applicant for employment with | 178 |
a home health agency in a position that involves providing direct | 179 |
care to an older adult, a completed form prescribed pursuant to | 180 |
division (C)(1) of this section, and a set of fingerprint | 181 |
impressions obtained in the manner described in division (C)(2) of | 182 |
this section, the superintendent of the bureau of criminal | 183 |
identification and investigation shall conduct a criminal records | 184 |
check. The superintendent shall conduct the criminal records check | 185 |
in the manner described in division (B) of this section to | 186 |
determine whether any information exists that indicates that the | 187 |
person who is the subject of the request previously has been | 188 |
convicted of or pleaded guilty to any of the following: | 189 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 190 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, | 191 |
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05, | 192 |
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31, | 193 |
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, | 194 |
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, | 195 |
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36, | 196 |
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13, | 197 |
2925.22, 2925.23, or 3716.11 of the Revised Code; | 198 |
(b) An existing or former law of this state, any other state, | 199 |
or the United States that is substantially equivalent to any of | 200 |
the offenses listed in division (A)(6)(a) of this section. | 201 |
(7) When conducting a criminal records check upon a request | 202 |
pursuant to section 3319.39 of the Revised Code for an applicant | 203 |
who is a teacher, in addition to the determination made under | 204 |
division (A)(1) of this section, the superintendent shall | 205 |
determine whether any information exists that indicates that the | 206 |
person who is the subject of the request previously has been | 207 |
convicted of or pleaded guilty to any offense specified in section | 208 |
3319.31 of the Revised Code. | 209 |
(8) On receipt of a request pursuant to section 2151.86 of | 210 |
the Revised Code, a completed form prescribed pursuant to | 211 |
division (C)(1) of this section, and a set of fingerprint | 212 |
impressions obtained in the manner described in division (C)(2) | 213 |
of this section, the superintendent of the bureau of criminal | 214 |
identification and investigation shall conduct a criminal records | 215 |
check in the manner described in division (B) of this section to | 216 |
determine whether any information exists that indicates that the | 217 |
person who is the subject of the request previously has been | 218 |
convicted of or pleaded guilty to any of the following: | 219 |
(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03, | 220 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21, | 221 |
2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02, | 222 |
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, | 223 |
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, | 224 |
2907.322, 2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24, | 225 |
2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02, | 226 |
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, | 227 |
2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, or 3716.11 | 228 |
of the Revised Code, a violation of section 2905.04 of the | 229 |
Revised Code as it existed prior to July 1, 1996, a violation of | 230 |
section 2919.23 of the Revised Code that would have been a | 231 |
violation of section 2905.04 of the Revised Code as it existed | 232 |
prior to July 1, 1996, had the violation been committed prior to | 233 |
that date, a violation of section 2925.11 of the Revised Code | 234 |
that is not a minor drug possession offense, two or more OVI or | 235 |
OVUAC violations committed within the three years immediately | 236 |
preceding the submission of the application or petition that is | 237 |
the basis of the request, or felonious sexual penetration in | 238 |
violation of former section 2907.12 of the Revised Code; | 239 |
(b) A violation of an existing or former law of this state, | 240 |
any other state, or the United States that is substantially | 241 |
equivalent to any of the offenses listed in division (A)(8)(a) of | 242 |
this section. | 243 |
(9) Upon receipt of a request pursuant to section 5104.012 | 244 |
or 5104.013 of the Revised Code, a completed form prescribed | 245 |
pursuant to division (C)(1) of this section, and a set of | 246 |
fingerprint impressions obtained in the manner described in | 247 |
division (C)(2) of this section, the superintendent of the bureau | 248 |
of criminal identification and investigation shall conduct a | 249 |
criminal records check in the manner described in division (B) of | 250 |
this section to determine whether any information exists that | 251 |
indicates that the person who is the subject of the request has | 252 |
been convicted of or pleaded guilty to any of the following: | 253 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 254 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22, | 255 |
2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, | 256 |
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, | 257 |
2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, | 258 |
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04, | 259 |
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32, | 260 |
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44, | 261 |
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2919.12, | 262 |
2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 2923.12, | 263 |
2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or | 264 |
3716.11 of the Revised Code, felonious sexual penetration in | 265 |
violation of former section 2907.12 of the Revised Code, a | 266 |
violation of section 2905.04 of the Revised Code as it existed | 267 |
prior to July 1, 1996, a violation of section 2919.23 of the | 268 |
Revised Code that would have been a violation of section 2905.04 | 269 |
of the Revised Code as it existed prior to July 1, 1996, had the | 270 |
violation been committed prior to that date, a violation of | 271 |
section 2925.11 of the Revised Code that is not a minor drug | 272 |
possession offense, a violation of section 2923.02 or 2923.03 of | 273 |
the Revised Code that relates to a crime specified in this | 274 |
division, or a second violation of section 4511.19 of the | 275 |
Revised Code within five years of the date of application for | 276 |
licensure or certification. | 277 |
(b) A violation of an existing or former law of this state, | 278 |
any other state, or the United States that is substantially | 279 |
equivalent to any of the offenses or violations described in | 280 |
division (A)(9)(a) of this section. | 281 |
(10) Upon receipt of a request pursuant to section 5153.111 | 282 |
of the Revised Code, a completed form prescribed pursuant to | 283 |
division (C)(1) of this section, and a set of fingerprint | 284 |
impressions obtained in the manner described in division (C)(2) of | 285 |
this section, the superintendent of the bureau of criminal | 286 |
identification and investigation shall conduct a criminal records | 287 |
check in the manner described in division (B) of this section to | 288 |
determine whether any information exists that indicates that the | 289 |
person who is the subject of the request previously has been | 290 |
convicted of or pleaded guilty to any of the following: | 291 |
(a) A violation of section 2903.01, 2903.02, 2903.03, | 292 |
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, | 293 |
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05, | 294 |
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, | 295 |
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02, | 296 |
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22, | 297 |
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, | 298 |
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code, | 299 |
felonious sexual penetration in violation of former section | 300 |
2907.12 of the Revised Code, a violation of section 2905.04 of the | 301 |
Revised Code as it existed prior to July 1, 1996, a violation of | 302 |
section 2919.23 of the Revised Code that would have been a | 303 |
violation of section 2905.04 of the Revised Code as it existed | 304 |
prior to July 1, 1996, had the violation been committed prior to | 305 |
that date, or a violation of section 2925.11 of the Revised Code | 306 |
that is not a minor drug possession offense; | 307 |
(b) A violation of an existing or former law of this state, | 308 |
any other state, or the United States that is substantially | 309 |
equivalent to any of the offenses listed in division (A)(10)(a) of | 310 |
this section. | 311 |
(11) On receipt of a request for a criminal records check | 312 |
from an individual pursuant to section 4749.03 or 4749.06 of the | 313 |
Revised Code, accompanied by a completed copy of the form | 314 |
prescribed in division (C)(1) of this section and a set of | 315 |
fingerprint impressions obtained in a manner described in division | 316 |
(C)(2) of this section, the superintendent of the bureau of | 317 |
criminal identification and investigation shall conduct a criminal | 318 |
records check in the manner described in division (B) of this | 319 |
section to determine whether any information exists indicating | 320 |
that the person who is the subject of the request has been | 321 |
convicted of or pleaded guilty to a felony in this state or in any | 322 |
other state. If the individual indicates that a firearm will be | 323 |
carried in the course of business, the superintendent shall | 324 |
require information from the federal bureau of investigation as | 325 |
described in division (B)(2) of this section. The superintendent | 326 |
shall report the findings of the criminal records check and any | 327 |
information the federal bureau of investigation provides to the | 328 |
director of public safety. | 329 |
(12) On receipt of a request pursuant to section 1321.37, | 330 |
1322.03, 1322.031, 1323.23, or 4763.05 of the Revised Code, a | 331 |
completed form prescribed pursuant to division (C)(1) of this | 332 |
section, and a set of fingerprint impressions obtained in the | 333 |
manner described in division (C)(2) of this section, the | 334 |
superintendent of the bureau of criminal identification and | 335 |
investigation shall conduct a criminal records check with | 336 |
respect to any person who has applied for a license, permit, or | 337 |
certification from the department of commerce or a division in | 338 |
the department. The superintendent shall conduct the criminal | 339 |
records check in the manner described in division (B) of this | 340 |
section to determine whether any information exists that | 341 |
indicates that the person who is the subject of the request | 342 |
previously has been convicted of or pleaded guilty to any of the | 343 |
following: a violation of section 2913.02, 2913.11, 2913.31, | 344 |
2913.51, or 2925.03 of the Revised Code; any other criminal | 345 |
offense involving theft, receiving stolen property, | 346 |
embezzlement, forgery, fraud, passing bad checks, money | 347 |
laundering, or drug trafficking, or any criminal offense | 348 |
involving money or securities, as set forth in Chapters 2909., | 349 |
2911., 2913., 2915., 2921., 2923., and 2925. of the Revised | 350 |
Code; or any existing or former law of this state, any other | 351 |
state, or the United States that is substantially equivalent to | 352 |
those offenses. | 353 |
(13) On receipt of a request for a criminal records check | 354 |
from the treasurer of state under section 113.041 of the Revised | 355 |
Code or from an individual under section 4701.08, 4715.101, | 356 |
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, | 357 |
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, | 358 |
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, | 359 |
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051, | 360 |
4762.031, 4762.06, or 4779.091 of the Revised Code, accompanied | 361 |
by a completed form prescribed under division (C)(1) of this | 362 |
section and a set of fingerprint impressions obtained in the | 363 |
manner described in division (C)(2) of this section, the | 364 |
superintendent of the bureau of criminal identification and | 365 |
investigation shall conduct a criminal records check in the | 366 |
manner described in division (B) of this section to determine | 367 |
whether any information exists that indicates that the person who | 368 |
is the subject of the request has been convicted of or pleaded | 369 |
guilty to any criminal offense in this state or any other state. | 370 |
The superintendent shall send the results of a check requested | 371 |
under section 113.041 of the Revised Code to the treasurer of | 372 |
state and shall send the results of a check requested under any of | 373 |
the other listed sections to the licensing board specified by the | 374 |
individual in the request. | 375 |
(14) On receipt of a request pursuant to section 1121.23, | 376 |
1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 of the Revised | 377 |
Code, a completed form prescribed pursuant to division (C)(1) of | 378 |
this section, and a set of fingerprint impressions obtained in the | 379 |
manner described in division (C)(2) of this section, the | 380 |
superintendent of the bureau of criminal identification and | 381 |
investigation shall conduct a criminal records check in the manner | 382 |
described in division (B) of this section to determine whether any | 383 |
information exists that indicates that the person who is the | 384 |
subject of the request previously has been convicted of or pleaded | 385 |
guilty to any criminal offense under any existing or former law of | 386 |
this state, any other state, or the United States. | 387 |
(15) Not later than thirty days after the date the | 388 |
superintendent receives a request of a type described in division | 389 |
(A)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), | 390 |
(12), or (14) of this section, the completed form, and the | 391 |
fingerprint impressions, the superintendent shall send the | 392 |
person, board, or entity that made the request any information, | 393 |
other than information the dissemination of which is prohibited | 394 |
by federal law, the superintendent determines exists with respect | 395 |
to the person who is the subject of the request that indicates | 396 |
that the person previously has been convicted of or pleaded | 397 |
guilty to any offense listed or described in division (A)(1), | 398 |
(2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), or | 399 |
(14) of this section, as appropriate. The superintendent shall | 400 |
send the person, board, or entity that made the request a copy of | 401 |
the list of offenses specified in division (A)(1), (2), (3), (4), | 402 |
(5), (6), (7), (8), (9), (10), (11), (12), or (14) of this | 403 |
section, as appropriate. If the request was made under section | 404 |
3701.881 of the Revised Code with regard to an applicant who may | 405 |
be both responsible for the care, custody, or control of a child | 406 |
and involved in providing direct care to an older adult, the | 407 |
superintendent shall provide a list of the offenses specified in | 408 |
divisions (A)(4) and (6) of this section. | 409 |
Not later than thirty days after the superintendent receives | 410 |
a request for a criminal records check pursuant to section 113.041 | 411 |
of the Revised Code, the completed form, and the fingerprint | 412 |
impressions, the superintendent shall send the treasurer of state | 413 |
any information, other than information the dissemination of which | 414 |
is prohibited by federal law, the superintendent determines exist | 415 |
with respect to the person who is the subject of the request that | 416 |
indicates that the person previously has been convicted of or | 417 |
pleaded guilty to any criminal offense in this state or any other | 418 |
state. | 419 |
(B) The superintendent shall conduct any criminal records | 420 |
check requested under section 113.041, 121.08, 173.27, 173.394, | 421 |
1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23, | 422 |
1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, | 423 |
3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061, | 424 |
4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28, | 425 |
4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296, | 426 |
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, | 427 |
4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06, | 428 |
4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012, | 429 |
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28, | 430 |
5126.281, or 5153.111 of the Revised Code as follows: | 431 |
(1) The superintendent shall review or cause to be reviewed | 432 |
any relevant information gathered and compiled by the bureau under | 433 |
division (A) of section 109.57 of the Revised Code that relates to | 434 |
the person who is the subject of the request, including, if the | 435 |
criminal records check was requested under section 113.041, | 436 |
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, | 437 |
1321.37, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, | 438 |
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, | 439 |
3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013, | 440 |
5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or | 441 |
5153.111 of the Revised Code, any relevant information contained | 442 |
in records that have been sealed under section 2953.32 of the | 443 |
Revised Code; | 444 |
(2) If the request received by the superintendent asks for | 445 |
information from the federal bureau of investigation, the | 446 |
superintendent shall request from the federal bureau of | 447 |
investigation any information it has with respect to the person | 448 |
who is the subject of the request, including fingerprint-based | 449 |
checks of national crime information databases as described in 42 | 450 |
U.S.C. 671 if the request is made pursuant to section 2151.86, | 451 |
5104.012, or 5104.013 of the Revised Code or if any other Revised | 452 |
Code section requires fingerprint-based checks of that nature, and | 453 |
shall review or cause to be reviewed any information the | 454 |
superintendent receives from that bureau. | 455 |
(3) The superintendent or the superintendent's designee may | 456 |
request criminal history records from other states or the federal | 457 |
government pursuant to the national crime prevention and privacy | 458 |
compact set forth in section 109.571 of the Revised Code. | 459 |
(C)(1) The superintendent shall prescribe a form to obtain | 460 |
the information necessary to conduct a criminal records check from | 461 |
any person for whom a criminal records check is requested under | 462 |
section 113.041 of the Revised Code or required by section | 463 |
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, | 464 |
1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32, | 465 |
3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, | 466 |
4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071, | 467 |
4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, | 468 |
4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202, | 469 |
4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, | 470 |
4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, | 471 |
4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034, | 472 |
5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. | 473 |
The form that the superintendent prescribes pursuant to this | 474 |
division may be in a tangible format, in an electronic format, | 475 |
or in both tangible and electronic formats. | 476 |
(2) The superintendent shall prescribe standard impression | 477 |
sheets to obtain the fingerprint impressions of any person for | 478 |
whom a criminal records check is requested under section 113.041 | 479 |
of the Revised Code or required by section 121.08, 173.27, | 480 |
173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, | 481 |
1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, | 482 |
3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101, | 483 |
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, | 484 |
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, | 485 |
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, | 486 |
4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, | 487 |
4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, | 488 |
5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081, | 489 |
5126.28, 5126.281, or 5153.111 of the Revised Code. Any person | 490 |
for whom a records check is requested under or required by any of | 491 |
those sections shall obtain the fingerprint impressions at a | 492 |
county sheriff's office, municipal police department, or any | 493 |
other entity with the ability to make fingerprint impressions on | 494 |
the standard impression sheets prescribed by the superintendent. | 495 |
The office, department, or entity may charge the person a | 496 |
reasonable fee for making the impressions. The standard | 497 |
impression sheets the superintendent prescribes pursuant to this | 498 |
division may be in a tangible format, in an electronic format, or | 499 |
in both tangible and electronic formats. | 500 |
(3) Subject to division (D) of this section, the | 501 |
superintendent shall prescribe and charge a reasonable fee for | 502 |
providing a criminal records check requested under section | 503 |
113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, | 504 |
1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, | 505 |
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, | 506 |
3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501, | 507 |
4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, | 508 |
4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091, | 509 |
4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70, | 510 |
4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031, | 511 |
4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032, | 512 |
5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or 5153.111 of | 513 |
the Revised Code. The person making a criminal records request | 514 |
under any of those sections shall pay the fee prescribed | 515 |
pursuant to this division. A person making a request under | 516 |
section 3701.881 of the Revised Code for a criminal records | 517 |
check for an applicant who may be both responsible for the care, | 518 |
custody, or control of a child and involved in providing direct | 519 |
care to an older adult shall pay one fee for the request. In the | 520 |
case of a request under section 1121.23, 1155.03, 1163.05, | 521 |
1315.141, 1733.47, 1761.26, or 5111.032 of the Revised Code, | 522 |
the fee shall be paid in the manner specified in that section. | 523 |
(4) The superintendent of the bureau of criminal | 524 |
identification and investigation may prescribe methods of | 525 |
forwarding fingerprint impressions and information necessary to | 526 |
conduct a criminal records check, which methods shall include, but | 527 |
not be limited to, an electronic method. | 528 |
(D) A determination whether any information exists that | 529 |
indicates that a person previously has been convicted of or | 530 |
pleaded guilty to any offense listed or described in division | 531 |
(A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or | 532 |
(b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7), (A)(8)(a) or | 533 |
(b), (A)(9)(a) or (b), (A)(10)(a) or (b), (A)(12), or (A)(14) of | 534 |
this section, or that indicates that a person previously has | 535 |
been convicted of or pleaded guilty to any criminal offense in | 536 |
this state or any other state regarding a criminal records check | 537 |
of a type described in division (A)(13) of this section, and | 538 |
that is made by the superintendent with respect to information | 539 |
considered in a criminal records check in accordance with this | 540 |
section is valid for the person who is the subject of the | 541 |
criminal records check for a period of one year from the date | 542 |
upon which the superintendent makes the determination. During the | 543 |
period in which the determination in regard to a person is valid, | 544 |
if another request under this section is made for a criminal | 545 |
records check for that person, the superintendent shall provide | 546 |
the information that is the basis for the superintendent's | 547 |
initial determination at a lower fee than the fee prescribed for | 548 |
the initial criminal records check. | 549 |
(E) As used in this section: | 550 |
(1) "Criminal records check" means any criminal records check | 551 |
conducted by the superintendent of the bureau of criminal | 552 |
identification and investigation in accordance with division (B) | 553 |
of this section. | 554 |
(2) "Minor drug possession offense" has the same meaning as | 555 |
in section 2925.01 of the Revised Code. | 556 |
(3) "Older adult" means a person age sixty or older. | 557 |
(4) "OVI or OVUAC violation" means a violation of section | 558 |
4511.19 of the Revised Code or a violation of an existing or | 559 |
former law of this state, any other state, or the United States | 560 |
that is substantially equivalent to section 4511.19 of the Revised | 561 |
Code. | 562 |
Sec. 1321.52. (A)(1) No person, on that person's own behalf | 563 |
or
on behalf of any other person, | 564 |
without having first obtained a certificate of registration from | 565 |
the division
of financial institutions | 566 |
| 567 |
person is engaged in the business of making loans secured by a | 568 |
mortgage on a borrower's real estate which is other than a first | 569 |
lien on the real estate | 570 |
| 571 |
572 | |
573 |
(2) Each person issued a certificate of registration is | 574 |
subject to all the rules prescribed under sections 1321.51 to | 575 |
1321.60 of the Revised Code. | 576 |
(B) | 577 |
(B)(2) of this
section, any loan made to | 578 |
the time | 579 |
is considered as made within this state and subject to the laws | 580 |
of this state, regardless of any statement in the contract or note | 581 |
to the contrary. | 582 |
(2) If a loan is primarily secured by a lien on real property | 583 |
in another state and that loan is arranged by a mortgage loan | 584 |
originator licensed by another state, the borrower may designate | 585 |
the transaction be governed by the law where the real property is | 586 |
located if the other state has consumer protection laws covering | 587 |
the borrower that are applicable to the transaction. | 588 |
(C) A registrant may make unsecured loans, loans secured by a | 589 |
mortgage on a borrower's real estate which is a first lien or | 590 |
other than a first lien on the real estate, loans secured by other | 591 |
than real estate, and loans secured by any combination of | 592 |
mortgages and security interests, on terms and conditions provided | 593 |
by sections 1321.51 to 1321.60 of the Revised Code. | 594 |
(D)(1) If a lender that is subject to sections 1321.51 to | 595 |
1321.60 of the Revised Code makes a loan in violation of division | 596 |
(A)(1) of this section, the lender has no right to collect, | 597 |
receive, or retain any interest or charges on that loan. | 598 |
(2) If a registrant applies to the division for a renewal of | 599 |
the registrant's certificate after the date required by division | 600 |
(A)(4) of section 1321.53 of the Revised Code, but prior to the | 601 |
first day of August of that year, and the division approves the | 602 |
application, division (D)(1) of this section does not apply with | 603 |
respect to any loan made by the registrant while the registrant's | 604 |
certificate was expired. | 605 |
Sec. 1323.01. (A) As used in this chapter: | 606 |
(1) "Mortgage servicer" or "servicer" means a person who | 607 |
engages directly or indirectly, whether for compensation, gain | 608 |
for another, or on the person's own behalf, in the business of | 609 |
receiving scheduled periodic payments from a borrower pursuant to | 610 |
the terms of a residential mortgage loan, including amounts | 611 |
received for deposit in an escrow account, and applying those | 612 |
payments received toward principal, interest, and other | 613 |
obligations of the borrower including amounts to be paid from an | 614 |
escrow account. | 615 |
"Mortgage servicer" includes a person who makes or holds a | 616 |
loan if that person also services the loan. | 617 |
"Mortgage servicer" does not include any of the following: | 618 |
(a) The federal deposit insurance corporation or the | 619 |
resolution trust corporation, in connection with assets acquired, | 620 |
assigned, sold, or transferred pursuant to the "Federal Deposit | 621 |
Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C. | 622 |
1823(c), or as receiver or conservator of an insured depository | 623 |
institution; | 624 |
(b) The government national mortgage association, the federal | 625 |
national mortgage association, the federal home loan mortgage | 626 |
corporation, the resolution trust corporation, or the federal | 627 |
deposit insurance corporation, in any case in which the | 628 |
assignment, sale, or transfer of the servicing of the mortgage | 629 |
loan is preceded by: | 630 |
(i) Termination of the contract for servicing the loan for | 631 |
cause; | 632 |
(ii) Commencement of proceedings for bankruptcy of the | 633 |
servicer; | 634 |
(iii) Commencement of proceedings by the federal deposit | 635 |
insurance corporation or the resolution trust corporation for | 636 |
conservatorship or receivership of the servicer or an entity by | 637 |
which the servicer is owned or controlled. | 638 |
(2) "Mortgage lender" means a person engaged in the business | 639 |
of making residential mortgage loans for compensation or gain. | 640 |
(3) "Residential mortgage" and "residential mortgage loan" | 641 |
mean an obligation to pay a sum of money evidenced by a note and | 642 |
secured by a lien upon real property located within this state | 643 |
containing four or fewer residential units and includes such an | 644 |
obligation on a residential condominium or cooperative unit. | 645 |
(4) "Employee" means an individual for whom a person pays a | 646 |
wage or salary, pays social security and unemployment taxes, | 647 |
provides workers' compensation coverage, and withholds local, | 648 |
state, and federal income taxes. "Employee" includes any | 649 |
individual who acts as an operations manager of a registered | 650 |
mortgage servicer, but for whom the servicer is prevented by law | 651 |
from making income tax withholdings. | 652 |
(5) "Operations manager" means the employee or owner | 653 |
responsible for the everyday operations, compliance requirements, | 654 |
and management of a registrant or applicant. | 655 |
(6) "Subprime loan" or "subprime mortgage" means a home loan | 656 |
originated between January 1, 2001, and January 1, 2009, in which | 657 |
the difference between the annual percentage rate for the loan and | 658 |
the average prime offer rate for a comparable transaction, as of | 659 |
the date the interest rate is set, is greater than one and | 660 |
one-half percentage points if the loan is a first mortgage loan or | 661 |
three and one-half percentage points if the loan is a secondary | 662 |
mortgage loan. For the purposes of this definition, "average prime | 663 |
offer rate" has the meaning as provided in 12 C.F.R. 226.35. | 664 |
(B) Sections 1323.01 to 1323.11 of the Revised Code shall be | 665 |
known as the "special program to reduce foreclosures act." | 666 |
(C) The deputy superintendent for consumer finance, when | 667 |
authorized by the superintendent of financial institutions of the | 668 |
department of commerce, may act in place of the superintendent | 669 |
with respect to any duty or authority of the superintendent under | 670 |
this chapter. | 671 |
Sec. 1323.02. (A) At least sixty days prior to filing a | 672 |
complaint to initiate a foreclosure action that involves a | 673 |
residential mortgage loan on property occupied by an owner or a | 674 |
tenant of that owner, a mortgage servicer shall provide the | 675 |
borrower with a notice to inform the borrower of the amount due to | 676 |
the lender and the availability of resources to avoid | 677 |
foreclosure. This notice shall be on a form the superintendent | 678 |
of financial institutions in the department of commerce | 679 |
prescribes and shall include all of the following: | 680 |
(1) An itemization of all past due amounts causing the loan | 681 |
to be in default; | 682 |
(2) An itemization of any other charges that the borrower | 683 |
must pay in order to be current on loan payments; | 684 |
(3) A statement that the borrower may have options available | 685 |
other than foreclosure, and that the borrower may discuss | 686 |
available options with the mortgage lender, the mortgage servicer, | 687 |
or a counselor approved by the United States department of housing | 688 |
and urban development; | 689 |
(4) The address, telephone number, and other contact | 690 |
information for the mortgage lender, the mortgage servicer, or an | 691 |
agent for either of them who is authorized to work with the | 692 |
borrower to avoid foreclosure; | 693 |
(5) The name, address, telephone number, and other contact | 694 |
information for one or more United States department of housing | 695 |
and urban development-approved counseling agencies operating to | 696 |
assist borrowers in Ohio to avoid foreclosure; | 697 |
(6) The address, telephone number, and other contact | 698 |
information for the consumer complaint sections of the division of | 699 |
financial institutions of the Ohio department of commerce and the | 700 |
Ohio attorney general; | 701 |
(7) The following information prominently displayed: | 702 |
(8) Other information the director considers necessary and | 703 |
includes on the form. | 704 |
"YOU HAVE THE RIGHT TO REMAIN IN THIS PROPERTY DURING THE | 705 |
FORECLOSURE PROCEEDINGS AND AFTER THE SHERIFF'S SALE UNTIL A COURT | 706 |
CONFIRMS THE SALE. | 707 |
ADDRESS OF PROPERTY: ..........................." | 708 |
(B) The notice this section requires shall be mailed to the | 709 |
last known address of the borrower and shall be evidenced by a | 710 |
certificate of mailing from the United States postal service. | 711 |
Sec. 1323.04. (A) Within three business days after mailing | 712 |
the notice section 1323.02 of the Revised Code requires, a | 713 |
mortgage servicer shall file with the administrative director of | 714 |
the Ohio supreme court the date the notice was mailed to the | 715 |
borrower and, unless prohibited by state or federal law, any | 716 |
additional information the administrative director requests. | 717 |
(B) Within seven days after entering into a modification | 718 |
agreement, a mortgage servicer shall notify the administrative | 719 |
director of the nature and terms of an agreement with a borrower | 720 |
to do any of the following: | 721 |
(1) Reduce or forego any fees or arrearages, including | 722 |
acceptance of a deed in lieu of foreclosure; | 723 |
(2) Alter the terms of the residential mortgage loan | 724 |
agreement by a reduction in interest rate, lessening of monthly | 725 |
payment, increase in the term for repayment, deferment of | 726 |
interest or other payment, or alteration of a variable rate | 727 |
adjustment date; | 728 |
(3) Refinance the loan under new terms. | 729 |
(C) Any notice or filing this section requires shall be made | 730 |
in an electronic format as the administrative director prescribes, | 731 |
and contain the name and address of the borrower, the name and | 732 |
address of the mortgage servicer, and the name and address of the | 733 |
holder of the mortgage. | 734 |
(D) The administrative director shall include all information | 735 |
received pursuant to this section in the information database | 736 |
developed and maintained pursuant to section 1323.07 of the | 737 |
Revised Code. This information shall be available for review by | 738 |
the state foreclosure prevention project as described in section | 739 |
1323.06 of the Revised Code. | 740 |
Sec. 1323.05. (A) The superintendent of financial | 741 |
institutions of the department of commerce shall adopt | 742 |
comprehensive minimum loan modification standards by rule. The | 743 |
standards shall be designed to keep a borrower whose principal | 744 |
residence is in Ohio, in the borrower's home when the | 745 |
anticipated recovery under a loan modification or workout plan is | 746 |
greater than the anticipated recovery through foreclosure, on a | 747 |
net present value basis. | 748 |
(B) The loan modification standards adopted pursuant to this | 749 |
section shall include some combination of the following | 750 |
features: | 751 |
(1) An interest rate reduction, as needed, for a fixed term | 752 |
of at least five years; | 753 |
(2) An extension of the amortization period for the loan | 754 |
term, to not more than forty years from the original date of the | 755 |
loan; | 756 |
(3) Deferral of some portion of the principal amount of the | 757 |
unpaid principal balance until maturity of the loan; | 758 |
(4) Reduction of principal; | 759 |
(5) Compliance with a federally mandated loan modification | 760 |
program; | 761 |
(6) Other factors the superintendent determines are | 762 |
appropriate, which may include efforts implemented in other states | 763 |
that have resulted in a reduction in foreclosures. | 764 |
Sec. 1323.06. The director of commerce shall establish the | 765 |
"state foreclosure prevention project" to collect residential | 766 |
mortgage foreclosure information, track loss mitigation efforts, | 767 |
encourage viable loan modifications, and seek solutions to avoid | 768 |
foreclosures for residential mortgage loans. In developing the | 769 |
project, the director may include input from the United States | 770 |
department of housing and urban development-approved housing | 771 |
counselors, community organizations, state agencies including | 772 |
the Ohio attorney general, mortgage lenders, mortgage servicers, | 773 |
and any other appropriate persons. | 774 |
Sec. 1323.07. (A) The director of commerce shall design and | 775 |
develop, in consultation with the administrative director of the | 776 |
Ohio supreme court, the state foreclosure database to track | 777 |
residential mortgage foreclosure information and to promote the | 778 |
efforts of the state foreclosure prevention project. Not later | 779 |
than October 1, 2009, the administrative director of the Ohio | 780 |
supreme court shall implement the database. | 781 |
(B) No person shall have access to the state foreclosure | 782 |
database except the following individuals or the individual's | 783 |
designated representative: the administrative director of the | 784 |
Ohio supreme court, the director of commerce, the superintendent | 785 |
of financial institutions, the Ohio attorney general, and the | 786 |
clerk of a court of common pleas for the purposes described in | 787 |
section 2303.33 of the Revised Code. | 788 |
(C) Any information provided for inclusion in the foreclosure | 789 |
prevention database is exclusively for the use and purposes of the | 790 |
state foreclosure prevention project. The database is not a public | 791 |
record subject to section 149.43 of the Revised Code and the | 792 |
information provided for and included in the database may not be | 793 |
disclosed except as this section provides. Any mortgage servicer | 794 |
shall have access only to the information submitted with respect | 795 |
to its own loans. | 796 |
(D) Providing information as this chapter requires for | 797 |
inclusion in the prevention foreclosure database does not violate | 798 |
any state law pertaining to financial privacy. A mortgage servicer | 799 |
shall be held harmless for any alleged breach of privacy rights of | 800 |
a borrower with respect to the information the mortgage servicer | 801 |
provides in accordance with this chapter. | 802 |
Sec. 1323.08. (A) The director of commerce annually shall | 803 |
submit a report to the general assembly describing the operation | 804 |
of the state foreclosure prevention project until the funds | 805 |
specifically appropriated to operate the project are completely | 806 |
disbursed. The director shall present information in the report | 807 |
in aggregate form, and may include the number of borrowers | 808 |
helped, the effectiveness of the funds in preventing | 809 |
foreclosure, recommendations for further efforts needed to | 810 |
reduce foreclosures, and any other aggregated information the | 811 |
director determines is pertinent or that the general assembly | 812 |
requests. | 813 |
(B) In preparing the report, the director shall review | 814 |
information provided in the foreclosure prevention database to | 815 |
determine all of the following: | 816 |
(1) Whether the loss mitigation programs and efforts | 817 |
effectively address loan default issues; | 818 |
(2) The most effective means for establishing successful | 819 |
foreclosure alternatives including loan modification programs; | 820 |
(3) Which procedures best comport with a servicer's | 821 |
obligation to investors to lessen losses resulting from borrower | 822 |
defaults. | 823 |
Sec. 1323.09. The superintendent of financial isntitutions | 824 |
in the department of commerce shall review the information in the | 825 |
mortgage foreclosure database to determine whether any mortgage | 826 |
servicer has failed to provide disclosures or information this | 827 |
chapter requires or is not acting in good faith to provide | 828 |
borrowers with an effective method to discuss payment options for | 829 |
past due amounts and alternatives to foreclosure. If the | 830 |
superintendent determines that a mortgage servicer has violated | 831 |
any of these requirements, the superintendent may consider that | 832 |
conduct or failure when determining the character and general | 833 |
fitness of the mortgage servicer for its licensure or | 834 |
certificate of registration as a mortgage servicer under this | 835 |
chapter or Chapter 1321. of the Revised Code. | 836 |
Sec. 1323.10. (A) There is hereby established in the state | 837 |
treasury the foreclosure prevention revolving trust fund, | 838 |
comprised of moneys collected or accruing to the trust fund, for | 839 |
the purpose of providing the following: | 840 |
(1) Grants to counseling foreclosure prevention entities for | 841 |
the purpose of maintaining or expanding foreclosure prevention | 842 |
counseling and related services and activities to assist | 843 |
homeowners to prevent foreclosure; | 844 |
(2) Grants to individuals or counseling entities for the | 845 |
purpose of providing emergency foreclosure prevention assistance | 846 |
loans; | 847 |
(3) Loans and grants to nonprofit or local government | 848 |
entities to provide relocation assistance or acquire mortgage | 849 |
loans or properties from creditors in order to restructure the | 850 |
mortgage loans or restore the properties to productive use; | 851 |
(4) Funding to establish, operate, and maintain the state | 852 |
foreclosure database established pursuant to section 1323.07 of | 853 |
the Revised Code; | 854 |
(5) Funding for the expenses of the state foreclosure | 855 |
prevention project and the associated regulatory costs the | 856 |
superintendent of financial institutions of the department of | 857 |
commerce and the director of commerce incur in administering this | 858 |
chapter and sections 1321.51 to 1321.60 and 1322.01 to 1322.12 | 859 |
of the Revised Code. | 860 |
(B) Each fiscal quarter the director of commerce shall | 861 |
distribute the amounts in the foreclosure prevention revolving | 862 |
trust fund as follows: ten per cent for administrative costs to | 863 |
the consumer finance fund in the state treasury, created under | 864 |
section 1321.21 of the Revised Code, up to five per cent to the | 865 |
office of the administrative director of the supreme court, and | 866 |
the balance to be divided between the department of development | 867 |
for deposit into the Ohio housing trust fund and boards of county | 868 |
commissioners. The amount awarded to boards of county | 869 |
commissioners shall be distributed on a pro rata basis of the | 870 |
funds submitted with respect to foreclosure filings in each county | 871 |
under section 1323.11 of the Revised Code. | 872 |
(C) The director of development and boards of county | 873 |
commissioners shall establish rules governing the procedures to | 874 |
qualify counseling and foreclosure prevention entities, nonprofit | 875 |
entities, and individuals for loan assistance to receive moneys | 876 |
from the revolving trust fund to carry out the purposes of | 877 |
division (A) of this section. | 878 |
(D) Any moneys collected under this section but not allocated | 879 |
by the end of the fiscal year shall be available for allocation in | 880 |
the subsequent fiscal year. | 881 |
Sec. 1323.11. (A) In addition to any filing fee required by | 882 |
law, a creditor that files a complaint to initiate a foreclosure | 883 |
action involving a residential mortgage loan simultaneously shall | 884 |
transmit a certified check in the amount of one thousand five | 885 |
hundred dollars payable to the department of commerce for deposit | 886 |
into the trust fund established under section 1323.10 of the | 887 |
Revised Code. The creditor may not in any manner add the amount | 888 |
paid pursuant to this division to the amount the borrower owes | 889 |
the creditor or seek to recover this cost from the borrower. | 890 |
(B) No court shall permit the filing of an action for a | 891 |
mortgage foreclosure or grant a judgment of foreclosure to any | 892 |
creditor of a residential loan unless that creditor provides | 893 |
evidence to the court that the creditor has complied with this | 894 |
section. | 895 |
(C) The director of commerce shall establish an accounting | 896 |
system to track the county that corresponds to each fee that is | 897 |
paid pursuant to this section. The accounting system shall be used | 898 |
to determine the share of the funds to be distributed to each | 899 |
county pursuant to section 1323.10 of the Revised Code. | 900 |
(D) The fee this section requires shall not be charged with | 901 |
respect to a filing for a foreclosure action that is made for an | 902 |
unoccupied property. | 903 |
Sec. 1323.20. (A) Sections 1323.20 to 1323.37 of the Revised | 904 |
Code shall be known as the "residential mortgage servicers | 905 |
registration act." | 906 |
(B) Sections 1323.20 to 1323.37 of the Revised Code do not | 907 |
apply to any of the following: | 908 |
(1) Any entity that is chartered and lawfully doing business | 909 |
as a bank, savings bank, trust company, savings and loan | 910 |
association, or credit union under the authority of any law of | 911 |
this state, another state, or the United States; | 912 |
(2) Life, property, or casualty insurance companies licensed | 913 |
to do business in this state; | 914 |
(3) Any attorney or law firm acting on behalf of any mortgage | 915 |
note holder or mortgage servicer when acting in connection with | 916 |
the practice of law in this state, except as otherwise provided in | 917 |
division (D) of this section. | 918 |
(4) Any political subdivision, or any governmental or other | 919 |
public agency, corporation, or instrumentality in or of the | 920 |
United States or any state; | 921 |
(5) An institution of higher education as defined in section | 922 |
1713.01 of the Revised Code; | 923 |
(6) A debt collector acting under the name of, and as agent | 924 |
for, a mortgage servicer registrant to collect a debt in default. | 925 |
(C) Mortgage lenders registered under section 1321.52 of the | 926 |
Revised Code and mortgage brokers registered under section 1322.02 | 927 |
of the Revised Code are exempt from the registration requirements | 928 |
of section 1323.21 of the Revised Code but shall comply with | 929 |
divisions (C), (D), (F), and (G) of section 1323.33, and sections | 930 |
1323.34, 1323.35, and 1323.36 of the Revised Code in connection | 931 |
with the servicing of residential mortgage loans. Any violation | 932 |
of these sections is an unfair and deceptive practice in | 933 |
violation of section 1345.02 of the Revised Code and may result | 934 |
in administrative action and penalties the superintendent of | 935 |
financial institutions of the department of commerce imposes | 936 |
pursuant to sections 1321.54 and 1322.10 of the Revised Code. | 937 |
(D) Any attorney or law firm primarily engaged in debt | 938 |
collection shall comply with division (D) of section 1323.33 and | 939 |
section 1323.36 of the Revised Code when acting as a mortgage | 940 |
servicer, notwithstanding the general exemption from the | 941 |
provisions of sections 1323.20 to 1323.37 of the Revised Code. Any | 942 |
violation of division (D) of section 1323.33 or section 1323.36 of | 943 |
the Revised Code, in connection with any debt collection activity | 944 |
that is not considered the practice of law, is deemed to be an | 945 |
unfair and deceptive practice in violation of section 1345.02 of | 946 |
the Revised Code. | 947 |
Sec. 1323.21. (A) No person, on that person's own behalf or | 948 |
on behalf of any other person, shall do either of the following | 949 |
unless that person is registered as a mortgage servicer and has a | 950 |
certificate of registration from the superintendent of financial | 951 |
institutions of the department of commerce: | 952 |
(1) Engage in the business of collecting money, credit, or | 953 |
choses in action for residential mortgage loans or otherwise act | 954 |
as a mortgage servicer; | 955 |
(2) Collect accelerated mortgage payments from a biweekly or | 956 |
other accelerated payment plan that the person operates, arranges, | 957 |
or offers to arrange in connection with a residential mortgage | 958 |
loan. | 959 |
(B) Any person who acts in willful violation of division (A) | 960 |
of this section, after receiving written notice of the violation | 961 |
from the superintendent or a court, may not collect any amounts | 962 |
as interest or charges on that loan. Any amounts collected shall | 963 |
be credited as a principal reduction to the loan. | 964 |
(C)(1) When a registration expires for any reason and the | 965 |
former registrant continues to service residential mortgage loans | 966 |
in violation of division (A) of this section, the superintendent | 967 |
may take administrative action, including action on any | 968 |
subsequent application for a certificate of registration. | 969 |
(2) A servicer with an expired registration may not collect, | 970 |
charge, or retain any late fee, bad check charge except as | 971 |
incurred, charge related to default, cost to realize on its | 972 |
security interest, or prepayment penalty on any residential | 973 |
mortgage loan unless that servicer applies to the superintendent | 974 |
for a registration renewal and a certificate of registration | 975 |
prior to the first day of August of the year the registration | 976 |
expires and the superintendent approves that application. | 977 |
(D) No person shall conduct the business of a mortgage | 978 |
servicer in association with any exempt business if the | 979 |
superintendent has ordered that exempt business, in writing, to | 980 |
desist from conduct that the superintendent found to be a mere | 981 |
conduit for the mortgage servicer and that the association of the | 982 |
servicer and the exempt business is intended to conceal an evasion | 983 |
of sections 1323.20 to 1323.37 of the Revised Code or the rules | 984 |
adopted pursuant to those sections. Any determination made | 985 |
pursuant to this division shall be made in accordance with Chapter | 986 |
119. of the Revised Code. | 987 |
Sec. 1323.22. (A) Any application for registration as a | 988 |
mortgage servicer shall be in writing, under oath, and in the | 989 |
form the superintendent of financial institutions of the | 990 |
department of commerce prescribes. It shall contain an undertaking | 991 |
by the applicant to abide by this chapter and any other | 992 |
information that the superintendent requires. Applicants that are | 993 |
foreign corporations shall obtain and maintain a license pursuant | 994 |
to Chapter 1703. of the Revised Code before seeking registration | 995 |
or registration renewal as a mortgage servicer. | 996 |
(B) Upon an applicant's filing an application and paying a | 997 |
nonrefundable two hundred dollar investigation fee, a | 998 |
nonrefundable one thousand dollar annual registration fee, and any | 999 |
additional fee required by law, the superintendent shall | 1000 |
investigate the relevant facts. If the application requires | 1001 |
investigation outside this state, the applicant may be required to | 1002 |
advance sufficient funds to pay any of the actual expenses when it | 1003 |
appears that these expenses will exceed two hundred dollars. The | 1004 |
superintendent shall furnish an itemized statement of any | 1005 |
expenses the applicant is required to pay. The superintendent | 1006 |
shall not issue any certificate of registration unless all the | 1007 |
required fees have been paid. | 1008 |
(C) An applicant shall designate an employee or owner who has | 1009 |
at least three years' experience in the mortgage, collections, | 1010 |
servicing, or lending field as the applicant's operations | 1011 |
manager. No operations manager shall be employed by any other | 1012 |
mortgage servicer while acting as an operations manager. Any | 1013 |
operations manager must be acceptable to the superintendent. | 1014 |
(D) The superintendent may consider an application for | 1015 |
registration as a mortgage servicer withdrawn if that application | 1016 |
does not contain all of the information required under division | 1017 |
(A) of this section and the applicant does not submit that | 1018 |
information within ninety days after the superintendent requests | 1019 |
the information in writing. | 1020 |
(E) The superintendent of financial institutions shall | 1021 |
deposit any licensing fee, charge, or fine received pursuant to | 1022 |
sections 1323.20 to 1323.37 of the Revised Code into the consumer | 1023 |
finance fund in the state treasury, created under section 1321.21 | 1024 |
of the Revised Code, unless otherwise specified by law. | 1025 |
Sec. 1323.23. (A) Any investigation the superintendent of | 1026 |
financial institutions of the department of commerce undertakes | 1027 |
with respect to an application for registration as a mortgage | 1028 |
servicer shall include a civil records check and criminal records | 1029 |
check at the time of the initial application and every five years | 1030 |
thereafter, or upon a change of control of the registrant if the | 1031 |
persons acquiring control have not had a criminal records check | 1032 |
submitted to the superintendent within the past five years. Where | 1033 |
the applicant is a business entity, the superintendent may | 1034 |
require a criminal background check of those persons that the | 1035 |
superintendent determines have the authority to direct and | 1036 |
control the operations of the applicant. | 1037 |
(B) When conducting a criminal background check, the | 1038 |
superintendent shall request the superintendent of the bureau of | 1039 |
criminal identification and investigation to conduct a criminal | 1040 |
records check based on the applicant's fingerprints or if | 1041 |
fingerprints are unreadable, based on the applicant's social | 1042 |
security number. Notwithstanding division (K) of section 121.08 | 1043 |
of the Revised Code, the superintendent of financial | 1044 |
institutions shall request that criminal record information from | 1045 |
the federal bureau of investigation be obtained as part of the | 1046 |
criminal records check. | 1047 |
(C) The applicant shall pay any fee required under division | 1048 |
(C)(3) of section 109.572 of the Revised Code. | 1049 |
(D) The superintendent shall conduct the civil records checks | 1050 |
this section requires pursuant to procedures the superintendent | 1051 |
adopts by rule. | 1052 |
Sec. 1323.24. (A) The superintendent of financial | 1053 |
institutions of the department of commerce shall issue a | 1054 |
certificate of registration as a mortgage servicer to an applicant | 1055 |
if the superintendent finds that the applicant's financial | 1056 |
responsibility, experience, character, and general fitness command | 1057 |
the confidence of the public and warrant the belief that the | 1058 |
business will be operated honestly and fairly in compliance with | 1059 |
the purposes of this chapter and the rules promulgated under it, | 1060 |
and that the applicant has the requisite bond or applicable net | 1061 |
worth as this chapter requires. | 1062 |
(B) Upon finding an applicant does not meet the conditions | 1063 |
set forth in this chapter, the superintendent shall issue a notice | 1064 |
of intent to deny an application for registration or renewal. The | 1065 |
superintendent forthwith shall notify the applicant of the denial, | 1066 |
the grounds for the denial, and the applicant's opportunity to be | 1067 |
heard on the action in accordance with Chapter 119. of the Revised | 1068 |
Code. | 1069 |
(C) Any certificate issued pursuant to this section shall | 1070 |
expire on the first day of July next after its issue, and on the | 1071 |
first day of July in each succeeding year unless renewed by filing | 1072 |
a renewal application and payment of an annual fee and any | 1073 |
additional fee required by law, on or before the last day of June | 1074 |
of each year. | 1075 |
Sec. 1323.25. (A) To renew a registration as a mortgage | 1076 |
servicer, a registrant shall timely file a renewal application on | 1077 |
a form the superintendent of financial institutions of the | 1078 |
department of commerce prescribes, along with any additional | 1079 |
information that the superintendent requires. | 1080 |
(B) As a condition of renewal, a registrant must provide | 1081 |
proof that the designated operation manager meets the criteria for | 1082 |
initial approval set forth in section 1323.23 of the Revised Code | 1083 |
and that the mortgage servicer meets the minimum standards for the | 1084 |
issuance of the certificate of registration under sections 1323.22 | 1085 |
to 1323.24 of the Revised Code. | 1086 |
(C) The superintendent shall not grant any renewal if the | 1087 |
applicant's certificate of registration is subject to an order of | 1088 |
suspension, revocation, or an unpaid and past due fine the | 1089 |
superintendent has imposed. | 1090 |
(D) If an application for renewal of a certificate of | 1091 |
registration does not contain all the information this section | 1092 |
requires, and if the registrant does not submit that information | 1093 |
to the superintendent within ninety days after the superintendent | 1094 |
requests the information in writing, the superintendent may | 1095 |
consider the application withdrawn. | 1096 |
Sec. 1323.26. At any time there is a change of five per cent | 1097 |
or more in the ownership of a registrant, the superintendent of | 1098 |
financial institutions of the department of commerce may make any | 1099 |
investigation necessary to determine whether any fact or condition | 1100 |
presently exists that would have warranted the superintendent | 1101 |
denying the original application had the fact or condition | 1102 |
existed at the time of that application. If the superintendent | 1103 |
finds such a fact or condition, the superintendent may revoke the | 1104 |
registrant's registration and certificate pursuant to Chapter | 1105 |
119. of the Revised Code. | 1106 |
Sec. 1323.27. (A) Each place of business to which borrowers | 1107 |
are regularly directed to remit payment shall display its own | 1108 |
certificate of registration. The superintendent of financial | 1109 |
institutions of the department of commerce may issue additional | 1110 |
certificates of registration to the same person for additional | 1111 |
places of business upon compliance with the requirements governing | 1112 |
the issuance of a single certificate. | 1113 |
(B)(1) Any change in the place of business to a location | 1114 |
outside the original municipal corporation requires a new | 1115 |
certificate of registration. A registrant who makes such a change | 1116 |
of location shall submit a new application, pay the registration | 1117 |
fee and, if the superintendent requires, pay an investigation | 1118 |
fee of two hundred dollars. The registrant must have the new | 1119 |
certificate before operating in the new location. | 1120 |
(2) A registrant who wishes to change its place of business | 1121 |
within the same municipal corporation shall give written notice | 1122 |
of the change in advance to the superintendent, who shall provide | 1123 |
a certificate for the new address without cost. | 1124 |
(C) A registrant that changes its name shall give written | 1125 |
notice of the change to the superintendent prior to acting as a | 1126 |
mortgage servicer under the new name. The superintendent shall | 1127 |
provide a certificate in the new name without cost. | 1128 |
(D) A registrant shall keep each certificate conspicuously | 1129 |
posted in each place of business. A certificate of registration | 1130 |
is not transferable or assignable. | 1131 |
Sec. 1323.28. (A) Any person who acts as a mortgage | 1132 |
servicer, if not bonded pursuant to division (B) of this section, | 1133 |
shall maintain at all times both of the following: | 1134 |
(1) A net worth of at least two hundred fifty thousand | 1135 |
dollars; | 1136 |
(2) For each additional certificate of registration beyond | 1137 |
the first, assets of at least fifty thousand dollars either in | 1138 |
use or readily available for use in the conduct of the business. | 1139 |
(B) Any person acting as a mortgage servicer by arranging | 1140 |
biweekly or other accelerated payment plans and collecting those | 1141 |
payments shall obtain and maintain in effect at all times a | 1142 |
corporate surety bond issued by a bonding company or insurance | 1143 |
company authorized to do business in this state. The servicer | 1144 |
shall file a copy of the bond with the superintendent of | 1145 |
financial institutions of the department of commerce. The bond | 1146 |
shall meet all of the following conditions: | 1147 |
(1) Be in favor of the superintendent; | 1148 |
(2) Have a base penal sum of two hundred fifty thousand | 1149 |
dollars for the first location and an additional penal sum of ten | 1150 |
thousand dollars for each additional location that requires a | 1151 |
separate certificate of registration; | 1152 |
(3) Have a term that coincides with the term of | 1153 |
registration; | 1154 |
(4) Be for the exclusive benefit of any individual borrower | 1155 |
injured by any violation of sections 1323.20 to 1323.37 of the | 1156 |
Revised Code or the rules promulgated thereunder by a servicer, | 1157 |
its employees, or agent; | 1158 |
(5) Have an aggregate liability of the corporate surety for | 1159 |
any and all breaches of the conditions of the bond shall not | 1160 |
exceed the penal sum of the bond. | 1161 |
(C)(1) A mortgage servicer shall give notice to the | 1162 |
superintendent by certified mail of any action that is brought by | 1163 |
a borrower brings against the servicer alleging injury by a | 1164 |
violation of sections 1323.20 to 1323.37 of the Revised Code and | 1165 |
of any judgment that is entered against the servicer by a | 1166 |
borrower injured by a violation of those sections. The notice | 1167 |
shall provide details sufficient to identify the action or | 1168 |
judgment. The servicer shall file the notice with the | 1169 |
superintendent within ten days after the commencement of the | 1170 |
action or receipt of the notice of entry of a judgment. | 1171 |
(2) A corporate surety shall give notice of any payment to | 1172 |
the superintendent by certified mail within ten days after it pays | 1173 |
any claim or judgment, with details sufficient to identify the | 1174 |
person and the claim or judgment paid. | 1175 |
(D) Whenever the penal sum of the corporate surety bond is | 1176 |
reduced by one or more recoveries or payments, a servicer shall | 1177 |
furnish a new or additional bond under this section, so that the | 1178 |
total or aggregate penal sum of the bond or bonds equals the sum | 1179 |
required by this section, or shall furnish an endorsement executed | 1180 |
by the corporate surety reinstating the bond to the required penal | 1181 |
sum set forth in division (B) of this section. | 1182 |
(E) The liability of the corporate surety on the bond to the | 1183 |
superintendent and to any borrower injured by a violation of | 1184 |
sections 1323.20 to 1323.37 of the Revised Code is not affected in | 1185 |
any way by any misrepresentation, breach of warranty, or failure | 1186 |
to pay the premium, by any act or omission upon the part of the | 1187 |
servicer, by the insolvency or bankruptcy of the servicer, or by | 1188 |
the insolvency of the servicer's estate. The servicer shall | 1189 |
maintain in effect liability for any act or omission that occurs | 1190 |
during the term of the corporate surety bond for at least two | 1191 |
years after the date on which the corporate surety bond is | 1192 |
terminated or canceled. | 1193 |
(F) Neither the servicer nor the corporate surety shall | 1194 |
cancel a corporate surety bond except upon notice to the | 1195 |
superintendent by certified mail, return receipt requested. A | 1196 |
cancellation is not effective until thirty days after the | 1197 |
superintendent receives the notice. | 1198 |
(G) No servicer shall fail to comply with this section. Any | 1199 |
servicer that fails to comply shall cease acting as a mortgage | 1200 |
servicer in this state until that servicer complies with this | 1201 |
section. | 1202 |
Sec. 1323.29. (A) The superintendent of financial | 1203 |
institutions of the department of commerce may adopt, in | 1204 |
accordance with Chapter 119. of the Revised Code, rules to | 1205 |
administer and enforce this chapter and to carry out its purposes. | 1206 |
(B)(1) After written notice to the registrant stating the | 1207 |
contemplated action, the grounds for the action, and the | 1208 |
registrant's opportunity to be heard in accordance with Chapter | 1209 |
119. of the Revised Code, the superintendent may revoke, suspend, | 1210 |
or refuse to renew any registration and certificate issued under | 1211 |
this chapter if the superintendent finds any of the following: | 1212 |
(a) A violation of or failure to comply with any provision of | 1213 |
sections 1323.20 to 1323.37 of the Revised Code or the rules | 1214 |
adopted under those sections, under Chapter 1345. of the Revised | 1215 |
Code, federal debt collection laws, or any other law applicable | 1216 |
to the business conducted under the registrant's certificate of | 1217 |
registration; | 1218 |
(b) The registrant has been convicted of or pleads guilty or | 1219 |
nolo contendere in a domestic, foreign, or military court to any | 1220 |
criminal felony offense or any criminal offense involving theft, | 1221 |
receiving stolen property, embezzlement, forgery, fraud, passing | 1222 |
bad checks, money laundering, breach of trust, dishonesty, or | 1223 |
drug trafficking, or any criminal offense involving money or | 1224 |
securities; | 1225 |
(c) The registrant's certificate of registration, license, | 1226 |
or comparable authority as a mortgage servicer has been revoked in | 1227 |
any other state. | 1228 |
(2) The superintendent may impose a monetary fine in | 1229 |
addition to, or in lieu of, any revocation, suspension, or denial | 1230 |
or in settlement of matters subject to claims under division | 1231 |
(B)(1)(a) of this section. | 1232 |
(3) Except as otherwise provided in section 1323.21 of the | 1233 |
Revised Code, the revocation, suspension, or refusal to renew a | 1234 |
registration does not impair the obligation of any pre-existing | 1235 |
lawful contract made under this chapter if a mortgage servicer | 1236 |
makes a good faith effort to promptly transfer its collection | 1237 |
rights to a registrant or person exempt from registration. A | 1238 |
servicer that does not make the requisite good faith effort is | 1239 |
subject to additional monetary fines and legal or administrative | 1240 |
action by the superintendent. Nothing in this section limits a | 1241 |
court's ability to impose a cease and desist order preventing any | 1242 |
further business or servicing activity. | 1243 |
(C)(1) The superintendent may investigate alleged violations | 1244 |
of sections 1323.20 to 1323.37 of the Revised Code or the rules | 1245 |
adopted thereunder, or complaints concerning any such violation. | 1246 |
The superintendent may apply to the court of common pleas for an | 1247 |
order enjoining any violation. Upon a showing that a person has | 1248 |
committed or is about to commit a violation, the court shall | 1249 |
grant an injunction, restraining order, or other appropriate | 1250 |
relief. | 1251 |
(2) In conducting an investigation, the superintendent, by | 1252 |
subpoena, may compel witnesses to testify in relation to any | 1253 |
matter over which the superintendent has jurisdiction, and may | 1254 |
require the production or photocopying of any book, record, or | 1255 |
other document pertaining to such matter. If a person fails to | 1256 |
comply with the subpoena, or permit photocopying of any document | 1257 |
subpoenaed, a court of common pleas, upon the superintendent's | 1258 |
application, shall compel obedience by attachment proceedings for | 1259 |
contempt or a refusal to testify. | 1260 |
(D) If the superintendent determines that a person is engaged | 1261 |
in or may be engaged in activities that violate sections 1323.20 | 1262 |
to 1323.37 of the Revised Code or the rules adopted thereunder, | 1263 |
the superintendent, after notice and a hearing conducted in | 1264 |
accordance with Chapter 119. of the Revised Code, may issue a | 1265 |
cease and desist order. | 1266 |
(E)(1) The superintendent may impose a fine of not more than | 1267 |
one thousand dollars for each day a violation of this chapter or | 1268 |
the rules adopted under it is committed, repeated, or continued. | 1269 |
All fines collected pursuant to this section shall be paid to the | 1270 |
treasurer of state to the credit of the consumer finance fund | 1271 |
created in section 1321.21 of the Revised Code. In determining | 1272 |
the amount of a fine to be impose, the superintendent may consider | 1273 |
all of the following: | 1274 |
(a) The seriousness of the violation; | 1275 |
(b) The servicer's good faith efforts to prevent the | 1276 |
violation; | 1277 |
(c) The servicer's history regarding violations and | 1278 |
compliance with the superintendent's orders; | 1279 |
(d) The servicer's financial resources; | 1280 |
(e) Any other matters the superintendent considers | 1281 |
appropriate in enforcing this chapter. | 1282 |
(2) Monetary fines imposed under this section do not | 1283 |
preclude any criminal fine described in section 1323.99 of the | 1284 |
Revised Code. | 1285 |
Sec. 1323.30. (A)(1) A mortgage servicer shall keep | 1286 |
separate records pertaining to each loan serviced and preserve | 1287 |
those records for so long as the servicer has responsibility for | 1288 |
the loan. At any time responsibility for the loan is transferred | 1289 |
to another servicer, the servicer who is ceasing responsibility | 1290 |
shall transfer all original loan documents and records to the | 1291 |
servicer who is assuming responsibility for the loan. Any system | 1292 |
of electronic imaging of required records shall be approved by | 1293 |
the superintendent of financial institutions of the department | 1294 |
of commerce prior to its use but at no time shall such a system | 1295 |
be a substitute for maintaining original documents as this section | 1296 |
requires. | 1297 |
(2) As often as necessary, the superintendent may make or | 1298 |
cause to be made an examination of records pertaining to loans | 1299 |
serviced for the purpose of determining whether the servicer is | 1300 |
complying with sections 1323.20 to 1323.37 of the Revised Code | 1301 |
and of verifying any registrant's annual report. | 1302 |
(B)(1) The superintendent may require each servicer to file | 1303 |
each year a report under oath or affirmation, on forms the | 1304 |
superintendent supplies, concerning the business and operations | 1305 |
for the preceding calendar year. A servicer that operates two or | 1306 |
more registered offices or who operates registered offices with | 1307 |
one or more affiliated servicers, may file a composite report of | 1308 |
the group of registered offices in lieu of individual reports. | 1309 |
(2) The reports provided under division (B)(1) of this | 1310 |
section are not public records and are not open to public | 1311 |
inspection. | 1312 |
(C)(1) The following information is confidential: | 1313 |
(a) Examination information, and any information leading to | 1314 |
or arising from an examination; | 1315 |
(b) Investigation information, and any information arising | 1316 |
from or leading to an investigation. | 1317 |
(2) The information described in this division is | 1318 |
confidential for all purposes except when it is necessary for the | 1319 |
superintendent to take official action regarding the affairs of a | 1320 |
servicer or in connection with criminal or civil proceedings to | 1321 |
be initiated by a prosecuting attorney or the attorney general. | 1322 |
This information may be introduced into evidence or disclosed | 1323 |
pursuant to section 1181.25 of the Revised Code. | 1324 |
(D) All application information is a public record as defined | 1325 |
in section 149.43 of the Revised Code, except social security | 1326 |
numbers, employer identification numbers, financial account | 1327 |
numbers, the identity of the institution where financial accounts | 1328 |
are maintained, personal financial information, fingerprint cards | 1329 |
and the information contained on such cards, and criminal | 1330 |
background information. | 1331 |
(E) Nothing in this section prevents the superintendent from | 1332 |
releasing information relating to servicers or exchanging that | 1333 |
information with other financial institution regulatory | 1334 |
authorities. For this purpose, a "financial institution regulatory | 1335 |
authority" includes a regulator of a business activity in which a | 1336 |
servicer is engaged or has applied to engage, to the extent that | 1337 |
the regulator has jurisdiction over a servicer engaged in that | 1338 |
business activity. A servicer is engaged in a business activity, | 1339 |
and a regulator of that business activity has jurisdiction over | 1340 |
the servicer, whether the servicer conducts the activity | 1341 |
directly or a subsidiary or affiliate of the servicer conducts | 1342 |
the activity. | 1343 |
(F) Nothing in this section prevents the superintendent of | 1344 |
financial institutions from releasing information relating to | 1345 |
mortgage servicers to the attorney general, to the superintendent | 1346 |
of real estate and professional licensing of the department of | 1347 |
commerce for purposes relating to the administration of Chapters | 1348 |
4735. and 4763. of the Revised Code, to the superintendent of | 1349 |
insurance for purposes relating to the administration of Chapter | 1350 |
3953. of the Revised Code, to the commissioner of securities of | 1351 |
the department of commerce for purposes relating to the | 1352 |
administration of Chapter 1707. of the Revised Code, or to local | 1353 |
law enforcement agencies and local prosecutors. Information | 1354 |
released pursuant to this section remains confidential. The | 1355 |
superintendent of financial institutions, by rule, may designate | 1356 |
additional state agencies and regulatory authorities as entities | 1357 |
with which to share this confidential information. | 1358 |
Sec. 1323.31. No person, in connection with any examination | 1359 |
or investigation conducted by the superintendent of financial | 1360 |
institutions of the department of commerce under this chapter, | 1361 |
shall knowingly do any of the following: | 1362 |
(A) Circumvent, interfere with, obstruct, or fail to | 1363 |
cooperate, including making a false or misleading statement, | 1364 |
failing to produce records, or intimidating or suborning any | 1365 |
witness; | 1366 |
(B) Withhold, abstract, remove, mutilate, destroy, or secrete | 1367 |
any books, records, computer records, or other information; | 1368 |
(C) Tamper with, alter, or manufacture any evidence. | 1369 |
Sec. 1323.32. (A) No mortgage servicer, through its | 1370 |
operations manager or otherwise, shall fail to reasonably | 1371 |
supervise persons the servicer employs or associates with, or to | 1372 |
establish reasonable procedures to avoid violations of sections | 1373 |
1323.20 to 1323.37 of the Revised Code or the rules adopted | 1374 |
thereunder, violations of applicable state and federal consumer | 1375 |
and lending laws or rules by persons the servicer employs or | 1376 |
associates with. | 1377 |
(B) Within ten business days of any change in a mortgage | 1378 |
servicer's statutory agent designation or address, the servicer | 1379 |
shall file with the superintendent of financial institutions of | 1380 |
the department of commerce evidence that the servicer has filed | 1381 |
such changes with the secretary of state. | 1382 |
(C)(1) At least thirty days prior to the closure of a | 1383 |
registered office location, a mortgage servicer shall notify the | 1384 |
superintendent by filing a notice of closure on a form approved by | 1385 |
the superintendent. The notice shall indicate the custodian of the | 1386 |
records and where the records will be maintained. Within five | 1387 |
business days after the closure, the servicer shall surrender the | 1388 |
certificate of registration issued to that location by returning | 1389 |
it to the superintendent. | 1390 |
(2) The closure of an office and the surrender of a | 1391 |
certificate does not affect a mortgage servicer's civil or | 1392 |
criminal liability for acts committed before the surrender. | 1393 |
(D) A mortgage servicer shall maintain books and records in | 1394 |
compliance with this chapter and make them available to the | 1395 |
superintendent of financial institutions of the department of | 1396 |
commerce. After any closure, records remain subject to examination | 1397 |
and or investigation. The servicer shall send the superintendent | 1398 |
written notice of any change in the location of the records or | 1399 |
the custodian of those records. | 1400 |
Sec. 1323.33. (A) No mortgage servicer shall refuse to | 1401 |
provide information regarding the amount required to pay in full | 1402 |
a residential mortgage loan when the borrower or a person the | 1403 |
borrower designates makes that request in writing. The servicer | 1404 |
shall provide the requested payoff statement without charge one | 1405 |
time during any twelve-month period. If additional payoff | 1406 |
statements are requested, the servicer may charge an amount not | 1407 |
in excess of three dollars for each additional statement. The | 1408 |
servicer shall provide any payoff statement within five business | 1409 |
days of the request. | 1410 |
(B) No mortgage servicer shall obtain a certificate of | 1411 |
registration through any false or fraudulent representation of a | 1412 |
material fact or any omission of a material fact required by | 1413 |
state or federal law, or make any substantial misrepresentation | 1414 |
in the registration application. | 1415 |
(C) No mortgage servicer shall make false or misleading | 1416 |
statements of a material fact, omissions of statements required | 1417 |
by state or federal law, or false promises regarding a material | 1418 |
fact, through advertising or other means, or engage in a | 1419 |
continued course of misrepresentations. | 1420 |
(D) No mortgage servicer shall engage in conduct that | 1421 |
constitutes improper, fraudulent, or dishonest dealings. | 1422 |
(E) No mortgage servicer or applicant for registration shall | 1423 |
fail to notify the superintendent of financial institutions of | 1424 |
the department of commerce within thirty days after the servicer | 1425 |
or applicant has: | 1426 |
(1) Been convicted of or pleads guilty or nolo contendere in | 1427 |
a domestic, foreign, or military court to any criminal felony | 1428 |
offense; | 1429 |
(2) Been convicted of or pleads guilty or nolo contendere in | 1430 |
a domestic, foreign, or military court to any criminal offense | 1431 |
involving theft, receiving stolen property, embezzlement, forgery, | 1432 |
fraud, passing bad checks, money laundering, breach of trust, | 1433 |
dishonesty, or drug trafficking, or any criminal offense involving | 1434 |
money or securities; | 1435 |
(3) Had a mortgage servicer registration, license, or | 1436 |
comparable authority revoked in any other state. | 1437 |
(F) No mortgage servicer shall knowingly make, propose, or | 1438 |
solicit fraudulent, false, or misleading statements on any | 1439 |
mortgage servicing document or on any document related to an | 1440 |
accounting of payments remitted or disbursed. For purposes of | 1441 |
this division, "fraudulent, false, or misleading statements" | 1442 |
does not include mathematical errors, inadvertent transposition | 1443 |
of numbers, typographical errors, or any other bona fide error. | 1444 |
(G) No mortgage servicer shall knowingly instruct, solicit, | 1445 |
propose, or otherwise cause a borrower to sign in blank a | 1446 |
document. | 1447 |
(H) Any violation of division (C), (D), (F), or (G) of this | 1448 |
section, or section 1323.34, 1323.35, or 1323.36 of the Revised | 1449 |
Code is an unfair and deceptive act or practice in violation of | 1450 |
section 1345.02 of the Revised Code. | 1451 |
Sec. 1323.34. (A) In addition to the duties imposed by common | 1452 |
law or state or federal law a mortgage servicer shall do all of | 1453 |
the following: | 1454 |
(1) Act with good faith and fair dealing in any transaction, | 1455 |
practice, or course of business associated with servicing; | 1456 |
(2) Act with reasonable skill, care, and diligence; | 1457 |
(3) Act in good faith to provide the borrower with the facts | 1458 |
relating to the nature and extent of any delinquency or default | 1459 |
and the amounts owed or necessary to reinstate the loan or cure | 1460 |
the default; | 1461 |
(4) Subject to the servicer's duties and obligations under | 1462 |
its mortgage servicing contract, attempt a resolution, | 1463 |
modification, or workout to the delinquency of a borrower who | 1464 |
requests assistance. | 1465 |
(5) Make a good faith effort to correct any erroneous | 1466 |
information it has provided to any credit reporting agency; | 1467 |
(6) Make all payments from any escrow account in a timely | 1468 |
manner, so as to avoid the assessment of late fees, penalties, or | 1469 |
consequential damages, notwithstanding any loan delinquency, | 1470 |
unless there are insufficient funds in the escrow account to cover | 1471 |
the payments; | 1472 |
(7) Accept and credit each residential mortgage loan payment | 1473 |
received on the date received; | 1474 |
(8) Take all steps necessary to terminate a foreclosure | 1475 |
action when the condition giving rise to action has been fully | 1476 |
cured. Upon cure of a default, the servicer shall reinstate the | 1477 |
borrower to the same position as if the default had not | 1478 |
occurred, and nullify, as of the date of the cure, any | 1479 |
acceleration of any obligation under the residential mortgage | 1480 |
loan or note arising from the default. | 1481 |
(9) In addition to the duties enumerated in sections 1323.20 | 1482 |
to 1323.37 of the Revised Code, any mortgage servicer for a | 1483 |
government-insured loan shall comply with the loss mitigation | 1484 |
standards and guidelines as required by the insuring entity. | 1485 |
(B) When establishing a loan modification solution for a | 1486 |
borrower, a mortgage servicer shall seek to achieve long-term | 1487 |
sustainability for the borrower and adhere to the loan | 1488 |
modification standards established under section 1323.05 of the | 1489 |
Revised Code. | 1490 |
Sec. 1323.35. No mortgage servicer shall do any of the | 1491 |
following in connection with a residential mortgage loan: | 1492 |
(A) Collect, charge, or retain any fee from the borrower | 1493 |
unless the fee is reasonable, for a bona fide service rendered, | 1494 |
and specifically authorized by the residential mortgage loan and | 1495 |
permitted by law; | 1496 |
(B) Initiate a foreclosure action without proof of ownership | 1497 |
as evidenced by a declaration signed under penalty of perjury, | 1498 |
stating that the party in interest has reviewed the original note | 1499 |
and all subsequent assignments and has concluded that the party | 1500 |
in interest owns the note or mortgage; | 1501 |
(C) Fail to provide written notice to the borrower before | 1502 |
acquiring and placing hazard, homeowner's, or flood insurance on a | 1503 |
property or acquiring and placing such insurance if the mortgage | 1504 |
servicer knows, or has reason to know, that a policy for such | 1505 |
insurance is in effect; | 1506 |
(D) Acquire and place hazard, homeowner's, or flood insurance | 1507 |
on a property for an amount that exceeds the greater of the | 1508 |
insurable improvements to the property, the last known coverage | 1509 |
amount that was sufficient to meet the borrower's insurance | 1510 |
obligations, or the unpaid balance owed by the borrower. | 1511 |
(E) Fail to refund unearned premiums for insurance the | 1512 |
mortgage servicer or its agents placed upon the borrower, | 1513 |
providing there is reasonable evidence that the needed coverage | 1514 |
had been obtained, the forced placement is not necessary, and the | 1515 |
property is properly insured in accordance with the loan or note. | 1516 |
Sec. 1323.36. (A) No mortgage servicer shall use unfair, | 1517 |
deceptive or unconscionable means to collect or attempt to | 1518 |
collect any claim in connection with a residential mortgage loan. | 1519 |
Without limiting the general application of the foregoing, the | 1520 |
following actions violate this section: | 1521 |
(1) The collection or the attempt to collect any interest or | 1522 |
other charge, fee, or expense that is incidental to the principal | 1523 |
obligation, unless expressly authorized by the agreement creating | 1524 |
the obligation and by law, including division (A) of section | 1525 |
1323.35 of the Revised Code; | 1526 |
(2) Any communication with a borrower if the mortgage | 1527 |
servicer knows that the borrower is represented by an attorney and | 1528 |
the attorney's name and address are known or could be easily | 1529 |
ascertained. This prohibition does not apply if the borrower's | 1530 |
attorney fails to respond within thirty days to answer | 1531 |
correspondence, return phone calls, or discuss the obligation in | 1532 |
question, or the attorney consents to the servicer having direct | 1533 |
communication with the borrower; | 1534 |
(3) Placing a telephone call or otherwise communicating by | 1535 |
telephone with a borrower or third party, at any place including | 1536 |
a place of employment, and falsely stating that the call is | 1537 |
"urgent" or an "emergency"; | 1538 |
(4) Using profane or obscene language or language that is | 1539 |
intended to unreasonably abuse the listener or reader; | 1540 |
(5) Placing telephone calls without disclosure of the | 1541 |
caller's identity and with the intent to annoy, harass, or | 1542 |
threaten any person at the number called; | 1543 |
(6) Causing expense to any person in the form of long | 1544 |
distance telephone tolls, text messaging fees, or other charges | 1545 |
the servicer causes by concealing the true purpose of the | 1546 |
communication; | 1547 |
(7) Causing a telephone to ring or engaging any person in a | 1548 |
telephone conversation repeatedly or continuously, or at unusual | 1549 |
times or times known to be inconvenient, with the intent to | 1550 |
annoy, abuse, oppress, or threaten any person at the called | 1551 |
number. | 1552 |
(B) The requirements set forth in this section are in | 1553 |
addition to any other requirement set forth in federal or state | 1554 |
law regulating the conduct of collection activities, including the | 1555 |
federal fair debt collection practices act, 91 Stat. 874 (1977), | 1556 |
15 U.S.C. sec. 1692 et seq. | 1557 |
Sec. 1323.361. (A) No mortgage servicer, in conducting a | 1558 |
mortgage servicer business, shall engage in any unfair, deceptive | 1559 |
or unconscionable act in violation of Chapter 1345. of the Revised | 1560 |
Code. Any violation of the sections set forth in division (H) of | 1561 |
section 1323.33 or section 1323.34, 1323.35, or 1323.36 of the | 1562 |
Revised Code is an unfair and deceptive act or practice in | 1563 |
violation of section 1345.02 of the Revised Code. The attorney | 1564 |
general may take enforcement action and a borrower may seek | 1565 |
recovery under Chapter 1345. of the Revised Code for the | 1566 |
violations set forth in this division. | 1567 |
(B) A borrower injured by a violation of division (A) of this | 1568 |
section may not recover damages, attorney's fees, and costs under | 1569 |
Chapter 1345. of the Revised Code if the borrower has recovered | 1570 |
damages in a cause of action initiated under section 1323.37 of | 1571 |
the Revised Code and the damages sought under Chapter 1345. of | 1572 |
the Revised Code are based on the same acts or circumstances as | 1573 |
the damages awarded under section 1323.37 of the Revised Code. | 1574 |
Sec. 1323.37. (A) A borrower injured by a violation of | 1575 |
sections 1323.20 to 1323.37 of the Revised Code may recover | 1576 |
damages in an amount not less than all improper charges or fees | 1577 |
paid to the mortgage servicer, plus reasonable attorney's fees | 1578 |
and court costs and also may be awarded punitive damages. | 1579 |
(B) Nothing in this section prevents recovery under division | 1580 |
(A)(2) or (C) of section 1323.21. of the Revised Code. | 1581 |
(C) A borrower may not recover damages,attorney's fees, or | 1582 |
costs under this section if the borrower also recovered damages | 1583 |
in an action initiated under any section of Chapter 1321. or | 1584 |
1345. of the Revised Code and the damages so awarded were based | 1585 |
on the same acts or circumstances as the damages sought under this | 1586 |
section. | 1587 |
Sec. 1323.99. (A) Whoever violates division (A)(1) or (2) of | 1588 |
section 1323.21, or division (F) or (G) of section 1323.33 of the | 1589 |
Revised Code is guilty of a felony of the fifth degree. | 1590 |
(B) Whoever violates section 1323.31 of the Revised Code with | 1591 |
the intent to interfere or obstruct an examination or | 1592 |
investigation is guilty of a felony of the fourth degree. | 1593 |
Sec. 2303.33. (A) No clerk of court shall accept a complaint | 1594 |
to initiate a foreclosure on a residential mortgage loan unless | 1595 |
the filing contains a copy of the notice and information | 1596 |
required by section 1323.02 of the Revised Code. These copies | 1597 |
shall be filed under seal in connection with the foreclosure, | 1598 |
along with a certification by the filer that all required notices | 1599 |
and information were provided to the borrower and the requisite | 1600 |
periods of time have elapsed. | 1601 |
(B) No clerk of courts shall accept a complaint to initiate a | 1602 |
foreclosure on a residential mortgage unless that complaint is | 1603 |
accompanied by the writing described in section 2308.02 of the | 1604 |
Revised Code. | 1605 |
(C) A clerk of court of common pleas or other judicial | 1606 |
officer in this state, may access the mortgage foreclosure | 1607 |
database established pursuant to section 1323.07 of the Revised | 1608 |
Code to confirm information provided pursuant to this section. A | 1609 |
materially inaccurate statement in the filer's certification is | 1610 |
cause for dismissal of the action without prejudice and for | 1611 |
payment by the filing party of costs the borrower incurs in | 1612 |
defending the foreclosure proceeding. | 1613 |
(D) Within three business days after issuing a writ of | 1614 |
execution in a residential foreclosure action as described in | 1615 |
section 2329.091 of the Revised Code, the clerk of court shall | 1616 |
file information of that action with the administrative director | 1617 |
of the Ohio supreme court for inclusion in the foreclosure | 1618 |
database. The filing shall contain the name and address of the | 1619 |
borrower, the date of the writ, and the name of the mortgage | 1620 |
servicer or mortgage holder that filed the complaint to initiate | 1621 |
the foreclosure action. | 1622 |
(E) As used in this section, "residential mortgage," | 1623 |
"residential mortgage loan," and "mortgage servicer" have the same | 1624 |
meanings as in section 1323.01 of the Revised Code. | 1625 |
Sec. 2308.01. As used in this chapter, "residential | 1626 |
mortgage," "residential mortgage loan," "mortgage servicer" have | 1627 |
the same meanings as in section 1323.01 of the Revised Code. | 1628 |
Sec. 2308.02. (A) No person shall file a complaint to | 1629 |
initiate a residential mortgage foreclosure action unless that | 1630 |
complaint is accompanied by a writing that contains all of the | 1631 |
following: | 1632 |
(1) A statement setting forth the name of the holder of the | 1633 |
note and asserting that the named holder is the true party in | 1634 |
interest with a right to file the action; | 1635 |
(2) A statement as to whether the mortgage note has been | 1636 |
securitized and if so, the identity of any mortgage-backed | 1637 |
security that holds the loan and the name of the trustee of that | 1638 |
mortgage-backed security; | 1639 |
(3) A statement of the plaintiff's counsel or person filing | 1640 |
the complaint asserting that the counsel or person filing the | 1641 |
complaint is the designated representative of the true party in | 1642 |
interest, is authorized to negotiate on behalf of the plaintiff, | 1643 |
and is not an intermediary representative of the plaintiff; | 1644 |
(4) A statement as to whether the residential property is | 1645 |
occupied and the date that its occupancy status last was assessed; | 1646 |
(5) Evidence that a certified check for fifteen hundred | 1647 |
dollars has been transmitted to the department of commerce as | 1648 |
required under section 1323.11 of the Revised Code, or evidence | 1649 |
that such an amount was transmitted within the past twenty-four | 1650 |
months for a filing with respect to the same property and the same | 1651 |
mortgage loan, or a statement that the fee requirement does not | 1652 |
apply because the property is not occupied at the time of filing. | 1653 |
(B) Any complaint to initiate a residential mortgage | 1654 |
foreclosure action shall be accompanied by a copy of an | 1655 |
appraisal of the property, conducted within the prior three | 1656 |
months by an appraiser who is certified or licensed pursuant to | 1657 |
Chapter 4763. of the Revised Code to perform residential | 1658 |
appraisals. | 1659 |
Sec. 2308.03. (A) There is hereby declared a six-month | 1660 |
moratorium on mortgage foreclosure actions on residential | 1661 |
properties occupied by the owner of the property or the tenant of | 1662 |
that owner, to commence on the effective date of this section. | 1663 |
(B) During the time of the moratorium, all of the following | 1664 |
apply with respect to mortgage foreclosure actions on occupied | 1665 |
residential properties: | 1666 |
(1) No court shall hear a complaint for foreclosure or issue | 1667 |
a judgment on such a property. | 1668 |
(2) No clerk of court shall issue a writ of execution on such | 1669 |
a property. | 1670 |
(3) No foreclosed property shall be sold at auction nor shall | 1671 |
any auction be scheduled to conduct such a sale. | 1672 |
(4) No court shall confirm the sale at auction of such a | 1673 |
property. | 1674 |
(C)(1) During the moratorium, a borrower shall make payments | 1675 |
each month in an amount equal to one-half of the monthly payment | 1676 |
that was in effect at the time the foreclosure action was filed, | 1677 |
or other amount that the judge determines is just and equitable. | 1678 |
The payments shall be allocated first for taxes and insurance if | 1679 |
the borrower's mortgage loan required such payments into escrow, | 1680 |
then to interest and any remaining amounts to principal. The | 1681 |
borrower shall make the payments to the mortgage servicer to whom | 1682 |
the borrower made payments at the time the foreclosure action was | 1683 |
filed. | 1684 |
(2) No mortgage servicer shall refuse to accept the payments | 1685 |
that this section describes. | 1686 |
(D)(1) If a borrower fails to make the payments that this | 1687 |
section requires, thirty days after a missed payment, the party | 1688 |
who filed the action may petition the court for the foreclosure | 1689 |
action to resume and that action shall resume as if there were no | 1690 |
moratorium. | 1691 |
(E) At any time during the moratorium, a borrower may | 1692 |
petition the court to request that the foreclosure action on the | 1693 |
borrower's property proceed as if there were no moratorium. | 1694 |
(F) Nothing in this section prevents the granting of a | 1695 |
default judgment when the property is not occupied by the borrower | 1696 |
or the borrower's tenant, when the borrower did not answer the | 1697 |
complaint, or when the borrower without good cause does not appear | 1698 |
at the hearing. | 1699 |
(G) During the time of the moratorium, the borrower shall | 1700 |
make a good faith effort to maintain the property and shall grant | 1701 |
entry to inspect the property to the servicer or other | 1702 |
representative of the servicer or mortgagee, upon a | 1703 |
twenty-four-hour written notice from the servicer. | 1704 |
(H) The moratorium this section provides does not apply to | 1705 |
foreclosures that are filed by credit unions and depository | 1706 |
institutions that service their own mortgage loans, when the | 1707 |
mortgage loan that is being foreclosed is held and serviced by | 1708 |
such a credit union or depository institution. | 1709 |
Sec. 2308.04. (A) For a period of three years after the | 1710 |
effective date of this section, in a residential mortgage | 1711 |
foreclosure action that was filed prior to January 1, 2009, a | 1712 |
judge has discretion to reduce the interest rate of the loan to an | 1713 |
amount the judge determines is just and equitable and would | 1714 |
enable the borrower to make payments and retain the property if | 1715 |
the mortgage is a subprime mortgage loan as defined in section | 1716 |
1323.01 of the Revised Code. | 1717 |
(B) If a reduced interest rate does not lower the loan | 1718 |
payments to a reasonable amount, the judge may extend the term of | 1719 |
the mortgage or otherwise reduce the loan payment to a reasonable | 1720 |
amount. The judge shall reduce the loan payment in this manner | 1721 |
only if in consideration of the appraised value of the property | 1722 |
and other equitable considerations, including a finding that both | 1723 |
parties would benefit from such a modification, that under all the | 1724 |
circumstances, the modification appears just and equitable, and | 1725 |
the modification would enable the borrower to make payments and | 1726 |
retain the property; | 1727 |
(C) Any adjustment in mortgage payments a judge makes | 1728 |
pursuant to this section shall be for not more than five years. | 1729 |
Any difference in the payments the court establishes pursuant to | 1730 |
this section and the payments due pursuant to the mortgage | 1731 |
contract shall be due as a balloon payment at the end of the | 1732 |
modification period. No interest shall accrue on this amount. | 1733 |
During the time of the adjustment, the court shall maintain | 1734 |
jurisdiction over the payments and may modify those payments as | 1735 |
this section permits at any time as conditions merit and upon | 1736 |
petition from the mortgagee. | 1737 |
(D) The director of commerce shall establish in chart form | 1738 |
information that servicers may use to determine if a mortgage loan | 1739 |
is a subprime loan. The chart shall disclose the appropriate | 1740 |
interest rate triggers that determine if a loan is a subprime loan | 1741 |
for each week of the period this section covers. A servicer who | 1742 |
relies on the chart to determine if a loan is a subprime loan may | 1743 |
not be held liable for any violation with respect to that error. | 1744 |
Section 2. Section 2308.03 of the Revised Code is hereby | 1745 |
repealed, effective six months after the effective date of this | 1746 |
act. | 1747 |
Section 3. Section 2308.04 of the Revised Code is hereby | 1748 |
repealed, effective three years after the effective date of this | 1749 |
act. | 1750 |
Section 4. That existing sections 109.572 and 1321.52 of the | 1751 |
Revised Code are hereby repealed. | 1752 |
Section 5. Section 109.572 of the Revised Code is presented | 1753 |
in this act as a composite of the section as amended by Sub. H.B. | 1754 |
195, Sub. H.B. 545, and Sub. S.B. 247, all of the 127th General | 1755 |
Assembly. The General Assembly, applying the principle stated in | 1756 |
division (B) of section 1.52 of the Revised Code that amendments | 1757 |
are to be harmonized if reasonably capable of simultaneous | 1758 |
operation, finds that the composite is the resulting version of | 1759 |
the section in effect prior to the effective date of the section | 1760 |
as presented in this act. | 1761 |
Section 6. The General Assembly enacts sections 2308.03 and | 1762 |
2308.04 of the Revised Code as extraordinary measures necessary to | 1763 |
respond to an emergency situation created by the mortgage | 1764 |
foreclosure crisis in this state. The high rate of residential | 1765 |
mortgage foreclosures is proving harmful to families, lenders, and | 1766 |
communities alike. The purpose of enacting these sections is to | 1767 |
mitigate the very negative impact of the current situation and to | 1768 |
preserve property values by providing time for solutions to begin | 1769 |
to have an impact. These solutions that need time to be effective | 1770 |
include modifying loans in a manner beneficial to all parties | 1771 |
concerned and implementing federal and state initiatives that | 1772 |
provide assistance and guidance to homeowners, lenders, and | 1773 |
communities. | 1774 |
Section 7. Sections 1323.20 to 1323.37 and section 2303.33 of | 1775 |
the Revised Code take effect six months after the effective date | 1776 |
of this act. During that six month period, the Superintendent of | 1777 |
Financial Institutions of the Department of Commerce may take | 1778 |
applications for registration as a mortgage servicer as the | 1779 |
delayed sections provide and otherwise process the applications. | 1780 |
When the delayed sections become effective, the superintendent may | 1781 |
approve such registrations and issue certificates of registration. | 1782 |
Section 8. This act is hereby declared to be an emergency | 1783 |
measure necessary for the immediate preservation of the public | 1784 |
peace, health, and safety. The reason for such necessity is the | 1785 |
alarming rate of increase in mortgage foreclosures, with | 1786 |
devastating impact on homeowners and communities alike, making | 1787 |
immediate intervention and assistance necessary to allow owners | 1788 |
an opportunity to explore alternatives and resolve problems so | 1789 |
that they keep their homes and to halt and reverse the negative | 1790 |
impact of vacant and foreclosed homes on the health and safety of | 1791 |
communities. Therefore, this act shall go into immediate effect. | 1792 |