As Pending in the House Housing and Urban Revitalization Committee

128th General Assembly Regular Session 2009-2010

Sub. H. B. No. 3

Representatives Foley, Driehaus 

Cosponsors: Representatives Heard, Skindell, Stewart, Newcomb, Yuko, Hagan, Harris, Williams, B., Williams, S., Yates, Luckie, Patten, Slesnick, Ujvagi, Letson, Harwood, Boyd, Weddington, Winburn, Pryor, Murray, Mallory, Domenick, DeBose 

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A BILL

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

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mortgage foreclosures, to provide courts

6

authority to modify mortgage payments on

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foreclosures of subprime mortgages, to require

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registration of residential mortgage servicers,

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to regulate residential mortgage servicers, to

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adopt procedures and requirements related to

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residential foreclosure actions, to adopt civil

12

and criminal penalties for violations of the

13

bill's provisions, to terminate provisions of

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this act six months after its effective date by

15

repealing section 2308.03 of the Revised Code on

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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

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

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, shall do either of the following	564
without having first obtained a certificate of registration from	565
the division of financial institutions:	566

(a) Advertise, shall advertise, solicit, or hold out that the	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

(b) Engage in the business of lending or collecting the	571
person's own or another person's money, credit, or choses in	572
action for such loans.	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) All loans(1) Except as otherwise provided in division	577
(B)(2) of this section, any loan made to personsa person who at	578
the time are residentsof the loan is a resident of this state are	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