As Passed by the House

128th General Assembly Regular Session 2009-2010

Am. Sub. H. B. No. 3

Representatives Foley, Driehaus 

Cosponsors: Representatives Heard, Skindell, Stewart, Yuko, Hagan, Harris, Williams, B., Williams, S., Yates, Luckie, Patten, Slesnick, Ujvagi, Letson, Harwood, Boyd, Weddington, Winburn, Pryor, Murray, Mallory, Domenick, DeBose, Brown, Chandler, DeGeeter, Dyer, Gerberry, Koziura, Lundy, Pillich 

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A BILL

To amend sections 109.572, 1181.05, 1181.21, 1321.52,

1

1322.05, and 5713.03 and to enact sections

2

1323.01, 1323.02, 1323.04 to 1323.11, 1323.20 to

3

1323.36, 1323.361, 1323.37, 1323.99, 2303.33,

4

2308.01, 2308.02, 2308.021, and 2308.03 of the

5

Revised Code to declare a six-month moratorium

6

on mortgage foreclosures, to require

7

registration of residential mortgage servicers,

8

to regulate residential mortgage servicers, to

9

establish a database to track foreclosures, to

10

adopt procedures and requirements related to

11

residential foreclosure actions, to adopt civil

12

and criminal penalties for violations of the

13

bill's provisions, and to terminate the

14

moratorium provisions of this act six months

15

after its effective date by repealing section

16

2308.03 of the Revised Code on that date.

17

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

Section 1. That sections 109.572, 1181.05, 1181.21, 1321.52,	18
1322.05, and 5713.03 be amended and sections 1323.01, 1323.02,	19
1323.04, 1323.05, 1323.06, 1323.07, 1323.08, 1323.09, 1323.10,	20
1323.11, 1323.20, 1323.21, 1323.22, 1323.23, 1323.24, 1323.25,	21
1323.26, 1323.27, 1323.28, 1323.29, 1323.30, 1323.31, 1323.32,	22
1323.33, 1323.34, 1323.35, 1323.36, 1323.361, 1323.37,	23
1323.99, 2303.33, 2308.01, 2308.02, 2308.021, and 2308.03 of the	24
Revised Code be enacted to read as follows:	25

Sec. 109.572. (A)(1) Upon receipt of a request pursuant to	26
section 121.08, 3301.32, 3301.541, or 3319.39 of the Revised	27
Code, a completed form prescribed pursuant to division (C)(1) of	28
this section, and a set of fingerprint impressions obtained in	29
the manner described in division (C)(2) of this section, the	30
superintendent of the bureau of criminal identification and	31
investigation shall conduct a criminal records check in the	32
manner described in division (B) of this section to determine	33
whether any information exists that indicates that the person who	34
is the subject of the request previously has been convicted of or	35
pleaded guilty to any of the following:	36

(a) A violation of section 2903.01, 2903.02, 2903.03,	37
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	38
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	39
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	40
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01,	41
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,	42
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,	43
2925.06, or 3716.11 of the Revised Code, felonious sexual	44
penetration in violation of former section 2907.12 of the Revised	45
Code, a violation of section 2905.04 of the Revised Code as it	46
existed prior to July 1, 1996, a violation of section 2919.23 of	47
the Revised Code that would have been a violation of section	48
2905.04 of the Revised Code as it existed prior to July 1, 1996,	49
had the violation been committed prior to that date, or a	50
violation of section 2925.11 of the Revised Code that is not a	51
minor drug possession offense;	52

(b) A violation of an existing or former law of this state,	53
any other state, or the United States that is substantially	54
equivalent to any of the offenses listed in division (A)(1)(a) of	55
this section.	56

(2) On receipt of a request pursuant to section 5123.081 of	57
the Revised Code with respect to an applicant for employment in	58
any position with the department of mental retardation and	59
developmental disabilities, pursuant to section 5126.28 of the	60
Revised Code with respect to an applicant for employment in any	61
position with a county board of mental retardation and	62
developmental disabilities, or pursuant to section 5126.281 of the	63
Revised Code with respect to an applicant for employment in a	64
direct services position with an entity contracting with a county	65
board for employment, a completed form prescribed pursuant to	66
division (C)(1) of this section, and a set of fingerprint	67
impressions obtained in the manner described in division (C)(2) of	68
this section, the superintendent of the bureau of criminal	69
identification and investigation shall conduct a criminal records	70
check. The superintendent shall conduct the criminal records check	71
in the manner described in division (B) of this section to	72
determine whether any information exists that indicates that the	73
person who is the subject of the request has been convicted of or	74
pleaded guilty to any of the following:	75

(a) A violation of section 2903.01, 2903.02, 2903.03,	76
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	77
2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03,	78
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12,	79
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	80
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12,	81
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02,	82
2925.03, or 3716.11 of the Revised Code;	83

(b) An existing or former municipal ordinance or law of this	84
state, any other state, or the United States that is substantially	85
equivalent to any of the offenses listed in division (A)(2)(a) of	86
this section.	87

(3) On receipt of a request pursuant to section 173.27,	88
173.394, 3712.09, 3721.121, or 3722.151 of the Revised Code, a	89
completed form prescribed pursuant to division (C)(1) of this	90
section, and a set of fingerprint impressions obtained in the	91
manner described in division (C)(2) of this section, the	92
superintendent of the bureau of criminal identification and	93
investigation shall conduct a criminal records check with respect	94
to any person who has applied for employment in a position for	95
which a criminal records check is required by those sections. The	96
superintendent shall conduct the criminal records check in the	97
manner described in division (B) of this section to determine	98
whether any information exists that indicates that the person who	99
is the subject of the request previously has been convicted of or	100
pleaded guilty to any of the following:	101

(a) A violation of section 2903.01, 2903.02, 2903.03,	102
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	103
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	104
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	105
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	106
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	107
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	108
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	109
2925.22, 2925.23, or 3716.11 of the Revised Code;	110

(b) An existing or former law of this state, any other state,	111
or the United States that is substantially equivalent to any of	112
the offenses listed in division (A)(3)(a) of this section.	113

(4) On receipt of a request pursuant to section 3701.881 of	114
the Revised Code with respect to an applicant for employment with	115
a home health agency as a person responsible for the care,	116
custody, or control of a child, a completed form prescribed	117
pursuant to division (C)(1) of this section, and a set of	118
fingerprint impressions obtained in the manner described in	119
division (C)(2) of this section, the superintendent of the bureau	120
of criminal identification and investigation shall conduct a	121
criminal records check. The superintendent shall conduct the	122
criminal records check in the manner described in division (B) of	123
this section to determine whether any information exists that	124
indicates that the person who is the subject of the request	125
previously has been convicted of or pleaded guilty to any of the	126
following:	127

(a) A violation of section 2903.01, 2903.02, 2903.03,	128
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	129
2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04,	130
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21,	131
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322,	132
2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	133
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	134
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a	135
violation of section 2925.11 of the Revised Code that is not a	136
minor drug possession offense;	137

(b) An existing or former law of this state, any other state,	138
or the United States that is substantially equivalent to any of	139
the offenses listed in division (A)(4)(a) of this section.	140

(5) On receipt of a request pursuant to section 5111.032,	141
5111.033, or 5111.034 of the Revised Code, a completed form	142
prescribed pursuant to division (C)(1) of this section, and a set	143
of fingerprint impressions obtained in the manner described in	144
division (C)(2) of this section, the superintendent of the bureau	145
of criminal identification and investigation shall conduct a	146
criminal records check. The superintendent shall conduct the	147
criminal records check in the manner described in division (B) of	148
this section to determine whether any information exists that	149
indicates that the person who is the subject of the request	150
previously has been convicted of, has pleaded guilty to, or has	151
been found eligible for intervention in lieu of conviction for	152
any of the following:	153

(a) A violation of section 2903.01, 2903.02, 2903.03,	154
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21,	155
2903.34, 2905.01, 2905.02, 2905.05, 2905.11, 2905.12, 2907.02,	156
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	157
2907.21, 2907.22, 2907.23, 2907.24, 2907.25, 2907.31, 2907.32,	158
2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12,	159
2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31,	160
2913.40, 2913.43, 2913.47, 2913.48, 2913.49, 2913.51, 2917.11,	161
2919.12, 2919.22, 2919.24, 2919.25, 2921.13, 2921.36, 2923.02,	162
2923.12, 2923.13, 2923.161, 2923.32, 2925.02, 2925.03, 2925.04,	163
2925.05, 2925.06, 2925.11, 2925.13, 2925.14, 2925.22, 2925.23, or	164
3716.11 of the Revised Code, felonious sexual penetration in	165
violation of former section 2907.12 of the Revised Code, a	166
violation of section 2905.04 of the Revised Code as it existed	167
prior to July 1, 1996, a violation of section 2919.23 of the	168
Revised Code that would have been a violation of section 2905.04	169
of the Revised Code as it existed prior to July 1, 1996, had the	170
violation been committed prior to that date;	171

(b) An existing or former law of this state, any other state,	172
or the United States that is substantially equivalent to any of	173
the offenses listed in division (A)(5)(a) of this section.	174

(6) On receipt of a request pursuant to section 3701.881 of	175
the Revised Code with respect to an applicant for employment with	176
a home health agency in a position that involves providing direct	177
care to an older adult, a completed form prescribed pursuant to	178
division (C)(1) of this section, and a set of fingerprint	179
impressions obtained in the manner described in division (C)(2) of	180
this section, the superintendent of the bureau of criminal	181
identification and investigation shall conduct a criminal records	182
check. The superintendent shall conduct the criminal records check	183
in the manner described in division (B) of this section to	184
determine whether any information exists that indicates that the	185
person who is the subject of the request previously has been	186
convicted of or pleaded guilty to any of the following:	187

(a) A violation of section 2903.01, 2903.02, 2903.03,	188
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	189
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	190
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	191
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	192
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	193
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	194
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	195
2925.22, 2925.23, or 3716.11 of the Revised Code;	196

(b) An existing or former law of this state, any other state,	197
or the United States that is substantially equivalent to any of	198
the offenses listed in division (A)(6)(a) of this section.	199

(7) When conducting a criminal records check upon a request	200
pursuant to section 3319.39 of the Revised Code for an applicant	201
who is a teacher, in addition to the determination made under	202
division (A)(1) of this section, the superintendent shall	203
determine whether any information exists that indicates that the	204
person who is the subject of the request previously has been	205
convicted of or pleaded guilty to any offense specified in section	206
3319.31 of the Revised Code.	207

(8) On receipt of a request pursuant to section 2151.86 of	208
the Revised Code, a completed form prescribed pursuant to	209
division (C)(1) of this section, and a set of fingerprint	210
impressions obtained in the manner described in division (C)(2)	211
of this section, the superintendent of the bureau of criminal	212
identification and investigation shall conduct a criminal records	213
check in the manner described in division (B) of this section to	214
determine whether any information exists that indicates that the	215
person who is the subject of the request previously has been	216
convicted of or pleaded guilty to any of the following:	217

(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,	218
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21,	219
2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02,	220
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	221
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	222
2907.322, 2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24,	223
2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02,	224
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161,	225
2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, or 3716.11	226
of the Revised Code, a violation of section 2905.04 of the	227
Revised Code as it existed prior to July 1, 1996, a violation of	228
section 2919.23 of the Revised Code that would have been a	229
violation of section 2905.04 of the Revised Code as it existed	230
prior to July 1, 1996, had the violation been committed prior to	231
that date, a violation of section 2925.11 of the Revised Code	232
that is not a minor drug possession offense, two or more OVI or	233
OVUAC violations committed within the three years immediately	234
preceding the submission of the application or petition that is	235
the basis of the request, or felonious sexual penetration in	236
violation of former section 2907.12 of the Revised Code;	237

(b) A violation of an existing or former law of this state,	238
any other state, or the United States that is substantially	239
equivalent to any of the offenses listed in division (A)(8)(a) of	240
this section.	241

(9) Upon receipt of a request pursuant to section 5104.012	242
or 5104.013 of the Revised Code, a completed form prescribed	243
pursuant to division (C)(1) of this section, and a set of	244
fingerprint impressions obtained in the manner described in	245
division (C)(2) of this section, the superintendent of the bureau	246
of criminal identification and investigation shall conduct a	247
criminal records check in the manner described in division (B) of	248
this section to determine whether any information exists that	249
indicates that the person who is the subject of the request has	250
been convicted of or pleaded guilty to any of the following:	251

(a) A violation of section 2903.01, 2903.02, 2903.03,	252
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22,	253
2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,	254
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22,	255
2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323,	256
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04,	257
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	258
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,	259
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2919.12,	260
2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 2923.12,	261
2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or	262
3716.11 of the Revised Code, felonious sexual penetration in	263
violation of former section 2907.12 of the Revised Code, a	264
violation of section 2905.04 of the Revised Code as it existed	265
prior to July 1, 1996, a violation of section 2919.23 of the	266
Revised Code that would have been a violation of section 2905.04	267
of the Revised Code as it existed prior to July 1, 1996, had the	268
violation been committed prior to that date, a violation of	269
section 2925.11 of the Revised Code that is not a minor drug	270
possession offense, a violation of section 2923.02 or 2923.03 of	271
the Revised Code that relates to a crime specified in this	272
division, or a second violation of section 4511.19 of the	273
Revised Code within five years of the date of application for	274
licensure or certification.	275

(b) A violation of an existing or former law of this state,	276
any other state, or the United States that is substantially	277
equivalent to any of the offenses or violations described in	278
division (A)(9)(a) of this section.	279

(10) Upon receipt of a request pursuant to section 5153.111	280
of the Revised Code, a completed form prescribed pursuant to	281
division (C)(1) of this section, and a set of fingerprint	282
impressions obtained in the manner described in division (C)(2) of	283
this section, the superintendent of the bureau of criminal	284
identification and investigation shall conduct a criminal records	285
check in the manner described in division (B) of this section to	286
determine whether any information exists that indicates that the	287
person who is the subject of the request previously has been	288
convicted of or pleaded guilty to any of the following:	289

(a) A violation of section 2903.01, 2903.02, 2903.03,	290
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	291
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	292
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	293
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,	294
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	295
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	296
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code,	297
felonious sexual penetration in violation of former section	298
2907.12 of the Revised Code, a violation of section 2905.04 of the	299
Revised Code as it existed prior to July 1, 1996, a violation of	300
section 2919.23 of the Revised Code that would have been a	301
violation of section 2905.04 of the Revised Code as it existed	302
prior to July 1, 1996, had the violation been committed prior to	303
that date, or a violation of section 2925.11 of the Revised Code	304
that is not a minor drug possession offense;	305

(b) A violation of an existing or former law of this state,	306
any other state, or the United States that is substantially	307
equivalent to any of the offenses listed in division (A)(10)(a) of	308
this section.	309

(11) On receipt of a request for a criminal records check	310
from an individual pursuant to section 4749.03 or 4749.06 of the	311
Revised Code, accompanied by a completed copy of the form	312
prescribed in division (C)(1) of this section and a set of	313
fingerprint impressions obtained in a manner described in division	314
(C)(2) of this section, the superintendent of the bureau of	315
criminal identification and investigation shall conduct a criminal	316
records check in the manner described in division (B) of this	317
section to determine whether any information exists indicating	318
that the person who is the subject of the request has been	319
convicted of or pleaded guilty to a felony in this state or in any	320
other state. If the individual indicates that a firearm will be	321
carried in the course of business, the superintendent shall	322
require information from the federal bureau of investigation as	323
described in division (B)(2) of this section. The superintendent	324
shall report the findings of the criminal records check and any	325
information the federal bureau of investigation provides to the	326
director of public safety.	327

(12) On receipt of a request pursuant to section 1321.37,	328
1322.03, 1322.031, 1323.23, or 4763.05 of the Revised Code, a	329
completed form prescribed pursuant to division (C)(1) of this	330
section, and a set of fingerprint impressions obtained in the	331
manner described in division (C)(2) of this section, the	332
superintendent of the bureau of criminal identification and	333
investigation shall conduct a criminal records check with	334
respect to any person who has applied for a license, permit, or	335
certification from the department of commerce or a division in	336
the department. The superintendent shall conduct the criminal	337
records check in the manner described in division (B) of this	338
section to determine whether any information exists that	339
indicates that the person who is the subject of the request	340
previously has been convicted of or pleaded guilty to any of the	341
following: a violation of section 2913.02, 2913.11, 2913.31,	342
2913.51, or 2925.03 of the Revised Code; any other criminal	343
offense involving theft, receiving stolen property,	344
embezzlement, forgery, fraud, passing bad checks, money	345
laundering, or drug trafficking, or any criminal offense	346
involving money or securities, as set forth in Chapters 2909.,	347
2911., 2913., 2915., 2921., 2923., and 2925. of the Revised	348
Code; or any existing or former law of this state, any other	349
state, or the United States that is substantially equivalent to	350
those offenses.	351

(13) On receipt of a request for a criminal records check	352
from the treasurer of state under section 113.041 of the Revised	353
Code or from an individual under section 4701.08, 4715.101,	354
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14,	355
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,	356
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,	357
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051,	358
4762.031, 4762.06, or 4779.091 of the Revised Code, accompanied	359
by a completed form prescribed under division (C)(1) of this	360
section and a set of fingerprint impressions obtained in the	361
manner described in division (C)(2) of this section, the	362
superintendent of the bureau of criminal identification and	363
investigation shall conduct a criminal records check in the	364
manner described in division (B) of this section to determine	365
whether any information exists that indicates that the person who	366
is the subject of the request has been convicted of or pleaded	367
guilty to any criminal offense in this state or any other state.	368
The superintendent shall send the results of a check requested	369
under section 113.041 of the Revised Code to the treasurer of	370
state and shall send the results of a check requested under any of	371
the other listed sections to the licensing board specified by the	372
individual in the request.	373

(14) On receipt of a request pursuant to section 1121.23,	374
1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 of the Revised	375
Code, a completed form prescribed pursuant to division (C)(1) of	376
this section, and a set of fingerprint impressions obtained in the	377
manner described in division (C)(2) of this section, the	378
superintendent of the bureau of criminal identification and	379
investigation shall conduct a criminal records check in the manner	380
described in division (B) of this section to determine whether any	381
information exists that indicates that the person who is the	382
subject of the request previously has been convicted of or pleaded	383
guilty to any criminal offense under any existing or former law of	384
this state, any other state, or the United States.	385

(15) Not later than thirty days after the date the	386
superintendent receives a request of a type described in division	387
(A)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11),	388
(12), or (14) of this section, the completed form, and the	389
fingerprint impressions, the superintendent shall send the	390
person, board, or entity that made the request any information,	391
other than information the dissemination of which is prohibited	392
by federal law, the superintendent determines exists with respect	393
to the person who is the subject of the request that indicates	394
that the person previously has been convicted of or pleaded	395
guilty to any offense listed or described in division (A)(1),	396
(2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), or	397
(14) of this section, as appropriate. The superintendent shall	398
send the person, board, or entity that made the request a copy of	399
the list of offenses specified in division (A)(1), (2), (3), (4),	400
(5), (6), (7), (8), (9), (10), (11), (12), or (14) of this	401
section, as appropriate. If the request was made under section	402
3701.881 of the Revised Code with regard to an applicant who may	403
be both responsible for the care, custody, or control of a child	404
and involved in providing direct care to an older adult, the	405
superintendent shall provide a list of the offenses specified in	406
divisions (A)(4) and (6) of this section.	407

Not later than thirty days after the superintendent receives	408
a request for a criminal records check pursuant to section 113.041	409
of the Revised Code, the completed form, and the fingerprint	410
impressions, the superintendent shall send the treasurer of state	411
any information, other than information the dissemination of which	412
is prohibited by federal law, the superintendent determines exist	413
with respect to the person who is the subject of the request that	414
indicates that the person previously has been convicted of or	415
pleaded guilty to any criminal offense in this state or any other	416
state.	417

(B) The superintendent shall conduct any criminal records	418
check requested under section 113.041, 121.08, 173.27, 173.394,	419
1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23,	420
1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881,	421
3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061,	422
4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28,	423
4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296,	424
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03,	425
4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06,	426
4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012,	427
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,	428
5126.281, or 5153.111 of the Revised Code as follows:	429

(1) The superintendent shall review or cause to be reviewed	430
any relevant information gathered and compiled by the bureau under	431
division (A) of section 109.57 of the Revised Code that relates to	432
the person who is the subject of the request, including, if the	433
criminal records check was requested under section 113.041,	434
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141,	435
1321.37, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86,	436
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121,	437
3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013,	438
5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or	439
5153.111 of the Revised Code, any relevant information contained	440
in records that have been sealed under section 2953.32 of the	441
Revised Code;	442

(2) If the request received by the superintendent asks for	443
information from the federal bureau of investigation, the	444
superintendent shall request from the federal bureau of	445
investigation any information it has with respect to the person	446
who is the subject of the request, including fingerprint-based	447
checks of national crime information databases as described in 42	448
U.S.C. 671 if the request is made pursuant to section 2151.86,	449
5104.012, or 5104.013 of the Revised Code or if any other Revised	450
Code section requires fingerprint-based checks of that nature, and	451
shall review or cause to be reviewed any information the	452
superintendent receives from that bureau.	453

(3) The superintendent or the superintendent's designee may	454
request criminal history records from other states or the federal	455
government pursuant to the national crime prevention and privacy	456
compact set forth in section 109.571 of the Revised Code.	457

(C)(1) The superintendent shall prescribe a form to obtain	458
the information necessary to conduct a criminal records check from	459
any person for whom a criminal records check is requested under	460
section 113.041 of the Revised Code or required by section	461
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141,	462
1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32,	463
3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151,	464
4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071,	465
4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171,	466
4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202,	467
4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061,	468
4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05,	469
4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034,	470
5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code.	471
The form that the superintendent prescribes pursuant to this	472
division may be in a tangible format, in an electronic format,	473
or in both tangible and electronic formats.	474

(2) The superintendent shall prescribe standard impression	475
sheets to obtain the fingerprint impressions of any person for	476
whom a criminal records check is requested under section 113.041	477
of the Revised Code or required by section 121.08, 173.27,	478
173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031,	479
1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39,	480
3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101,	481
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14,	482
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,	483
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,	484
4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032,	485
4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091,	486
5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081,	487
5126.28, 5126.281, or 5153.111 of the Revised Code. Any person	488
for whom a records check is requested under or required by any of	489
those sections shall obtain the fingerprint impressions at a	490
county sheriff's office, municipal police department, or any	491
other entity with the ability to make fingerprint impressions on	492
the standard impression sheets prescribed by the superintendent.	493
The office, department, or entity may charge the person a	494
reasonable fee for making the impressions. The standard	495
impression sheets the superintendent prescribes pursuant to this	496
division may be in a tangible format, in an electronic format, or	497
in both tangible and electronic formats.	498

(3) Subject to division (D) of this section, the	499
superintendent shall prescribe and charge a reasonable fee for	500
providing a criminal records check requested under section	501
113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05,	502
1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86,	503
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121,	504
3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501,	505
4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15,	506
4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091,	507
4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70,	508
4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031,	509
4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032,	510
5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or 5153.111 of	511
the Revised Code. The person making a criminal records request	512
under any of those sections shall pay the fee prescribed	513
pursuant to this division. A person making a request under	514
section 3701.881 of the Revised Code for a criminal records	515
check for an applicant who may be both responsible for the care,	516
custody, or control of a child and involved in providing direct	517
care to an older adult shall pay one fee for the request. In the	518
case of a request under section 1121.23, 1155.03, 1163.05,	519
1315.141, 1733.47, 1761.26, or 5111.032 of the Revised Code,	520
the fee shall be paid in the manner specified in that section.	521

(4) The superintendent of the bureau of criminal	522
identification and investigation may prescribe methods of	523
forwarding fingerprint impressions and information necessary to	524
conduct a criminal records check, which methods shall include, but	525
not be limited to, an electronic method.	526

(D) A determination whether any information exists that	527
indicates that a person previously has been convicted of or	528
pleaded guilty to any offense listed or described in division	529
(A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or	530
(b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7), (A)(8)(a) or	531
(b), (A)(9)(a) or (b), (A)(10)(a) or (b), (A)(12), or (A)(14) of	532
this section, or that indicates that a person previously has	533
been convicted of or pleaded guilty to any criminal offense in	534
this state or any other state regarding a criminal records check	535
of a type described in division (A)(13) of this section, and	536
that is made by the superintendent with respect to information	537
considered in a criminal records check in accordance with this	538
section is valid for the person who is the subject of the	539
criminal records check for a period of one year from the date	540
upon which the superintendent makes the determination. During the	541
period in which the determination in regard to a person is valid,	542
if another request under this section is made for a criminal	543
records check for that person, the superintendent shall provide	544
the information that is the basis for the superintendent's	545
initial determination at a lower fee than the fee prescribed for	546
the initial criminal records check.	547

(E) As used in this section:

548

(1) "Criminal records check" means any criminal records check	549
conducted by the superintendent of the bureau of criminal	550
identification and investigation in accordance with division (B)	551
of this section.	552

(2) "Minor drug possession offense" has the same meaning as	553
in section 2925.01 of the Revised Code.	554

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

555

(4) "OVI or OVUAC violation" means a violation of section	556
4511.19 of the Revised Code or a violation of an existing or	557
former law of this state, any other state, or the United States	558
that is substantially equivalent to section 4511.19 of the Revised	559
Code.	560

Sec. 1181.05.  (A) As used in this section, "consumer finance	561
company" means any person required to be licensed or registered	562
under Chapter 1321., 1322., 1323., 4712., 4727., or 4728. or	563
sections 1315.21 to 1315.30 of the Revised Code.	564

(B) Neither the superintendent of financial institutions nor	565
any other employee of the division of financial institutions shall	566
do any of the following: be interested, directly or indirectly, in	567
any bank, savings and loan association, savings bank, credit	568
union, or consumer finance company, that is under the supervision	569
of the superintendent of financial institutions; directly or	570
indirectly borrow money from any such financial institution or	571
company; serve as a director or officer of or be employed by any	572
such financial institution or company; or own an equity interest	573
in any such financial institution or company. For purposes of this	574
section, an equity interest does not include the ownership of an	575
account in a mutual savings and loan association or in a savings	576
bank that does not have permanent stock or the ownership of a	577
share account in a credit union.	578

(C) Subject to division (G) of this section, an employee of	579
the division of financial institutions may retain any extension of	580
credit that otherwise would be prohibited by division (B) of this	581
section if both of the following apply:	582

(1) The employee obtained the extension of credit prior to	583
October 29, 1995, or the commencement of the employee's employment	584
with the division, or as a result of a change in the employee's	585
marital status, the consummation of a merger, acquisition,	586
transfer of assets, or other change in corporate ownership beyond	587
the employee's control, or the sale of the extension of credit in	588
the secondary market or other business transaction beyond the	589
employee's control.	590

(2) The employee liquidates the extension of credit under its	591
original terms and without renegotiation.	592

If the employee chooses to retain the extension of credit,	593
the employee shall immediately provide written notice of the	594
retention to the employee's supervisor. Thereafter, the employee	595
shall be disqualified from participating in any decision,	596
examination, audit, or other action that may affect that	597
particular creditor.	598

(D) Subject to division (G) of this section, an employee of	599
the division of financial institutions may retain any ownership of	600
or beneficial interest in the securities of a financial	601
institution or consumer finance company that is under the	602
supervision of the division of financial institutions, or of a	603
holding company or subsidiary of such a financial institution or	604
company, which ownership or beneficial interest otherwise would be	605
prohibited by division (B) of this section, if the ownership or	606
beneficial interest is acquired by the employee through	607
inheritance or gift, prior to October 29, 1995, or the	608
commencement of the employee's employment with the division, or as	609
a result of a change in the employee's marital status or the	610
consummation of a merger, acquisition, transfer of assets, or	611
other change in corporate ownership beyond the employee's control.	612

If the employee chooses to retain the ownership or beneficial	613
interest, the employee shall immediately provide written notice of	614
the retention to the employee's supervisor. Thereafter, the	615
employee shall be disqualified from participating in any decision,	616
examination, audit, or other action that may affect the issuer of	617
the securities. However, if the ownership of or beneficial	618
interest in the securities and the subsequent disqualification	619
required by this division impair the employee's ability to perform	620
the employee's duties, the employee may be ordered to divest self	621
of the ownership of or beneficial interest in the securities.	622

(E) Notwithstanding division (B) of this section, an employee	623
of the division of financial institutions may have an indirect	624
interest in the securities of a financial institution or consumer	625
finance company that is under the supervision of the division of	626
financial institutions, which interest arises through ownership of	627
or beneficial interest in the securities of a publicly held mutual	628
fund or investment trust, if the employee owns or has a beneficial	629
interest in less than five per cent of the securities of the	630
mutual fund or investment trust, and the mutual fund or investment	631
trust is not advised or sponsored by a financial institution or	632
consumer finance company that is under the supervision of the	633
division of financial institutions. If the mutual fund or	634
investment trust is subsequently advised or sponsored by a	635
financial institution or consumer finance company that is under	636
the supervision of the division of financial institutions, the	637
employee shall immediately provide written notice of the ownership	638
of or beneficial interest in the securities to the employee's	639
supervisor. Thereafter, the employee shall be disqualified from	640
participating in any decision, examination, audit, or other action	641
that may affect the financial institution or consumer finance	642
company. However, if the ownership of or beneficial interest in	643
the securities and the subsequent disqualification required by	644
this division impair the employee's ability to perform the	645
employee's duties, the employee may be ordered to divest self of	646
the ownership of or beneficial interest in the securities.	647

(F)(1) For purposes of this section, the interests of an	648
employee's spouse or dependent child arising through the ownership	649
or control of securities shall be considered the interests of the	650
employee, unless the interests are solely the financial interest	651
and responsibility of the spouse or dependent child, the interests	652
are not in any way derived from the income, assets, or activity of	653
the employee, and any financial or economic benefit from the	654
interests is for the personal use of the spouse or dependent	655
child.	656

(2) If an employee's spouse or dependent child obtains	657
interests arising through the ownership or control of securities	658
and, pursuant to division (F)(1) of this section, the interests	659
are not considered the interests of the employee, the employee	660
shall immediately provide written notice of the interests to the	661
employee's supervisor. Thereafter, the employee shall be	662
disqualified from participating in any decision, examination,	663
audit, or other action that may affect the issuer of the	664
securities.	665

(G) For purposes of divisions (C) and (D) of this section,	666
both of the following apply:	667

(1) With respect to any employee of the former division of	668
consumer finance who, on the first day of the first pay period	669
commencing after the effective date of this section, becomes an	670
employee of the division of financial institutions, the employee's	671
employment with the division of financial institutions is deemed	672
to commence on the first day of the first pay period commencing	673
after the effective date of this section.	674

(2) With respect to any employee who, on October 29, 1995,	675
became an employee of the division of financial institutions, the	676
employee may, notwithstanding divisions (C) and (D) of this	677
section, retain any extension of credit by a consumer finance	678
company that was obtained at any time prior to the first day of	679
the first pay period commencing after the effective date of this	680
section, or retain any ownership of or beneficial interest in the	681
securities of a consumer finance company, or of a holding company	682
or subsidiary of such a company, that was acquired at any time	683
prior to the first day of the first pay period commencing after	684
the effective date of this section. If the employee chooses to	685
retain the extension of credit or the ownership or beneficial	686
interest, the employee shall comply with divisions (C) and (D) of	687
this section.	688

Sec. 1181.21.  (A) As used in this section, "consumer finance	689
company" has the same meaning as in section 1181.05 of the Revised	690
Code.	691

(B) The superintendent of financial institutions shall see	692
that the laws relating to consumer finance companies are executed	693
and enforced.	694

(C) The deputy superintendent for consumer finance shall be	695
the principal supervisor of consumer finance companies. In that	696
position the deputy superintendent for consumer finance shall,	697
notwithstanding section 1321.421, division (A) of section	698
1321.76, and sections 1321.07, 1321.55, 1322.06, 1323.30, 4727.05,	699
and 4728.05 of the Revised Code, be responsible for conducting	700
examinations and preparing examination reports under those	701
sections. In addition, the deputy superintendent for consumer	702
finance shall, notwithstanding sections 1315.27, 1321.10,	703
1321.43, 1321.54, 1321.77, 1322.12, 1323.29, 4712.14, 4727.13, and	704
4728.10 of the Revised Code, have the authority to adopt rules	705
and standards in accordance with those sections. In performing or	706
exercising any of the examination, rule-making, or other	707
regulatory functions, powers, or duties vested by this division in	708
the deputy superintendent for consumer finance, the deputy	709
superintendent for consumer finance shall be subject to the	710
control of the superintendent of financial institutions and the	711
director of commerce.	712

Sec. 1321.52.  (A)(1) No person, on that person's own behalf	713
or on behalf of any other person, shall do either of the following	714
without having first obtained a certificate of registration from	715
the division of financial institutions:	716

(a) Advertise, shall advertise, solicit, or hold out that the	717
person is engaged in the business of making loans secured by a	718
mortgage on a borrower's real estate which is other than a first	719
lien on the real estate;	720

(b) Engage in the business of lending or collecting the	721
person's own or another person's money, credit, or choses in	722
action for such loans.	723

(2) Each person issued a certificate of registration is	724
subject to all the rules prescribed under sections 1321.51 to	725
1321.60 of the Revised Code.	726

(B) All loans(1) Except as otherwise provided in division	727
(B)(2) of this section, any loan made to personsa person who at	728
the time are residentsof the loan is a resident of this state are	729
is considered as made within this state and subject to the laws	730
of this state, regardless of any statement in the contract or note	731
to the contrary.	732

(2) If a loan is primarily secured by a lien on real property	733
in another state and that loan is arranged by a mortgage loan	734
originator licensed by another state, the borrower may designate	735
the transaction be governed by the law where the real property is	736
located if the other state has consumer protection laws covering	737
the borrower that are applicable to the transaction.	738

(C) A registrant may make unsecured loans, loans secured by a	739
mortgage on a borrower's real estate which is a first lien or	740
other than a first lien on the real estate, loans secured by other	741
than real estate, and loans secured by any combination of	742
mortgages and security interests, on terms and conditions provided	743
by sections 1321.51 to 1321.60 of the Revised Code.	744

(D)(1) If a lender that is subject to sections 1321.51 to	745
1321.60 of the Revised Code makes a loan in violation of division	746
(A)(1) of this section, the lender has no right to collect,	747
receive, or retain any interest or charges on that loan.	748

(2) If a registrant applies to the division for a renewal of	749
the registrant's certificate after the date required by division	750
(A)(4) of section 1321.53 of the Revised Code, but prior to the	751
first day of August of that year, and the division approves the	752
application, division (D)(1) of this section does not apply with	753
respect to any loan made by the registrant while the registrant's	754
certificate was expired.	755

Sec. 1322.05.  (A) No registrant shall conduct business in	756
this state, unless the registrant maintains a net worth of at	757
least fifty thousand dollars and has obtained and maintains in	758
effect at all times a corporate surety bond issued by a bonding	759
company or insurance company authorized to do business in this	760
state. The bond shall be in favor of the superintendent of	761
financial institutions and in the penal sum of at least fiftyone	762
hundred thousand dollars and an additional penal sum of ten	763
thousand dollars for each location, in excess of one, at which the	764
registrant conducts business. The term of the bond shall coincide	765
with the term of registration. A copy of the bond shall be filed	766
with the superintendent. The bond shall be for the exclusive	767
benefit of any buyer injured by a violation by an employee,	768
licensee, or registrant of any provision of sections 1322.01 to	769
1322.12 of the Revised Code. The aggregate liability of the	770
corporate surety for any and all breaches of the conditions of the	771
bond shall not exceed the penal sum of the bond.	772

(B)(1) The registrant shall give notice to the superintendent	773
by certified mail of any action that is brought by a buyer against	774
the registrant or loan officer of the registrant alleging injury	775
by a violation of any provision of sections 1322.01 to 1322.12 of	776
the Revised Code, and of any judgment that is entered against the	777
registrant or loan officer of the registrant by a buyer injured by	778
a violation of any provision of sections 1322.01 to 1322.12 of the	779
Revised Code. The notice shall provide details sufficient to	780
identify the action or judgment, and shall be filed with the	781
superintendent within ten days after the commencement of the	782
action or notice to the registrant of entry of a judgment.	783

(2) A corporate surety, within ten days after it pays any	784
claim or judgment, shall give notice to the superintendent by	785
certified mail of the payment, with details sufficient to identify	786
the person and the claim or judgment paid.	787

(C) Whenever the penal sum of the corporate surety bond is	788
reduced by one or more recoveries or payments, the registrant	789
shall furnish a new or additional bond under this section, so that	790
the total or aggregate penal sum of the bond or bonds equals the	791
sum required by this section, or shall furnish an endorsement	792
executed by the corporate surety reinstating the bond to the	793
required penal sum of it.	794

(D) The liability of the corporate surety on the bond to the	795
superintendent and to any buyer injured by a violation of any	796
provision of sections 1322.01 to 1322.12 of the Revised Code shall	797
not be affected in any way by any misrepresentation, breach of	798
warranty, or failure to pay the premium, by any act or omission	799
upon the part of the registrant, by the insolvency or bankruptcy	800
of the registrant, or by the insolvency of the registrant's	801
estate. The liability for any act or omission that occurs during	802
the term of the corporate surety bond shall be maintained and in	803
effect for at least two years after the date on which the	804
corporate surety bond is terminated or canceled.	805

(E) The corporate surety bond shall not be canceled by the	806
registrant or the corporate surety except upon notice to the	807
superintendent by certified mail, return receipt requested. The	808
cancellation shall not be effective prior to thirty days after the	809
superintendent receives the notice.	810

(F) No registrant shall fail to comply with this section. Any	811
registrant that fails to comply with this section shall cease all	812
mortgage broker activity in this state until the registrant	813
complies with this section.	814

Sec. 1323.01. (A) As used in this chapter:

815

(1) "Mortgage servicer" or "servicer" means a person who	816
engages directly or indirectly, whether for compensation, gain	817
for another, or on the person's own behalf, in the business of	818
receiving scheduled periodic payments from a borrower pursuant to	819
the terms of a residential mortgage loan, including amounts	820
received for deposit in an escrow account, and applying those	821
payments received toward principal, interest, and other	822
obligations of the borrower including amounts to be paid from an	823
escrow account.	824

"Mortgage servicer" includes a person who makes or holds a	825
loan if that person also services the loan.	826

"Mortgage servicer" does not include any of the following:

827

(a) The federal deposit insurance corporation or the	828
resolution trust corporation, in connection with assets acquired,	829
assigned, sold, or transferred pursuant to the "Federal Deposit	830
Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C.	831
1823(c), or as receiver or conservator of an insured depository	832
institution;	833

(b) The government national mortgage association, the federal	834
national mortgage association, the federal home loan mortgage	835
corporation, the resolution trust corporation, or the federal	836
deposit insurance corporation, in any case in which the	837
assignment, sale, or transfer of the servicing of the mortgage	838
loan is preceded by:	839

(i) Termination of the contract for servicing the loan for	840
cause;	841

(ii) Commencement of proceedings for bankruptcy of the	842
servicer;	843

(iii) Commencement of proceedings by the federal deposit	844
insurance corporation or the resolution trust corporation for	845
conservatorship or receivership of the servicer or an entity by	846
which the servicer is owned or controlled.	847

(c) The national credit union administration, in connection	848
with assets acquired, assigned, sold, or transferred pursuant to	849
federal law, or as a receiver or conservator of an insured credit	850
union;	851

(d) Any political subdivision or any public agency of the	852
United States or any state.	853

(2) "Mortgage lender" means a person engaged in the business	854
of making residential mortgage loans for compensation or gain.	855

(3) "Residential mortgage" and "residential mortgage loan"	856
mean an obligation to pay a sum of money evidenced by a note and	857
secured by a lien upon real property located within this state	858
containing four or fewer residential units and includes such an	859
obligation on a residential condominium or cooperative unit.	860

(4) "Employee" means an individual for whom a person pays a	861
wage or salary, pays social security and unemployment taxes,	862
provides workers' compensation coverage, and withholds local,	863
state, and federal income taxes. "Employee" includes any	864
individual who acts as an operations manager of a registered	865
mortgage servicer, but for whom the servicer is prevented by law	866
from making income tax withholdings.	867

(5) "Operations manager" means the employee or owner	868
responsible for the everyday operations, compliance requirements,	869
and management of a registrant or applicant.	870

(6) "Subprime loan" or "subprime mortgage" means a	871
residential mortgage loan originated between January 1, 2001, and	872
January 1, 2009, in which the difference between the annual	873
percentage rate for the loan and the federal home loan mortgage	874
corporation primary mortgage market survey rate for a comparable	875
transaction, as of the date the interest rate is set, is greater	876
than one and one-half percentage points if the loan is a first	877
mortgage loan or three and one-half percentage points if the	878
loan is a mortgage loan in a subordinate position.	879

(7) "Unoccupied property" means a property intended for	880
residential occupancy that is not occupied by the owner of the	881
property or the owner's tenant.	882

(8) "Superintendent of financial institutions" or	883
"superintendent" includes the deputy superintendent for consumer	884
finance as provided in section 1181.21 of the Revised Code.	885

(9) "Short sale" means a transaction in which the property	886
that is the subject of a mortgage transaction is sold for an	887
amount that is less than the amount of the debtor's outstanding	888
obligation under the mortgage transaction.	889

(10) "Depository institution" means an entity chartered and	890
lawfully doing business under the authority of any law of this	891
state, another state, or the United States as a bank, savings	892
bank, trust company, or savings and loan association. "Depository	893
institution" does not mean the holding company of such an	894
institution.	895

(11) "Credit union" means an entity chartered under Chapter	896
1733. of the Revised Code or under similar laws of another state	897
or the United States. "Credit union" includes a credit union	898
service organization consisting of multiple credit unions.	899

(B) Sections 1323.01 to 1323.11 of the Revised Code shall be	900
known as the "special program to reduce foreclosures act."	901

(C)(1) The director of commerce may act through staff and	902
those under the director's control, including the deputy	903
superintendent for consumer finance as provided in section 1181.21	904
of the Revised Code.	905

(2) The director may adopt rules pursuant to Chapter 119. Of	906
the Revised Code for the administration and enforcement of	907
sections 1323.02, 1323.05, and 1323.06 of the Revised Code.	908

Sec. 1323.02.  (A) At least sixty days prior to filing a	909
complaint to initiate a foreclosure action that involves a	910
residential mortgage loan on property occupied by an owner or a	911
tenant of that owner, a mortgage servicer shall provide the	912
borrower with a notice to inform the borrower of the amount due to	913
the lender and the availability of resources to avoid	914
foreclosure. This notice shall be on a form the director of	915
commerce prescribes and shall include all of the following:	916

(1) An itemization of all past due amounts causing the loan	917
to be in default;	918

(2) An itemization of any other charges that the borrower	919
must pay in order to be current on loan payments;	920

(3) A statement that the borrower may have options available	921
other than foreclosure, and that the borrower may discuss	922
available options with the mortgage lender, the mortgage servicer,	923
or a counselor approved by the United States department of housing	924
and urban development;	925

(4) The address, telephone number, and other contact	926
information for the mortgage lender, the mortgage servicer, or an	927
agent for either of them who is authorized to work with the	928
borrower to avoid foreclosure;	929

(5) The address, telephone number, and other contact	930
information for the department of job and family services,	931
including the following web site address: www.OhioMeansJobs.com;	932

(6) The name, address, telephone number, and other contact	933
information for one or more United States department of housing	934
and urban development-approved counseling agencies operating to	935
assist borrowers in Ohio to avoid foreclosure;	936

(7) The address, telephone number, and other contact	937
information for the consumer complaint sections of the division of	938
financial institutions in the Ohio department of commerce and the	939
Ohio attorney general;	940

(8) The following information prominently displayed:

941

"YOU HAVE THE RIGHT TO REMAIN IN THIS PROPERTY DURING THE	942
FORECLOSURE PROCEEDINGS AND AFTER THE SHERIFF'S SALE UNTIL A COURT	943
CONFIRMS THE SALE.	944

ADDRESS OF PROPERTY: ..........................."

945

(9) Other information the director considers necessary and	946
includes on the form.	947

(B) The mortgage servicer shall mail the notice this section	948
requires to the last known address of the borrower and shall	949
evidence the mailing by a certificate of mailing from the United	950
States postal service.	951

Sec. 1323.04. (A) Within three business days after mailing	952
the notice section 1323.02 of the Revised Code requires, a	953
mortgage servicer shall file with the administrative director of	954
the Ohio supreme court the date the notice was mailed to the	955
borrower and, unless prohibited by state or federal law, any	956
additional information the administrative director requests.	957

(B) Within seven days after entering into a modification	958
agreement, a mortgage servicer shall notify the administrative	959
director of the nature and terms of an agreement with a borrower	960
to do any of the following:	961

(1) Reduce or forego any fees or arrearages, including	962
acceptance of a deed in lieu of foreclosure;	963

(2) Alter the terms of the residential mortgage loan	964
agreement by a reduction in interest rate, lessening of monthly	965
payment, increase in the term for repayment, deferment of	966
interest or other payment, or alteration of a variable rate	967
adjustment date;	968

(3) Refinance the loan under new terms.

969

(C) Any notice or filing this section requires shall be made	970
in an electronic format as the administrative director prescribes,	971
and contain the name and address of the borrower, the name and	972
address of the mortgage servicer, and the name and address of the	973
holder of the mortgage.	974

(D) The administrative director shall include all information	975
received pursuant to this section in the state foreclosure	976
database developed and maintained pursuant to section 1323.07 of	977
the Revised Code. This information shall be available for review	978
by the state foreclosure prevention project as described in	979
section 1323.06 of the Revised Code.	980

Sec. 1323.05. (A) The director of commerce shall adopt	981
comprehensive minimum loan modification standards by rule to	982
advise mortgage servicers of modification alternatives and to use	983
to evaluate the loan modification efforts of mortgage servicers.	984
The director shall design the standards to reflect modification	985
alternatives that would keep a borrower in the borrower's home	986
when the anticipated recovery under a loan modification or	987
workout plan is greater than the anticipated recovery through	988
foreclosure, on a net present value basis.	989

(B) The loan modification standards adopted pursuant to this	990
section shall include some combination of the following	991
features:	992

(1) An interest rate reduction, as needed, for a fixed term	993
of at least five years;	994

(2) An extension of the amortization period for the loan	995
term, to not more than forty years from the original date of the	996
loan;	997

(3) Deferral of some portion of the principal amount of the	998
unpaid principal balance until maturity of the loan;	999

(4) Reduction of principal;

1000

(5) Compliance with a federally mandated loan modification	1001
program;	1002

(6) Other factors the director determines are appropriate,	1003
which may include efforts implemented in other states that have	1004
resulted in a reduction in foreclosures.	1005

Sec. 1323.06.  The director of commerce shall establish the	1006
"state foreclosure prevention project" to collect residential	1007
mortgage foreclosure information, track loss mitigation efforts,	1008
encourage viable loan modifications, and seek solutions to avoid	1009
foreclosures for residential mortgage loans. In developing the	1010
project, the director may include input from the United States	1011
department of housing and urban development-approved housing	1012
counselors, community organizations, state agencies including	1013
the Ohio attorney general, mortgage lenders, mortgage servicers,	1014
and any other appropriate persons.	1015

Sec. 1323.07. (A) The director of commerce shall design and	1016
develop, in consultation with the administrative director of the	1017
Ohio supreme court, the state foreclosure database to track	1018
residential mortgage foreclosure information and to promote the	1019
efforts of the state foreclosure prevention project. Not later	1020
than October 1, 2009, the administrative director of the Ohio	1021
supreme court shall implement the database.	1022

(B) No person shall have access to the state foreclosure	1023
database except the following individuals or the individual's	1024
designated representative: the administrative director of the	1025
Ohio supreme court, the director of commerce, the superintendent	1026
of financial institutions, the Ohio attorney general, and the	1027
clerk of a court of common pleas for the purposes described in	1028
section 2303.33 of the Revised Code.	1029

(C) Any information provided for inclusion in the state	1030
foreclosure database is exclusively for the use and purposes of	1031
the state foreclosure prevention project. The database is not a	1032
public record subject to section 149.43 of the Revised Code and	1033
the information provided for and included in the database may not	1034
be disclosed except as this section provides. Any mortgage	1035
servicer shall have access only to the information submitted	1036
with respect to its own loans.	1037

(D) Providing information as this chapter requires for	1038
inclusion in the state foreclosure database does not violate any	1039
state law pertaining to financial privacy. A mortgage servicer	1040
shall be held harmless for any alleged breach of privacy rights of	1041
a borrower with respect to the information the mortgage servicer	1042
provides in accordance with this chapter.	1043

Sec. 1323.08.  (A) The director of commerce annually shall	1044
submit a report to the general assembly describing the operation	1045
of the state foreclosure prevention project. The director shall	1046
present information in the report in aggregate form, and may	1047
include the number of borrowers helped, the effectiveness of	1048
the funds in preventing foreclosure, recommendations for	1049
further efforts needed to reduce foreclosures, and any other	1050
aggregated information the director determines is pertinent or	1051
that the general assembly requests.	1052

(B) In preparing the report, the director shall review	1053
information provided in the state foreclosure database to	1054
determine all of the following:	1055

(1) Whether the loss mitigation programs and efforts	1056
effectively address loan default issues;	1057

(2) The most effective means for establishing successful	1058
foreclosure alternatives including loan modification programs;	1059

(3) Which procedures best comport with a servicer's	1060
obligation to investors to lessen losses resulting from borrower	1061
defaults.	1062

Sec. 1323.09.  The superintendent of financial institutions	1063
in the department of commerce shall review the information in the	1064
state foreclosure database to determine whether any mortgage	1065
servicer has failed to provide disclosures or information this	1066
chapter requires or is not acting in good faith to provide	1067
borrowers with an effective method to discuss payment options for	1068
past due amounts and alternatives to foreclosure. If the	1069
superintendent determines that a mortgage servicer has violated	1070
any of these requirements, the superintendent may consider that	1071
conduct or failure when determining the character and general	1072
fitness of the mortgage servicer for its licensure or	1073
certificate of registration as a mortgage servicer under this	1074
chapter or Chapter 1321. of the Revised Code.	1075

Sec. 1323.10.  (A) There is hereby established in the state	1076
treasury the foreclosure prevention revolving trust fund,	1077
comprised of moneys collected or accruing to the trust fund.	1078

(B) Each fiscal quarter the director of commerce shall	1079
distribute the amounts in the foreclosure prevention revolving	1080
trust fund as follows:	1081

(1) Ten per cent to the administrative director of the	1082
supreme court, to establish, operate, and maintain the state	1083
foreclosure database established pursuant to section 1323.07 of	1084
the Revised Code and to fund foreclosure mediation programs in the	1085
state;	1086

(2) Ten per cent to the department of commerce, which may be	1087
used for the following purposes:	1088

(a) Grants to counseling foreclosure prevention entities for	1089
the purpose of maintaining or expanding foreclosure prevention	1090
counseling and related services and activities to assist	1091
homeowners to prevent foreclosure;	1092

(b) Grants to individuals or counseling entities for the	1093
purpose of providing emergency foreclosure prevention assistance	1094
loans;	1095

(c) Loans and grants to nonprofit or local government	1096
entities to provide relocation assistance or acquire mortgage	1097
loans or properties from creditors in order to restructure the	1098
mortgage loans or restore the properties to productive use;	1099

(d) Funding to establish, operate, and maintain the state	1100
foreclosure database established pursuant to section 1323.07 of	1101
the Revised Code;	1102

(e) Funding for the expenses of the state foreclosure	1103
prevention project and the associated costs the superintendent of	1104
financial institutions of the department of commerce and the	1105
director of commerce incur related to outreach and education and	1106
to support investigation of mortgage fraud and fraudulent	1107
foreclosure prevention schemes in the state of Ohio.	1108

(3) Five per cent to the attorney general for investigation	1109
of illegal activities associated with mortgage fraud and	1110
foreclosure prevention fraud, which funds the attorney general may	1111
use to contract with local public prosecutors engaged in the	1112
investigation of foreclosure prevention fraud;	1113

(4) Thirty-seven and a half per cent to the department of	1114
development for deposit into the Ohio housing trust fund, and	1115
thirty-seven and a half per cent to the boards of county	1116
commissioners, to be distributed on a pro rata basis of the funds	1117
submitted with respect to foreclosure filings in each county under	1118
section 1323.11 of the Revised Code. The funds provided to the	1119
department of development and the boards of county commissioners	1120
under this division shall be used to provide the following:	1121

(a) Grants to counseling foreclosure prevention entities for	1122
the purpose of maintaining or expanding foreclosure prevention	1123
counseling and related services and activities to assist	1124
homeowners to prevent foreclosure;	1125

(b) Grants to individuals or counseling entities for the	1126
purpose of providing emergency foreclosure prevention assistance	1127
loans;	1128

(c) Loans and grants to nonprofit or local government	1129
entities to provide relocation assistance or acquire mortgage	1130
loans or properties from creditors in order to restructure the	1131
mortgage loans or restore the properties to productive use;	1132

(d) Foreclosure prevention services;

1133

(e) Amelioration of dilapidated and vacant properties;

1134

(f) Assistance with the development of county land banks;

1135

(g) Other activities as they relate to foreclosure.

1136

(C) For the purposes of division (B) of this section, the	1137
director of development and boards of county commissioners shall	1138
establish rules governing the procedures to qualify counseling	1139
and foreclosure prevention entities, nonprofit entities, and	1140
individuals for loan assistance to receive moneys from the	1141
revolving trust fund to carry out the purposes of division (B)(4)	1142
of this section.	1143

(D) Any moneys distributed to the supreme court but not used	1144
for the purposes stated in division (B)(1) of this section shall	1145
be reallocated to the department of commerce for deposit into the	1146
foreclosure prevention revolving trust fund.	1147

(E) Any moneys collected under this section but not allocated	1148
by the end of the fiscal year shall be available for allocation in	1149
the subsequent fiscal year.	1150

Sec. 1323.11.  (A) In addition to any filing fee required by	1151
law, a mortgage servicer that files a complaint to initiate a	1152
foreclosure action involving a residential mortgage loan	1153
simultaneously shall transmit a check in the amount of seven	1154
hundred fifty dollars payable to the department of commerce for	1155
deposit into the trust fund established under section 1323.10	1156
of the Revised Code. The servicer may not in any manner add	1157
the amount paid pursuant to this division to the amount the	1158
borrower owes or seek to recover this cost from the borrower.	1159

(B) No court shall permit the filing of an action for a	1160
mortgage foreclosure or grant a judgment of foreclosure to any	1161
servicer of a residential loan unless that servicer provides	1162
evidence to the court that the servicer has complied with this	1163
section.	1164

(C) The director of commerce shall establish an accounting	1165
system to track the county that corresponds to each fee that is	1166
paid pursuant to this section. The accounting system shall be used	1167
to determine the share of the funds to be distributed to each	1168
county pursuant to section 1323.10 of the Revised Code.	1169

(D) The fee this section requires shall not be charged with	1170
respect to a filing for a foreclosure action that meets any of the	1171
following criteria:	1172

(1) A filing on an unoccupied property;

1173

(2) A filing on a property for which a filing fee was paid	1174
during the past twenty-four months with respect to the same	1175
mortgage loan;	1176

(3) A filing by a credit union;

1177

(4) A filing by a depository institution if that depository	1178
institution is headquartered in Ohio, has two and one-half billion	1179
dollars or less in total assets, and originated and services the	1180
mortgage loan being foreclosed.	1181

Sec. 1323.20.  (A) Sections 1323.20 to 1323.37 of the Revised	1182
Code shall be known as the "residential mortgage servicers	1183
registration act."	1184

(B) Sections 1323.20 to 1323.37 of the Revised Code do not	1185
apply to any of the following:	1186

(1) Any entity that is chartered and lawfully doing business	1187
as a bank, savings bank, trust company, savings and loan	1188
association, or credit union under the authority of any law of	1189
this state, another state, or the United States;	1190

(2) Life, property, or casualty insurance companies licensed	1191
to do business in this state;	1192

(3) Any attorney or law firm acting on behalf of any mortgage	1193
note holder or mortgage servicer when acting in connection with	1194
the practice of law in this state, except as otherwise provided in	1195
division (D) of this section;	1196

(4) Any political subdivision, or any governmental or other	1197
public agency, corporation, or instrumentality in or of the	1198
United States or any state;	1199

(5) An institution of higher education as defined in section	1200
1713.01 of the Revised Code;	1201

(6) A debt collector acting under the name of, and as agent	1202
for, a mortgage servicer registrant to collect a debt in default.	1203

(C) Mortgage lenders registered under section 1321.52 of the	1204
Revised Code and mortgage brokers registered under section 1322.02	1205
of the Revised Code are exempt from the registration requirements	1206
of section 1323.21 of the Revised Code but shall comply with	1207
divisions (C), (D), (F), and (G) of section 1323.33, and sections	1208
1323.34, 1323.35, and 1323.36 of the Revised Code in connection	1209
with the servicing of residential mortgage loans. Any violation	1210
of these sections is an unfair and deceptive practice in	1211
violation of section 1345.02 of the Revised Code and may result	1212
in administrative action and penalties the superintendent of	1213
financial institutions of the department of commerce imposes	1214
pursuant to sections 1321.54 and 1322.10 of the Revised Code.	1215

(D) Any attorney or law firm primarily engaged in debt	1216
collection shall comply with division (D) of section 1323.33 and	1217
section 1323.36 of the Revised Code when acting as a mortgage	1218
servicer, notwithstanding the general exemption from sections	1219
1323.20 to 1323.37 of the Revised Code. Any violation by an	1220
attorney of division (D) of section 1323.33 or section 1323.36 of	1221
the Revised Code, in connection with any debt collection activity	1222
that is not considered the practice of law, is deemed to be an	1223
unfair and deceptive practice in violation of section 1345.02 of	1224
the Revised Code.	1225

Sec. 1323.21.  (A) No person, on that person's own behalf or	1226
on behalf of any other person, shall do either of the following	1227
unless that person is registered as a mortgage servicer and has a	1228
certificate of registration from the superintendent of financial	1229
institutions of the department of commerce:	1230

(1) Engage in the business of collecting money, credit, or	1231
choses in action for residential mortgage loans or otherwise act	1232
as a mortgage servicer;	1233

(2) Collect accelerated mortgage payments from a biweekly or	1234
other accelerated payment plan that the person operates, arranges,	1235
or offers to arrange for compensation or gain in connection with	1236
a residential mortgage loan.	1237

(B) Any person who acts in willful violation of division (A)	1238
of this section, after receiving written notice of the violation	1239
from the superintendent or a court, may not collect any amounts	1240
as interest or charges on that loan. Any amounts collected shall	1241
be credited as a principal reduction to the loan.	1242

(C)(1) When a registration expires for any reason and the	1243
former registrant continues to service residential mortgage loans	1244
in violation of division (A) of this section, the superintendent	1245
may take administrative action, including action on any	1246
subsequent application for a certificate of registration.	1247

(2) A servicer with an expired registration may not collect,	1248
charge, or retain any late fee, bad check charge except as	1249
incurred, charge related to default, cost to realize on its	1250
security interest, or prepayment penalty on any residential	1251
mortgage loan unless that servicer applies to the superintendent	1252
for a registration renewal and a certificate of registration	1253
prior to the first day of August of the year the registration	1254
expires and the superintendent approves that application.	1255

(D) No person shall conduct the business of a mortgage	1256
servicer in association with any exempt business if the	1257
superintendent has ordered that exempt business, in writing, to	1258
desist from conduct that the superintendent found to be a mere	1259
conduit for the mortgage servicer and that the association of the	1260
servicer and the exempt business is intended to conceal an evasion	1261
of sections 1323.20 to 1323.37 of the Revised Code or the rules	1262
adopted pursuant to those sections. Any determination made	1263
pursuant to this division shall be made in accordance with Chapter	1264
119. of the Revised Code.	1265

Sec. 1323.22.  (A) Any application for registration as a	1266
mortgage servicer shall be in writing, under oath, and in the	1267
form the superintendent of financial institutions of the	1268
department of commerce prescribes. It shall contain an undertaking	1269
by the applicant to abide by this chapter and any other	1270
information that the superintendent requires. Applicants that are	1271
foreign corporations shall obtain and maintain a license pursuant	1272
to Chapter 1703. of the Revised Code before seeking registration	1273
or registration renewal as a mortgage servicer.	1274

(B) Upon an applicant's filing an application and paying a	1275
nonrefundable two-hundred-dollar investigation fee, a	1276
nonrefundable one-thousand-dollar annual registration fee, and any	1277
additional fee required by law, the superintendent shall	1278
investigate the relevant facts. If the application requires	1279
investigation outside this state, the applicant may be required to	1280
advance sufficient funds to pay any of the actual expenses when it	1281
appears that these expenses will exceed two hundred dollars. The	1282
superintendent shall furnish an itemized statement of any	1283
expenses the applicant is required to pay. The superintendent	1284
shall not issue any certificate of registration unless all the	1285
required fees have been paid.	1286

(C) An applicant shall designate an employee or owner who has	1287
at least three years' experience in the mortgage, collections,	1288
servicing, or lending field as the applicant's operations	1289
manager. No operations manager shall be employed by any other	1290
mortgage servicer while acting as an operations manager. Any	1291
operations manager must be acceptable to the superintendent.	1292

(D) The superintendent may consider an application for	1293
registration as a mortgage servicer withdrawn if that application	1294
does not contain all of the information required under division	1295
(A) of this section and the applicant does not submit that	1296
information within ninety days after the superintendent requests	1297
the information in writing.	1298

(E) The superintendent of financial institutions shall	1299
deposit any licensing fee, charge, or fine received pursuant to	1300
sections 1323.20 to 1323.37 of the Revised Code into the consumer	1301
finance fund in the state treasury, created under section 1321.21	1302
of the Revised Code, unless otherwise specified by law.	1303

Sec. 1323.23.  (A)(1) Any investigation the superintendent of	1304
financial institutions of the department of commerce undertakes	1305
with respect to an application for registration as a mortgage	1306
servicer shall include a civil records check of the applicant,	1307
including any individual whose identity is required to be	1308
disclosed in the application, and criminal records check at the	1309
time of the initial application and every five years thereafter,	1310
or upon a change of control of the registrant if the persons	1311
acquiring control have not had a criminal records check	1312
submitted to the superintendent within the past five years.	1313

(2) Where the applicant is a business entity, the	1314
superintendent may require a civil and criminal background check	1315
of those persons that the superintendent determines have the	1316
authority to direct and control the operations of the	1317
applicant.	1318

(B) When conducting a criminal background check, the	1319
superintendent shall request the superintendent of the bureau of	1320
criminal identification and investigation, or a vendor the	1321
superintendent approves, to conduct a criminal records check	1322
based on the applicant's fingerprints or if fingerprints are	1323
unreadable, based on the applicant's social security number in	1324
accordance with division (A)(12) of section 109.572 of the Revised	1325
Code. Notwithstanding division (K) of section 121.08 of the	1326
Revised Code, the superintendent of financial institutions	1327
shall request that criminal record information from the federal	1328
bureau of investigation be obtained as part of the criminal	1329
records check.	1330

(C) The applicant shall pay any fee required under division	1331
(C)(3) of section 109.572 of the Revised Code.	1332

Sec. 1323.24.  (A) The superintendent of financial	1333
institutions of the department of commerce shall issue a	1334
certificate of registration as a mortgage servicer to an applicant	1335
if the superintendent finds that the applicant's financial	1336
responsibility, experience, character, and general fitness command	1337
the confidence of the public and warrant the belief that the	1338
business will be operated honestly and fairly in compliance with	1339
the purposes of this chapter and the rules promulgated under it,	1340
and that the applicant has the requisite bond or applicable net	1341
worth as this chapter requires.	1342

(B) Upon finding an applicant does not meet the conditions	1343
set forth in this chapter, the superintendent shall issue a notice	1344
of intent to deny an application for registration or renewal. The	1345
superintendent forthwith shall notify the applicant of the denial,	1346
the grounds for the denial, and the applicant's opportunity to be	1347
heard on the action in accordance with Chapter 119. of the Revised	1348
Code.	1349

(C) Any certificate issued pursuant to this section shall	1350
expire on the first day of July next after its issue, and on the	1351
first day of July in each succeeding year unless renewed by filing	1352
a renewal application and payment of an annual fee and any	1353
additional fee required by law, on or before the last day of June	1354
of each year.	1355

Sec. 1323.25.  (A) To renew a registration as a mortgage	1356
servicer, a registrant shall timely file a renewal application on	1357
a form the superintendent of financial institutions of the	1358
department of commerce prescribes, along with any additional	1359
information that the superintendent requires.	1360

(B) As a condition of renewal, a registrant must provide	1361
proof that the designated operation manager meets the criteria for	1362
initial approval set forth in section 1323.23 of the Revised Code	1363
and that the mortgage servicer meets the minimum standards for the	1364
issuance of the certificate of registration under sections 1323.22	1365
to 1323.24 of the Revised Code.	1366

(C) The superintendent shall not grant any renewal if the	1367
applicant's certificate of registration is subject to an order of	1368
suspension, revocation, or an unpaid and past due fine the	1369
superintendent has imposed.	1370

(D) If an application for renewal of a certificate of	1371
registration does not contain all the information this section	1372
requires, and if the registrant does not submit that information	1373
to the superintendent within ninety days after the superintendent	1374
requests the information in writing, the superintendent may	1375
consider the application withdrawn.	1376

Sec. 1323.26.  At any time there is a change of five per cent	1377
or more in the ownership of a registrant, the superintendent of	1378
financial institutions of the department of commerce may make any	1379
investigation necessary to determine whether any fact or condition	1380
presently exists that would have warranted the superintendent	1381
denying the original application had the fact or condition	1382
existed at the time of that application. If the superintendent	1383
finds such a fact or condition, the superintendent may revoke the	1384
registrant's registration and certificate pursuant to Chapter	1385
119. of the Revised Code.	1386

Sec. 1323.27.  (A) Each place of business to which borrowers	1387
are regularly directed to remit payment shall display its own	1388
certificate of registration. The superintendent of financial	1389
institutions of the department of commerce may issue additional	1390
certificates of registration to the same person for additional	1391
places of business upon compliance with the requirements governing	1392
the issuance of a single certificate.	1393

(B)(1) Any change in the place of business to a location	1394
outside the original municipal corporation requires a new	1395
certificate of registration. A registrant who makes such a change	1396
of location shall submit a new application, pay the registration	1397
fee and, if the superintendent requires, pay an investigation	1398
fee of two hundred dollars. The registrant must have the new	1399
certificate before operating in the new location.	1400

(2) A registrant who wishes to change its place of business	1401
within the same municipal corporation shall give written notice	1402
of the change in advance to the superintendent, who shall provide	1403
a certificate for the new address without cost.	1404

(C) A registrant that changes its name shall give written	1405
notice of the change to the superintendent prior to acting as a	1406
mortgage servicer under the new name. The superintendent shall	1407
provide a certificate in the new name without cost.	1408

(D) A registrant shall keep each certificate conspicuously	1409
posted in each place of business. A certificate of registration	1410
is not transferable or assignable.	1411

Sec. 1323.28.  (A) Any person who acts as a mortgage	1412
servicer, if not bonded pursuant to division (B) of this section,	1413
shall maintain at all times both of the following:	1414

(1) A net worth of at least two hundred fifty thousand	1415
dollars;	1416

(2) For each additional certificate of registration beyond	1417
the first, assets of at least fifty thousand dollars either in	1418
use or readily available for use in the conduct of the business.	1419

(B) Any person acting as a mortgage servicer by arranging	1420
biweekly or other accelerated payment plans and collecting those	1421
payments shall obtain and maintain in effect at all times a	1422
corporate surety bond issued by a bonding company or insurance	1423
company authorized to do business in this state. The servicer	1424
shall file a copy of the bond with the superintendent of	1425
financial institutions of the department of commerce. The bond	1426
shall meet all of the following conditions:	1427

(1) Be in favor of the superintendent;

1428

(2) Have a base penal sum of two hundred fifty thousand	1429
dollars for the first location and an additional penal sum of ten	1430
thousand dollars for each additional location that requires a	1431
separate certificate of registration;	1432

(3) Have a term that coincides with the term of	1433
registration;	1434

(4) Be for the exclusive benefit of any individual borrower	1435
injured by any violation of sections 1323.20 to 1323.37 of the	1436
Revised Code or the rules promulgated thereunder by a servicer,	1437
its employees, or agent;	1438

(5) Have an aggregate liability of the corporate surety for	1439
any and all breaches of the conditions of the bond not to exceed	1440
the penal sum of the bond.	1441

(C)(1) A mortgage servicer shall give notice to the	1442
superintendent by certified mail of any action that is brought by	1443
a borrower against the servicer alleging injury by a violation	1444
of sections 1323.20 to 1323.37 of the Revised Code and of any	1445
judgment that is entered against the servicer by a borrower	1446
injured by a violation of those sections. The notice shall	1447
provide details sufficient to identify the action or judgment.	1448
The servicer shall file the notice with the superintendent within	1449
ten days after the commencement of the action or receipt of the	1450
notice of entry of a judgment.	1451

(2) A corporate surety shall give notice of any payment to	1452
the superintendent by certified mail within ten days after it pays	1453
any claim or judgment, with details sufficient to identify the	1454
person and the claim or judgment paid.	1455

(D) Whenever the penal sum of the corporate surety bond is	1456
reduced by one or more recoveries or payments, a servicer shall	1457
furnish a new or additional bond under this section, so that the	1458
total or aggregate penal sum of the bond or bonds equals the sum	1459
required by this section, or shall furnish an endorsement executed	1460
by the corporate surety reinstating the bond to the required penal	1461
sum set forth in division (B) of this section.	1462

(E) The liability of the corporate surety on the bond to the	1463
superintendent and to any borrower injured by a violation of	1464
sections 1323.20 to 1323.37 of the Revised Code is not affected in	1465
any way by any misrepresentation, breach of warranty, or failure	1466
to pay the premium, by any act or omission upon the part of the	1467
servicer, by the insolvency or bankruptcy of the servicer, or by	1468
the insolvency of the servicer's estate. The servicer shall	1469
maintain in effect liability for any act or omission that occurs	1470
during the term of the corporate surety bond for at least two	1471
years after the date on which the corporate surety bond is	1472
terminated or canceled.	1473

(F) Neither the servicer nor the corporate surety shall	1474
cancel a corporate surety bond except upon notice to the	1475
superintendent by certified mail, return receipt requested. A	1476
cancellation is not effective until thirty days after the	1477
superintendent receives the notice.	1478

(G) No servicer shall fail to comply with this section. Any	1479
servicer that fails to comply shall cease acting as a mortgage	1480
servicer in this state until that servicer complies with this	1481
section.	1482

Sec. 1323.29.  (A) The superintendent of financial	1483
institutions of the department of commerce may adopt, in	1484
accordance with Chapter 119. of the Revised Code, rules to	1485
administer and enforce sections 1323.20 to 1323.99 of the Revised	1486
Code and to carry out the purposes of those sections.	1487

(B) The superintendent may investigate alleged violations of	1488
sections 1323.20 to 1323.37 of the Revised Code or the rules	1489
adopted thereunder, or complaints concerning any violation. In	1490
conducting an investigation, the superintendent, by subpoena,	1491
may compel witnesses to testify in relation to any matter over	1492
which the superintendent has jurisdiction, and may require the	1493
production or photocopying of any book, record, or other	1494
document pertaining to such matter. If a person fails to comply	1495
with the subpoena, or permit photocopying of any document	1496
subpoenaed, a court of common pleas, upon the superintendent's	1497
application, shall compel obedience by attachment proceedings for	1498
contempt or a refusal to testify.	1499

(C)(1) In accordance with Chapter 119. of the Revised Code,	1500
the superintendent may revoke, suspend, or refuse to renew any	1501
registration and certificate issued under this chapter if the	1502
superintendent finds any of the following:	1503

(a) A violation of or failure to comply with any provision of	1504
sections 1323.20 to 1323.37 of the Revised Code or the rules	1505
adopted under those sections, under Chapter 1345. of the Revised	1506
Code, federal debt collection laws, or any other law applicable	1507
to the business the registrant conducts under the registrant's	1508
certificate of registration;	1509

(b) The registrant has been convicted of or pleads guilty or	1510
nolo contendere in a domestic, foreign, or military court to any	1511
felony or any criminal offense involving theft, receiving	1512
stolen property, embezzlement, forgery, fraud, passing bad	1513
checks, money laundering, breach of trust, dishonesty, or drug	1514
trafficking, or any criminal offense involving money or	1515
securities;	1516

(c) The registrant's certificate of registration, license,	1517
or comparable authority as a mortgage servicer has been revoked in	1518
any other state.	1519

(2) The superintendent may impose a monetary fine pursuant	1520
to division (F) of this section in addition to, or instead of,	1521
any revocation, suspension, or denial or in settlement of matters	1522
subject to claims under division (C)(1)(a) of this section.	1523

(3) Except as otherwise provided in section 1323.21 of the	1524
Revised Code, the revocation, suspension, or refusal to renew a	1525
registration does not impair the obligation of any pre-existing	1526
lawful contract made under this chapter if a mortgage servicer	1527
makes a good faith effort to promptly transfer its collection	1528
rights to a registrant or person exempt from registration. A	1529
servicer that does not make the requisite good faith effort is	1530
subject to additional monetary fines and legal or administrative	1531
action by the superintendent.	1532

(4) Nothing in this division limits a court's ability to	1533
impose a cease and desist order preventing any further business	1534
or servicing activity.	1535

(D) The superintendent may apply to the court of common	1536
pleas for an order enjoining any violation of sections 1323.20	1537
to 1323.37 of the Revised Code. Upon a showing that a person has	1538
committed or is about to commit a violation of sections 1323.20	1539
to 1323.37 of the Revised Code, the court shall grant an	1540
injunction, restraining order, or other appropriate relief. If	1541
the application to a court is for an order enjoining a person	1542
from acting as a registrant or mortgage servicer in violation of	1543
division (A) of section 1323.21 of the Revised Code, the	1544
superintendent may request, and the court may impose, a civil	1545
penalty for that unregistered or unlicensed conduct in an amount	1546
not to exceed five thousand dollars per violation.	1547

(E) The superintendent may issue a cease and desist order if	1548
the superintendent determines that a person is engaged in or may	1549
be engaged in activities that violate sections 1323.20 to 1323.37	1550
of the Revised Code or the rules adopted thereunder, after	1551
notice and a hearing conducted in accordance with Chapter 119.	1552
of the Revised Code.	1553

(F)(1) The superintendent may impose a fine of not more than	1554
one thousand dollars for each day a violation of this chapter or	1555
the rules adopted under it is committed, repeated, or continued.	1556
In determining the amount of a fine to impose, the superintendent	1557
may consider all of the following:	1558

(a) The seriousness of the violation;

1559

(b) The servicer's good faith efforts to prevent the	1560
violation;	1561

(c) The servicer's history regarding violations and	1562
compliance with the superintendent's orders;	1563

(d) The servicer's financial resources;

1564

(e) Any other matters the superintendent considers	1565
appropriate in enforcing this chapter.	1566

(2) Monetary fines imposed under this section do not	1567
preclude any criminal fine described in section 1323.99 of the	1568
Revised Code.	1569

(G) All fines collected pursuant to this section shall be	1570
paid to the treasurer of state to the credit of the consumer	1571
finance fund created in section 1321.21 of the Revised Code.	1572

Sec. 1323.30.  (A)(1) A mortgage servicer shall keep	1573
separate records pertaining to each loan serviced. The servicer	1574
shall preserve those records for so long as the servicer has	1575
responsibility for the loan and retain copies of those records	1576
for at least four years even if the servicer transfers the	1577
original copies for any reason. At any time responsibility for the	1578
loan is transferred to another servicer, the servicer who is	1579
ceasing responsibility shall transfer all original loan documents	1580
and records to the servicer who is assuming responsibility for	1581
the loan. Any system of electronic imaging of required records	1582
shall be approved by the superintendent of financial	1583
institutions of the department of commerce prior to its use but	1584
at no time shall such a system be a substitute for maintaining	1585
original documents as this section requires.	1586

(2) As often as necessary, the superintendent may make or	1587
cause to be made an examination of records pertaining to loans	1588
serviced for the purpose of determining whether the servicer is	1589
complying with sections 1323.20 to 1323.37 of the Revised Code	1590
and of verifying any registrant's annual report.	1591

(B)(1) The superintendent may require each servicer to file	1592
each year a report under oath or affirmation, on forms the	1593
superintendent supplies, concerning the business and operations	1594
for the preceding calendar year. A servicer that operates two or	1595
more registered offices or who operates registered offices with	1596
one or more affiliated servicers, may file a composite report of	1597
the group of registered offices in lieu of individual reports.	1598

(2) The reports provided under division (B)(1) of this	1599
section are not public records and are not open to public	1600
inspection.	1601

(C)(1) The following information is confidential:

1602

(a) Examination information, and any information leading to	1603
or arising from an examination;	1604

(b) Investigation information, and any information arising	1605
from or leading to an investigation.	1606

(2) The information described in this division is	1607
confidential for all purposes except when it is necessary for the	1608
superintendent to take official action regarding the affairs of a	1609
servicer or in connection with criminal or civil proceedings to	1610
be initiated by a prosecuting attorney or the attorney general.	1611
This information may be introduced into evidence or disclosed	1612
pursuant to section 1181.25 of the Revised Code.	1613

(D) All application information is a public record as defined	1614
in section 149.43 of the Revised Code, except social security	1615
numbers, employer identification numbers, financial account	1616
numbers, the identity of the institution where financial accounts	1617
are maintained, personal financial information, fingerprint cards	1618
and the information contained on such cards, and criminal	1619
background information.	1620

(E) Nothing in this section prevents the superintendent from	1621
releasing information relating to servicers or exchanging that	1622
information with other financial institution regulatory	1623
authorities. For this purpose, a "financial institution regulatory	1624
authority" includes a regulator of a business activity in which a	1625
servicer is engaged or has applied to engage, to the extent that	1626
the regulator has jurisdiction over a servicer engaged in that	1627
business activity. A servicer is engaged in a business activity,	1628
and a regulator of that business activity has jurisdiction over	1629
the servicer, whether the servicer conducts the activity	1630
directly or a subsidiary or affiliate of the servicer conducts	1631
the activity.	1632

(F) Nothing in this section prevents the superintendent of	1633
financial institutions from releasing information relating to	1634
mortgage servicers to the attorney general, to the superintendent	1635
of real estate and professional licensing of the department of	1636
commerce for purposes relating to the administration of Chapters	1637
4735. and 4763. of the Revised Code, to the superintendent of	1638
insurance for purposes relating to the administration of Chapter	1639
3953. of the Revised Code, to the commissioner of securities of	1640
the department of commerce for purposes relating to the	1641
administration of Chapter 1707. of the Revised Code, or to local	1642
law enforcement agencies and local prosecutors. Information	1643
released pursuant to this section remains confidential. The	1644
superintendent of financial institutions, by rule, may designate	1645
additional state agencies and regulatory authorities as entities	1646
with which to share this confidential information.	1647

Sec. 1323.31.  No person, in connection with any examination	1648
or investigation conducted by the superintendent of financial	1649
institutions of the department of commerce under this chapter,	1650
shall knowingly do any of the following:	1651

(A) Circumvent, interfere with, obstruct, or fail to	1652
cooperate, including making a false or misleading statement,	1653
failing to produce records, or intimidating or suborning any	1654
witness;	1655

(B) Withhold, abstract, remove, mutilate, destroy, or secrete	1656
any books, records, computer records, or other information;	1657

(C) Tamper with, alter, or manufacture any evidence.

1658

Sec. 1323.32.  (A) No mortgage servicer, through its	1659
operations manager or otherwise, shall fail to reasonably	1660
supervise persons the servicer employs or associates with, or to	1661
establish reasonable procedures to avoid violations of sections	1662
1323.20 to 1323.37 of the Revised Code or the rules adopted	1663
thereunder, violations of applicable state and federal consumer	1664
and lending laws or rules by persons the servicer employs or	1665
associates with.	1666

(B) Within ten business days of any change in a mortgage	1667
servicer's statutory agent designation or address, the servicer	1668
shall file with the superintendent of financial institutions of	1669
the department of commerce evidence that the servicer has filed	1670
such changes with the secretary of state.	1671

(C)(1) At least thirty days prior to the closure of a	1672
registered office location, a mortgage servicer shall notify the	1673
superintendent by filing a notice of closure on a form approved by	1674
the superintendent. The notice shall indicate the custodian of the	1675
records and where the records will be maintained. Within five	1676
business days after the closure, the servicer shall surrender the	1677
certificate of registration issued to that location by returning	1678
it to the superintendent.	1679

(2) The closure of an office and the surrender of a	1680
certificate does not affect a mortgage servicer's civil or	1681
criminal liability for acts committed before the surrender.	1682

(D) A mortgage servicer shall maintain books and records in	1683
compliance with this chapter and make them available to the	1684
superintendent of financial institutions of the department of	1685
commerce. After any closure, records remain subject to examination	1686
and or investigation. The servicer shall send the superintendent	1687
written notice of any change in the location of the records or	1688
the custodian of those records.	1689

Sec. 1323.33.  (A) No mortgage servicer shall refuse to	1690
provide information regarding the amount required to pay in full	1691
a residential mortgage loan when the borrower or a person the	1692
borrower designates makes that request in writing. The servicer	1693
shall provide the requested payoff statement without charge one	1694
time during any twelve-month period. If additional payoff	1695
statements are requested, the servicer may charge an amount not	1696
in excess of three dollars for each additional statement. The	1697
servicer shall provide any payoff statement within five business	1698
days of the request.	1699

(B) No mortgage servicer shall obtain a certificate of	1700
registration through any false or fraudulent representation of a	1701
material fact or any omission of a material fact required by	1702
state or federal law, or make any substantial misrepresentation	1703
in the registration application.	1704

(C) No mortgage servicer shall make false or misleading	1705
statements of a material fact, omissions of statements required	1706
by state or federal law, or false promises regarding a material	1707
fact, through advertising or other means, or engage in a	1708
continued course of misrepresentations.	1709

(D) No mortgage servicer shall engage in conduct that	1710
constitutes improper, fraudulent, or dishonest dealings.	1711

(E) No mortgage servicer or applicant for registration shall	1712
fail to notify the superintendent of financial institutions of	1713
the department of commerce within thirty days after the servicer	1714
or applicant has:	1715

(1) Been convicted of or pleads guilty or nolo contendere in	1716
a domestic, foreign, or military court to any felony;	1717

(2) Been convicted of or pleads guilty or nolo contendere in	1718
a domestic, foreign, or military court to any criminal offense	1719
involving theft, receiving stolen property, embezzlement, forgery,	1720
fraud, passing bad checks, money laundering, breach of trust,	1721
dishonesty, or drug trafficking, or any criminal offense involving	1722
money or securities;	1723

(3) Had a mortgage servicer registration, license, or	1724
comparable authority revoked in any other state.	1725

(F) No mortgage servicer shall knowingly make, propose, or	1726
solicit fraudulent, false, or misleading statements on any	1727
mortgage servicing document or on any document related to an	1728
accounting of payments remitted or disbursed. For purposes of	1729
this division, "fraudulent, false, or misleading statements"	1730
does not include mathematical errors, inadvertent transposition	1731
of numbers, typographical errors, or any other bona fide error.	1732

(G) No mortgage servicer shall knowingly instruct, solicit,	1733
propose, or otherwise cause a borrower to sign in blank a	1734
document.	1735

(H) Any violation of division (C), (D), (F), or (G) of this	1736
section, or section 1323.34, 1323.35, or 1323.36 of the Revised	1737
Code is an unfair and deceptive act or practice in violation of	1738
section 1345.02 of the Revised Code.	1739

Sec. 1323.34. (A) In addition to the duties imposed by common	1740
law or state or federal law, in the course of servicing	1741
residential mortgage loans in Ohio, a mortgage servicer shall do	1742
all of the following:	1743

(1) Act with good faith and fair dealing in any transaction,	1744
practice, or course of business associated with servicing;	1745

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

1746

(3) Act in good faith to provide the borrower with the facts	1747
relating to the nature and extent of any delinquency or default	1748
and the amounts owed or necessary to reinstate the loan or cure	1749
the default;	1750

(4) Subject to the servicer's duties and obligations under	1751
its mortgage servicing contract, attempt a resolution,	1752
modification, or workout to the delinquency of a borrower who	1753
requests assistance;	1754

(5) Make a good faith effort to correct any erroneous	1755
information it has provided to any credit reporting agency;	1756

(6) Provide information regarding the amount required to pay	1757
in full a residential mortgage loan within five business days	1758
when requested by the borrower or by another person designated in	1759
writing by the borrower. The servicer shall provide the requested	1760
payoff statement without charge once during any twelve-month	1761
period. If additional payoff statements are requested, the	1762
servicer may charge an amount not in excess of three dollars for	1763
each additional statement.	1764

(7) Make all payments from any escrow account in a timely	1765
manner, so as to avoid the assessment of late fees, penalties, or	1766
consequential damages, notwithstanding any loan delinquency,	1767
unless there are insufficient funds in the escrow account to cover	1768
the payments;	1769

(8) Accept and credit each residential mortgage loan payment	1770
received on the date received;	1771

(9) Take all steps necessary to terminate a foreclosure	1772
action when the condition giving rise to action has been fully	1773
cured. Upon cure of a default, the servicer shall reinstate the	1774
borrower to the same position as if the default had not	1775
occurred, and nullify, as of the date of the cure, any	1776
acceleration of any obligation under the residential mortgage	1777
loan or note arising from the default.	1778

(10) In addition to the duties enumerated in sections 1323.20	1779
to 1323.37 of the Revised Code, any mortgage servicer for a	1780
government-insured loan shall comply with the loss mitigation	1781
standards and guidelines as required by the insuring entity.	1782

(B) When establishing a loan modification solution for a	1783
borrower, a mortgage servicer shall seek to achieve long-term	1784
sustainability for the borrower and adhere to the loan	1785
modification standards established under section 1323.05 of the	1786
Revised Code.	1787

Sec. 1323.35.  No mortgage servicer shall do any of the	1788
following in connection with a residential mortgage loan:	1789

(A) Collect, charge, or retain any fee from the borrower	1790
unless the fee is reasonable, for a bona fide service rendered,	1791
and specifically authorized by the residential mortgage loan and	1792
permitted by law;	1793

(B) Initiate a foreclosure action without proof of ownership	1794
as evidenced by a declaration signed under penalty of perjury,	1795
stating that the party in interest has reviewed the original note	1796
and all subsequent assignments and has concluded that the party	1797
in interest owns the note or mortgage;	1798

(C) Fail to provide written notice to the borrower before	1799
acquiring and placing hazard, homeowner's, or flood insurance on a	1800
property or acquiring and placing such insurance if the mortgage	1801
servicer knows, or has reason to know, that a policy for such	1802
insurance is in effect;	1803

(D) Acquire and place hazard, homeowner's, or flood insurance	1804
on a property for an amount that exceeds the greater of the	1805
insurable improvements to the property, the last known coverage	1806
amount that was sufficient to meet the borrower's insurance	1807
obligations, or the unpaid balance owed by the borrower;	1808

(E) Fail to refund unearned premiums for insurance the	1809
mortgage servicer or its agents placed upon the borrower,	1810
providing there is reasonable evidence that the needed coverage	1811
had been obtained, the forced placement is not necessary, and the	1812
property is properly insured in accordance with the loan or note.	1813

Sec. 1323.36. (A) No mortgage servicer shall use unfair,	1814
deceptive or unconscionable means to collect or attempt to	1815
collect any claim in connection with a residential mortgage loan.	1816
Without limiting the general application of the foregoing, the	1817
following actions violate this section:	1818

(1) The collection or the attempt to collect any interest or	1819
other charge, fee, or expense that is incidental to the principal	1820
obligation, unless expressly authorized by the agreement creating	1821
the obligation and by law, including division (A) of section	1822
1323.35 of the Revised Code;	1823

(2) Any communication with a borrower if the mortgage	1824
servicer knows that the borrower is represented by an attorney and	1825
the attorney's name and address are known or could be easily	1826
ascertained. This prohibition does not apply if the borrower's	1827
attorney fails to respond within thirty days to answer	1828
correspondence, return phone calls, or discuss the obligation in	1829
question, or the attorney consents to the servicer having direct	1830
communication with the borrower;	1831

(3) Placing a telephone call or otherwise communicating by	1832
telephone with a borrower or third party, at any place including	1833
a place of employment, and falsely stating that the call is	1834
"urgent" or an "emergency";	1835

(4) Using profane or obscene language or language that is	1836
intended to unreasonably abuse the listener or reader;	1837

(5) Placing telephone calls without disclosure of the	1838
caller's identity and with the intent to annoy, harass, or	1839
threaten any person at the number called;	1840

(6) Causing expense to any person in the form of long	1841
distance telephone tolls, text messaging fees, or other charges	1842
the servicer causes by concealing the true purpose of the	1843
communication;	1844

(7) Causing a telephone to ring or engaging any person in a	1845
telephone conversation repeatedly or continuously, or at unusual	1846
times or times known to be inconvenient, with the intent to	1847
annoy, abuse, oppress, or threaten any person at the called	1848
number.	1849

(B) The requirements set forth in this section are in	1850
addition to any other requirement set forth in federal or state	1851
law regulating the conduct of collection activities, including the	1852
Federal Fair Debt Collection Practices Act, 91 Stat. 874 (1977),	1853
15 U.S.C. 1692 et seq.	1854

Sec. 1323.361.  (A) No mortgage servicer, in conducting a	1855
mortgage servicer business, shall engage in any unfair, deceptive	1856
or unconscionable act in violation of Chapter 1345. of the Revised	1857
Code. Any violation of the sections set forth in division (H) of	1858
section 1323.33 or section 1323.34, 1323.35, or 1323.36 of the	1859
Revised Code is an unfair and deceptive act or practice in	1860
violation of section 1345.02 of the Revised Code. The attorney	1861
general may take enforcement action and a borrower may seek	1862
recovery under Chapter 1345. of the Revised Code for the	1863
violations set forth in this division.	1864

(B) A borrower injured by a violation of division (A) of this	1865
section may not recover damages, attorney's fees, and costs under	1866
Chapter 1345. of the Revised Code if the borrower has recovered	1867
damages in a cause of action initiated under section 1323.37 of	1868
the Revised Code and the damages sought under Chapter 1345. of	1869
the Revised Code are based on the same acts or circumstances as	1870
the damages awarded under section 1323.37 of the Revised Code.	1871

Sec. 1323.37.  (A) A borrower injured by a violation of	1872
sections 1323.20 to 1323.37 of the Revised Code may recover	1873
damages in an amount not less than all improper charges or fees	1874
paid to the mortgage servicer, plus reasonable attorney's fees	1875
and court costs and also may be awarded punitive damages.	1876

(B) Nothing in this section prevents recovery under division	1877
(B) or (C)(2) of section 1323.21 of the Revised Code.	1878

(C) A borrower may not recover damages, attorney's fees, or	1879
costs under this section if the borrower also recovered damages	1880
in an action initiated under any section of Chapter 1321. or	1881
1345. of the Revised Code and the damages so awarded were based	1882
on the same acts or circumstances as the damages sought under this	1883
section.	1884

Sec. 1323.99.  (A) Whoever violates division (A)(1) or (2) of	1885
section 1323.21, or division (F) or (G) of section 1323.33 of the	1886
Revised Code is guilty of a felony of the fifth degree.	1887

(B) Whoever violates section 1323.31 of the Revised Code with	1888
the intent to interfere or obstruct an examination or	1889
investigation is guilty of a felony of the fourth degree.	1890

Sec. 2303.33.  (A) No court shall accept a complaint to	1891
initiate a foreclosure on a residential mortgage loan unless the	1892
filing contains a copy of the notice and information required by	1893
section 1323.02 of the Revised Code, a copy of the writing that	1894
section 2308.02 of the Revised Code requires, which shall be filed	1895
under seal in connection with the foreclosure, and a certification	1896
by the filer that all notices and information required by Chapter	1897
1323. of the Revised Code have been provided, and the requisite	1898
periods of time have elapsed.	1899

(B) A court or judicial officer may access the state	1900
foreclosure database established pursuant to section 1323.07 of	1901
the Revised Code to confirm information provided pursuant to this	1902
section. A materially inaccurate statement in the filer's	1903
certification is cause for dismissal of the action without	1904
prejudice and for payment by the filing party of costs the	1905
borrower incurs in defending the foreclosure proceeding.	1906

(C) Along with the summons that the clerk of courts issues	1907
to the owner of a property when a residential mortgage foreclosure	1908
action is filed, the clerk shall provide a notice of the six-month	1909
moratorium that section 2308.03 of the Revised Code establishes,	1910
so long as the moratorium remains in effect.	1911

(D) Within three business days after issuing a writ of	1912
execution in a residential foreclosure action as described in	1913
section 2329.091 of the Revised Code, the clerk of court shall	1914
file information of that action with the administrative director	1915
of the Ohio supreme court for inclusion in the state foreclosure	1916
database. The filing shall contain the name and address of the	1917
borrower, the date of the writ, and the name of the mortgage	1918
servicer or mortgage holder that filed the complaint to initiate	1919
the foreclosure action.	1920

(E) As used in this section, "residential mortgage,"	1921
"residential mortgage loan," and "mortgage servicer" have the same	1922
meanings as in section 1323.01 of the Revised Code.	1923

Sec. 2308.01. (A) As used in this chapter, "residential	1924
mortgage," "residential mortgage loan," "mortgage servicer,"	1925
"subprime mortgage loan," "unoccupied," "depository institution,"	1926
and "credit union" have the same meanings as in section 1323.01	1927
of the Revised Code.	1928

(B) Nothing in this chapter limits a court's inherent	1929
equitable jurisdiction.	1930

Sec. 2308.02. (A) No person shall file a complaint to	1931
initiate a residential mortgage foreclosure action unless that	1932
complaint is accompanied by a writing that contains all of the	1933
following:	1934

(1) A statement setting forth the name of the holder of the	1935
note and asserting that the named holder is the true party in	1936
interest with a right to file the action;	1937

(2) A statement as to whether the mortgage note has been	1938
securitized and if so, the identity of any mortgage-backed	1939
security that holds the loan and the name of the trustee of that	1940
mortgage-backed security;	1941

(3) A statement as to whether the residential property is	1942
occupied and the date that its occupancy status last was assessed;	1943

(4) Evidence that a check for seven hundred fifty dollars has	1944
been transmitted to the department of commerce as required under	1945
section 1323.11 of the Revised Code, or evidence that the person	1946
is exempt from the filing fee pursuant to section 1323.11 of the	1947
Revised Code.	1948

(B) By filing a foreclosure action, an attorney avers that	1949
the attorney has a direct line of communication with the plaintiff	1950
and the plaintiff's loan servicer and can negotiate on behalf of	1951
the plaintiff and the plaintiff's loan servicer.	1952

(C) Any complaint to initiate a residential mortgage	1953
foreclosure action shall be accompanied by a copy of an	1954
appraisal of the property, conducted within the prior three	1955
months by an appraiser who is certified or licensed pursuant to	1956
Chapter 4763. of the Revised Code to perform residential	1957
appraisals.	1958

Sec. 2308.021. (A)(1) If a plaintiff in a foreclosure suit	1959
has a reasonable suspicion that the property which is the subject	1960
of the foreclosure has been vacated, the plaintiff may request	1961
that a law enforcement officer having jurisdiction over the	1962
subject property inspect the property and take any other	1963
reasonable action to ascertain if the property has been vacated.	1964

(2) A village, city, township, or county may set a fee for	1965
the property inspection described in division (A)(1) of this	1966
section.	1967

(3) Any law enforcement officer conducting an inspection	1968
under division (A)(1) of this section and acting in good faith is	1969
immune from suit for any actions undertaken during such	1970
inspection.	1971

(4) A law enforcement officer who conducts an inspection	1972
pursuant to division (A)(1) of this section shall issue a written	1973
report to the plaintiff stating an opinion as to whether or not	1974
the property has been vacated.	1975

(5) After the property is inspected, the plaintiff may	1976
request an ex parte order or other order from the court granting	1977
plaintiff sole possession of the property. If the inspection	1978
report indicates that the property has been vacated, the plaintiff	1979
may take immediate possession of the property, but shall request	1980
an order of possession from the court within five business days	1981
after taking possession.	1982

(B) The remedies set out in division (A) of this section are	1983
in addition to any other rights or remedies a party to a	1984
foreclosure suit may have.	1985

Sec. 2308.03. (A)(1) There is hereby declared a six-month	1986
moratorium during which mortgage foreclosure proceedings are	1987
stayed on residential properties occupied by the owner of the	1988
property or the tenant of that owner, to commence on the	1989
effective date of this section.	1990

(2) The moratorium this section establishes does not apply to	1991
any of the following:	1992

(a) Unoccupied properties;

1993

(b) Foreclosed properties that have been sold at auction and	1994
are awaiting a court's confirmation of the sale;	1995

(c) A foreclosure action that a depository institutions files	1996
if that depository institution is headquartered in Ohio, has two	1997
and one-half billion dollars or less in total assets, and	1998
originated and services the mortgage loan being foreclosed;	1999

(d) A foreclosure action that a credit union files.

2000

(3) The moratorium this section establishes does not prohibit	2001
the filing of new foreclosure actions.	2002

(B) Upon the filing of a residential mortgage foreclosure	2003
action, the clerk of courts shall send with the summons to the	2004
borrower a notice that a moratorium is in effect and that	2005
proceedings have been stayed to give the borrower an opportunity	2006
to negotiate a workout or modification of the mortgage loan with	2007
the mortgage servicer. The clerk shall send the same notice to all	2008
qualified defendants in foreclosure actions currently pending as	2009
of the effective date of this bill.	2010

(C)(1) During the moratorium, a foreclosed borrower shall	2011
make payments each month in an amount equal to one-half of the	2012
monthly payment that was in effect at the time the foreclosure	2013
action was filed, or other amount that the judge determines is	2014
just and equitable. The payments shall be allocated first for	2015
taxes and insurance, if the borrower's mortgage loan required	2016
such payments into escrow, then to interest and any remaining	2017
amounts to principal. The borrower shall make the payments to	2018
the mortgage servicer to whom the borrower made payments at the	2019
time the foreclosure action was filed.	2020

(2) No mortgage servicer shall refuse to accept the payments	2021
that this section describes.	2022

(D) If a borrower fails to make the payments that this	2023
section requires, thirty days after a missed payment, the party	2024
who filed the action may petition the court for the foreclosure	2025
action to resume and that action shall resume as if there were no	2026
moratorium.	2027

(E) At any time during the moratorium, a borrower may	2028
petition the court to request that the foreclosure action on the	2029
borrower's property proceed as if there were no moratorium.	2030

(F) Nothing in this section prevents the clerk of courts or	2031
the plaintiff from taking any action to perfect service of the	2032
summons.	2033

(G) During the time of the moratorium, the borrower shall	2034
make a good faith effort to maintain the property and shall grant	2035
entry to inspect the property to the servicer or other	2036
representative of the servicer or mortgagee, upon a	2037
twenty-four-hour written notice from the servicer.	2038

Sec. 5713.03.  The county auditor, from the best sources of	2039
information available, shall determine, as nearly as practicable,	2040
the true value of each separate tract, lot, or parcel of real	2041
property and of buildings, structures, and improvements located	2042
thereon and the current agricultural use value of land valued for	2043
tax purposes in accordance with section 5713.31 of the Revised	2044
Code, in every district, according to the rules prescribed by this	2045
chapter and section 5715.01 of the Revised Code, and in accordance	2046
with the uniform rules and methods of valuing and assessing real	2047
property as adopted, prescribed, and promulgated by the tax	2048
commissioner. HeThe auditor shall determine the taxable value of	2049
all real property by reducing its true or current agricultural use	2050
value by the percentage ordered by the commissioner. In	2051
determining the true value of any tract, lot, or parcel of real	2052
estate under this section, if such tract, lot, or parcel has been	2053
the subject of an arm's length sale between a willing seller and a	2054
willing buyer within a reasonable length of time, either before or	2055
after the tax lien date, the auditor shall consider the sale price	2056
of such tract, lot, or parcel to be the true value for taxation	2057
purposes. The auditor shall treat a short sale, as defined in	2058
section 1323.01 of the Revised Code, as an arm's length sale for	2059
taxation purposes. However, the sale price in an arm's length	2060
transaction between a willing seller and a willing buyer shall not	2061
be considered the true value of the property sold if subsequent to	2062
the sale:	2063

(A) The tract, lot, or parcel of real estate loses value due	2064
to some casualty;	2065

(B) An improvement is added to the property. Nothing in this	2066
section or section 5713.01 of the Revised Code and no rule adopted	2067
under section 5715.01 of the Revised Code shall require the county	2068
auditor to change the true value in money of any property in any	2069
year except a year in which the tax commissioner is required to	2070
determine under section 5715.24 of the Revised Code whether the	2071
property has been assessed as required by law.	2072

The county auditor shall adopt and use a real property record	2073
approved by the commissioner for each tract, lot, or parcel of	2074
real property, setting forth the true and taxable value of land	2075
and, in the case of land valued in accordance with section 5713.31	2076
of the Revised Code, its current agricultural use value, the	2077
number of acres of arable land, permanent pasture land, woodland,	2078
and wasteland in each tract, lot, or parcel. HeThe auditor shall	2079
record pertinent information and the true and taxable value of	2080
each building, structure, or improvement to land, which value	2081
shall be included as a separate part of the total value of each	2082
tract, lot, or parcel of real property.	2083

Section 2. That existing sections 109.572, 1181.05, 1181.21,	2084
1321.52, 1322.05, and 5713.03 of the Revised Code are hereby	2085
repealed.	2086

Section 3. Section 2308.03 of the Revised Code is hereby	2087
repealed, effective six months after the effective date of this	2088
act.	2089

Section 4.  Section 109.572 of the Revised Code is presented	2090
in this act as a composite of the section as amended by Sub. H.B.	2091
195, Sub. H.B. 545, and Sub. S.B. 247, all of the 127th General	2092
Assembly. The General Assembly, applying the principle stated in	2093
division (B) of section 1.52 of the Revised Code that amendments	2094
are to be harmonized if reasonably capable of simultaneous	2095
operation, finds that the composite is the resulting version of	2096
the section in effect prior to the effective date of the section	2097
as presented in this act.	2098

Section 5. The General Assembly enacts section 2308.03 of the	2099
Revised Code as an extraordinary measure necessary to respond to	2100
an emergency situation created by the mortgage foreclosure crisis	2101
in this state. The high rate of residential mortgage foreclosures	2102
is proving harmful to families, lenders, and communities alike.	2103
The purpose of enacting this section is to mitigate the very	2104
negative impact of the current situation and to preserve property	2105
values by providing time for solutions to begin to have an	2106
impact. These solutions that need time to be effective include	2107
implementing federal and state initiatives that provide	2108
assistance and guidance to homeowners, lenders, and communities.	2109

Section 6. Section 1323.21 of the Revised Code takes effect	2110
six months after the effective date of this act. During that	2111
six-month period, the Superintendent of Financial Institutions of	2112
the Department of Commerce may take applications for registration	2113
as a mortgage servicer, process the applications, and issue	2114
certificates of registration as the Superintendent is able. During	2115
that time, no mortgage servicer is required to have a certificate	2116
of registration and the Superintendent is not obligated to issue	2117
certificates until the Superintendent is able.	2118