As Reported by the House Housing and Urban Revitalization Committee

128th General Assembly Regular Session 2009-2010

Sub. H. B. No. 3

Representatives Foley, Driehaus 

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

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A BILL

To amend sections 109.572, 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, and to

17

declare an emergency.

18

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

Section 1. That sections 109.572, 1181.05, 1181.21, 1321.52,	19
1322.05, and 5713.03 be amended and sections 1323.01, 1323.02,	20
1323.04, 1323.05, 1323.06, 1323.07, 1323.08, 1323.09, 1323.10,	21
1323.11, 1323.20, 1323.21, 1323.22, 1323.23, 1323.24, 1323.25,	22
1323.26, 1323.27, 1323.28, 1323.29, 1323.30, 1323.31, 1323.32,	23
1323.33, 1323.34, 1323.35, 1323.36, 1323.361, 1323.37,	24
1323.99, 2303.33, 2308.01, 2308.02, 2308.021, and 2308.03 of the	25
Revised Code be enacted to read as follows:	26

Sec. 109.572. (A)(1) Upon receipt of a request pursuant to	27
section 121.08, 3301.32, 3301.541, or 3319.39 of the Revised	28
Code, a completed form prescribed pursuant to division (C)(1) of	29
this section, and a set of fingerprint impressions obtained in	30
the manner described in division (C)(2) of this section, the	31
superintendent of the bureau of criminal identification and	32
investigation shall conduct a criminal records check in the	33
manner described in division (B) of this section to determine	34
whether any information exists that indicates that the person who	35
is the subject of the request previously has been convicted of or	36
pleaded guilty to any of the following:	37

(a) A violation of section 2903.01, 2903.02, 2903.03,	38
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	39
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	40
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	41
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01,	42
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,	43
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,	44
2925.06, or 3716.11 of the Revised Code, felonious sexual	45
penetration in violation of former section 2907.12 of the Revised	46
Code, a violation of section 2905.04 of the Revised Code as it	47
existed prior to July 1, 1996, a violation of section 2919.23 of	48
the Revised Code that would have been a violation of section	49
2905.04 of the Revised Code as it existed prior to July 1, 1996,	50
had the violation been committed prior to that date, or a	51
violation of section 2925.11 of the Revised Code that is not a	52
minor drug possession offense;	53

(b) A violation of an existing or former law of this state,	54
any other state, or the United States that is substantially	55
equivalent to any of the offenses listed in division (A)(1)(a) of	56
this section.	57

(2) On receipt of a request pursuant to section 5123.081 of	58
the Revised Code with respect to an applicant for employment in	59
any position with the department of mental retardation and	60
developmental disabilities, pursuant to section 5126.28 of the	61
Revised Code with respect to an applicant for employment in any	62
position with a county board of mental retardation and	63
developmental disabilities, or pursuant to section 5126.281 of the	64
Revised Code with respect to an applicant for employment in a	65
direct services position with an entity contracting with a county	66
board for employment, a completed form prescribed pursuant to	67
division (C)(1) of this section, and a set of fingerprint	68
impressions obtained in the manner described in division (C)(2) of	69
this section, the superintendent of the bureau of criminal	70
identification and investigation shall conduct a criminal records	71
check. The superintendent shall conduct the criminal records check	72
in the manner described in division (B) of this section to	73
determine whether any information exists that indicates that the	74
person who is the subject of the request has been convicted of or	75
pleaded guilty to any of the following:	76

(a) A violation of section 2903.01, 2903.02, 2903.03,	77
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	78
2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03,	79
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12,	80
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	81
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12,	82
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02,	83
2925.03, or 3716.11 of the Revised Code;	84

(b) An existing or former municipal ordinance or law of this	85
state, any other state, or the United States that is substantially	86
equivalent to any of the offenses listed in division (A)(2)(a) of	87
this section.	88

(3) On receipt of a request pursuant to section 173.27,	89
173.394, 3712.09, 3721.121, or 3722.151 of the Revised Code, a	90
completed form prescribed pursuant to division (C)(1) of this	91
section, and a set of fingerprint impressions obtained in the	92
manner described in division (C)(2) of this section, the	93
superintendent of the bureau of criminal identification and	94
investigation shall conduct a criminal records check with respect	95
to any person who has applied for employment in a position for	96
which a criminal records check is required by those sections. The	97
superintendent shall conduct the criminal records check in the	98
manner described in division (B) of this section to determine	99
whether any information exists that indicates that the person who	100
is the subject of the request previously has been convicted of or	101
pleaded guilty to any of the following:	102

(a) A violation of section 2903.01, 2903.02, 2903.03,	103
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	104
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	105
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	106
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	107
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	108
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	109
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	110
2925.22, 2925.23, or 3716.11 of the Revised Code;	111

(b) An existing or former law of this state, any other state,	112
or the United States that is substantially equivalent to any of	113
the offenses listed in division (A)(3)(a) of this section.	114

(4) On receipt of a request pursuant to section 3701.881 of	115
the Revised Code with respect to an applicant for employment with	116
a home health agency as a person responsible for the care,	117
custody, or control of a child, a completed form prescribed	118
pursuant to division (C)(1) of this section, and a set of	119
fingerprint impressions obtained in the manner described in	120
division (C)(2) of this section, the superintendent of the bureau	121
of criminal identification and investigation shall conduct a	122
criminal records check. The superintendent shall conduct the	123
criminal records check in the manner described in division (B) of	124
this section to determine whether any information exists that	125
indicates that the person who is the subject of the request	126
previously has been convicted of or pleaded guilty to any of the	127
following:	128

(a) A violation of section 2903.01, 2903.02, 2903.03,	129
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	130
2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04,	131
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21,	132
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322,	133
2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	134
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	135
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a	136
violation of section 2925.11 of the Revised Code that is not a	137
minor drug possession offense;	138

(b) An existing or former law of this state, any other state,	139
or the United States that is substantially equivalent to any of	140
the offenses listed in division (A)(4)(a) of this section.	141

(5) On receipt of a request pursuant to section 5111.032,	142
5111.033, or 5111.034 of the Revised Code, a completed form	143
prescribed pursuant to division (C)(1) of this section, and a set	144
of fingerprint impressions obtained in the manner described in	145
division (C)(2) of this section, the superintendent of the bureau	146
of criminal identification and investigation shall conduct a	147
criminal records check. The superintendent shall conduct the	148
criminal records check in the manner described in division (B) of	149
this section to determine whether any information exists that	150
indicates that the person who is the subject of the request	151
previously has been convicted of, has pleaded guilty to, or has	152
been found eligible for intervention in lieu of conviction for	153
any of the following:	154

(a) A violation of section 2903.01, 2903.02, 2903.03,	155
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21,	156
2903.34, 2905.01, 2905.02, 2905.05, 2905.11, 2905.12, 2907.02,	157
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	158
2907.21, 2907.22, 2907.23, 2907.24, 2907.25, 2907.31, 2907.32,	159
2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12,	160
2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31,	161
2913.40, 2913.43, 2913.47, 2913.48, 2913.49, 2913.51, 2917.11,	162
2919.12, 2919.22, 2919.24, 2919.25, 2921.13, 2921.36, 2923.02,	163
2923.12, 2923.13, 2923.161, 2923.32, 2925.02, 2925.03, 2925.04,	164
2925.05, 2925.06, 2925.11, 2925.13, 2925.14, 2925.22, 2925.23, or	165
3716.11 of the Revised Code, felonious sexual penetration in	166
violation of former section 2907.12 of the Revised Code, a	167
violation of section 2905.04 of the Revised Code as it existed	168
prior to July 1, 1996, a violation of section 2919.23 of the	169
Revised Code that would have been a violation of section 2905.04	170
of the Revised Code as it existed prior to July 1, 1996, had the	171
violation been committed prior to that date;	172

(b) An existing or former law of this state, any other state,	173
or the United States that is substantially equivalent to any of	174
the offenses listed in division (A)(5)(a) of this section.	175

(6) On receipt of a request pursuant to section 3701.881 of	176
the Revised Code with respect to an applicant for employment with	177
a home health agency in a position that involves providing direct	178
care to an older adult, a completed form prescribed pursuant to	179
division (C)(1) of this section, and a set of fingerprint	180
impressions obtained in the manner described in division (C)(2) of	181
this section, the superintendent of the bureau of criminal	182
identification and investigation shall conduct a criminal records	183
check. The superintendent shall conduct the criminal records check	184
in the manner described in division (B) of this section to	185
determine whether any information exists that indicates that the	186
person who is the subject of the request previously has been	187
convicted of or pleaded guilty to any of the following:	188

(a) A violation of section 2903.01, 2903.02, 2903.03,	189
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	190
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	191
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	192
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	193
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	194
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	195
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	196
2925.22, 2925.23, or 3716.11 of the Revised Code;	197

(b) An existing or former law of this state, any other state,	198
or the United States that is substantially equivalent to any of	199
the offenses listed in division (A)(6)(a) of this section.	200

(7) When conducting a criminal records check upon a request	201
pursuant to section 3319.39 of the Revised Code for an applicant	202
who is a teacher, in addition to the determination made under	203
division (A)(1) of this section, the superintendent shall	204
determine whether any information exists that indicates that the	205
person who is the subject of the request previously has been	206
convicted of or pleaded guilty to any offense specified in section	207
3319.31 of the Revised Code.	208

(8) On receipt of a request pursuant to section 2151.86 of	209
the Revised Code, a completed form prescribed pursuant to	210
division (C)(1) of this section, and a set of fingerprint	211
impressions obtained in the manner described in division (C)(2)	212
of this section, the superintendent of the bureau of criminal	213
identification and investigation shall conduct a criminal records	214
check in the manner described in division (B) of this section to	215
determine whether any information exists that indicates that the	216
person who is the subject of the request previously has been	217
convicted of or pleaded guilty to any of the following:	218

(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,	219
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21,	220
2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02,	221
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	222
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	223
2907.322, 2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24,	224
2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02,	225
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161,	226
2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, or 3716.11	227
of the Revised Code, a violation of section 2905.04 of the	228
Revised Code as it existed prior to July 1, 1996, a violation of	229
section 2919.23 of the Revised Code that would have been a	230
violation of section 2905.04 of the Revised Code as it existed	231
prior to July 1, 1996, had the violation been committed prior to	232
that date, a violation of section 2925.11 of the Revised Code	233
that is not a minor drug possession offense, two or more OVI or	234
OVUAC violations committed within the three years immediately	235
preceding the submission of the application or petition that is	236
the basis of the request, or felonious sexual penetration in	237
violation of former section 2907.12 of the Revised Code;	238

(b) A violation of an existing or former law of this state,	239
any other state, or the United States that is substantially	240
equivalent to any of the offenses listed in division (A)(8)(a) of	241
this section.	242

(9) Upon receipt of a request pursuant to section 5104.012	243
or 5104.013 of the Revised Code, a completed form prescribed	244
pursuant to division (C)(1) of this section, and a set of	245
fingerprint impressions obtained in the manner described in	246
division (C)(2) of this section, the superintendent of the bureau	247
of criminal identification and investigation shall conduct a	248
criminal records check in the manner described in division (B) of	249
this section to determine whether any information exists that	250
indicates that the person who is the subject of the request has	251
been convicted of or pleaded guilty to any of the following:	252

(a) A violation of section 2903.01, 2903.02, 2903.03,	253
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22,	254
2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,	255
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22,	256
2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323,	257
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04,	258
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	259
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,	260
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2919.12,	261
2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 2923.12,	262
2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or	263
3716.11 of the Revised Code, felonious sexual penetration in	264
violation of former section 2907.12 of the Revised Code, a	265
violation of section 2905.04 of the Revised Code as it existed	266
prior to July 1, 1996, a violation of section 2919.23 of the	267
Revised Code that would have been a violation of section 2905.04	268
of the Revised Code as it existed prior to July 1, 1996, had the	269
violation been committed prior to that date, a violation of	270
section 2925.11 of the Revised Code that is not a minor drug	271
possession offense, a violation of section 2923.02 or 2923.03 of	272
the Revised Code that relates to a crime specified in this	273
division, or a second violation of section 4511.19 of the	274
Revised Code within five years of the date of application for	275
licensure or certification.	276

(b) A violation of an existing or former law of this state,	277
any other state, or the United States that is substantially	278
equivalent to any of the offenses or violations described in	279
division (A)(9)(a) of this section.	280

(10) Upon receipt of a request pursuant to section 5153.111	281
of the Revised Code, a completed form prescribed pursuant to	282
division (C)(1) of this section, and a set of fingerprint	283
impressions obtained in the manner described in division (C)(2) of	284
this section, the superintendent of the bureau of criminal	285
identification and investigation shall conduct a criminal records	286
check in the manner described in division (B) of this section to	287
determine whether any information exists that indicates that the	288
person who is the subject of the request previously has been	289
convicted of or pleaded guilty to any of the following:	290

(a) A violation of section 2903.01, 2903.02, 2903.03,	291
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	292
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	293
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	294
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,	295
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	296
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	297
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code,	298
felonious sexual penetration in violation of former section	299
2907.12 of the Revised Code, a violation of section 2905.04 of the	300
Revised Code as it existed prior to July 1, 1996, a violation of	301
section 2919.23 of the Revised Code that would have been a	302
violation of section 2905.04 of the Revised Code as it existed	303
prior to July 1, 1996, had the violation been committed prior to	304
that date, or a violation of section 2925.11 of the Revised Code	305
that is not a minor drug possession offense;	306

(b) A violation of an existing or former law of this state,	307
any other state, or the United States that is substantially	308
equivalent to any of the offenses listed in division (A)(10)(a) of	309
this section.	310

(11) On receipt of a request for a criminal records check	311
from an individual pursuant to section 4749.03 or 4749.06 of the	312
Revised Code, accompanied by a completed copy of the form	313
prescribed in division (C)(1) of this section and a set of	314
fingerprint impressions obtained in a manner described in division	315
(C)(2) of this section, the superintendent of the bureau of	316
criminal identification and investigation shall conduct a criminal	317
records check in the manner described in division (B) of this	318
section to determine whether any information exists indicating	319
that the person who is the subject of the request has been	320
convicted of or pleaded guilty to a felony in this state or in any	321
other state. If the individual indicates that a firearm will be	322
carried in the course of business, the superintendent shall	323
require information from the federal bureau of investigation as	324
described in division (B)(2) of this section. The superintendent	325
shall report the findings of the criminal records check and any	326
information the federal bureau of investigation provides to the	327
director of public safety.	328

(12) On receipt of a request pursuant to section 1321.37,	329
1322.03, 1322.031, 1323.23, or 4763.05 of the Revised Code, a	330
completed form prescribed pursuant to division (C)(1) of this	331
section, and a set of fingerprint impressions obtained in the	332
manner described in division (C)(2) of this section, the	333
superintendent of the bureau of criminal identification and	334
investigation shall conduct a criminal records check with	335
respect to any person who has applied for a license, permit, or	336
certification from the department of commerce or a division in	337
the department. The superintendent shall conduct the criminal	338
records check in the manner described in division (B) of this	339
section to determine whether any information exists that	340
indicates that the person who is the subject of the request	341
previously has been convicted of or pleaded guilty to any of the	342
following: a violation of section 2913.02, 2913.11, 2913.31,	343
2913.51, or 2925.03 of the Revised Code; any other criminal	344
offense involving theft, receiving stolen property,	345
embezzlement, forgery, fraud, passing bad checks, money	346
laundering, or drug trafficking, or any criminal offense	347
involving money or securities, as set forth in Chapters 2909.,	348
2911., 2913., 2915., 2921., 2923., and 2925. of the Revised	349
Code; or any existing or former law of this state, any other	350
state, or the United States that is substantially equivalent to	351
those offenses.	352

(13) On receipt of a request for a criminal records check	353
from the treasurer of state under section 113.041 of the Revised	354
Code or from an individual under section 4701.08, 4715.101,	355
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14,	356
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,	357
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,	358
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051,	359
4762.031, 4762.06, or 4779.091 of the Revised Code, accompanied	360
by a completed form prescribed under division (C)(1) of this	361
section and a set of fingerprint impressions obtained in the	362
manner described in division (C)(2) of this section, the	363
superintendent of the bureau of criminal identification and	364
investigation shall conduct a criminal records check in the	365
manner described in division (B) of this section to determine	366
whether any information exists that indicates that the person who	367
is the subject of the request has been convicted of or pleaded	368
guilty to any criminal offense in this state or any other state.	369
The superintendent shall send the results of a check requested	370
under section 113.041 of the Revised Code to the treasurer of	371
state and shall send the results of a check requested under any of	372
the other listed sections to the licensing board specified by the	373
individual in the request.	374

(14) On receipt of a request pursuant to section 1121.23,	375
1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 of the Revised	376
Code, a completed form prescribed pursuant to division (C)(1) of	377
this section, and a set of fingerprint impressions obtained in the	378
manner described in division (C)(2) of this section, the	379
superintendent of the bureau of criminal identification and	380
investigation shall conduct a criminal records check in the manner	381
described in division (B) of this section to determine whether any	382
information exists that indicates that the person who is the	383
subject of the request previously has been convicted of or pleaded	384
guilty to any criminal offense under any existing or former law of	385
this state, any other state, or the United States.	386

(15) Not later than thirty days after the date the	387
superintendent receives a request of a type described in division	388
(A)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11),	389
(12), or (14) of this section, the completed form, and the	390
fingerprint impressions, the superintendent shall send the	391
person, board, or entity that made the request any information,	392
other than information the dissemination of which is prohibited	393
by federal law, the superintendent determines exists with respect	394
to the person who is the subject of the request that indicates	395
that the person previously has been convicted of or pleaded	396
guilty to any offense listed or described in division (A)(1),	397
(2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), or	398
(14) of this section, as appropriate. The superintendent shall	399
send the person, board, or entity that made the request a copy of	400
the list of offenses specified in division (A)(1), (2), (3), (4),	401
(5), (6), (7), (8), (9), (10), (11), (12), or (14) of this	402
section, as appropriate. If the request was made under section	403
3701.881 of the Revised Code with regard to an applicant who may	404
be both responsible for the care, custody, or control of a child	405
and involved in providing direct care to an older adult, the	406
superintendent shall provide a list of the offenses specified in	407
divisions (A)(4) and (6) of this section.	408

Not later than thirty days after the superintendent receives	409
a request for a criminal records check pursuant to section 113.041	410
of the Revised Code, the completed form, and the fingerprint	411
impressions, the superintendent shall send the treasurer of state	412
any information, other than information the dissemination of which	413
is prohibited by federal law, the superintendent determines exist	414
with respect to the person who is the subject of the request that	415
indicates that the person previously has been convicted of or	416
pleaded guilty to any criminal offense in this state or any other	417
state.	418

(B) The superintendent shall conduct any criminal records	419
check requested under section 113.041, 121.08, 173.27, 173.394,	420
1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23,	421
1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881,	422
3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061,	423
4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28,	424
4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296,	425
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03,	426
4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06,	427
4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012,	428
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,	429
5126.281, or 5153.111 of the Revised Code as follows:	430

(1) The superintendent shall review or cause to be reviewed	431
any relevant information gathered and compiled by the bureau under	432
division (A) of section 109.57 of the Revised Code that relates to	433
the person who is the subject of the request, including, if the	434
criminal records check was requested under section 113.041,	435
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141,	436
1321.37, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86,	437
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121,	438
3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013,	439
5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or	440
5153.111 of the Revised Code, any relevant information contained	441
in records that have been sealed under section 2953.32 of the	442
Revised Code;	443

(2) If the request received by the superintendent asks for	444
information from the federal bureau of investigation, the	445
superintendent shall request from the federal bureau of	446
investigation any information it has with respect to the person	447
who is the subject of the request, including fingerprint-based	448
checks of national crime information databases as described in 42	449
U.S.C. 671 if the request is made pursuant to section 2151.86,	450
5104.012, or 5104.013 of the Revised Code or if any other Revised	451
Code section requires fingerprint-based checks of that nature, and	452
shall review or cause to be reviewed any information the	453
superintendent receives from that bureau.	454

(3) The superintendent or the superintendent's designee may	455
request criminal history records from other states or the federal	456
government pursuant to the national crime prevention and privacy	457
compact set forth in section 109.571 of the Revised Code.	458

(C)(1) The superintendent shall prescribe a form to obtain	459
the information necessary to conduct a criminal records check from	460
any person for whom a criminal records check is requested under	461
section 113.041 of the Revised Code or required by section	462
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141,	463
1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32,	464
3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151,	465
4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071,	466
4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171,	467
4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202,	468
4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061,	469
4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05,	470
4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034,	471
5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code.	472
The form that the superintendent prescribes pursuant to this	473
division may be in a tangible format, in an electronic format,	474
or in both tangible and electronic formats.	475

(2) The superintendent shall prescribe standard impression	476
sheets to obtain the fingerprint impressions of any person for	477
whom a criminal records check is requested under section 113.041	478
of the Revised Code or required by section 121.08, 173.27,	479
173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031,	480
1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39,	481
3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101,	482
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14,	483
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,	484
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,	485
4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032,	486
4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091,	487
5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081,	488
5126.28, 5126.281, or 5153.111 of the Revised Code. Any person	489
for whom a records check is requested under or required by any of	490
those sections shall obtain the fingerprint impressions at a	491
county sheriff's office, municipal police department, or any	492
other entity with the ability to make fingerprint impressions on	493
the standard impression sheets prescribed by the superintendent.	494
The office, department, or entity may charge the person a	495
reasonable fee for making the impressions. The standard	496
impression sheets the superintendent prescribes pursuant to this	497
division may be in a tangible format, in an electronic format, or	498
in both tangible and electronic formats.	499

(3) Subject to division (D) of this section, the	500
superintendent shall prescribe and charge a reasonable fee for	501
providing a criminal records check requested under section	502
113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05,	503
1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86,	504
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121,	505
3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501,	506
4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15,	507
4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091,	508
4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70,	509
4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031,	510
4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032,	511
5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or 5153.111 of	512
the Revised Code. The person making a criminal records request	513
under any of those sections shall pay the fee prescribed	514
pursuant to this division. A person making a request under	515
section 3701.881 of the Revised Code for a criminal records	516
check for an applicant who may be both responsible for the care,	517
custody, or control of a child and involved in providing direct	518
care to an older adult shall pay one fee for the request. In the	519
case of a request under section 1121.23, 1155.03, 1163.05,	520
1315.141, 1733.47, 1761.26, or 5111.032 of the Revised Code,	521
the fee shall be paid in the manner specified in that section.	522

(4) The superintendent of the bureau of criminal	523
identification and investigation may prescribe methods of	524
forwarding fingerprint impressions and information necessary to	525
conduct a criminal records check, which methods shall include, but	526
not be limited to, an electronic method.	527

(D) A determination whether any information exists that	528
indicates that a person previously has been convicted of or	529
pleaded guilty to any offense listed or described in division	530
(A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or	531
(b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7), (A)(8)(a) or	532
(b), (A)(9)(a) or (b), (A)(10)(a) or (b), (A)(12), or (A)(14) of	533
this section, or that indicates that a person previously has	534
been convicted of or pleaded guilty to any criminal offense in	535
this state or any other state regarding a criminal records check	536
of a type described in division (A)(13) of this section, and	537
that is made by the superintendent with respect to information	538
considered in a criminal records check in accordance with this	539
section is valid for the person who is the subject of the	540
criminal records check for a period of one year from the date	541
upon which the superintendent makes the determination. During the	542
period in which the determination in regard to a person is valid,	543
if another request under this section is made for a criminal	544
records check for that person, the superintendent shall provide	545
the information that is the basis for the superintendent's	546
initial determination at a lower fee than the fee prescribed for	547
the initial criminal records check.	548

(E) As used in this section:

549

(1) "Criminal records check" means any criminal records check	550
conducted by the superintendent of the bureau of criminal	551
identification and investigation in accordance with division (B)	552
of this section.	553

(2) "Minor drug possession offense" has the same meaning as	554
in section 2925.01 of the Revised Code.	555

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

556

(4) "OVI or OVUAC violation" means a violation of section	557
4511.19 of the Revised Code or a violation of an existing or	558
former law of this state, any other state, or the United States	559
that is substantially equivalent to section 4511.19 of the Revised	560
Code.	561

Sec. 1181.05.  (A) As used in this section, "consumer finance	562
company" means any person required to be licensed or registered	563
under Chapter 1321., 1322., 1323., 4712., 4727., or 4728. or	564
sections 1315.21 to 1315.30 of the Revised Code.	565

(B) Neither the superintendent of financial institutions nor	566
any other employee of the division of financial institutions shall	567
do any of the following: be interested, directly or indirectly, in	568
any bank, savings and loan association, savings bank, credit	569
union, or consumer finance company, that is under the supervision	570
of the superintendent of financial institutions; directly or	571
indirectly borrow money from any such financial institution or	572
company; serve as a director or officer of or be employed by any	573
such financial institution or company; or own an equity interest	574
in any such financial institution or company. For purposes of this	575
section, an equity interest does not include the ownership of an	576
account in a mutual savings and loan association or in a savings	577
bank that does not have permanent stock or the ownership of a	578
share account in a credit union.	579

(C) Subject to division (G) of this section, an employee of	580
the division of financial institutions may retain any extension of	581
credit that otherwise would be prohibited by division (B) of this	582
section if both of the following apply:	583

(1) The employee obtained the extension of credit prior to	584
October 29, 1995, or the commencement of the employee's employment	585
with the division, or as a result of a change in the employee's	586
marital status, the consummation of a merger, acquisition,	587
transfer of assets, or other change in corporate ownership beyond	588
the employee's control, or the sale of the extension of credit in	589
the secondary market or other business transaction beyond the	590
employee's control.	591

(2) The employee liquidates the extension of credit under its	592
original terms and without renegotiation.	593

If the employee chooses to retain the extension of credit,	594
the employee shall immediately provide written notice of the	595
retention to the employee's supervisor. Thereafter, the employee	596
shall be disqualified from participating in any decision,	597
examination, audit, or other action that may affect that	598
particular creditor.	599

(D) Subject to division (G) of this section, an employee of	600
the division of financial institutions may retain any ownership of	601
or beneficial interest in the securities of a financial	602
institution or consumer finance company that is under the	603
supervision of the division of financial institutions, or of a	604
holding company or subsidiary of such a financial institution or	605
company, which ownership or beneficial interest otherwise would be	606
prohibited by division (B) of this section, if the ownership or	607
beneficial interest is acquired by the employee through	608
inheritance or gift, prior to October 29, 1995, or the	609
commencement of the employee's employment with the division, or as	610
a result of a change in the employee's marital status or the	611
consummation of a merger, acquisition, transfer of assets, or	612
other change in corporate ownership beyond the employee's control.	613

If the employee chooses to retain the ownership or beneficial	614
interest, the employee shall immediately provide written notice of	615
the retention to the employee's supervisor. Thereafter, the	616
employee shall be disqualified from participating in any decision,	617
examination, audit, or other action that may affect the issuer of	618
the securities. However, if the ownership of or beneficial	619
interest in the securities and the subsequent disqualification	620
required by this division impair the employee's ability to perform	621
the employee's duties, the employee may be ordered to divest self	622
of the ownership of or beneficial interest in the securities.	623

(E) Notwithstanding division (B) of this section, an employee	624
of the division of financial institutions may have an indirect	625
interest in the securities of a financial institution or consumer	626
finance company that is under the supervision of the division of	627
financial institutions, which interest arises through ownership of	628
or beneficial interest in the securities of a publicly held mutual	629
fund or investment trust, if the employee owns or has a beneficial	630
interest in less than five per cent of the securities of the	631
mutual fund or investment trust, and the mutual fund or investment	632
trust is not advised or sponsored by a financial institution or	633
consumer finance company that is under the supervision of the	634
division of financial institutions. If the mutual fund or	635
investment trust is subsequently advised or sponsored by a	636
financial institution or consumer finance company that is under	637
the supervision of the division of financial institutions, the	638
employee shall immediately provide written notice of the ownership	639
of or beneficial interest in the securities to the employee's	640
supervisor. Thereafter, the employee shall be disqualified from	641
participating in any decision, examination, audit, or other action	642
that may affect the financial institution or consumer finance	643
company. However, if the ownership of or beneficial interest in	644
the securities and the subsequent disqualification required by	645
this division impair the employee's ability to perform the	646
employee's duties, the employee may be ordered to divest self of	647
the ownership of or beneficial interest in the securities.	648

(F)(1) For purposes of this section, the interests of an	649
employee's spouse or dependent child arising through the ownership	650
or control of securities shall be considered the interests of the	651
employee, unless the interests are solely the financial interest	652
and responsibility of the spouse or dependent child, the interests	653
are not in any way derived from the income, assets, or activity of	654
the employee, and any financial or economic benefit from the	655
interests is for the personal use of the spouse or dependent	656
child.	657

(2) If an employee's spouse or dependent child obtains	658
interests arising through the ownership or control of securities	659
and, pursuant to division (F)(1) of this section, the interests	660
are not considered the interests of the employee, the employee	661
shall immediately provide written notice of the interests to the	662
employee's supervisor. Thereafter, the employee shall be	663
disqualified from participating in any decision, examination,	664
audit, or other action that may affect the issuer of the	665
securities.	666

(G) For purposes of divisions (C) and (D) of this section,	667
both of the following apply:	668

(1) With respect to any employee of the former division of	669
consumer finance who, on the first day of the first pay period	670
commencing after the effective date of this section, becomes an	671
employee of the division of financial institutions, the employee's	672
employment with the division of financial institutions is deemed	673
to commence on the first day of the first pay period commencing	674
after the effective date of this section.	675

(2) With respect to any employee who, on October 29, 1995,	676
became an employee of the division of financial institutions, the	677
employee may, notwithstanding divisions (C) and (D) of this	678
section, retain any extension of credit by a consumer finance	679
company that was obtained at any time prior to the first day of	680
the first pay period commencing after the effective date of this	681
section, or retain any ownership of or beneficial interest in the	682
securities of a consumer finance company, or of a holding company	683
or subsidiary of such a company, that was acquired at any time	684
prior to the first day of the first pay period commencing after	685
the effective date of this section. If the employee chooses to	686
retain the extension of credit or the ownership or beneficial	687
interest, the employee shall comply with divisions (C) and (D) of	688
this section.	689

Sec. 1181.21.  (A) As used in this section, "consumer finance	690
company" has the same meaning as in section 1181.05 of the Revised	691
Code.	692

(B) The superintendent of financial institutions shall see	693
that the laws relating to consumer finance companies are executed	694
and enforced.	695

(C) The deputy superintendent for consumer finance shall be	696
the principal supervisor of consumer finance companies. In that	697
position the deputy superintendent for consumer finance shall,	698
notwithstanding section 1321.421, division (A) of section	699
1321.76, and sections 1321.07, 1321.55, 1322.06, 1323.30, 4727.05,	700
and 4728.05 of the Revised Code, be responsible for conducting	701
examinations and preparing examination reports under those	702
sections. In addition, the deputy superintendent for consumer	703
finance shall, notwithstanding sections 1315.27, 1321.10,	704
1321.43, 1321.54, 1321.77, 1322.12, 1323.29, 4712.14, 4727.13, and	705
4728.10 of the Revised Code, have the authority to adopt rules	706
and standards in accordance with those sections. In performing or	707
exercising any of the examination, rule-making, or other	708
regulatory functions, powers, or duties vested by this division in	709
the deputy superintendent for consumer finance, the deputy	710
superintendent for consumer finance shall be subject to the	711
control of the superintendent of financial institutions and the	712
director of commerce.	713

Sec. 1321.52.  (A)(1) No person, on that person's own behalf	714
or on behalf of any other person, shall do either of the following	715
without having first obtained a certificate of registration from	716
the division of financial institutions:	717

(a) Advertise, shall advertise, solicit, or hold out that the	718
person is engaged in the business of making loans secured by a	719
mortgage on a borrower's real estate which is other than a first	720
lien on the real estate;	721

(b) Engage in the business of lending or collecting the	722
person's own or another person's money, credit, or choses in	723
action for such loans.	724

(2) Each person issued a certificate of registration is	725
subject to all the rules prescribed under sections 1321.51 to	726
1321.60 of the Revised Code.	727

(B) All loans(1) Except as otherwise provided in division	728
(B)(2) of this section, any loan made to personsa person who at	729
the time are residentsof the loan is a resident of this state are	730
is considered as made within this state and subject to the laws	731
of this state, regardless of any statement in the contract or note	732
to the contrary.	733

(2) If a loan is primarily secured by a lien on real property	734
in another state and that loan is arranged by a mortgage loan	735
originator licensed by another state, the borrower may designate	736
the transaction be governed by the law where the real property is	737
located if the other state has consumer protection laws covering	738
the borrower that are applicable to the transaction.	739

(C) A registrant may make unsecured loans, loans secured by a	740
mortgage on a borrower's real estate which is a first lien or	741
other than a first lien on the real estate, loans secured by other	742
than real estate, and loans secured by any combination of	743
mortgages and security interests, on terms and conditions provided	744
by sections 1321.51 to 1321.60 of the Revised Code.	745

(D)(1) If a lender that is subject to sections 1321.51 to	746
1321.60 of the Revised Code makes a loan in violation of division	747
(A)(1) of this section, the lender has no right to collect,	748
receive, or retain any interest or charges on that loan.	749

(2) If a registrant applies to the division for a renewal of	750
the registrant's certificate after the date required by division	751
(A)(4) of section 1321.53 of the Revised Code, but prior to the	752
first day of August of that year, and the division approves the	753
application, division (D)(1) of this section does not apply with	754
respect to any loan made by the registrant while the registrant's	755
certificate was expired.	756

Sec. 1322.05.  (A) No registrant shall conduct business in	757
this state, unless the registrant maintains a net worth of at	758
least fifty thousand dollars and has obtained and maintains in	759
effect at all times a corporate surety bond issued by a bonding	760
company or insurance company authorized to do business in this	761
state. The bond shall be in favor of the superintendent of	762
financial institutions and in the penal sum of at least fiftyone	763
hundred thousand dollars and an additional penal sum of ten	764
thousand dollars for each location, in excess of one, at which the	765
registrant conducts business. The term of the bond shall coincide	766
with the term of registration. A copy of the bond shall be filed	767
with the superintendent. The bond shall be for the exclusive	768
benefit of any buyer injured by a violation by an employee,	769
licensee, or registrant of any provision of sections 1322.01 to	770
1322.12 of the Revised Code. The aggregate liability of the	771
corporate surety for any and all breaches of the conditions of the	772
bond shall not exceed the penal sum of the bond.	773

(B)(1) The registrant shall give notice to the superintendent	774
by certified mail of any action that is brought by a buyer against	775
the registrant or loan officer of the registrant alleging injury	776
by a violation of any provision of sections 1322.01 to 1322.12 of	777
the Revised Code, and of any judgment that is entered against the	778
registrant or loan officer of the registrant by a buyer injured by	779
a violation of any provision of sections 1322.01 to 1322.12 of the	780
Revised Code. The notice shall provide details sufficient to	781
identify the action or judgment, and shall be filed with the	782
superintendent within ten days after the commencement of the	783
action or notice to the registrant of entry of a judgment.	784

(2) A corporate surety, within ten days after it pays any	785
claim or judgment, shall give notice to the superintendent by	786
certified mail of the payment, with details sufficient to identify	787
the person and the claim or judgment paid.	788

(C) Whenever the penal sum of the corporate surety bond is	789
reduced by one or more recoveries or payments, the registrant	790
shall furnish a new or additional bond under this section, so that	791
the total or aggregate penal sum of the bond or bonds equals the	792
sum required by this section, or shall furnish an endorsement	793
executed by the corporate surety reinstating the bond to the	794
required penal sum of it.	795

(D) The liability of the corporate surety on the bond to the	796
superintendent and to any buyer injured by a violation of any	797
provision of sections 1322.01 to 1322.12 of the Revised Code shall	798
not be affected in any way by any misrepresentation, breach of	799
warranty, or failure to pay the premium, by any act or omission	800
upon the part of the registrant, by the insolvency or bankruptcy	801
of the registrant, or by the insolvency of the registrant's	802
estate. The liability for any act or omission that occurs during	803
the term of the corporate surety bond shall be maintained and in	804
effect for at least two years after the date on which the	805
corporate surety bond is terminated or canceled.	806

(E) The corporate surety bond shall not be canceled by the	807
registrant or the corporate surety except upon notice to the	808
superintendent by certified mail, return receipt requested. The	809
cancellation shall not be effective prior to thirty days after the	810
superintendent receives the notice.	811

(F) No registrant shall fail to comply with this section. Any	812
registrant that fails to comply with this section shall cease all	813
mortgage broker activity in this state until the registrant	814
complies with this section.	815

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

816

(1) "Mortgage servicer" or "servicer" means a person who	817
engages directly or indirectly, whether for compensation, gain	818
for another, or on the person's own behalf, in the business of	819
receiving scheduled periodic payments from a borrower pursuant to	820
the terms of a residential mortgage loan, including amounts	821
received for deposit in an escrow account, and applying those	822
payments received toward principal, interest, and other	823
obligations of the borrower including amounts to be paid from an	824
escrow account.	825

"Mortgage servicer" includes a person who makes or holds a	826
loan if that person also services the loan.	827

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

828

(a) The federal deposit insurance corporation or the	829
resolution trust corporation, in connection with assets acquired,	830
assigned, sold, or transferred pursuant to the "Federal Deposit	831
Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C.	832
1823(c), or as receiver or conservator of an insured depository	833
institution;	834

(b) The government national mortgage association, the federal	835
national mortgage association, the federal home loan mortgage	836
corporation, the resolution trust corporation, or the federal	837
deposit insurance corporation, in any case in which the	838
assignment, sale, or transfer of the servicing of the mortgage	839
loan is preceded by:	840

(i) Termination of the contract for servicing the loan for	841
cause;	842

(ii) Commencement of proceedings for bankruptcy of the	843
servicer;	844

(iii) Commencement of proceedings by the federal deposit	845
insurance corporation or the resolution trust corporation for	846
conservatorship or receivership of the servicer or an entity by	847
which the servicer is owned or controlled.	848

(c) The national credit union administration, in connection	849
with assets acquired, assigned, sold, or transferred pursuant to	850
federal law, or as a receiver or conservator of an insured credit	851
union;	852

(d) Any political subdivision or any public agency of the	853
United States or any state.	854

(2) "Mortgage lender" means a person engaged in the business	855
of making residential mortgage loans for compensation or gain.	856

(3) "Residential mortgage" and "residential mortgage loan"	857
mean an obligation to pay a sum of money evidenced by a note and	858
secured by a lien upon real property located within this state	859
containing four or fewer residential units and includes such an	860
obligation on a residential condominium or cooperative unit.	861

(4) "Employee" means an individual for whom a person pays a	862
wage or salary, pays social security and unemployment taxes,	863
provides workers' compensation coverage, and withholds local,	864
state, and federal income taxes. "Employee" includes any	865
individual who acts as an operations manager of a registered	866
mortgage servicer, but for whom the servicer is prevented by law	867
from making income tax withholdings.	868

(5) "Operations manager" means the employee or owner	869
responsible for the everyday operations, compliance requirements,	870
and management of a registrant or applicant.	871

(6) "Subprime loan" or "subprime mortgage" means a	872
residential mortgage loan originated between January 1, 2001, and	873
January 1, 2009, in which the difference between the annual	874
percentage rate for the loan and the federal home loan mortgage	875
corporation primary mortgage market survey rate for a comparable	876
transaction, as of the date the interest rate is set, is greater	877
than one and one-half percentage points if the loan is a first	878
mortgage loan or three and one-half percentage points if the	879
loan is a mortgage loan in a subordinate position.	880

(7) "Unoccupied property" means a property intended for	881
residential occupancy that is not occupied by the owner of the	882
property or the owner's tenant.	883

(8) "Superintendent of financial institutions" or	884
"superintendent" includes the deputy superintendent for consumer	885
finance as provided in section 1181.21 of the Revised Code.	886

(9) "Short sale" means a transaction in which the property	887
that is the subject of a mortgage transaction is sold for an	888
amount that is less than the amount of the debtor's outstanding	889
obligation under the mortgage transaction.	890

(10) "Depository institution" means an entity chartered and	891
lawfully doing business under the authority of any law of this	892
state, another state, or the United States as a bank, savings	893
bank, trust company, or savings and loan association. "Depository	894
institution" does not mean the holding company of such an	895
institution.	896

(11) "Credit union" means an entity chartered under Chapter	897
1733. of the Revised Code or under similar laws of another state	898
or the United States. "Credit union" includes a credit union	899
service organization consisting of multiple credit unions.	900

(B) Sections 1323.01 to 1323.11 of the Revised Code shall be	901
known as the "special program to reduce foreclosures act."	902

(C)(1) The director of commerce may act through staff and	903
those under the director's control, including the deputy	904
superintendent for consumer finance as provided in section 1181.21	905
of the Revised Code.	906

(2) The director may adopt rules pursuant to Chapter 119. Of	907
the Revised Code for the administration and enforcement of	908
sections 1323.02, 1323.05, and 1323.06 of the Revised Code.	909

Sec. 1323.02.  (A) At least sixty days prior to filing a	910
complaint to initiate a foreclosure action that involves a	911
residential mortgage loan on property occupied by an owner or a	912
tenant of that owner, a mortgage servicer shall provide the	913
borrower with a notice to inform the borrower of the amount due to	914
the lender and the availability of resources to avoid	915
foreclosure. This notice shall be on a form the director of	916
commerce prescribes and shall include all of the following:	917

(1) An itemization of all past due amounts causing the loan	918
to be in default;	919

(2) An itemization of any other charges that the borrower	920
must pay in order to be current on loan payments;	921

(3) A statement that the borrower may have options available	922
other than foreclosure, and that the borrower may discuss	923
available options with the mortgage lender, the mortgage servicer,	924
or a counselor approved by the United States department of housing	925
and urban development;	926

(4) The address, telephone number, and other contact	927
information for the mortgage lender, the mortgage servicer, or an	928
agent for either of them who is authorized to work with the	929
borrower to avoid foreclosure;	930

(5) The name, address, telephone number, and other contact	931
information for one or more United States department of housing	932
and urban development-approved counseling agencies operating to	933
assist borrowers in Ohio to avoid foreclosure;	934

(6) The address, telephone number, and other contact	935
information for the consumer complaint sections of the division of	936
financial institutions in the Ohio department of commerce and the	937
Ohio attorney general;	938

(7) The following information prominently displayed:

939

"YOU HAVE THE RIGHT TO REMAIN IN THIS PROPERTY DURING THE	940
FORECLOSURE PROCEEDINGS AND AFTER THE SHERIFF'S SALE UNTIL A COURT	941
CONFIRMS THE SALE.	942

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

943

(8) Other information the director considers necessary and	944
includes on the form.	945

(B) The mortgage servicer shall mail the notice this section	946
requires to the last known address of the borrower and shall	947
evidence the mailing by a certificate of mailing from the United	948
States postal service.	949

Sec. 1323.04. (A) Within three business days after mailing	950
the notice section 1323.02 of the Revised Code requires, a	951
mortgage servicer shall file with the administrative director of	952
the Ohio supreme court the date the notice was mailed to the	953
borrower and, unless prohibited by state or federal law, any	954
additional information the administrative director requests.	955

(B) Within seven days after entering into a modification	956
agreement, a mortgage servicer shall notify the administrative	957
director of the nature and terms of an agreement with a borrower	958
to do any of the following:	959

(1) Reduce or forego any fees or arrearages, including	960
acceptance of a deed in lieu of foreclosure;	961

(2) Alter the terms of the residential mortgage loan	962
agreement by a reduction in interest rate, lessening of monthly	963
payment, increase in the term for repayment, deferment of	964
interest or other payment, or alteration of a variable rate	965
adjustment date;	966

(3) Refinance the loan under new terms.

967

(C) Any notice or filing this section requires shall be made	968
in an electronic format as the administrative director prescribes,	969
and contain the name and address of the borrower, the name and	970
address of the mortgage servicer, and the name and address of the	971
holder of the mortgage.	972

(D) The administrative director shall include all information	973
received pursuant to this section in the state foreclosure	974
database developed and maintained pursuant to section 1323.07 of	975
the Revised Code. This information shall be available for review	976
by the state foreclosure prevention project as described in	977
section 1323.06 of the Revised Code.	978

Sec. 1323.05. (A) The director of commerce shall adopt	979
comprehensive minimum loan modification standards by rule to	980
advise mortgage servicers of modification alternatives and to use	981
to evaluate the loan modification efforts of mortgage servicers.	982
The director shall design the standards to reflect modification	983
alternatives that would keep a borrower in the borrower's home	984
when the anticipated recovery under a loan modification or	985
workout plan is greater than the anticipated recovery through	986
foreclosure, on a net present value basis.	987

(B) The loan modification standards adopted pursuant to this	988
section shall include some combination of the following	989
features:	990

(1) An interest rate reduction, as needed, for a fixed term	991
of at least five years;	992

(2) An extension of the amortization period for the loan	993
term, to not more than forty years from the original date of the	994
loan;	995

(3) Deferral of some portion of the principal amount of the	996
unpaid principal balance until maturity of the loan;	997

(4) Reduction of principal;

998

(5) Compliance with a federally mandated loan modification	999
program;	1000

(6) Other factors the director determines are appropriate,	1001
which may include efforts implemented in other states that have	1002
resulted in a reduction in foreclosures.	1003

Sec. 1323.06.  The director of commerce shall establish the	1004
"state foreclosure prevention project" to collect residential	1005
mortgage foreclosure information, track loss mitigation efforts,	1006
encourage viable loan modifications, and seek solutions to avoid	1007
foreclosures for residential mortgage loans. In developing the	1008
project, the director may include input from the United States	1009
department of housing and urban development-approved housing	1010
counselors, community organizations, state agencies including	1011
the Ohio attorney general, mortgage lenders, mortgage servicers,	1012
and any other appropriate persons.	1013

Sec. 1323.07. (A) The director of commerce shall design and	1014
develop, in consultation with the administrative director of the	1015
Ohio supreme court, the state foreclosure database to track	1016
residential mortgage foreclosure information and to promote the	1017
efforts of the state foreclosure prevention project. Not later	1018
than October 1, 2009, the administrative director of the Ohio	1019
supreme court shall implement the database.	1020

(B) No person shall have access to the state foreclosure	1021
database except the following individuals or the individual's	1022
designated representative: the administrative director of the	1023
Ohio supreme court, the director of commerce, the superintendent	1024
of financial institutions, the Ohio attorney general, and the	1025
clerk of a court of common pleas for the purposes described in	1026
section 2303.33 of the Revised Code.	1027

(C) Any information provided for inclusion in the state	1028
foreclosure database is exclusively for the use and purposes of	1029
the state foreclosure prevention project. The database is not a	1030
public record subject to section 149.43 of the Revised Code and	1031
the information provided for and included in the database may not	1032
be disclosed except as this section provides. Any mortgage	1033
servicer shall have access only to the information submitted	1034
with respect to its own loans.	1035

(D) Providing information as this chapter requires for	1036
inclusion in the state foreclosure database does not violate any	1037
state law pertaining to financial privacy. A mortgage servicer	1038
shall be held harmless for any alleged breach of privacy rights of	1039
a borrower with respect to the information the mortgage servicer	1040
provides in accordance with this chapter.	1041

Sec. 1323.08.  (A) The director of commerce annually shall	1042
submit a report to the general assembly describing the operation	1043
of the state foreclosure prevention project. The director shall	1044
present information in the report in aggregate form, and may	1045
include the number of borrowers helped, the effectiveness of	1046
the funds in preventing foreclosure, recommendations for	1047
further efforts needed to reduce foreclosures, and any other	1048
aggregated information the director determines is pertinent or	1049
that the general assembly requests.	1050

(B) In preparing the report, the director shall review	1051
information provided in the state foreclosure database to	1052
determine all of the following:	1053

(1) Whether the loss mitigation programs and efforts	1054
effectively address loan default issues;	1055

(2) The most effective means for establishing successful	1056
foreclosure alternatives including loan modification programs;	1057

(3) Which procedures best comport with a servicer's	1058
obligation to investors to lessen losses resulting from borrower	1059
defaults.	1060

Sec. 1323.09.  The superintendent of financial institutions	1061
in the department of commerce shall review the information in the	1062
state foreclosure database to determine whether any mortgage	1063
servicer has failed to provide disclosures or information this	1064
chapter requires or is not acting in good faith to provide	1065
borrowers with an effective method to discuss payment options for	1066
past due amounts and alternatives to foreclosure. If the	1067
superintendent determines that a mortgage servicer has violated	1068
any of these requirements, the superintendent may consider that	1069
conduct or failure when determining the character and general	1070
fitness of the mortgage servicer for its licensure or	1071
certificate of registration as a mortgage servicer under this	1072
chapter or Chapter 1321. of the Revised Code.	1073

Sec. 1323.10.  (A) There is hereby established in the state	1074
treasury the foreclosure prevention revolving trust fund,	1075
comprised of moneys collected or accruing to the trust fund, for	1076
the purpose of providing the following:	1077

(1) Grants to counseling foreclosure prevention entities for	1078
the purpose of maintaining or expanding foreclosure prevention	1079
counseling and related services and activities to assist	1080
homeowners to prevent foreclosure;	1081

(2) Grants to individuals or counseling entities for the	1082
purpose of providing emergency foreclosure prevention assistance	1083
loans;	1084

(3) Loans and grants to nonprofit or local government	1085
entities to provide relocation assistance or acquire mortgage	1086
loans or properties from creditors in order to restructure the	1087
mortgage loans or restore the properties to productive use;	1088

(4) Funding to establish, operate, and maintain the state	1089
foreclosure database established pursuant to section 1323.07 of	1090
the Revised Code;	1091

(5) Funding for the expenses of the state foreclosure	1092
prevention project and the associated costs the superintendent of	1093
financial institutions of the department of commerce and the	1094
director of commerce incur related to outreach and education and	1095
to support investigation of mortgage fraud and fraudulent	1096
foreclosure prevention schemes in the state of Ohio.	1097

(B) Each fiscal quarter the director of commerce shall	1098
distribute the amounts in the foreclosure prevention revolving	1099
trust fund as follows: ten per cent for outreach and education	1100
and to support investigation of mortgage fraud and fraudulent	1101
foreclosure prevention schemes to the consumer finance fund in	1102
the state treasury, created under section 1321.21 of the Revised	1103
Code, five per cent to the attorney general for investigation of	1104
illegal activities associated with mortgage fraud and foreclosure	1105
prevention fraud, which funds the attorney general may use to	1106
contract with local public prosecutors engaged in the	1107
investigation of foreclosure prevention fraud, up to five per cent	1108
to the office of the administrative director of the supreme	1109
court, and the balance to be divided between the department of	1110
development for deposit into the Ohio housing trust fund and	1111
boards of county commissioners. The amount awarded to boards of	1112
county commissioners shall be distributed on a pro rata basis of	1113
the funds submitted with respect to foreclosure filings in each	1114
county under section 1323.11 of the Revised Code.	1115

(C) The director of development and boards of county	1116
commissioners shall establish rules governing the procedures to	1117
qualify counseling and foreclosure prevention entities, nonprofit	1118
entities, and individuals for loan assistance to receive moneys	1119
from the revolving trust fund to carry out the purposes of	1120
division (A) of this section.	1121

(D) Any moneys collected under this section but not allocated	1122
by the end of the fiscal year shall be available for allocation in	1123
the subsequent fiscal year.	1124

Sec. 1323.11.  (A) In addition to any filing fee required by	1125
law, a mortgage servicer that files a complaint to initiate a	1126
foreclosure action involving a residential mortgage loan	1127
simultaneously shall transmit a check in the amount of seven	1128
hundred fifty dollars payable to the department of commerce for	1129
deposit into the trust fund established under section 1323.10	1130
of the Revised Code. The servicer may not in any manner add	1131
the amount paid pursuant to this division to the amount the	1132
borrower owes or seek to recover this cost from the borrower.	1133

(B) No court shall permit the filing of an action for a	1134
mortgage foreclosure or grant a judgment of foreclosure to any	1135
servicer of a residential loan unless that servicer provides	1136
evidence to the court that the servicer has complied with this	1137
section.	1138

(C) The director of commerce shall establish an accounting	1139
system to track the county that corresponds to each fee that is	1140
paid pursuant to this section. The accounting system shall be used	1141
to determine the share of the funds to be distributed to each	1142
county pursuant to section 1323.10 of the Revised Code.	1143

(D) The fee this section requires shall not be charged with	1144
respect to a filing for a foreclosure action that meets any of the	1145
following criteria:	1146

(1) A filing on an unoccupied property;

1147

(2) A filing on a property for which a filing fee was paid	1148
during the past twenty-four months with respect to the same	1149
mortgage loan;	1150

(3) A filing by a credit union;

1151

(4) A filing by a depository institution if that depository	1152
institution is headquartered in Ohio, has two and one-half billion	1153
dollars or less in total assets, and originated and services the	1154
mortgage loan being foreclosed.	1155

Sec. 1323.20.  (A) Sections 1323.20 to 1323.37 of the Revised	1156
Code shall be known as the "residential mortgage servicers	1157
registration act."	1158

(B) Sections 1323.20 to 1323.37 of the Revised Code do not	1159
apply to any of the following:	1160

(1) Any entity that is chartered and lawfully doing business	1161
as a bank, savings bank, trust company, savings and loan	1162
association, or credit union under the authority of any law of	1163
this state, another state, or the United States;	1164

(2) Life, property, or casualty insurance companies licensed	1165
to do business in this state;	1166

(3) Any attorney or law firm acting on behalf of any mortgage	1167
note holder or mortgage servicer when acting in connection with	1168
the practice of law in this state, except as otherwise provided in	1169
division (D) of this section;	1170

(4) Any political subdivision, or any governmental or other	1171
public agency, corporation, or instrumentality in or of the	1172
United States or any state;	1173

(5) An institution of higher education as defined in section	1174
1713.01 of the Revised Code;	1175

(6) A debt collector acting under the name of, and as agent	1176
for, a mortgage servicer registrant to collect a debt in default.	1177

(C) Mortgage lenders registered under section 1321.52 of the	1178
Revised Code and mortgage brokers registered under section 1322.02	1179
of the Revised Code are exempt from the registration requirements	1180
of section 1323.21 of the Revised Code but shall comply with	1181
divisions (C), (D), (F), and (G) of section 1323.33, and sections	1182
1323.34, 1323.35, and 1323.36 of the Revised Code in connection	1183
with the servicing of residential mortgage loans. Any violation	1184
of these sections is an unfair and deceptive practice in	1185
violation of section 1345.02 of the Revised Code and may result	1186
in administrative action and penalties the superintendent of	1187
financial institutions of the department of commerce imposes	1188
pursuant to sections 1321.54 and 1322.10 of the Revised Code.	1189

(D) Any attorney or law firm primarily engaged in debt	1190
collection shall comply with division (D) of section 1323.33 and	1191
section 1323.36 of the Revised Code when acting as a mortgage	1192
servicer, notwithstanding the general exemption from sections	1193
1323.20 to 1323.37 of the Revised Code. Any violation by an	1194
attorney of division (D) of section 1323.33 or section 1323.36 of	1195
the Revised Code, in connection with any debt collection activity	1196
that is not considered the practice of law, is deemed to be an	1197
unfair and deceptive practice in violation of section 1345.02 of	1198
the Revised Code.	1199

Sec. 1323.21.  (A) No person, on that person's own behalf or	1200
on behalf of any other person, shall do either of the following	1201
unless that person is registered as a mortgage servicer and has a	1202
certificate of registration from the superintendent of financial	1203
institutions of the department of commerce:	1204

(1) Engage in the business of collecting money, credit, or	1205
choses in action for residential mortgage loans or otherwise act	1206
as a mortgage servicer;	1207

(2) Collect accelerated mortgage payments from a biweekly or	1208
other accelerated payment plan that the person operates, arranges,	1209
or offers to arrange for compensation or gain in connection with	1210
a residential mortgage loan.	1211

(B) Any person who acts in willful violation of division (A)	1212
of this section, after receiving written notice of the violation	1213
from the superintendent or a court, may not collect any amounts	1214
as interest or charges on that loan. Any amounts collected shall	1215
be credited as a principal reduction to the loan.	1216

(C)(1) When a registration expires for any reason and the	1217
former registrant continues to service residential mortgage loans	1218
in violation of division (A) of this section, the superintendent	1219
may take administrative action, including action on any	1220
subsequent application for a certificate of registration.	1221

(2) A servicer with an expired registration may not collect,	1222
charge, or retain any late fee, bad check charge except as	1223
incurred, charge related to default, cost to realize on its	1224
security interest, or prepayment penalty on any residential	1225
mortgage loan unless that servicer applies to the superintendent	1226
for a registration renewal and a certificate of registration	1227
prior to the first day of August of the year the registration	1228
expires and the superintendent approves that application.	1229

(D) No person shall conduct the business of a mortgage	1230
servicer in association with any exempt business if the	1231
superintendent has ordered that exempt business, in writing, to	1232
desist from conduct that the superintendent found to be a mere	1233
conduit for the mortgage servicer and that the association of the	1234
servicer and the exempt business is intended to conceal an evasion	1235
of sections 1323.20 to 1323.37 of the Revised Code or the rules	1236
adopted pursuant to those sections. Any determination made	1237
pursuant to this division shall be made in accordance with Chapter	1238
119. of the Revised Code.	1239

Sec. 1323.22.  (A) Any application for registration as a	1240
mortgage servicer shall be in writing, under oath, and in the	1241
form the superintendent of financial institutions of the	1242
department of commerce prescribes. It shall contain an undertaking	1243
by the applicant to abide by this chapter and any other	1244
information that the superintendent requires. Applicants that are	1245
foreign corporations shall obtain and maintain a license pursuant	1246
to Chapter 1703. of the Revised Code before seeking registration	1247
or registration renewal as a mortgage servicer.	1248

(B) Upon an applicant's filing an application and paying a	1249
nonrefundable two-hundred-dollar investigation fee, a	1250
nonrefundable one-thousand-dollar annual registration fee, and any	1251
additional fee required by law, the superintendent shall	1252
investigate the relevant facts. If the application requires	1253
investigation outside this state, the applicant may be required to	1254
advance sufficient funds to pay any of the actual expenses when it	1255
appears that these expenses will exceed two hundred dollars. The	1256
superintendent shall furnish an itemized statement of any	1257
expenses the applicant is required to pay. The superintendent	1258
shall not issue any certificate of registration unless all the	1259
required fees have been paid.	1260

(C) An applicant shall designate an employee or owner who has	1261
at least three years' experience in the mortgage, collections,	1262
servicing, or lending field as the applicant's operations	1263
manager. No operations manager shall be employed by any other	1264
mortgage servicer while acting as an operations manager. Any	1265
operations manager must be acceptable to the superintendent.	1266

(D) The superintendent may consider an application for	1267
registration as a mortgage servicer withdrawn if that application	1268
does not contain all of the information required under division	1269
(A) of this section and the applicant does not submit that	1270
information within ninety days after the superintendent requests	1271
the information in writing.	1272

(E) The superintendent of financial institutions shall	1273
deposit any licensing fee, charge, or fine received pursuant to	1274
sections 1323.20 to 1323.37 of the Revised Code into the consumer	1275
finance fund in the state treasury, created under section 1321.21	1276
of the Revised Code, unless otherwise specified by law.	1277

Sec. 1323.23.  (A)(1) Any investigation the superintendent of	1278
financial institutions of the department of commerce undertakes	1279
with respect to an application for registration as a mortgage	1280
servicer shall include a civil records check of the applicant,	1281
including any individual whose identity is required to be	1282
disclosed in the application, and criminal records check at the	1283
time of the initial application and every five years thereafter,	1284
or upon a change of control of the registrant if the persons	1285
acquiring control have not had a criminal records check	1286
submitted to the superintendent within the past five years.	1287

(2) Where the applicant is a business entity, the	1288
superintendent may require a civil and criminal background check	1289
of those persons that the superintendent determines have the	1290
authority to direct and control the operations of the	1291
applicant.	1292

(B) When conducting a criminal background check, the	1293
superintendent shall request the superintendent of the bureau of	1294
criminal identification and investigation, or a vendor the	1295
superintendent approves, to conduct a criminal records check	1296
based on the applicant's fingerprints or if fingerprints are	1297
unreadable, based on the applicant's social security number in	1298
accordance with division (A)(12) of section 109.572 of the Revised	1299
Code. Notwithstanding division (K) of section 121.08 of the	1300
Revised Code, the superintendent of financial institutions	1301
shall request that criminal record information from the federal	1302
bureau of investigation be obtained as part of the criminal	1303
records check.	1304

(C) The applicant shall pay any fee required under division	1305
(C)(3) of section 109.572 of the Revised Code.	1306

Sec. 1323.24.  (A) The superintendent of financial	1307
institutions of the department of commerce shall issue a	1308
certificate of registration as a mortgage servicer to an applicant	1309
if the superintendent finds that the applicant's financial	1310
responsibility, experience, character, and general fitness command	1311
the confidence of the public and warrant the belief that the	1312
business will be operated honestly and fairly in compliance with	1313
the purposes of this chapter and the rules promulgated under it,	1314
and that the applicant has the requisite bond or applicable net	1315
worth as this chapter requires.	1316

(B) Upon finding an applicant does not meet the conditions	1317
set forth in this chapter, the superintendent shall issue a notice	1318
of intent to deny an application for registration or renewal. The	1319
superintendent forthwith shall notify the applicant of the denial,	1320
the grounds for the denial, and the applicant's opportunity to be	1321
heard on the action in accordance with Chapter 119. of the Revised	1322
Code.	1323

(C) Any certificate issued pursuant to this section shall	1324
expire on the first day of July next after its issue, and on the	1325
first day of July in each succeeding year unless renewed by filing	1326
a renewal application and payment of an annual fee and any	1327
additional fee required by law, on or before the last day of June	1328
of each year.	1329

Sec. 1323.25.  (A) To renew a registration as a mortgage	1330
servicer, a registrant shall timely file a renewal application on	1331
a form the superintendent of financial institutions of the	1332
department of commerce prescribes, along with any additional	1333
information that the superintendent requires.	1334

(B) As a condition of renewal, a registrant must provide	1335
proof that the designated operation manager meets the criteria for	1336
initial approval set forth in section 1323.23 of the Revised Code	1337
and that the mortgage servicer meets the minimum standards for the	1338
issuance of the certificate of registration under sections 1323.22	1339
to 1323.24 of the Revised Code.	1340

(C) The superintendent shall not grant any renewal if the	1341
applicant's certificate of registration is subject to an order of	1342
suspension, revocation, or an unpaid and past due fine the	1343
superintendent has imposed.	1344

(D) If an application for renewal of a certificate of	1345
registration does not contain all the information this section	1346
requires, and if the registrant does not submit that information	1347
to the superintendent within ninety days after the superintendent	1348
requests the information in writing, the superintendent may	1349
consider the application withdrawn.	1350

Sec. 1323.26.  At any time there is a change of five per cent	1351
or more in the ownership of a registrant, the superintendent of	1352
financial institutions of the department of commerce may make any	1353
investigation necessary to determine whether any fact or condition	1354
presently exists that would have warranted the superintendent	1355
denying the original application had the fact or condition	1356
existed at the time of that application. If the superintendent	1357
finds such a fact or condition, the superintendent may revoke the	1358
registrant's registration and certificate pursuant to Chapter	1359
119. of the Revised Code.	1360

Sec. 1323.27.  (A) Each place of business to which borrowers	1361
are regularly directed to remit payment shall display its own	1362
certificate of registration. The superintendent of financial	1363
institutions of the department of commerce may issue additional	1364
certificates of registration to the same person for additional	1365
places of business upon compliance with the requirements governing	1366
the issuance of a single certificate.	1367

(B)(1) Any change in the place of business to a location	1368
outside the original municipal corporation requires a new	1369
certificate of registration. A registrant who makes such a change	1370
of location shall submit a new application, pay the registration	1371
fee and, if the superintendent requires, pay an investigation	1372
fee of two hundred dollars. The registrant must have the new	1373
certificate before operating in the new location.	1374

(2) A registrant who wishes to change its place of business	1375
within the same municipal corporation shall give written notice	1376
of the change in advance to the superintendent, who shall provide	1377
a certificate for the new address without cost.	1378

(C) A registrant that changes its name shall give written	1379
notice of the change to the superintendent prior to acting as a	1380
mortgage servicer under the new name. The superintendent shall	1381
provide a certificate in the new name without cost.	1382

(D) A registrant shall keep each certificate conspicuously	1383
posted in each place of business. A certificate of registration	1384
is not transferable or assignable.	1385

Sec. 1323.28.  (A) Any person who acts as a mortgage	1386
servicer, if not bonded pursuant to division (B) of this section,	1387
shall maintain at all times both of the following:	1388

(1) A net worth of at least two hundred fifty thousand	1389
dollars;	1390

(2) For each additional certificate of registration beyond	1391
the first, assets of at least fifty thousand dollars either in	1392
use or readily available for use in the conduct of the business.	1393

(B) Any person acting as a mortgage servicer by arranging	1394
biweekly or other accelerated payment plans and collecting those	1395
payments shall obtain and maintain in effect at all times a	1396
corporate surety bond issued by a bonding company or insurance	1397
company authorized to do business in this state. The servicer	1398
shall file a copy of the bond with the superintendent of	1399
financial institutions of the department of commerce. The bond	1400
shall meet all of the following conditions:	1401

(1) Be in favor of the superintendent;

1402

(2) Have a base penal sum of two hundred fifty thousand	1403
dollars for the first location and an additional penal sum of ten	1404
thousand dollars for each additional location that requires a	1405
separate certificate of registration;	1406

(3) Have a term that coincides with the term of	1407
registration;	1408

(4) Be for the exclusive benefit of any individual borrower	1409
injured by any violation of sections 1323.20 to 1323.37 of the	1410
Revised Code or the rules promulgated thereunder by a servicer,	1411
its employees, or agent;	1412

(5) Have an aggregate liability of the corporate surety for	1413
any and all breaches of the conditions of the bond not to exceed	1414
the penal sum of the bond.	1415

(C)(1) A mortgage servicer shall give notice to the	1416
superintendent by certified mail of any action that is brought by	1417
a borrower against the servicer alleging injury by a violation	1418
of sections 1323.20 to 1323.37 of the Revised Code and of any	1419
judgment that is entered against the servicer by a borrower	1420
injured by a violation of those sections. The notice shall	1421
provide details sufficient to identify the action or judgment.	1422
The servicer shall file the notice with the superintendent within	1423
ten days after the commencement of the action or receipt of the	1424
notice of entry of a judgment.	1425

(2) A corporate surety shall give notice of any payment to	1426
the superintendent by certified mail within ten days after it pays	1427
any claim or judgment, with details sufficient to identify the	1428
person and the claim or judgment paid.	1429

(D) Whenever the penal sum of the corporate surety bond is	1430
reduced by one or more recoveries or payments, a servicer shall	1431
furnish a new or additional bond under this section, so that the	1432
total or aggregate penal sum of the bond or bonds equals the sum	1433
required by this section, or shall furnish an endorsement executed	1434
by the corporate surety reinstating the bond to the required penal	1435
sum set forth in division (B) of this section.	1436

(E) The liability of the corporate surety on the bond to the	1437
superintendent and to any borrower injured by a violation of	1438
sections 1323.20 to 1323.37 of the Revised Code is not affected in	1439
any way by any misrepresentation, breach of warranty, or failure	1440
to pay the premium, by any act or omission upon the part of the	1441
servicer, by the insolvency or bankruptcy of the servicer, or by	1442
the insolvency of the servicer's estate. The servicer shall	1443
maintain in effect liability for any act or omission that occurs	1444
during the term of the corporate surety bond for at least two	1445
years after the date on which the corporate surety bond is	1446
terminated or canceled.	1447

(F) Neither the servicer nor the corporate surety shall	1448
cancel a corporate surety bond except upon notice to the	1449
superintendent by certified mail, return receipt requested. A	1450
cancellation is not effective until thirty days after the	1451
superintendent receives the notice.	1452

(G) No servicer shall fail to comply with this section. Any	1453
servicer that fails to comply shall cease acting as a mortgage	1454
servicer in this state until that servicer complies with this	1455
section.	1456

Sec. 1323.29.  (A) The superintendent of financial	1457
institutions of the department of commerce may adopt, in	1458
accordance with Chapter 119. of the Revised Code, rules to	1459
administer and enforce sections 1323.20 to 1323.99 of the Revised	1460
Code and to carry out the purposes of those sections.	1461

(B) The superintendent may investigate alleged violations of	1462
sections 1323.20 to 1323.37 of the Revised Code or the rules	1463
adopted thereunder, or complaints concerning any violation. In	1464
conducting an investigation, the superintendent, by subpoena,	1465
may compel witnesses to testify in relation to any matter over	1466
which the superintendent has jurisdiction, and may require the	1467
production or photocopying of any book, record, or other	1468
document pertaining to such matter. If a person fails to comply	1469
with the subpoena, or permit photocopying of any document	1470
subpoenaed, a court of common pleas, upon the superintendent's	1471
application, shall compel obedience by attachment proceedings for	1472
contempt or a refusal to testify.	1473

(C)(1) In accordance with Chapter 119. of the Revised Code,	1474
the superintendent may revoke, suspend, or refuse to renew any	1475
registration and certificate issued under this chapter if the	1476
superintendent finds any of the following:	1477

(a) A violation of or failure to comply with any provision of	1478
sections 1323.20 to 1323.37 of the Revised Code or the rules	1479
adopted under those sections, under Chapter 1345. of the Revised	1480
Code, federal debt collection laws, or any other law applicable	1481
to the business the registrant conducts under the registrant's	1482
certificate of registration;	1483

(b) The registrant has been convicted of or pleads guilty or	1484
nolo contendere in a domestic, foreign, or military court to any	1485
felony or any criminal offense involving theft, receiving	1486
stolen property, embezzlement, forgery, fraud, passing bad	1487
checks, money laundering, breach of trust, dishonesty, or drug	1488
trafficking, or any criminal offense involving money or	1489
securities;	1490

(c) The registrant's certificate of registration, license,	1491
or comparable authority as a mortgage servicer has been revoked in	1492
any other state.	1493

(2) The superintendent may impose a monetary fine pursuant	1494
to division (F) of this section in addition to, or instead of,	1495
any revocation, suspension, or denial or in settlement of matters	1496
subject to claims under division (C)(1)(a) of this section.	1497

(3) Except as otherwise provided in section 1323.21 of the	1498
Revised Code, the revocation, suspension, or refusal to renew a	1499
registration does not impair the obligation of any pre-existing	1500
lawful contract made under this chapter if a mortgage servicer	1501
makes a good faith effort to promptly transfer its collection	1502
rights to a registrant or person exempt from registration. A	1503
servicer that does not make the requisite good faith effort is	1504
subject to additional monetary fines and legal or administrative	1505
action by the superintendent.	1506

(4) Nothing in this division limits a court's ability to	1507
impose a cease and desist order preventing any further business	1508
or servicing activity.	1509

(D) The superintendent may apply to the court of common	1510
pleas for an order enjoining any violation of sections 1323.20	1511
to 1323.37 of the Revised Code. Upon a showing that a person has	1512
committed or is about to commit a violation of sections 1323.20	1513
to 1323.37 of the Revised Code, the court shall grant an	1514
injunction, restraining order, or other appropriate relief. If	1515
the application to a court is for an order enjoining a person	1516
from acting as a registrant or mortgage servicer in violation of	1517
division (A) of section 1323.21 of the Revised Code, the	1518
superintendent may request, and the court may impose, a civil	1519
penalty for that unregistered or unlicensed conduct in an amount	1520
not to exceed five thousand dollars per violation.	1521

(E) The superintendent may issue a cease and desist order if	1522
the superintendent determines that a person is engaged in or may	1523
be engaged in activities that violate sections 1323.20 to 1323.37	1524
of the Revised Code or the rules adopted thereunder, after	1525
notice and a hearing conducted in accordance with Chapter 119.	1526
of the Revised Code.	1527

(F)(1) The superintendent may impose a fine of not more than	1528
one thousand dollars for each day a violation of this chapter or	1529
the rules adopted under it is committed, repeated, or continued.	1530
In determining the amount of a fine to impose, the superintendent	1531
may consider all of the following:	1532

(a) The seriousness of the violation;

1533

(b) The servicer's good faith efforts to prevent the	1534
violation;	1535

(c) The servicer's history regarding violations and	1536
compliance with the superintendent's orders;	1537

(d) The servicer's financial resources;

1538

(e) Any other matters the superintendent considers	1539
appropriate in enforcing this chapter.	1540

(2) Monetary fines imposed under this section do not	1541
preclude any criminal fine described in section 1323.99 of the	1542
Revised Code.	1543

(G) All fines collected pursuant to this section shall be	1544
paid to the treasurer of state to the credit of the consumer	1545
finance fund created in section 1321.21 of the Revised Code.	1546

Sec. 1323.30.  (A)(1) A mortgage servicer shall keep	1547
separate records pertaining to each loan serviced. The servicer	1548
shall preserve those records for so long as the servicer has	1549
responsibility for the loan and retain copies of those records	1550
for at least four years even if the servicer transfers the	1551
original copies for any reason. At any time responsibility for the	1552
loan is transferred to another servicer, the servicer who is	1553
ceasing responsibility shall transfer all original loan documents	1554
and records to the servicer who is assuming responsibility for	1555
the loan. Any system of electronic imaging of required records	1556
shall be approved by the superintendent of financial	1557
institutions of the department of commerce prior to its use but	1558
at no time shall such a system be a substitute for maintaining	1559
original documents as this section requires.	1560

(2) As often as necessary, the superintendent may make or	1561
cause to be made an examination of records pertaining to loans	1562
serviced for the purpose of determining whether the servicer is	1563
complying with sections 1323.20 to 1323.37 of the Revised Code	1564
and of verifying any registrant's annual report.	1565

(B)(1) The superintendent may require each servicer to file	1566
each year a report under oath or affirmation, on forms the	1567
superintendent supplies, concerning the business and operations	1568
for the preceding calendar year. A servicer that operates two or	1569
more registered offices or who operates registered offices with	1570
one or more affiliated servicers, may file a composite report of	1571
the group of registered offices in lieu of individual reports.	1572

(2) The reports provided under division (B)(1) of this	1573
section are not public records and are not open to public	1574
inspection.	1575

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

1576

(a) Examination information, and any information leading to	1577
or arising from an examination;	1578

(b) Investigation information, and any information arising	1579
from or leading to an investigation.	1580

(2) The information described in this division is	1581
confidential for all purposes except when it is necessary for the	1582
superintendent to take official action regarding the affairs of a	1583
servicer or in connection with criminal or civil proceedings to	1584
be initiated by a prosecuting attorney or the attorney general.	1585
This information may be introduced into evidence or disclosed	1586
pursuant to section 1181.25 of the Revised Code.	1587

(D) All application information is a public record as defined	1588
in section 149.43 of the Revised Code, except social security	1589
numbers, employer identification numbers, financial account	1590
numbers, the identity of the institution where financial accounts	1591
are maintained, personal financial information, fingerprint cards	1592
and the information contained on such cards, and criminal	1593
background information.	1594

(E) Nothing in this section prevents the superintendent from	1595
releasing information relating to servicers or exchanging that	1596
information with other financial institution regulatory	1597
authorities. For this purpose, a "financial institution regulatory	1598
authority" includes a regulator of a business activity in which a	1599
servicer is engaged or has applied to engage, to the extent that	1600
the regulator has jurisdiction over a servicer engaged in that	1601
business activity. A servicer is engaged in a business activity,	1602
and a regulator of that business activity has jurisdiction over	1603
the servicer, whether the servicer conducts the activity	1604
directly or a subsidiary or affiliate of the servicer conducts	1605
the activity.	1606

(F) Nothing in this section prevents the superintendent of	1607
financial institutions from releasing information relating to	1608
mortgage servicers to the attorney general, to the superintendent	1609
of real estate and professional licensing of the department of	1610
commerce for purposes relating to the administration of Chapters	1611
4735. and 4763. of the Revised Code, to the superintendent of	1612
insurance for purposes relating to the administration of Chapter	1613
3953. of the Revised Code, to the commissioner of securities of	1614
the department of commerce for purposes relating to the	1615
administration of Chapter 1707. of the Revised Code, or to local	1616
law enforcement agencies and local prosecutors. Information	1617
released pursuant to this section remains confidential. The	1618
superintendent of financial institutions, by rule, may designate	1619
additional state agencies and regulatory authorities as entities	1620
with which to share this confidential information.	1621

Sec. 1323.31.  No person, in connection with any examination	1622
or investigation conducted by the superintendent of financial	1623
institutions of the department of commerce under this chapter,	1624
shall knowingly do any of the following:	1625

(A) Circumvent, interfere with, obstruct, or fail to	1626
cooperate, including making a false or misleading statement,	1627
failing to produce records, or intimidating or suborning any	1628
witness;	1629

(B) Withhold, abstract, remove, mutilate, destroy, or secrete	1630
any books, records, computer records, or other information;	1631

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

1632

Sec. 1323.32.  (A) No mortgage servicer, through its	1633
operations manager or otherwise, shall fail to reasonably	1634
supervise persons the servicer employs or associates with, or to	1635
establish reasonable procedures to avoid violations of sections	1636
1323.20 to 1323.37 of the Revised Code or the rules adopted	1637
thereunder, violations of applicable state and federal consumer	1638
and lending laws or rules by persons the servicer employs or	1639
associates with.	1640

(B) Within ten business days of any change in a mortgage	1641
servicer's statutory agent designation or address, the servicer	1642
shall file with the superintendent of financial institutions of	1643
the department of commerce evidence that the servicer has filed	1644
such changes with the secretary of state.	1645

(C)(1) At least thirty days prior to the closure of a	1646
registered office location, a mortgage servicer shall notify the	1647
superintendent by filing a notice of closure on a form approved by	1648
the superintendent. The notice shall indicate the custodian of the	1649
records and where the records will be maintained. Within five	1650
business days after the closure, the servicer shall surrender the	1651
certificate of registration issued to that location by returning	1652
it to the superintendent.	1653

(2) The closure of an office and the surrender of a	1654
certificate does not affect a mortgage servicer's civil or	1655
criminal liability for acts committed before the surrender.	1656

(D) A mortgage servicer shall maintain books and records in	1657
compliance with this chapter and make them available to the	1658
superintendent of financial institutions of the department of	1659
commerce. After any closure, records remain subject to examination	1660
and or investigation. The servicer shall send the superintendent	1661
written notice of any change in the location of the records or	1662
the custodian of those records.	1663

Sec. 1323.33.  (A) No mortgage servicer shall refuse to	1664
provide information regarding the amount required to pay in full	1665
a residential mortgage loan when the borrower or a person the	1666
borrower designates makes that request in writing. The servicer	1667
shall provide the requested payoff statement without charge one	1668
time during any twelve-month period. If additional payoff	1669
statements are requested, the servicer may charge an amount not	1670
in excess of three dollars for each additional statement. The	1671
servicer shall provide any payoff statement within five business	1672
days of the request.	1673

(B) No mortgage servicer shall obtain a certificate of	1674
registration through any false or fraudulent representation of a	1675
material fact or any omission of a material fact required by	1676
state or federal law, or make any substantial misrepresentation	1677
in the registration application.	1678

(C) No mortgage servicer shall make false or misleading	1679
statements of a material fact, omissions of statements required	1680
by state or federal law, or false promises regarding a material	1681
fact, through advertising or other means, or engage in a	1682
continued course of misrepresentations.	1683

(D) No mortgage servicer shall engage in conduct that	1684
constitutes improper, fraudulent, or dishonest dealings.	1685

(E) No mortgage servicer or applicant for registration shall	1686
fail to notify the superintendent of financial institutions of	1687
the department of commerce within thirty days after the servicer	1688
or applicant has:	1689

(1) Been convicted of or pleads guilty or nolo contendere in	1690
a domestic, foreign, or military court to any felony;	1691

(2) Been convicted of or pleads guilty or nolo contendere in	1692
a domestic, foreign, or military court to any criminal offense	1693
involving theft, receiving stolen property, embezzlement, forgery,	1694
fraud, passing bad checks, money laundering, breach of trust,	1695
dishonesty, or drug trafficking, or any criminal offense involving	1696
money or securities;	1697

(3) Had a mortgage servicer registration, license, or	1698
comparable authority revoked in any other state.	1699

(F) No mortgage servicer shall knowingly make, propose, or	1700
solicit fraudulent, false, or misleading statements on any	1701
mortgage servicing document or on any document related to an	1702
accounting of payments remitted or disbursed. For purposes of	1703
this division, "fraudulent, false, or misleading statements"	1704
does not include mathematical errors, inadvertent transposition	1705
of numbers, typographical errors, or any other bona fide error.	1706

(G) No mortgage servicer shall knowingly instruct, solicit,	1707
propose, or otherwise cause a borrower to sign in blank a	1708
document.	1709

(H) Any violation of division (C), (D), (F), or (G) of this	1710
section, or section 1323.34, 1323.35, or 1323.36 of the Revised	1711
Code is an unfair and deceptive act or practice in violation of	1712
section 1345.02 of the Revised Code.	1713

Sec. 1323.34. (A) In addition to the duties imposed by common	1714
law or state or federal law, in the course of servicing	1715
residential mortgage loans in Ohio, a mortgage servicer shall do	1716
all of the following:	1717

(1) Act with good faith and fair dealing in any transaction,	1718
practice, or course of business associated with servicing;	1719

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

1720

(3) Act in good faith to provide the borrower with the facts	1721
relating to the nature and extent of any delinquency or default	1722
and the amounts owed or necessary to reinstate the loan or cure	1723
the default;	1724

(4) Subject to the servicer's duties and obligations under	1725
its mortgage servicing contract, attempt a resolution,	1726
modification, or workout to the delinquency of a borrower who	1727
requests assistance;	1728

(5) Make a good faith effort to correct any erroneous	1729
information it has provided to any credit reporting agency;	1730

(6) Provide information regarding the amount required to pay	1731
in full a residential mortgage loan within five business days	1732
when requested by the borrower or by another person designated in	1733
writing by the borrower. The servicer shall provide the requested	1734
payoff statement without charge once during any twelve-month	1735
period. If additional payoff statements are requested, the	1736
servicer may charge an amount not in excess of three dollars for	1737
each additional statement.	1738

(7) Make all payments from any escrow account in a timely	1739
manner, so as to avoid the assessment of late fees, penalties, or	1740
consequential damages, notwithstanding any loan delinquency,	1741
unless there are insufficient funds in the escrow account to cover	1742
the payments;	1743

(8) Accept and credit each residential mortgage loan payment	1744
received on the date received;	1745

(9) Take all steps necessary to terminate a foreclosure	1746
action when the condition giving rise to action has been fully	1747
cured. Upon cure of a default, the servicer shall reinstate the	1748
borrower to the same position as if the default had not	1749
occurred, and nullify, as of the date of the cure, any	1750
acceleration of any obligation under the residential mortgage	1751
loan or note arising from the default.	1752

(10) In addition to the duties enumerated in sections 1323.20	1753
to 1323.37 of the Revised Code, any mortgage servicer for a	1754
government-insured loan shall comply with the loss mitigation	1755
standards and guidelines as required by the insuring entity.	1756

(B) When establishing a loan modification solution for a	1757
borrower, a mortgage servicer shall seek to achieve long-term	1758
sustainability for the borrower and adhere to the loan	1759
modification standards established under section 1323.05 of the	1760
Revised Code.	1761

Sec. 1323.35.  No mortgage servicer shall do any of the	1762
following in connection with a residential mortgage loan:	1763

(A) Collect, charge, or retain any fee from the borrower	1764
unless the fee is reasonable, for a bona fide service rendered,	1765
and specifically authorized by the residential mortgage loan and	1766
permitted by law;	1767

(B) Initiate a foreclosure action without proof of ownership	1768
as evidenced by a declaration signed under penalty of perjury,	1769
stating that the party in interest has reviewed the original note	1770
and all subsequent assignments and has concluded that the party	1771
in interest owns the note or mortgage;	1772

(C) Fail to provide written notice to the borrower before	1773
acquiring and placing hazard, homeowner's, or flood insurance on a	1774
property or acquiring and placing such insurance if the mortgage	1775
servicer knows, or has reason to know, that a policy for such	1776
insurance is in effect;	1777

(D) Acquire and place hazard, homeowner's, or flood insurance	1778
on a property for an amount that exceeds the greater of the	1779
insurable improvements to the property, the last known coverage	1780
amount that was sufficient to meet the borrower's insurance	1781
obligations, or the unpaid balance owed by the borrower;	1782

(E) Fail to refund unearned premiums for insurance the	1783
mortgage servicer or its agents placed upon the borrower,	1784
providing there is reasonable evidence that the needed coverage	1785
had been obtained, the forced placement is not necessary, and the	1786
property is properly insured in accordance with the loan or note.	1787

Sec. 1323.36. (A) No mortgage servicer shall use unfair,	1788
deceptive or unconscionable means to collect or attempt to	1789
collect any claim in connection with a residential mortgage loan.	1790
Without limiting the general application of the foregoing, the	1791
following actions violate this section:	1792

(1) The collection or the attempt to collect any interest or	1793
other charge, fee, or expense that is incidental to the principal	1794
obligation, unless expressly authorized by the agreement creating	1795
the obligation and by law, including division (A) of section	1796
1323.35 of the Revised Code;	1797

(2) Any communication with a borrower if the mortgage	1798
servicer knows that the borrower is represented by an attorney and	1799
the attorney's name and address are known or could be easily	1800
ascertained. This prohibition does not apply if the borrower's	1801
attorney fails to respond within thirty days to answer	1802
correspondence, return phone calls, or discuss the obligation in	1803
question, or the attorney consents to the servicer having direct	1804
communication with the borrower;	1805

(3) Placing a telephone call or otherwise communicating by	1806
telephone with a borrower or third party, at any place including	1807
a place of employment, and falsely stating that the call is	1808
"urgent" or an "emergency";	1809

(4) Using profane or obscene language or language that is	1810
intended to unreasonably abuse the listener or reader;	1811

(5) Placing telephone calls without disclosure of the	1812
caller's identity and with the intent to annoy, harass, or	1813
threaten any person at the number called;	1814

(6) Causing expense to any person in the form of long	1815
distance telephone tolls, text messaging fees, or other charges	1816
the servicer causes by concealing the true purpose of the	1817
communication;	1818

(7) Causing a telephone to ring or engaging any person in a	1819
telephone conversation repeatedly or continuously, or at unusual	1820
times or times known to be inconvenient, with the intent to	1821
annoy, abuse, oppress, or threaten any person at the called	1822
number.	1823

(B) The requirements set forth in this section are in	1824
addition to any other requirement set forth in federal or state	1825
law regulating the conduct of collection activities, including the	1826
Federal Fair Debt Collection Practices Act, 91 Stat. 874 (1977),	1827
15 U.S.C. 1692 et seq.	1828

Sec. 1323.361.  (A) No mortgage servicer, in conducting a	1829
mortgage servicer business, shall engage in any unfair, deceptive	1830
or unconscionable act in violation of Chapter 1345. of the Revised	1831
Code. Any violation of the sections set forth in division (H) of	1832
section 1323.33 or section 1323.34, 1323.35, or 1323.36 of the	1833
Revised Code is an unfair and deceptive act or practice in	1834
violation of section 1345.02 of the Revised Code. The attorney	1835
general may take enforcement action and a borrower may seek	1836
recovery under Chapter 1345. of the Revised Code for the	1837
violations set forth in this division.	1838

(B) A borrower injured by a violation of division (A) of this	1839
section may not recover damages, attorney's fees, and costs under	1840
Chapter 1345. of the Revised Code if the borrower has recovered	1841
damages in a cause of action initiated under section 1323.37 of	1842
the Revised Code and the damages sought under Chapter 1345. of	1843
the Revised Code are based on the same acts or circumstances as	1844
the damages awarded under section 1323.37 of the Revised Code.	1845

Sec. 1323.37.  (A) A borrower injured by a violation of	1846
sections 1323.20 to 1323.37 of the Revised Code may recover	1847
damages in an amount not less than all improper charges or fees	1848
paid to the mortgage servicer, plus reasonable attorney's fees	1849
and court costs and also may be awarded punitive damages.	1850

(B) Nothing in this section prevents recovery under division	1851
(B) or (C)(2) of section 1323.21 of the Revised Code.	1852

(C) A borrower may not recover damages, attorney's fees, or	1853
costs under this section if the borrower also recovered damages	1854
in an action initiated under any section of Chapter 1321. or	1855
1345. of the Revised Code and the damages so awarded were based	1856
on the same acts or circumstances as the damages sought under this	1857
section.	1858

Sec. 1323.99.  (A) Whoever violates division (A)(1) or (2) of	1859
section 1323.21, or division (F) or (G) of section 1323.33 of the	1860
Revised Code is guilty of a felony of the fifth degree.	1861

(B) Whoever violates section 1323.31 of the Revised Code with	1862
the intent to interfere or obstruct an examination or	1863
investigation is guilty of a felony of the fourth degree.	1864

Sec. 2303.33.  (A) No court shall accept a complaint to	1865
initiate a foreclosure on a residential mortgage loan unless the	1866
filing contains a copy of the notice and information required by	1867
section 1323.02 of the Revised Code, a copy of the writing that	1868
section 2308.02 of the Revised Code requires, which shall be filed	1869
under seal in connection with the foreclosure, and a certification	1870
by the filer that all notices and information required by Chapter	1871
1323. of the Revised Code have been provided, and the requisite	1872
periods of time have elapsed.	1873

(B) A court or judicial officer may access the state	1874
foreclosure database established pursuant to section 1323.07 of	1875
the Revised Code to confirm information provided pursuant to this	1876
section. A materially inaccurate statement in the filer's	1877
certification is cause for dismissal of the action without	1878
prejudice and for payment by the filing party of costs the	1879
borrower incurs in defending the foreclosure proceeding.	1880

(C) Along with the summons that the clerk of courts issues	1881
to the owner of a property when a residential mortgage foreclosure	1882
action is filed, the clerk shall provide a notice of the six-month	1883
moratorium that section 2308.03 of the Revised Code establishes,	1884
so long as the moratorium remains in effect.	1885

(D) Within three business days after issuing a writ of	1886
execution in a residential foreclosure action as described in	1887
section 2329.091 of the Revised Code, the clerk of court shall	1888
file information of that action with the administrative director	1889
of the Ohio supreme court for inclusion in the state foreclosure	1890
database. The filing shall contain the name and address of the	1891
borrower, the date of the writ, and the name of the mortgage	1892
servicer or mortgage holder that filed the complaint to initiate	1893
the foreclosure action.	1894

(E) As used in this section, "residential mortgage,"	1895
"residential mortgage loan," and "mortgage servicer" have the same	1896
meanings as in section 1323.01 of the Revised Code.	1897

Sec. 2308.01. (A) As used in this chapter, "residential	1898
mortgage," "residential mortgage loan," "mortgage servicer,"	1899
"subprime mortgage loan," "unoccupied," "depository institution,"	1900
and "credit union" have the same meanings as in section 1323.01	1901
of the Revised Code.	1902

(B) Nothing in this chapter limits a court's inherent	1903
equitable jurisdiction.	1904

Sec. 2308.02. (A) No person shall file a complaint to	1905
initiate a residential mortgage foreclosure action unless that	1906
complaint is accompanied by a writing that contains all of the	1907
following:	1908

(1) A statement setting forth the name of the holder of the	1909
note and asserting that the named holder is the true party in	1910
interest with a right to file the action;	1911

(2) A statement as to whether the mortgage note has been	1912
securitized and if so, the identity of any mortgage-backed	1913
security that holds the loan and the name of the trustee of that	1914
mortgage-backed security;	1915

(3) A statement of the plaintiff's counsel or person filing	1916
the complaint asserting that the counsel or person filing the	1917
complaint is the designated representative of the true party in	1918
interest, is authorized to negotiate on behalf of the plaintiff,	1919
and is not an intermediary representative of the plaintiff;	1920

(4) A statement as to whether the residential property is	1921
occupied and the date that its occupancy status last was assessed;	1922

(5) Evidence that a check for seven hundred fifty dollars has	1923
been transmitted to the department of commerce as required under	1924
section 1323.11 of the Revised Code, or evidence that the person	1925
is exempt from the filing fee pursuant to section 1323.11 of the	1926
Revised Code.	1927

(B) Any complaint to initiate a residential mortgage	1928
foreclosure action shall be accompanied by a copy of an	1929
appraisal of the property, conducted within the prior three	1930
months by an appraiser who is certified or licensed pursuant to	1931
Chapter 4763. of the Revised Code to perform residential	1932
appraisals.	1933

Sec. 2308.021. (A)(1) If a plaintiff in a foreclosure suit	1934
has a reasonable suspicion that the property which is the subject	1935
of the foreclosure has been vacated, the plaintiff may request	1936
that a law enforcement officer having jurisdiction over the	1937
subject property inspect the property and take any other	1938
reasonable action to ascertain if the property has been vacated.	1939

(2) A village, city, township, or county may set a fee for	1940
the property inspection described in division (A)(1) of this	1941
section.	1942

(3) Any law enforcement officer conducting an inspection	1943
under division (A)(1) of this section and acting in good faith is	1944
immune from suit for any actions undertaken during such	1945
inspection.	1946

(4) A law enforcement officer who conducts an inspection	1947
pursuant to division (A)(1) of this section shall issue a written	1948
report to the plaintiff stating an opinion as to whether or not	1949
the property has been vacated.	1950

(5) After the property is inspected, the plaintiff may	1951
request an ex parte order or other order from the court granting	1952
plaintiff sole possession of the property. If the inspection	1953
report indicates that the property has been vacated, the plaintiff	1954
may take immediate possession of the property, but shall request	1955
an order of possession from the court within five business days	1956
after taking possession.	1957

(B) The remedies set out in division (A) of this section are	1958
in addition to any other rights or remedies a party to a	1959
foreclosure suit may have.	1960

Sec. 2308.03. (A)(1) There is hereby declared a six-month	1961
moratorium during which mortgage foreclosure proceedings are	1962
stayed on residential properties occupied by the owner of the	1963
property or the tenant of that owner, to commence on the	1964
effective date of this section.	1965

(2) The moratorium this section establishes does not apply to	1966
any of the following:	1967

(a) Unoccupied properties;

1968

(b) Foreclosed properties that have been sold at auction and	1969
are awaiting a court's confirmation of the sale;	1970

(c) A foreclosure action that a depository institutions files	1971
if that depository institution is headquartered in Ohio, has two	1972
and one-half billion dollars or less in total assets, and	1973
originated and services the mortgage loan being foreclosed;	1974

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

1975

(3) The moratorium this section establishes does not prohibit	1976
the filing of new foreclosure actions.	1977

(B) Upon the filing of a residential mortgage foreclosure	1978
action, the clerk of courts shall send with the summons to the	1979
borrower a notice that a moratorium is in effect and that	1980
proceedings have been stayed to give the borrower an opportunity	1981
to negotiate a workout or modification of the mortgage loan with	1982
the mortgage servicer.	1983

(C)(1) During the moratorium, a foreclosed borrower shall	1984
make payments each month in an amount equal to one-half of the	1985
monthly payment that was in effect at the time the foreclosure	1986
action was filed, or other amount that the judge determines is	1987
just and equitable. The payments shall be allocated first for	1988
taxes and insurance, if the borrower's mortgage loan required	1989
such payments into escrow, then to interest and any remaining	1990
amounts to principal. The borrower shall make the payments to	1991
the mortgage servicer to whom the borrower made payments at the	1992
time the foreclosure action was filed.	1993

(2) No mortgage servicer shall refuse to accept the payments	1994
that this section describes.	1995

(D) If a borrower fails to make the payments that this	1996
section requires, thirty days after a missed payment, the party	1997
who filed the action may petition the court for the foreclosure	1998
action to resume and that action shall resume as if there were no	1999
moratorium.	2000

(E) At any time during the moratorium, a borrower may	2001
petition the court to request that the foreclosure action on the	2002
borrower's property proceed as if there were no moratorium.	2003

(F) Nothing in this section prevents the granting of a	2004
default judgment when the property is not occupied by the borrower	2005
or the borrower's tenant, when the borrower did not answer the	2006
complaint, or when the borrower without good cause does not appear	2007
at the hearing.	2008

(G) During the time of the moratorium, the borrower shall	2009
make a good faith effort to maintain the property and shall grant	2010
entry to inspect the property to the servicer or other	2011
representative of the servicer or mortgagee, upon a	2012
twenty-four-hour written notice from the servicer.	2013

Sec. 5713.03.  The county auditor, from the best sources of	2014
information available, shall determine, as nearly as practicable,	2015
the true value of each separate tract, lot, or parcel of real	2016
property and of buildings, structures, and improvements located	2017
thereon and the current agricultural use value of land valued for	2018
tax purposes in accordance with section 5713.31 of the Revised	2019
Code, in every district, according to the rules prescribed by this	2020
chapter and section 5715.01 of the Revised Code, and in accordance	2021
with the uniform rules and methods of valuing and assessing real	2022
property as adopted, prescribed, and promulgated by the tax	2023
commissioner. HeThe auditor shall determine the taxable value of	2024
all real property by reducing its true or current agricultural use	2025
value by the percentage ordered by the commissioner. In	2026
determining the true value of any tract, lot, or parcel of real	2027
estate under this section, if such tract, lot, or parcel has been	2028
the subject of an arm's length sale between a willing seller and a	2029
willing buyer within a reasonable length of time, either before or	2030
after the tax lien date, the auditor shall consider the sale price	2031
of such tract, lot, or parcel to be the true value for taxation	2032
purposes. The auditor shall treat a short sale, as defined in	2033
section 1323.01 of the Revised Code, as an arm's length sale for	2034
taxation purposes. However, the sale price in an arm's length	2035
transaction between a willing seller and a willing buyer shall not	2036
be considered the true value of the property sold if subsequent to	2037
the sale:	2038

(A) The tract, lot, or parcel of real estate loses value due	2039
to some casualty;	2040

(B) An improvement is added to the property. Nothing in this	2041
section or section 5713.01 of the Revised Code and no rule adopted	2042
under section 5715.01 of the Revised Code shall require the county	2043
auditor to change the true value in money of any property in any	2044
year except a year in which the tax commissioner is required to	2045
determine under section 5715.24 of the Revised Code whether the	2046
property has been assessed as required by law.	2047

The county auditor shall adopt and use a real property record	2048
approved by the commissioner for each tract, lot, or parcel of	2049
real property, setting forth the true and taxable value of land	2050
and, in the case of land valued in accordance with section 5713.31	2051
of the Revised Code, its current agricultural use value, the	2052
number of acres of arable land, permanent pasture land, woodland,	2053
and wasteland in each tract, lot, or parcel. HeThe auditor shall	2054
record pertinent information and the true and taxable value of	2055
each building, structure, or improvement to land, which value	2056
shall be included as a separate part of the total value of each	2057
tract, lot, or parcel of real property.	2058

Section 2. That existing sections 109.572, 1181.05, 1181.21,	2059
1321.52, 1322.05, and 5713.03 of the Revised Code are hereby	2060
repealed.	2061

Section 3. Section 2308.03 of the Revised Code is hereby	2062
repealed, effective six months after the effective date of this	2063
act.	2064

Section 4.  Section 109.572 of the Revised Code is presented	2065
in this act as a composite of the section as amended by Sub. H.B.	2066
195, Sub. H.B. 545, and Sub. S.B. 247, all of the 127th General	2067
Assembly. The General Assembly, applying the principle stated in	2068
division (B) of section 1.52 of the Revised Code that amendments	2069
are to be harmonized if reasonably capable of simultaneous	2070
operation, finds that the composite is the resulting version of	2071
the section in effect prior to the effective date of the section	2072
as presented in this act.	2073

Section 5. The General Assembly enacts section 2308.03 of the	2074
Revised Code as an extraordinary measure necessary to respond to	2075
an emergency situation created by the mortgage foreclosure crisis	2076
in this state. The high rate of residential mortgage foreclosures	2077
is proving harmful to families, lenders, and communities alike.	2078
The purpose of enacting this section is to mitigate the very	2079
negative impact of the current situation and to preserve property	2080
values by providing time for solutions to begin to have an	2081
impact. These solutions that need time to be effective include	2082
implementing federal and state initiatives that provide	2083
assistance and guidance to homeowners, lenders, and communities.	2084

Section 6. Section 1323.21 of the Revised Code takes effect	2085
six months after the effective date of this act. During that	2086
six-month period, the Superintendent of Financial Institutions of	2087
the Department of Commerce may take applications for registration	2088
as a mortgage servicer, process the applications, and issue	2089
certificates of registration as the Superintendent is able. During	2090
that time, no mortgage servicer is required to have a certificate	2091
of registration and the Superintendent is not obligated to issue	2092
certificates until the Superintendent is able.	2093

Section 7. This act is hereby declared to be an emergency	2094
measure necessary for the immediate preservation of the public	2095
peace, health, and safety. The reason for such necessity is the	2096
alarming rate of increase in mortgage foreclosures, with	2097
devastating impact on homeowners and communities alike, making	2098
immediate intervention and assistance necessary to allow owners	2099
an opportunity to explore alternatives and resolve problems so	2100
that they keep their homes and to halt and reverse the negative	2101
impact of vacant and foreclosed homes on the health and safety of	2102
communities. Therefore, this act shall go into immediate effect.	2103