As Passed by the House

128th General Assembly Regular Session 2009-2010

Am. Sub. S. B. No. 124

Senators Faber, Schiavoni 

Cosponsors: Senators Seitz, Fedor, Schuler, Kearney, Miller, D., Carey, Harris, Hughes, Patton, Strahorn, Wagoner, Gibbs, Stewart, Miller, R., Sawyer, Turner, Wilson 

Representatives Harwood, Mecklenborg, Stebelton, Adams, J., Bolon, Carney, Combs, Daniels, Dodd, Domenick, Gerberry, Hackett, Huffman, Letson, Luckie, Murray, Okey, Patten, Sayre, Slesnick, Stautberg 

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A BILL

To amend sections 317.114, 1321.51, 1321.522,

1

1321.53, 1321.531, 1321.532, 1321.533, 1321.535,

2

1321.54, 1321.55, 1321.59, 1322.01, 1322.02,

3

1322.022, 1322.023, 1322.03, 1322.031, 1322.04,

4

1322.041, 1322.062, 1322.07, 1322.074, 1322.10,

5

1322.99, 1343.011, 1345.01, 1345.05, 1345.09,

6

1349.31, 1349.43, 1541.083, 1733.252, 5302.01,

7

5302.02, 5302.22, 5302.221, 5302.23, and 5815.36,

8

to enact sections 5302.222 and 5302.24 of the

9

Revised Code, and to amend Section 745.60 of Am.

10

Sub. H.B. 1 of the 128th General Assembly to

11

change the transfer on death (TOD) designation

12

instrument from a deed to an affidavit, to allow

13

real property owners holding title in survivorship

14

tenancy to execute such an affidavit, to clarify

15

the status of a trustee of a trust as a TOD

16

beneficiary and the dower rights of the spouse of

17

the property owner, to make other changes

18

pertaining to the transfer on death of real

19

property, to modify the mortgage lending laws, to

20

temporarily authorize a treasurer or prosecuting

21

attorney of a county with a population of more

22

than 800,000 but less than 900,000 to designate

23

that part of any surplus balance in the county's

24

Delinquent Tax and Assessment Collection Fund be

25

used to pay operating expenses of the respective

26

office in lieu of county general fund money, to

27

allow a county recorder to accept for filing

28

certain nonconforming documents without charging

29

the fees otherwise required to be collected for

30

nonconforming documents, relative to coal mining

31

leases at Burr Oak State Park, to authorize the

32

Governor to execute a release of reversionary

33

interest in certain real estate located in

34

Auglaize County, and to declare an emergency.

35

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

Section 1. That sections 317.114, 1321.51, 1321.522, 1321.53,	36
1321.531, 1321.532, 1321.533, 1321.535, 1321.54, 1321.55, 1321.59,	37
1322.01, 1322.02, 1322.022, 1322.023, 1322.03, 1322.031, 1322.04,	38
1322.041, 1322.062, 1322.07, 1322.074, 1322.10, 1322.99, 1343.011,	39
1345.01, 1345.05, 1345.09, 1349.31, 1349.43, 1541.083, 1733.252,	40
5302.01, 5302.02, 5302.22, 5302.221, 5302.23, and 5815.36 be	41
amended and sections 5302.222 and 5302.24 of the Revised Code be	42
enacted to read as follows:	43

Sec. 317.114.  (A) Except as otherwise provided in division	44
divisions (B) and (C) of this section, an instrument or document	45
presented for recording to the county recorder shall have been	46
prepared in accordance with all of the following requirements:	47

(1) PrintLegible print size not smaller than a computer font	48
size of ten;	49

(2) Minimum paper size of eight and one-half inches by eleven	50
inches;	51

(3) Maximum paper size of eight and one-half inches by	52
fourteen inches;	53

(4) Black or blue ink only;

54

(5) No use of highlighting;

55

(6) Margins of one-inch width on each side of each page of	56
the instrument or document;	57

(7) A margin of one-inch width across the bottom of each page	58
of the instrument or document;	59

(8) A three-inch margin of blank space across the top of the	60
first page of each instrument or document to accommodate any	61
certification or indorsement of the county engineer, county	62
auditor, or county recorder, as may be required by law, with the	63
right half of that margin being reserved for the indorsement of	64
the county recorder required by section 317.12 of the Revised	65
Code; and	66

(9) A one and one-half-inch margin of blank space across the	67
top of each of the remaining pages of the instrument or document	68
to accommodate any certification or indorsement of the county	69
engineer, county auditor, or county recorder, as may be required	70
by law.	71

The(B)(1) Except as otherwise provided in division (B)(2) of	72
this section, the county recorder shall accept for recording an	73
instrument or document that does not conform to the foregoing	74
requirements set forth in division (A) of this section but shall	75
charge and collect the following additional fees for each such	76
instrument or document: an additional base fee for the recorder's	77
services of ten dollars and a housing trust fund fee of ten	78
dollars, which shall be collected pursuant to section 317.36 of	79
the Revised Code.	80

(2) The county recorder shall accept for recording an	81
instrument or document that does not conform to the requirements	82
set forth in division (A) of this section but shall not charge and	83
collect the additional fees specified in division (B)(1) of this	84
section for page numbers, hand-written, typed, or printed	85
initials, bar codes, copyright information, trailing portions of	86
signatures, plat description of any oil and gas well location or	87
drilling unit or lease, or any other incidental information that	88
is not essential to the recording process or to the legal validity	89
of the instrument or document and that may appear in either of the	90
side margins or in the bottom margin. In addition, notary stamps	91
and seals and any signatures and initials that may appear within	92
the instrument or document need not satisfy the font size	93
requirement and no additional fees may be charged or collected by	94
the county recorder for such a nonconformance.	95

(B)(C) This section does not apply to any of the following:

96

(1) Any document that originates with any court or taxing	97
authority;	98

(2) Any document authorized to be recorded under section	99
317.24 of the Revised Code;	100

(3) Any plat, as defined in section 711.001 of the Revised	101
Code, that is required or authorized by the Revised Code to be	102
recorded;	103

(4) Any document authorized to be recorded that originates	104
from any state or federal agency;	105

(5) Any document executed before the effective date of this	106
sectionJuly 1, 2009.	107

Sec. 1321.51.  As used in sections 1321.51 to 1321.60 of the	108
Revised Code:	109

(A) "Person" means an individual, partnership, association,	110
trust, corporation, or any other legal entity.	111

(B) "Certificate" means a certificate of registration issued	112
under sections 1321.51 to 1321.60 of the Revised Code.	113

(C) "Registrant" means a person to whom one or more	114
certificates of registration have been issued under sections	115
1321.51 to 1321.60 of the Revised Code.	116

(D) "Principal amount" means the amount of cash paid to, or	117
paid or payable for the account of, the borrower, and includes any	118
charge, fee, or expense that is financed by the borrower at	119
origination of the loan or during the term of the loan.	120

(E) "Interest" means all charges payable directly or	121
indirectly by a borrower to a registrant as a condition to a loan	122
or an application for a loan, however denominated, but does not	123
include default charges, deferment charges, insurance charges or	124
premiums, court costs, loan origination charges, check collection	125
charges, credit line charges, points, prepayment penalties, or	126
other fees and charges specifically authorized by law.	127

(F) "Interest-bearing loan" means a loan in which the debt is	128
expressed as the principal amount and interest is computed,	129
charged, and collected on unpaid principal balances outstanding	130
from time to time.	131

(G) "Precomputed loan" means a loan in which the debt is a	132
sum comprising the principal amount and the amount of interest	133
computed in advance on the assumption that all scheduled payments	134
will be made when due.	135

(H) "Actuarial method" means the method of allocating	136
payments made on a loan between the principal amount and interest	137
whereby a payment is applied first to the accumulated interest and	138
the remainder to the unpaid principal amount.	139

(I) "Applicable charge" means the amount of interest	140
attributable to each monthly installment period of the loan	141
contract. The applicable charge is computed as if each installment	142
period were one month and any charge for extending the first	143
installment period beyond one month is ignored. In the case of	144
loans originally scheduled to be repaid in sixty-one months or	145
less, the applicable charge for any installment period is that	146
proportion of the total interest contracted for, as the balance	147
scheduled to be outstanding during that period bears to the sum of	148
all of the periodic balances, all determined according to the	149
payment schedule originally contracted for. In all other cases,	150
the applicable charge for any installment period is that which	151
would have been made for such period had the loan been made on an	152
interest-bearing basis, based upon the assumption that all	153
payments were made according to schedule.	154

(J) "Broker" means a person who acts as an intermediary or	155
agent in finding, arranging, or negotiating loans, other than	156
residential mortgage loans, and charges or receives a fee for	157
these services.	158

(K) "Annual percentage rate" means the ratio of the interest	159
on a loan to the unpaid principal balances on the loan for any	160
period of time, expressed on an annual basis.	161

(L) "Point" means a charge equal to one per cent of either of	162
the following:	163

(1) The principal amount of a precomputed loan or	164
interest-bearing loan;	165

(2) The original credit line of an open-end loan.

166

(M) "Prepayment penalty" means a charge for prepayment of a	167
loan at any time prior to five years from the date the loan	168
contract is executed.	169

(N) "Refinancing" means a loan the proceeds of which are used	170
in whole or in part to pay the unpaid balance of a prior loan made	171
by the same registrant to the same borrower under sections 1321.51	172
to 1321.60 of the Revised Code.	173

(O) "Superintendent of financial institutions" includes the	174
deputy superintendent for consumer finance as provided in section	175
1181.21 of the Revised Code.	176

(P)(1) "Mortgage loan originator" means an individual who for	177
compensation or gain, or in anticipation of compensation or gain,	178
does any of the following:	179

(a) Takes or offers to take a residential mortgage loan	180
application;	181

(b) Assists or offers to assist a borrower in obtaining or	182
applying to obtain a residential mortgage loan by, among other	183
things, advising on loan terms, including rates, fees, and other	184
costs;	185

(c) Offers or negotiates terms of a residential mortgage	186
loan;	187

(d) Issues or offers to issue a commitment for a residential	188
mortgage loan to a borrower.	189

(2) "Mortgage loan originator" does not include any of the	190
following:	191

(a) An individual who performs purely administrative or	192
clerical tasks on behalf of a mortgage loan originator;	193

(b) A person licensed pursuant to Chapter 4735. of the	194
Revised Code, or under the similar law of another state, who	195
performs only real estate brokerage activities permitted by that	196
license, provided the person is not compensated by a mortgage	197
lender, mortgage broker, mortgage loan originator, or by any agent	198
thereof;	199

(c) A person solely involved in extensions of credit relating	200
to timeshare plans, as that term is defined in 11 U.S.C. 101, in	201
effect on January 1, 2009;	202

(d) A person acting solely as a loan processor or	203
underwriter, who does not represent to the public, through	204
advertising or other means of communicating, including the use of	205
business cards, stationery, brochures, signs, rate lists, or other	206
promotional items, that the person can or will perform any of the	207
activities of a mortgage loan originator;	208

(e) A loan originator licensed under sections 1322.01 to	209
1322.12 of the Revised Code, when acting solely under that	210
authority;	211

(f) A licensed attorney who negotiates the terms of a	212
residential mortgage loan on behalf of a client as an ancillary	213
matter to the attorney's representation of the client, unless the	214
attorney is compensated by a lender, a mortgage broker, or another	215
mortgage loan originator, or by any agent thereof;	216

(g) Any person engaged in the retail sale of manufactured	217
homes, mobile homes, or industrialized units if, in connection	218
with financing those retail sales, the person only assists the	219
borrower by providing or transmitting the loan application and	220
does not do any of the following:	221

(i) Offer or negotiate the residential mortgage loan rates or	222
terms;	223

(ii) Provide any counseling with borrowers about residential	224
mortgage loan rates or terms;	225

(iii) Receive any payment or fee from any company or	226
individual for assisting the borrower obtain or apply for	227
financing to purchase the manufactured home, mobile home, or	228
industrialized unit;	229

(iv) Assist the borrower in completing the residential	230
mortgage loan application.	231

(3) An individual acting exclusively as a servicer engaging	232
in loss mitigation efforts with respect to existing mortgage	233
transactions shall not be considered a mortgage loan originator	234
for purposes of sections 1321.51 to 1321.60 of the Revised Code	235
until July 1, 2011, unless such delay is denied by the United	236
States department of housing and urban development.	237

(Q) "Residential mortgage loan" means any loan primarily for	238
personal, family, or household use that is secured by a mortgage,	239
deed of trust, or other equivalent consensual security interest on	240
a dwelling or on residential real estate upon which is constructed	241
or intended to be constructed a dwelling. For purposes of this	242
division, "dwelling" has the same meaning as in the "Truth in	243
Lending Act," 82 Stat. 146, 15 U.S.C. 1602.	244

(R) "Nationwide mortgage licensing system and registry" means	245
a mortgage licensing system developed and maintained by the	246
conference of state bank supervisors and the American association	247
of residential mortgage regulators, or their successor entities,	248
for the licensing and registration of mortgage loan originators,	249
or any system established by the secretary of housing and urban	250
development pursuant to the "Secure and Fair Enforcement for	251
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	252

(S) "Registered mortgage loan originator" means an individual	253
to whom both of the following apply:	254

(1) The individual is a mortgage loan originator and an	255
employee of a depository institution, a subsidiary that is owned	256
and controlled by a depository institution and regulated by a	257
federal banking agency, or an institution regulated by the farm	258
credit administration.	259

(2) The individual is registered with, and maintains a unique	260
identifier through, the nationwide mortgage licensing system and	261
registry.	262

(T) "Administrative or clerical tasks" means the receipt,	263
collection, and distribution of information common for the	264
processing or underwriting of a loan in the mortgage industry, and	265
communication with a consumer to obtain information necessary for	266
the processing or underwriting of a residential mortgage loan.	267

(U) "Federal banking agency" means the board of governors of	268
the federal reserve system, the comptroller of the currency, the	269
director of the office of thrift supervision, the national credit	270
union administration, and the federal deposit insurance	271
corporation.	272

(V) "Loan processor or underwriter" means an individual who	273
performs clerical or support duties at the direction of and	274
subject to the supervision and instruction of a licensed mortgage	275
loan originator or registered mortgage loan originator. For	276
purposes of this division, to "perform clerical or support duties"	277
includesmeans to do all of the following activities:	278

(1) The receiptReceiving, collectioncollecting,	279
distributiondistributing, and analysis ofanalyzing information	280
common for the processing or underwriting of a residential	281
mortgage loan;	282

(2) Communicating with a borrower to obtain the information	283
necessary for the processing or underwriting of a loan, to the	284
extent the communication does not include offering or negotiating	285
loan rates or terms or counseling borrowers about residential	286
mortgage loan rates or terms.	287

(W) "Real estate brokerage activity" means any activity that	288
involves offering or providing real estate brokerage services to	289
the public, including all of the following:	290

(1) Acting as a real estate agent or real estate broker for a	291
buyer, seller, lessor, or lessee of real property;	292

(2) Bringing together parties interested in the sale,	293
purchase, lease, rental, or exchange of real property;	294

(3) Negotiating, on behalf of any party, any portion of a	295
contract relating to the sale, purchase, lease, rental, or	296
exchange of real property, other than in connection with providing	297
financing for any such transaction;	298

(4) Engaging in any activity for which a person engaged in	299
that activity is required to be registered or licensed as a real	300
estate agent or real estate broker under any applicable law;	301

(5) Offering to engage in any activity, or to act in any	302
capacity, described in division (W) of this section.	303

(X) "Licensee" means any person that has been issued a	304
mortgage loan originator license under sections 1321.51 to 1321.60	305
of the Revised Code.	306

(Y) "Unique identifier" means a number or other identifier	307
that permanently identifies a mortgage loan originator and is	308
assigned by protocols established by the nationwide mortgage	309
licensing system and registry or federal banking agencies to	310
facilitate electronic tracking of mortgage loan originators and	311
uniform identification of, and public access to, the employment	312
history of and the publicly adjudicated disciplinary and	313
enforcement actions against mortgage loan originators.	314

(Z) "State" in the context of referring to states in addition	315
to Ohio means any state of the United States, the district of	316
Columbia, any territory of the United States, Puerto Rico, Guam,	317
American Samoa, the trust territory of the Pacific islands, the	318
virgin islands, and the northern Mariana islands.	319

(AA) "Depository institution" has the same meaning as in	320
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12	321
U.S.C. 1813, and includes any credit union.	322

(BB) "Bona fide third party" means a person that is not an	323
employee of, related to, or affiliated with, the registrant, and	324
that is not used for the purpose of circumvention or evasion of	325
sections 1321.51 to 1321.60 of the Revised Code.	326

(CC) "Nontraditional mortgage product" means any mortgage	327
product other than a thirty-year fixed rate mortgage.	328

(DD) "Employee" means an individual for whom a registrant or	329
applicant, in addition to providing a wage or salary, pays social	330
security and unemployment taxes, provides workers' compensation	331
coverage, and withholds local, state, and federal income taxes.	332
"Employee" also includes any individual who acts as a mortgage	333
loan originator or operations manager of the registrant, but for	334
whom the registrant is prevented by law from making income tax	335
withholdings.	336

(EE) "Primary point of contact" means the employee or owner	337
designated by the registrant or applicant to be the individual who	338
the division of financial institutions can contact regarding	339
compliance or licensing matters relating to the registrant's or	340
applicant's business or lending activities secured by an interest	341
in real estate.	342

(FF) "Consumer reporting agency" has the same meaning as in	343
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C. 1681a,	344
as amended.	345

(GG) "Mortgage broker" has the same meaning as in section	346
1322.01 of the Revised Code.	347

Sec. 1321.522.  (A) A credit union service organization	348
seeking exemption from registration pursuant to division (D)(6) of	349
section 1321.53 of the Revised Code shall submit an application to	350
the superintendent of financial institutions along with a	351
nonrefundable fee of three hundred fifty dollars for each location	352
of an office to be maintained by the organization. The application	353
shall be in a form prescribed by the superintendent and shall	354
include all of the following:	355

(1) The organization's business name and state of	356
incorporation;	357

(2) The names of the owners, officers, or partners having	358
control of the organization;	359

(3) An attestation to all of the following:

360

(a) That the organization and its owners, officers, or	361
partners identified in division (A)(2) of this section have not	362
had a mortgage lender certificate of registration or mortgage loan	363
originator license, or any comparable authority, revoked in any	364
governmental jurisdiction;	365

(b) That the organization and its owners, officers, or	366
partners identified in division (A)(2) of this section have not	367
been convicted of, or pleaded guilty or nolo contendere to, any of	368
the following in a domestic, foreign, or military court:	369

(i) During the seven-year period immediately preceding the	370
date of application for exemption, any felony or a misdemeanor	371
involving theft or any felony;	372

(ii) At any time prior to the date of application for	373
exemption, a felony involving an act of fraud, dishonesty, a	374
breach of trust, theft, or money laundering.	375

(c) That, with respect to financing residential mortgage	376
loans, the organization conducts business with residents of this	377
state or secures its loans with property located in this state.	378

(4) The names of all mortgage loan originators or licensees	379
under the organization's control and direction;	380

(5) An acknowledgment of understanding that the organization	381
is subject to the regulatory authority of the division of	382
financial institutions;	383

(6) Any further information that the superintendent may	384
require.	385

(B)(1) If the superintendent determines that the credit union	386
service organization honestly made the attestation required under	387
division (A)(3) of this section and otherwise qualifies for	388
exemption, the superintendent shall issue a letter of exemption.	389
Additional certified copies of a letter of exemption shall be	390
provided upon request and the payment of seventy-five dollars per	391
copy.	392

(2) If the superintendent determines that the organization	393
does not qualify for exemption, the superintendent shall issue a	394
notice of denial, and the organization may request a hearing in	395
accordance with Chapter 119. of the Revised Code.	396

(C) All of the following conditions apply to any credit union	397
service organization holding a valid letter of exemption:	398

(1) The organization shall be subject to examination in the	399
same manner as a registrant with respect to the conduct of the	400
organization's mortgage loan originators. In conducting any	401
out-of-state examination, the organization shall be responsible	402
for paying the costs of the division in the same manner as a	403
registrant.	404

(2) The organization shall have an affirmative duty to	405
supervise the conduct of its mortgage loan originators, and to	406
cooperate with investigations by the division with respect to that	407
conduct, in the same manner as is required of registrants.	408

(3) The organization shall keep and maintain records of all	409
transactions relating to the conduct of its mortgage loan	410
originators in the same manner as is required of registrants.	411

(4) The organization may provide the surety bond for its	412
mortgage loan originators in the same manner as is permitted for	413
registrants.	414

(D) A letter of exemption expires annually on the	415
thirty-first day of December and may be renewed on or before that	416
date by submitting an application that meets the requirements of	417
division (A) of this section and a nonrefundable renewal fee of	418
three hundred fifty dollars for each location of an office to be	419
maintained by the credit union service organization.	420

(E) The superintendent may issue a notice to revoke or	421
suspend a letter of exemption if the superintendent finds that the	422
letter was obtained through a false or fraudulent representation	423
of a material fact, or the omission of a material fact, required	424
by law, or that a condition for exemption is no longer being met.	425
Prior to issuing an order of revocation or suspension, the credit	426
union service organization shall be given an opportunity for a	427
hearing in accordance with Chapter 119. of the Revised Code.	428

(F) All information obtained by the division pursuant to an	429
examination or investigation under this section shall be subject	430
to the confidentiality requirements set forth in section 1321.55	431
of the Revised Code.	432

(G) All money collected under this section shall be deposited	433
into the state treasury to the credit of the consumer finance fund	434
created in section 1321.21 of the Revised Code.	435

Sec. 1321.53.  (A)(1) An application for a certificate of	436
registration under sections 1321.51 to 1321.60 of the Revised Code	437
shall contain an undertaking by the applicant to abide by those	438
sections. The application shall be in writing, under oath, and in	439
the form prescribed by the division of financial institutions, and	440
shall contain any information that the division may require.	441
Applicants that are foreign corporations shall obtain and maintain	442
a license pursuant to Chapter 1703. of the Revised Code before a	443
certificate is issued or renewed.	444

(2) Upon the filing of the application and the payment by the	445
applicant of a nonrefundable two hundred dollar investigation fee,	446
a nonrefundable three hundred dollar annual registration fee, and	447
any additional fee required by the nationwide mortgage licensing	448
system and registry, the division shall investigate the relevant	449
facts. If the application involves investigation outside this	450
state, the applicant may be required by the division to advance	451
sufficient funds to pay any of the actual expenses of such	452
investigation, when it appears that these expenses will exceed two	453
hundred dollars. An itemized statement of any of these expenses	454
which the applicant is required to pay shall be furnished to the	455
applicant by the division. No certificate shall be issued unless	456
all the required fees have been submitted to the division.	457

(3) All applicants making loans secured by an interest in	458
real estate shall designate an employee or owner of the applicant	459
as the applicant's primary point of contact. While acting as the	460
primary point of contact, the employee or owner shall not be	461
employed by any other registrant or mortgage broker.	462

(4) The investigation undertaken upon application shall	463
include both a civil and criminal records check of the applicant	464
including any individual whose identity is required to be	465
disclosed in the application. Where the applicant is a business	466
entity the superintendent shall have the authority to require a	467
civil and criminal background check of those persons that in the	468
determination of the superintendent have the authority to direct	469
and control the operations of the applicant.	470

(5)(a) Notwithstanding division (K) of section 121.08 of the	471
Revised Code, the superintendent of financial institutions shall	472
obtain a criminal history records check and, as part of that	473
records check, request that criminal record information from the	474
federal bureau of investigation be obtained. To fulfill this	475
requirement, the superintendent shall do either of the following:	476

(i) Request the superintendent of the bureau of criminal	477
identification and investigation, or a vendor approved by the	478
bureau, to conduct a criminal records check based on the	479
applicant's fingerprints or, if the fingerprints are unreadable,	480
based on the applicant's social security number, in accordance	481
with division (A)(12) of section 109.572 of the Revised Code;	482

(ii) Authorize the nationwide mortgage licensing system and	483
registry to request a criminal history background check as set	484
forth in division (C) of section 1321.531 of the Revised Code.	485

(b) Any fee required under division (C)(3) of section 109.572	486
of the Revised Code or by the nationwide mortgage licensing system	487
and registry shall be paid by the applicant.	488

(6) If an application for a certificate of registration does	489
not contain all of the information required under division (A) of	490
this section, and if such information is not submitted to the	491
division or to the nationwide mortgage licensing system and	492
registry within ninety days after the superintendent or the	493
nationwide mortgage licensing system and registry requests the	494
information in writing, including by electronic transmission or	495
facsimile, the superintendent may consider the application	496
withdrawn.	497

(7) If the division finds that the financial responsibility,	498
experience, character, and general fitness of the applicant	499
command the confidence of the public and warrant the belief that	500
the business will be operated honestly and fairly in compliance	501
with the purposes of sections 1321.51 to 1321.60 of the Revised	502
Code and the rules adopted thereunder, and that the applicant has	503
the requisite bond or applicable net worth and assets required by	504
division (B) of this section, the division shall thereupon issue a	505
certificate of registration to the applicant. The superintendent	506
shall not use a credit score as the sole basis for a registration	507
denial.	508

(a)(i) Certificates of registration issued on or after July	509
1, 2010, shall annually expire on the thirty-first day of	510
December, unless renewed by the filing of a renewal application	511
and payment of a three hundred dollar nonrefundable annual	512
registration fee, any assessment as determined by the	513
superintendent pursuant to division (A)(7)(a)(ii) of this section,	514
and any additional fee required by the nationwide mortgage	515
licensing system and registry, on or before the last day of	516
December of each year. No other fee or assessment shall be	517
required of a registrant by the state or any political subdivision	518
of this state.	519

(ii) If the renewal fees billed by the superintendent	520
pursuant to division (A)(7)(a)(i) of this section are less than	521
the estimated expenditures of the consumer finance section of the	522
division of financial institutions, as determined by the	523
superintendent, for the following fiscal year, the superintendent	524
may assess each registrant at a rate sufficient to equal in the	525
aggregate the difference between the renewal fees billed and the	526
estimated expenditures. Each registrant shall pay the assessed	527
amount to the superintendent prior to the last day of June. In no	528
case shall the assessment exceed ten cents per each one hundred	529
dollars of interest (excluding charge-off recoveries), points,	530
loan origination charges, and credit line charges collected by	531
that registrant during the previous calendar year. If such an	532
assessment is imposed, it shall not be less than two hundred fifty	533
dollars per registrant and shall not exceed thirty thousand	534
dollars less the total renewal fees paid pursuant to division	535
(A)(7)(a)(i) of this section by each registrant.	536

(b) Registrants shall timely file renewal applications on	537
forms prescribed by the division and provide any further	538
information that the division may require. If a renewal	539
application does not contain all of the information required under	540
this section, and if that information is not submitted to the	541
division or to the nationwide mortgage licensing system and	542
registry within ninety days after the superintendent or the	543
nationwide mortgage licensing system and registry requests the	544
information in writing, including by electronic transmission or	545
facsimile, the superintendent may consider the application	546
withdrawn.	547

(c) Renewal shall not be granted if the applicant's	548
certificate of registration is subject to an order of suspension,	549
revocation, or an unpaid and past due fine imposed by the	550
superintendent.	551

(d) If the division finds the applicant does not meet the	552
conditions set forth in this section, it shall issue a notice of	553
intent to deny the application, and forthwith notify the applicant	554
of the denial, the grounds for the denial, and the applicant's	555
reasonable opportunity to be heard on the action in accordance	556
with Chapter 119. of the Revised Code.	557

(8) If there is a change of five per cent or more in the	558
ownership of a registrant, the division may make any investigation	559
necessary to determine whether any fact or condition exists that,	560
if it had existed at the time of the original application for a	561
certificate of registration, the fact or condition would have	562
warranted the division to deny the application under division	563
(A)(7) of this section. If such a fact or condition is found, the	564
division may, in accordance with Chapter 119. of the Revised Code,	565
revoke the registrant's certificate.	566

(B) Each registrant that engages in lending under sections	567
1321.51 to 1321.60 of the Revised Code shall, if not otherwise	568
required to be bonded pursuant to section 1321.533 of the Revised	569
Code, maintain both of the following:	570

(1) A net worth of at least fifty thousand dollars;

571

(2) For each certificate of registration, assets of at least	572
fifty thousand dollars either in use or readily available for use	573
in the conduct of the business.	574

(C) Not more than one place of business shall be maintained	575
under the same certificate, but the division may issue additional	576
certificates to the same registrant upon compliance with sections	577
1321.51 to 1321.60 of the Revised Code, governing the issuance of	578
a single certificate. No change in the place of business of a	579
registrant to a location outside the original municipal	580
corporation shall be permitted under the same certificate without	581
the approval of a new application, the payment of the registration	582
fee and, if required by the superintendent, the payment of an	583
investigation fee of two hundred dollars. When a registrant wishes	584
to change its place of business within the same municipal	585
corporation, it shall give written notice of the change in advance	586
to the division, which shall provide a certificate for the new	587
address without cost. If a registrant changes its name, prior to	588
making loans under the new name it shall give written notice of	589
the change to the division, which shall provide a certificate in	590
the new name without cost. Sections 1321.51 to 1321.60 of the	591
Revised Code do not limit the loans of any registrant to residents	592
of the community in which the registrant's place of business is	593
situated. Each certificate shall be kept conspicuously posted in	594
the place of business of the registrant and is not transferable or	595
assignable.	596

(D) Sections 1321.51 to 1321.60 of the Revised Code do not	597
apply to any of the following:	598

(1) Entities chartered and lawfully doing business under the	599
authority of any law of this state, another state, or the United	600
States as a bank, savings bank, trust company, savings and loan	601
association, or credit union, or a subsidiary of any such entity,	602
which subsidiary is regulated by a federal banking agency and is	603
owned and controlled by such a depository institution;	604

(2) Life, property, or casualty insurance companies licensed	605
to do business in this state;	606

(3) Any person that is a lender making a loan pursuant to	607
sections 1321.01 to 1321.19 of the Revised Code or a business loan	608
as described in division (B)(6) of section 1343.01 of the Revised	609
Code;	610

(4) Any political subdivision, or any governmental or other	611
public entity, corporation, instrumentality, or agency, in or of	612
the United States or any state of the United States, or any entity	613
described in division (B)(3) of section 1343.01 of the Revised	614
Code;	615

(5) A college or university, or controlled entity of a	616
college or university, as those terms are defined in section	617
1713.05 of the Revised Code;	618

(6) A credit union service organization, provided the	619
organization utilizes services provided by registered mortgage	620
loan originators or the organization complies with section	621
1321.522 of the Revised Code and holds a valid letter of exemption	622
issued by the superintendent.	623

(E) No person engaged in the business of selling tangible	624
goods or services related to tangible goods may receive or retain	625
a certificate under sections 1321.51 to 1321.60 of the Revised	626
Code for such place of business.	627

Sec. 1321.531. (A) An application for a mortgage loan	628
originator license shall be in writing, under oath, and in the	629
form prescribed by the superintendent of financial institutions.	630
The application shall be accompanied by a nonrefundable	631
application fee of one hundred fifty dollars and all other	632
required fees, including any fees required by the nationwide	633
mortgage licensing system and registry.	634

(B) The superintendent may establish relationships or enter	635
into contracts with the nationwide mortgage licensing system and	636
registry, or any entities designated by it, to collect and	637
maintain records and process transaction fees or other fees	638
related to mortgage loan originator licensees or other persons	639
subject to or involved in their licensure.	640

(C) In connection with applying for a mortgage loan	641
originator license, the applicant shall furnish to the nationwide	642
mortgage licensing system and registry the following information	643
concerning the applicant's identity:	644

(1) The applicant's fingerprints for submission to the	645
federal bureau of investigation, and any other governmental agency	646
or entity authorized to receive such information, for purposes of	647
a state, national, and international criminal history background	648
check;	649

(2) Personal history and experience in a form prescribed by	650
the nationwide mortgage licensing system and registry, along with	651
authorization for the superintendent and the nationwide mortgage	652
licensing system and registry to obtain the following:	653

(a) An independent credit report from a consumer reporting	654
agency;	655

(b) Information related to any administrative, civil, or	656
criminal findings by any governmental jurisdiction.	657

(D) In order to effectuate the purposes of divisions (C)(1)	658
and (C)(2)(b) of this section, the superintendent may use the	659
conference of state bank supervisors, or a wholly owned	660
subsidiary, as a channeling agent for requesting information from	661
and distributing information to the United States department of	662
justice or any other governmental agency. The superintendent may	663
also use the nationwide mortgage licensing system and registry as	664
a channeling agent for requesting information from and	665
distributing information to any source related to matters subject	666
to divisions (C)(2)(a) and (b) of this section.	667

(E) Upon the filing of the application, payment of the	668
application fee, and payment of any additional fee, including any	669
fee required by the nationwide mortgage licensing system and	670
registry, the superintendent shall investigate the applicant as	671
set forth in division (E) of this section.	672

(1)(a) Notwithstanding division (K) of section 121.08 of the	673
Revised Code, the superintendent shall obtain a criminal history	674
records check and, as part of that records check, request that	675
criminal record information from the federal bureau of	676
investigation be obtained. To fulfill this requirement, the	677
superintendent shall do either of the following:	678

(i) Request the superintendent of the bureau of criminal	679
identification and investigation, or a vendor approved by the	680
bureau, to conduct a criminal records check based on the	681
applicant's fingerprints or, if the fingerprints are unreadable,	682
based on the applicant's social security number in accordance with	683
division (A)(12) of section 109.572 of the Revised Code;	684

(ii) Authorize the nationwide mortgage licensing system and	685
registry to request a criminal history background check as set	686
forth in division (C) of this section.	687

(b) Any fee required under division (C)(3) of section 109.572	688
of the Revised Code or by the nationwide mortgage licensing system	689
and registry shall be paid by the applicant.	690

(2) The superintendent of financial institutions shall	691
conduct a civil records check.	692

(3) If, in order to issue a license to an applicant,	693
additional investigation by the superintendent outside this state	694
is necessary, the superintendent may require the applicant to	695
advance sufficient funds to pay the actual expenses of the	696
investigation, if it appears that these expenses will exceed one	697
hundred dollars. The superintendent shall provide the applicant	698
with an itemized statement of the actual expenses that the	699
applicant is required to pay.	700

(F) If an application for a mortgage loan originator license	701
does not contain all of the information required under this	702
section, and if that information is not submitted to the	703
superintendent or to the nationwide mortgage licensing system and	704
registry within ninety days after the superintendent or the	705
nationwide mortgage licensing system and registry requests the	706
information in writing, including by electronic transmission or	707
facsimile, the superintendent may consider the application	708
withdrawn.	709

Sec. 1321.532. (A) Upon the conclusion of the investigation	710
required under division (E) of section 1321.531 of the Revised	711
Code, the superintendent of financial institutions shall issue a	712
mortgage loan originator license to the applicant if the	713
superintendent finds that all of the following conditions are met:	714

(1) The application is accompanied by the application fee and	715
any additional fee required by the nationwide mortgage licensing	716
system and registry.	717

If a check or other draft instrument is returned to the	718
superintendent for insufficient funds, the superintendent shall	719
notify the licensee by certified mail, return receipt requested,	720
that the license issued in reliance on the check or other draft	721
instrument will be canceled unless the licensee, within thirty	722
days after receipt of the notice, submits the application fee and	723
a one-hundred-dollar penalty to the superintendent. If the	724
licensee does not submit the application fee and penalty within	725
that time period, or if any check or other draft instrument used	726
to pay the fee or penalty is returned to the superintendent for	727
insufficient funds, the license shall be canceled immediately	728
without a hearing, and the licensee shall cease activity as a	729
mortgage loan originator.	730

(2) The applicant complies with sections 1321.51 to 1321.60	731
of the Revised Code.	732

(3) The applicant has not had a mortgage loan originator	733
license, or comparable authority, revoked in any governmental	734
jurisdiction.	735

(4) The applicant has not been convicted of, or pleaded	736
guilty or nolo contendere to, any of the following in a domestic,	737
foreign, or military court:	738

(a) During the seven-year period immediately preceding the	739
date of application for licensure, any felony or a misdemeanor	740
involving theft or any felony;	741

(b) At any time prior to the date of application for	742
licensure, a felony involving an act of fraud, dishonesty, a	743
breach of trust, theft, or money laundering.	744

(5) Based on the totality of the circumstances and	745
information submitted in the application, the applicant has proven	746
to the division of financial institutions, by a preponderance of	747
the evidence, that the applicant is of good business repute,	748
appears qualified to act as a mortgage loan originator, and has	749
fully complied with sections 1321.51 to 1321.60 of the Revised	750
Code and rules adopted thereunder, and that the applicant meets	751
all of the conditions for issuing a mortgage loan originator	752
license.	753

(6) The applicant successfully completed the written test	754
required under section 1321.535 of the Revised Code and the	755
education requirements set forth in section 1321.534 of the	756
Revised Code.	757

(7) The applicant is covered under a valid bond in compliance	758
with section 1321.533 of the Revised Code.	759

(8) The applicant's financial responsibility, character, and	760
general fitness command the confidence of the public and warrant	761
the belief that the mortgage loan originator will operate honestly	762
and fairly in compliance with the purposes of sections 1321.51 to	763
1321.60 of the Revised Code. The superintendent shall not use a	764
credit score as the sole basis for a license denial.	765

(B) The license issued under division (A) of this section may	766
be renewed annually on or before the thirty-first day of December	767
if the superintendent finds that all of the following conditions	768
are met:	769

(1) The renewal application is accompanied by a nonrefundable	770
renewal fee of one hundred fifty dollars, and any additional fee	771
required by the nationwide mortgage licensing system and registry.	772
If a check or other draft instrument is returned to the	773
superintendent for insufficient funds, the superintendent shall	774
notify the licensee by certified mail, return receipt requested,	775
that the license renewed in reliance on the check or other draft	776
instrument will be canceled unless the licensee, within thirty	777
days after receipt of the notice, submits the renewal fee and a	778
one-hundred-dollar penalty to the superintendent. If the licensee	779
does not submit the renewal fee and penalty within that time	780
period, or if any check or other draft instrument used to pay the	781
fee or penalty is returned to the superintendent for insufficient	782
funds, the license shall be canceled immediately without a	783
hearing, and the licensee shall cease activity as a mortgage loan	784
originator.	785

(2) The applicant has completed at least eight hours of	786
continuing education as required under section 1321.536 of the	787
Revised Code.	788

(3) The applicant meets the conditions set forth in divisions	789
(A)(2) to (8) of this section.	790

(4) The applicant's license is not subject to an order of	791
suspension or an unpaid and past due fine imposed by the	792
superintendent.	793

(C)(1) Subject to division (C)(2) of this section, if a	794
license renewal application or fee, including any additional fee	795
required by nationwide mortgage licensing system and registry, is	796
received by the superintendent after the thirty-first day of	797
December, the license shall not be considered renewed, and the	798
applicant shall cease activity as a mortgage loan originator.	799

(2) Division (C)(1) of this section shall not apply if the	800
applicant, no later than the thirty-first day of January, submits	801
the renewal application and fee, including any additional fee	802
required by nationwide mortgage licensing system and registry, and	803
a one-hundred-dollar penalty to the superintendent.	804

(D) Mortgage loan originator licenses issued on or after July	805
1, 2010, shall annually expire on the thirty-first day of	806
December.	807

(E) If a renewal application does not contain all of the	808
information required under this section, and if that information	809
is not submitted to the superintendent or to the nationwide	810
mortgage licensing system and registry within ninety days after	811
the superintendent or the nationwide mortgage licensing system and	812
registry requests the information in writing, including by	813
electronic transmission or facsimile, the superintendent may	814
consider the application withdrawn.	815

Sec. 1321.533.  (A)(1) A registrant engaged in residential	816
mortgage loan activity shall not conduct business in this state,	817
unless the registrant maintains the net worth and assets required	818
under division (B) of section 1321.53 of the Revised Code or has	819
obtained and maintains in effect at all times a corporate surety	820
bond issued by a bonding company or insurance company authorized	821
to do business in this state.	822

(a) The bond shall be in favor of the superintendent of	823
financial institutions.	824

(b) The bond shall be in the penal sum of one-half per cent	825
of the aggregate loan amount of residential mortgage loans	826
originated in the immediately preceding calendar year, but not	827
exceeding one hundred fifty thousand dollars. Under no	828
circumstances, however, shall the bond be less than fifty thousand	829
dollars and an additional penal sum of ten thousand dollars for	830
each location, in excess of one, at which the registrant conducts	831
business.	832

(c) The term of the bond shall coincide with the term of	833
registration.	834

(d) A copy of the bond shall be filed with the	835
superintendent.	836

(e) The bond shall be for the exclusive benefit of any	837
borrower injured by a violation by an employee, licensee, or	838
registrant of any provision of sections 1321.51 to 1321.60 of the	839
Revised Code or the rules adopted thereunder.	840

(f) The aggregate liability of the corporate surety for any	841
and all breaches of the conditions of the bond shall not exceed	842
the penal sum of the bond.	843

(2) An individual licensed as a mortgage loan originator and	844
employed or associated with an exempt entity as set forth in	845
division (D) of section 1321.53 of the Revised Code shall not	846
conduct business in this state, unless either the licensee or the	847
exempt entity on the licensee's behalf has obtained and maintains	848
in effect at all times a corporate surety bond issued by a bonding	849
company or insurance company authorized to do business in this	850
state.	851

(a) The bond shall be in favor of the superintendent.

852

(b) The bond shall be in the penal sum of one-half per cent	853
of the aggregate loan amount of residential mortgage loans	854
originated in the immediately preceding calendar year, but not	855
exceeding one hundred thousand dollars. Under no circumstances,	856
however, shall the bond be less than fifty thousand dollars.	857

(c) The term of the bond shall coincide with the term of	858
licensure.	859

(d) A copy of the bond shall be filed with the	860
superintendent.	861

(e) The bond shall be for the exclusive benefit of any	862
borrower injured by a violation by the licensee of any provision	863
of sections 1321.51 to 1321.60 of the Revised Code or the rules	864
adopted thereunder.	865

(f) The aggregate liability of the corporate surety for any	866
and all breaches of the conditions of the bond shall not exceed	867
the penal sum of the bond.	868

(g) Licensees covered by a corporate surety bond obtained by	869
a registrant or exempt entity they are employed by or associated	870
with shall not be required to obtain an individual bond.	871

(B)(1) The registrant or licensee shall give notice to the	872
superintendent by certified mail of any action that is brought by	873
a borrower against the licensee, registrant, or any mortgage loan	874
originator of the registrant alleging injury by a violation of any	875
provision of sections 1321.51 to 1321.60 of the Revised Code, and	876
of any judgment that is entered against the licensee, registrant,	877
or mortgage loan originator of the registrant by a borrower	878
injured by a violation of any provision of sections 1321.51 to	879
1321.60 of the Revised Code. The notice shall provide details	880
sufficient to identify the action or judgment, and shall be filed	881
with the superintendent within ten days after the commencement of	882
the action or notice to the registrant or licensee of entry of a	883
judgment. An exempt entity securing bonding for the licensees in	884
their employ shall report those actions by a borrower in the same	885
manner as is required of registrants.	886

(2) A corporate surety, within ten days after it pays any	887
claim or judgment, shall give notice to the superintendent by	888
certified mail of the payment, with details sufficient to identify	889
the person and the claim or judgment paid.	890

(C) Whenever the penal sum of the corporate surety bond is	891
reduced by one or more recoveries or payments, the registrant or	892
separately bonded licensee shall furnish a new or additional bond	893
under this section, so that the total or aggregate penal sum of	894
the bond or bonds equals the sum required by this section, or	895
shall furnish an endorsement executed by the corporate surety	896
reinstating the bond to the required penal sum of it.	897

(D) The liability of the corporate surety on the bond to the	898
superintendent and to any borrower injured by a violation of any	899
provision of sections 1321.51 to 1321.60 of the Revised Code shall	900
not be affected in any way by any misrepresentation, breach of	901
warranty, or failure to pay the premium, by any act or omission	902
upon the part of the registrant or licensee, by the insolvency or	903
bankruptcy of the registrant or licensee, or by the insolvency of	904
the registrant's or licensee's estate. The liability for any act	905
or omission that occurs during the term of the corporate surety	906
bond shall be maintained and in effect for at least two years	907
after the date on which the corporate surety bond is terminated or	908
canceled.	909

(E) The corporate surety bond shall not be canceled by the	910
registrant, the licensee, or the corporate surety except upon	911
notice to the superintendent by certified mail, return receipt	912
requested. The cancellation shall not be effective prior to thirty	913
days after the superintendent receives the notice.	914

(F) No registrant or licensee shall fail to comply with this	915
section. Any registrant or licensee that fails to comply with this	916
section shall cease all mortgage lender or mortgage loan	917
originator activity in this state until the registrant or licensee	918
has complied with this section.	919

Sec. 1321.535.  (A) Each applicant for a mortgage loan	920
originator license shall submit to a written test that is	921
developed and approved by the nationwide mortgage licensing system	922
and registry and administered by a test provider approved by the	923
nationwide mortgage licensing system and registry based upon	924
reasonable standards.	925

(1) The test shall adequately measure the applicant's	926
knowledge and comprehension in appropriate subject matters,	927
including ethics and federal and state law related to mortgage	928
origination, fraud, consumer protection, the nontraditional	929
mortgage marketplace, and fair lending issues.	930

(2) An individual shall not be considered to have passed the	931
test unless the individual achieves a test score of at least	932
seventy-five per cent correct answers on all questions and at	933
least seventy-five per cent correct answers on all questions	934
relating to Ohio mortgage lending laws and the Ohio consumer sales	935
practices act, Chapter 1345. of the Revised Code, as it applies to	936
registrants and licensees.	937

(3) An individual may retake the test three consecutive times	938
provided the period between taking the tests is at least thirty	939
days.	940

(4) After failing three consecutive tests, an individual	941
shall be required to wait at least six months before taking the	942
test again.	943

(5) If a mortgage loan originator fails to maintain a valid	944
license for a period of five years or longer, the individual shall	945
be required to retake the test. For this purpose, any time during	946
which the individual is a registered mortgage loan originator	947
shall not be taken into account.	948

(B) Notwithstanding division (A) of this section, if the	949
nationwide mortgage licensing system and registry fails to have in	950
place a testing process that meets the criteria set forth in that	951
division, the superintendent shall require, until that process is	952
in place, evidence that the mortgage loan originator applicant	953
passed a written test acceptable to the superintendent.	954

Sec. 1321.54.  (A) The division of financial institutions may	955
adopt, in accordance with Chapter 119. of the Revised Code, rules	956
that are necessary for the enforcement or administration of	957
sections 1321.51 to 1321.60 of the Revised Code and that are	958
consistent with those sections and rules to carry out the purposes	959
of those sections.	960

(B)(1) The division may, upon written notice to the	961
registrant or licensee stating the contemplated action, the	962
grounds for the action, and the registrant's or licensee's	963
reasonable opportunity to be heard on the action in accordance	964
with Chapter 119. of the Revised Code, revoke, suspend, or refuse	965
to renew any certificate or license issued under sections 1321.51	966
to 1321.60 of the Revised Code if it finds any of the following:	967

(a) A violation of or failure to comply with any provision of	968
sections 1321.51 to 1321.60 of the Revised Code or the rules	969
adopted thereunder, any federal lending law, or any other law	970
applicable to the business conducted under a certificate of	971
registration or license;	972

(b) The person has been convicted of or pleaded guilty or	973
nolo contendere to any criminal felony offense in a domestic,	974
foreign, or military court;	975

(c) The person has been convicted of or pleaded guilty or	976
nolo contendere to any criminal offense involving theft, receiving	977
stolen property, embezzlement, forgery, fraud, passing bad checks,	978
money laundering, breach of trust, dishonesty, or drug	979
trafficking, or any criminal offense involving money or	980
securities, in a domestic, foreign, or military court;	981

(d) The person's mortgage lender certificate of registration	982
or mortgage loan originator license, or comparable authority, has	983
been revoked in any governmental jurisdiction.	984

(2) In addition to, or in lieu of, any revocation,	985
suspension, or denial, the division may impose a monetary fine	986
after administrative hearing or in settlement of matters subject	987
to claims under division (B)(1)(a) of this section.	988

(3) Subject to division (D)(3) of section 1321.52 of the	989
Revised Code, the revocation, suspension, or refusal to renew	990
shall not impair the obligation of any pre-existing lawful	991
contract made under sections 1321.51 to 1321.60 of the Revised	992
Code; provided, however, that a prior registrant shall make good	993
faith efforts to promptly transfer the registrant's collection	994
rights to another registrant or person exempt from registration,	995
or be subject to additional monetary fines and legal or	996
administrative action by the division. Nothing in division (B)(3)	997
of this section shall limit a court's ability to impose a cease	998
and desist order preventing any further business or servicing	999
activity.	1000

(C)(1) The superintendent of financial institutions may	1001
impose a fine for a violation of sections 1321.51 to 1321.60 of	1002
the Revised Code or any rule adopted thereunder. All fines	1003
collected pursuant to this section shall be paid to the treasurer	1004
of state to the credit of the consumer finance fund created in	1005
section 1321.21 of the Revised Code. In determining the amount of	1006
a fine to be imposed pursuant to this section, the superintendent	1007
may consider all of the following to the extent it is known to the	1008
division of financial institutions:	1009

(a) The seriousness of the violation;

1010

(b) The registrant's or licensee's good faith efforts to	1011
prevent the violation;	1012

(c) The registrant's or licensee's history regarding	1013
violations and compliance with division orders;	1014

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

1015

(e) Any other matters the superintendent considers	1016
appropriate in enforcing sections 1321.51 to 1321.60 of the	1017
Revised Code.	1018

(2) Monetary fines imposed under this division shall not	1019
exceed twenty-five thousand dollars and do not preclude any	1020
criminal fine imposed pursuant to section 1321.99 of the Revised	1021
Code.	1022

(D) The superintendent may investigate alleged violations of	1023
sections 1321.51 to 1321.60 of the Revised Code, or the rules	1024
adopted thereunder, or complaints concerning any such violation.	1025
The superintendent may make application to the court of common	1026
pleas for an order enjoining any violation and, upon a showing by	1027
the superintendent that a person has committed, or is about to	1028
commit, a violation, the court shall grant an injunction,	1029
restraining order, or other appropriate relief. The	1030
superintendent, in making application to the court of common pleas	1031
for an order enjoining a person from acting as a registrant or	1032
mortgage loan originator in violation of division (A) or (E) of	1033
section 1321.52 of the Revised Code, may also seek and obtain	1034
civil penalties for that unregistered or unlicensed conduct in an	1035
amount not to exceed five thousand dollars per violation.	1036

(E) In conducting an investigation pursuant to this section,	1037
the superintendent may compel, by subpoena, witnesses to testify	1038
in relation to any matter over which the superintendent has	1039
jurisdiction, and may require the production or photocopying of	1040
any book, record, or other document pertaining to such matter. If	1041
a person fails to file any statement or report, obey any subpoena,	1042
give testimony, produce any book, record, or other document as	1043
required by such a subpoena, or permit photocopying of any book,	1044
record, or other document subpoenaed, the court of common pleas of	1045
any county in this state, upon application made to it by the	1046
superintendent, shall compel obedience by attachment proceedings	1047
for contempt, as in the case of disobedience of the requirements	1048
of a subpoena issued from the court, or a refusal to testify	1049
therein.	1050

(F) If the superintendent determines that a person is engaged	1051
in, or is believed to be engaged in, activities that may	1052
constitute a violation of sections 1321.51 to 1321.60 of the	1053
Revised Code or the rules adopted thereunder, the superintendent	1054
may, after notice and a hearing conducted in accordance with	1055
Chapter 119. of the Revised Code, issue a cease and desist order.	1056
The superintendent, in taking administrative action to enjoin a	1057
person from acting as a registrant or mortgage loan originator in	1058
violation of division (A) or (E) of section 1321.52 of the Revised	1059
Code, may also seek and impose fines for those violations in an	1060
amount not to exceed five thousand dollars per violation. Such an	1061
order shall be enforceable in the court of common pleas.	1062

(G) The superintendent shall regularly report violations of	1063
sections 1321.51 to 1321.60 of the Revised Code, as well as	1064
enforcement actions and other relevant information, to the	1065
nationwide mortgage licensing system and registry pursuant to	1066
division (E) of section 1321.55 of the Revised Code.	1067

(H)(1) To protect the public interest, the superintendent	1068
may, without a prior hearing, do any of the following:	1069

(a) Suspend the certificate of registration or license of a	1070
person who is convicted of or pleads guilty or nolo contendere to	1071
a criminal violation of sections 1321.51 to 1321.60 of the Revised	1072
Code or any criminal offense described in division (B)(1)(b) or	1073
(c) of this section;	1074

(b) Suspend the certificate of registration or license of a	1075
person who violates division (F) of section 1321.533 of the	1076
Revised Code;	1077

(c) Suspend the certificate of registration or license of a	1078
person who fails to comply with a request made by the	1079
superintendent under this section or section 1321.55 of the	1080
Revised Code to inspect qualifying education transcripts located	1081
at the registrant's or licensee's place of business.	1082

(2) The superintendent may, in accordance with Chapter 119.	1083
of the Revised Code, subsequently revoke any registration or	1084
license suspended under division (H)(1) of this section.	1085

(3) The superintendent shall, in accordance with Chapter 119.	1086
of the Revised Code, adopt rules establishing the maximum amount	1087
of time a suspension under division (H)(1) of this section may	1088
continue before a hearing is conducted.	1089

Sec. 1321.55.  (A) Every registrant shall keep records	1090
pertaining to loans made under sections 1321.51 to 1321.60 of the	1091
Revised Code. Such records shall be segregated from records	1092
pertaining to transactions that are not subject to these sections	1093
of the Revised Code. Every registrant shall preserve records	1094
pertaining to loans made under sections 1321.51 to 1321.60 of the	1095
Revised Code for at least two years after making the final entry	1096
on such records. Accounting systems maintained in whole or in part	1097
by mechanical or electronic data processing methods that provide	1098
information equivalent to that otherwise required are acceptable	1099
for this purpose. At least once each eighteen-month cycle, the	1100
division of financial institutions shall make or cause to be made	1101
an examination of records pertaining to loans made under sections	1102
1321.51 to 1321.60 of the Revised Code, for the purpose of	1103
determining whether the registrant is complying with these	1104
sections and of verifying the registrant's annual report.	1105

(B)(1) As required by the superintendent of financial	1106
institutions, each registrant shall file with the division each	1107
year a report under oath or affirmation, on forms supplied by the	1108
division, concerning the business and operations for the preceding	1109
calendar year. Whenever a registrant operates two or more	1110
registered offices or whenever two or more affiliated registrants	1111
operate registered offices, then a composite report of the group	1112
of registered offices may be filed in lieu of individual reports.	1113

(2) The division shall publish annually an analysis of the	1114
information required under division (B)(1) of this section, but	1115
the individual reports shall not be public records and shall not	1116
be open to public inspection.	1117

(3) Each mortgage licensee shall submit to the nationwide	1118
mortgage licensing system and registry call reports or other	1119
reports of condition, which shall be in such form and shall	1120
contain such information as the nationwide mortgage licensing	1121
system and registry may require.	1122

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

1123

(a) Examination information, and any information leading to	1124
or arising from an examination;	1125

(b) Investigation information, and any information arising	1126
from or leading to an investigation.	1127

(2) The information described in division (C)(1) of this	1128
section shall remain confidential for all purposes except when it	1129
is necessary for the superintendent to take official action	1130
regarding the affairs of a registrant or licensee, or in	1131
connection with criminal or civil proceedings to be initiated by a	1132
prosecuting attorney or the attorney general. This information may	1133
also be introduced into evidence or disclosed when and in the	1134
manner authorized by section 1181.25 of the Revised Code.	1135

(D) All application information, except social security	1136
numbers, employer identification numbers, financial account	1137
numbers, the identity of the institution where financial accounts	1138
are maintained, personal financial information, fingerprint cards	1139
and the information contained on such cards, and criminal	1140
background information, is a public record as defined in section	1141
149.43 of the Revised Code.	1142

(E) This section does not prevent the division of financial	1143
institutions from releasing to or exchanging with other financial	1144
institution regulatory authorities information relating to	1145
registrants and licensees. For this purpose, a "financial	1146
institution regulatory authority" includes a regulator of a	1147
business activity in which a registrant or licensee is engaged, or	1148
has applied to engage in, to the extent that the regulator has	1149
jurisdiction over a registrant or licensee engaged in that	1150
business activity. A registrant or licensee is engaged in a	1151
business activity, and a regulator of that business activity has	1152
jurisdiction over the registrant or licensee, whether the	1153
registrant or licensee conducts the activity directly or a	1154
subsidiary or affiliate of the registrant or licensee conducts the	1155
activity.	1156

(1) Any confidentiality or privilege arising under federal or	1157
state law with respect to any information or material provided to	1158
the nationwide mortgage licensing system and registry shall	1159
continue to apply to the information or material after the	1160
information or material has been provided to the nationwide	1161
mortgage licensing system and registry. The information and	1162
material so provided may be shared with all state and federal	1163
regulatory officials with mortgage industry oversight authority	1164
without the loss of confidentiality or privilege protections	1165
provided by federal law or the law of any state. Information or	1166
material described in division (E)(1) of this section to which	1167
confidentiality or privilege applies shall not be subject to any	1168
of the following:	1169

(a) Disclosure under any federal or state law governing	1170
disclosure to the public of information held by an officer or an	1171
agency of the federal government or of the respective state;	1172

(b) Subpoena or discovery, or admission into evidence, in any	1173
private civil action or administrative process, unless the person	1174
to whom such information or material pertains waives, in whole or	1175
in part and at the discretion of the person, any privilege held by	1176
the nationwide mortgage licensing system and registry with respect	1177
to that information or material.	1178

(2) The superintendent, in order to promote more effective	1179
regulation and reduce regulatory burden through supervisory	1180
information sharing, may enter into sharing arrangements with	1181
other governmental agencies, the conference of state bank	1182
supervisors, and the American association of residential mortgage	1183
regulators.	1184

(3) Any state law, including section 149.43 of the Revised	1185
Code, relating to the disclosure of confidential supervisory	1186
information or any information or material described in division	1187
(C)(1) or (E)(1) of this section that is inconsistent with this	1188
section shall be superseded by the requirements of this section.	1189

(F) This section shall not apply with respect to information	1190
or material relating to the employment history of, and publicly	1191
adjudicated disciplinary and enforcement actions against, mortgage	1192
loan originators that is included in the nationwide mortgage	1193
licensing system and registry for access by the public.	1194

(G) This section does not prevent the division from releasing	1195
information relating to registrants and licensees to the attorney	1196
general, to the superintendent of real estate and professional	1197
licensing for purposes relating to the administration of Chapters	1198
4735. and 4763. of the Revised Code, to the superintendent of	1199
insurance for purposes relating to the administration of Chapter	1200
3953. of the Revised Code, to the commissioner of securities for	1201
purposes relating to the administration of Chapter 1707. of the	1202
Revised Code, or to local law enforcement agencies and local	1203
prosecutors. Information the division releases pursuant to this	1204
section remains confidential.	1205

(H) The superintendent of financial institutions shall, by	1206
rule adopted in accordance with Chapter 119. of the Revised Code,	1207
establish a process by which mortgage loan originators may	1208
challenge information provided to the nationwide mortgage	1209
licensing system and registry by the superintendent.	1210

(I) No person, in connection with any examination or	1211
investigation conducted by the superintendent under sections	1212
1321.51 to 1321.60 of the Revised Code, shall knowingly do any of	1213
the following:	1214

(1) Circumvent, interfere with, obstruct, or fail to	1215
cooperate, including making a false or misleading statement,	1216
failing to produce records, or intimidating or suborning any	1217
witness;	1218

(2) Withhold, abstract, remove, mutilate, destroy, or secrete	1219
any books, records, computer records, or other information;	1220

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

1221

Sec. 1321.59.  (A) No registrant under sections 1321.51 to	1222
1321.60 of the Revised Code shall permit any borrower to be	1223
indebted for a loan made under sections 1321.51 to 1321.60 of the	1224
Revised Code at any time while the borrower is also indebted to an	1225
affiliate or agent of the registrant for a loan made under	1226
sections 1321.01 to 1321.19 of the Revised Code for the purpose or	1227
with the result of obtaining greater charges than otherwise would	1228
be permitted by sections 1321.51 to 1321.60 of the Revised Code.	1229

(B) No registrant shall induce or permit any person to become	1230
obligated to the registrant under sections 1321.51 to 1321.60 of	1231
the Revised Code, directly or contingently, or both, under more	1232
than one contract of loan at the same time for the purpose or with	1233
the result of obtaining greater charges than would otherwise be	1234
permitted by sections 1321.51 to 1321.60 of the Revised Code.	1235

(C) No registrant shall refuse to provide information	1236
regarding the amount required to pay in full a loan under sections	1237
1321.51 to 1321.60 of the Revised Code when requested by the	1238
borrower or by another person designated in writing by the	1239
borrower.	1240

(D) On any loan or application for a loan under sections	1241
1321.51 to 1321.60 of the Revised Code secured by a mortgage on a	1242
borrower's real estate which is other than a first lien on the	1243
real estate, no person shall pay or receive, directly or	1244
indirectly, fees or any other type of compensation for services of	1245
a mortgage broker that, in the aggregate, exceed the lesser of one	1246
thousand dollars or one per cent of the principal amount of the	1247
loan.	1248

(E) No registrant or licensee shall obtain a certificate of	1249
registration or license through any false or fraudulent	1250
representation of a material fact or any omission of a material	1251
fact required by state or federal law, or make any substantial	1252
misrepresentation in the registration or license application, to	1253
engage in lending secured by real estate.	1254

(F) No registrant or licensee, in connection with the	1255
business of making or offering to make residential mortgage loans,	1256
shall knowingly make false or misleading statements of a material	1257
fact, omissions of statements required by state or federal law, or	1258
false promises regarding a material fact, through advertising or	1259
other means, or engage in a continued course of	1260
misrepresentations.	1261

(G) No registrant, licensee, or person making loans without a	1262
certificate of registration in violation of division (A) of	1263
section 1321.52 of the Revised Code, shall knowingly engage in	1264
conduct, in connection with the business of making or offering to	1265
make residential mortgage loans, that constitutes improper,	1266
fraudulent, or dishonest dealings.	1267

(H) No registrant, licensee, or applicant involved in the	1268
business of making or offering to make residential mortgage loans	1269
shall fail to notify the division of financial institutions within	1270
thirty days after knowing any of the following:	1271

(1) That the registrant, licensee, or applicant has been	1272
convicted of or pleaded guilty or nolo contendere to a felony	1273
offense in a domestic, foreign, or military court;	1274

(2) That the registrant, licensee, or applicant has been	1275
convicted of or pleaded guilty or nolo contendere to any criminal	1276
offense involving theft, receiving stolen property, embezzlement,	1277
forgery, fraud, passing bad checks, money laundering, breach of	1278
trust, dishonesty, or drug trafficking, or any criminal offense	1279
involving money or securities, in a domestic, foreign, or military	1280
court;	1281

(3) That the registrant, licensee, or applicant has had a	1282
mortgage lender registration or mortgage loan originator license,	1283
or comparable authority, revoked in any governmental jurisdiction.	1284

(I) No registrant or licensee shall knowingly make, propose,	1285
or solicit fraudulent, false, or misleading statements on any	1286
mortgage document or on any document related to a mortgage loan,	1287
including a mortgage application, real estate appraisal, or real	1288
estate settlement or closing document. For purposes of this	1289
division, "fraudulent, false, or misleading statements" does not	1290
include mathematical errors, inadvertent transposition of numbers,	1291
typographical errors, or any other bona fide error.	1292

(J) No registrant or licensee shall knowingly instruct,	1293
solicit, propose, or otherwise cause a borrower to sign in blank a	1294
loan related document in connection with a residential mortgage	1295
loan.	1296

(K) No registrant or licensee shall knowingly compensate,	1297
instruct, induce, coerce, or intimidate, or attempt to compensate,	1298
instruct, induce, coerce, or intimidate, a person licensed or	1299
certified as an appraiser under Chapter 4763. of the Revised Code	1300
for the purpose of corrupting or improperly influencing the	1301
independent judgment of the person with respect to the value of	1302
the dwelling offered as security for repayment of a mortgage loan.	1303

(L) No registrant or licensee shall willfully retain original	1304
documents provided to the registrant or licensee by the borrower	1305
in connection with the residential mortgage loan application,	1306
including income tax returns, account statements, or other	1307
financial related documents.	1308

(M) No registrant or licensee shall, in connection with	1309
making residential mortgage loans, receive, directly or	1310
indirectly, a premium on the fees charged for services performed	1311
by a bona fide third party.	1312

(N) No registrant or licensee shall, in connection with	1313
making residential mortgage loans, pay or receive, directly or	1314
indirectly, a referral fee or kickback of any kind to or from a	1315
bona fide third party or other party with a related interest in	1316
the transaction, including a home improvement builder, real estate	1317
developer, or real estate broker or agent, for the referral of	1318
business. Nothing in this division shall prevent remuneration to a	1319
registrant or licensee for the licensed sale of any insurance	1320
product that is permitted under section 1321.57 of the Revised	1321
Code, provided there is no additional fee or premium added to the	1322
cost for the insurance and paid directly or indirectly by the	1323
borrower.	1324

(O) No registrant, licensee, or person making loans without a	1325
certificate of registration in violation of division (A) of	1326
section 1321.52 of the Revised Code shall, in connection with	1327
making or offering to make residential mortgage loans, engage in	1328
any unfair, deceptive, or unconscionable act or practice	1329
prohibited under sections 1345.01 to 1345.13 of the Revised Code.	1330

Sec. 1322.01.  As used in sections 1322.01 to 1322.12 of the	1331
Revised Code:	1332

(A) "Buyer" means an individual who is solicited to purchase	1333
or who purchases the services of a mortgage broker for purposes of	1334
obtaining a residential mortgage loan.	1335

(B) "Consumer reporting agency" has the same meaning as in	1336
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A. 1681a,	1337
as amended.	1338

(C) "Employee" means an individual for whom a mortgage	1339
broker, in addition to providing a wage or salary, pays social	1340
security and unemployment taxes, provides workers' compensation	1341
coverage, and withholds local, state, and federal income taxes.	1342
"Employee" also includes any individual who acts as a loan	1343
originator or operations manager of a registrant, but for whom the	1344
registrant is prevented by law from making income tax	1345
withholdings.	1346

(D) "Licensee" means any individual who has been issued a	1347
loan originator license under sections 1322.01 to 1322.12 of the	1348
Revised Code.	1349

(E)(1) "Loan originator" means an individual who for	1350
compensation or gain, or in anticipation of compensation or gain,	1351
does any of the following:	1352

(a) Takes or offers to take a residential mortgage loan	1353
application;	1354

(b) Assists or offers to assist a buyer in obtaining or	1355
applying to obtain a residential mortgage loan by, among other	1356
things, advising on loan terms, including rates, fees, and other	1357
costs;	1358

(c) Offers or negotiates terms of a residential mortgage	1359
loan;	1360

(d) Issues or offers to issue a commitment for a residential	1361
mortgage loan to a buyer.	1362

(2) "Loan originator" does not include any of the following:

1363

(a) An individual who performs purely administrative or	1364
clerical tasks on behalf of a loan originator;	1365

(b) A person licensed under Chapter 4735. of the Revised	1366
Code, or under the similar law of another state, who performs only	1367
real estate brokerage activities permitted by that license,	1368
provided the person is not compensated by a mortgage lender,	1369
mortgage broker, loan originator, or by any agent thereof;	1370

(c) A person solely involved in extensions of credit relating	1371
to timeshare plans, as that term is defined in 11 U.S.C. 101 in	1372
effect on January 1, 2009;	1373

(d) An employee of a registrant who acts solely as a loan	1374
processor or underwriter and who does not represent to the public,	1375
through advertising or other means of communicating, including the	1376
use of business cards, stationery, brochures, signs, rate lists,	1377
or other promotional items, that the employee can or will perform	1378
any of the activities of a loan originator;	1379

(e) A mortgage loan originator licensed under sections	1380
1321.51 to 1321.60 of the Revised Code, when acting solely under	1381
that authority;	1382

(f) A licensed attorney who negotiates the terms of a	1383
residential mortgage loan on behalf of a client as an ancillary	1384
matter to the attorney's representation of the client, unless the	1385
attorney is compensated by a lender, a mortgage broker, or another	1386
loan originator, or by any agent thereof;	1387

(g) Any person engaged in the retail sale of manufactured	1388
homes, mobile homes, or industrialized units if, in connection	1389
with financing those retail sales, the person only assists the	1390
borrower by providing or transmitting the loan application and	1391
does not do any of the following:	1392

(i) Offer or negotiate the residential mortgage loan rates or	1393
terms;	1394

(ii) Provide any counseling with borrowers about residential	1395
mortgage loan rates or terms;	1396

(iii) Receive any payment or fee from any company or	1397
individual for assisting the borrower obtain or apply for	1398
financing to purchase the manufactured home, mobile home, or	1399
industrialized unit;	1400

(iv) Assist the borrower in completing a residential mortgage	1401
loan application.	1402

(h) An individual employed by a nonprofit organization that	1403
is recognized as tax exempt under 26 U.S.C. 501(c)(3) and whose	1404
primary activity is the construction, remodeling, or	1405
rehabilitation of homes for use by low-income families, provided	1406
that the nonprofit organization makes no-profit mortgage loans or	1407
mortgage loans at zero per cent interest to low-income families	1408
and no fees accrue directly to the nonprofit organization or	1409
individual employed by the nonprofit organization from those	1410
mortgage loans and that the United States department of housing	1411
and urban development does not deny this exemption.	1412

(F) "Mortgage" means any indebtedness secured by a deed of	1413
trust, security deed, or other lien on real property.	1414

(G)(1) "Mortgage broker" means any of the following:

1415

(a) A person that holds that person out as being able to	1416
assist a buyer in obtaining a mortgage and charges or receives	1417
from either the buyer or lender money or other valuable	1418
consideration readily convertible into money for providing this	1419
assistance;	1420

(b) A person that solicits financial and mortgage information	1421
from the public, provides that information to a mortgage broker or	1422
a person that makes residential mortgage loans, and charges or	1423
receives from either of them money or other valuable consideration	1424
readily convertible into money for providing the information;	1425

(c) A person engaged in table-funding or warehouse-lending	1426
mortgage loans that are first lien residential mortgage loans.	1427

(2) "Mortgage broker" does not include any of the following	1428
persons only with respect to business engaged in or authorized by	1429
the person's charter, license, authority, approval, or	1430
certificate, or as otherwise authorized by division (G)(2)(h) of	1431
this section:	1432

(a) A person that makes residential mortgage loans and	1433
receives a scheduled payment on each of those mortgage loans;	1434

(b) Any entity chartered and lawfully doing business under	1435
the authority of any law of this state, another state, or the	1436
United States as a bank, savings bank, trust company, savings and	1437
loan association, or credit union, or a subsidiary of any such	1438
entity, which subsidiary is regulated by a federal banking agency	1439
and is owned and controlled by a depository institution;	1440

(c) A consumer reporting agency that is in substantial	1441
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128, 15	1442
U.S.C.A. 1681a, as amended;	1443

(d) Any political subdivision, or any governmental or other	1444
public entity, corporation, instrumentality, or agency, in or of	1445
the United States or any state;	1446

(e) A college or university, or controlled entity of a	1447
college or university, as those terms are defined in section	1448
1713.05 of the Revised Code;	1449

(f) Any entity created solely for the purpose of securitizing	1450
loans secured by an interest in real estate, provided the entity	1451
does not service the loans. For purposes of division (G)(2)(f) of	1452
this section, "securitizing" means the packaging and sale of	1453
mortgage loans as a unit for sale as investment securities, but	1454
only to the extent of those activities.	1455

(g) Any person engaged in the retail sale of manufactured	1456
homes, mobile homes, or industrialized units if, in connection	1457
with obtaining financing by others for those retail sales, the	1458
person only assists the borrower by providing or transmitting the	1459
loan application and does not do any of the following:	1460

(i) Offer or negotiate the residential mortgage loan rates or	1461
terms;	1462

(ii) Provide any counseling with borrowers about residential	1463
mortgage loan rates or terms;	1464

(iii) Receive any payment or fee from any company or	1465
individual for assisting the borrower obtain or apply for	1466
financing to purchase the manufactured home, mobile home, or	1467
industrialized unit;	1468

(iv) Assist the borrower in completing the residential	1469
mortgage loan application.	1470

(h) A mortgage banker, provided it complies with section	1471
1322.022 of the Revised Code and holds a valid letter of exemption	1472
issued by the superintendent. For purposes of this section,	1473
"mortgage banker" means any person that makes, services, buys, or	1474
sells residential mortgage loans secured by a first lien, that	1475
underwrites the loans, and that meets at least one of the	1476
following criteria:	1477

(i) The person has been directly approved by the United	1478
States department of housing and urban development as a	1479
nonsupervised mortgagee with participation in the direct	1480
endorsement program. Division (G)(2)(h)(i) of this section	1481
includes a person that has been directly approved by the United	1482
States department of housing and urban development as a	1483
nonsupervised mortgagee with participation in the direct	1484
endorsement program and that makes loans in excess of the	1485
applicable loan limit set by the federal national mortgage	1486
association, provided that the loans in all respects, except loan	1487
amounts, comply with the underwriting and documentation	1488
requirements of the United States department of housing and urban	1489
development. Division (G)(2)(h)(i) of this section does not	1490
include a mortgagee approved as a loan correspondent.	1491

(ii) The person has been directly approved by the federal	1492
national mortgage association as a seller/servicer. Division	1493
(G)(2)(h)(ii) of this section includes a person that has been	1494
directly approved by the federal national mortgage association as	1495
a seller/servicer and that makes loans in excess of the applicable	1496
loan limit set by the federal national mortgage association,	1497
provided that the loans in all respects, except loan amounts,	1498
comply with the underwriting and documentation requirements of the	1499
federal national mortgage association.	1500

(iii) The person has been directly approved by the federal	1501
home loan mortgage corporation as a seller/servicer. Division	1502
(G)(2)(h)(iii) of this section includes a person that has been	1503
directly approved by the federal home loan mortgage corporation as	1504
a seller/servicer and that makes loans in excess of the applicable	1505
loan limit set by the federal home loan mortgage corporation,	1506
provided that the loans in all respects, except loan amounts,	1507
comply with the underwriting and documentation requirements of the	1508
federal home loan mortgage corporation.	1509

(iv) The person has been directly approved by the United	1510
States department of veterans affairs as a nonsupervised automatic	1511
lender. Division (G)(2)(h)(iv) of this section does not include a	1512
person directly approved by the United States department of	1513
veterans affairs as a nonsupervised lender, an agent of a	1514
nonsupervised automatic lender, or an agent of a nonsupervised	1515
lender.	1516

(i) A nonprofit organization that is recognized as tax exempt	1517
under 26 U.S.C. 501(c)(3) and whose primary activity is the	1518
construction, remodeling, or rehabilitation of homes for use by	1519
low-income families, provided that the nonprofit organization	1520
makes no-profit mortgage loans or mortgage loans at zero per cent	1521
interest to low-income families and no fees accrue directly to the	1522
nonprofit organization from those mortgage loans and that the	1523
United States department of housing and urban development does not	1524
deny this exemption.	1525

(j) A credit union service organization, provided that the	1526
organization utilizes services provided by registered loan	1527
originators or that it holds a valid letter of exemption issued by	1528
the superintendent under section 1322.023 of the Revised Code and	1529
complies with that section.	1530

(H) "Operations manager" means the employee or owner	1531
responsible for the everyday operations, compliance requirements,	1532
and management of a mortgage broker business.	1533

(I) "Registered loan originator" means an individual to whom	1534
both of the following apply:	1535

(1) The individual is a loan originator and an employee of a	1536
depository institution, a subsidiary that is owned and controlled	1537
by a depository institution and regulated by a federal banking	1538
agency, or an institution regulated by the farm credit	1539
administration.	1540

(2) The individual is registered with, and maintains a unique	1541
identifier through, the nationwide mortgage licensing system and	1542
registry.	1543

(J) "Registrant" means any person that has been issued a	1544
mortgage broker certificate of registration under sections 1322.01	1545
to 1322.12 of the Revised Code.	1546

(K) "Superintendent of financial institutions" includes the	1547
deputy superintendent for consumer finance as provided in section	1548
1181.21 of the Revised Code.	1549

(L) "Table-funding mortgage loan" means a residential	1550
mortgage loan transaction in which the residential mortgage loan	1551
is initially payable to the mortgage broker, the mortgage broker	1552
does not use the mortgage broker's own funds to fund the	1553
transaction, and, by the terms of the mortgage or other agreement,	1554
the mortgage is simultaneously assigned to another person.	1555

(M) "Warehouse-lending mortgage loan" means a residential	1556
mortgage loan transaction in which the residential mortgage loan	1557
is initially payable to the mortgage broker, the mortgage broker	1558
uses the mortgage broker's own funds to fund the transaction, and	1559
the mortgage is sold or assigned before the mortgage broker	1560
receives a scheduled payment on the residential mortgage loan.	1561

(N) "Administrative or clerical tasks" means the receipt,	1562
collection, and distribution of information common for the	1563
processing or underwriting of a loan in the mortgage industry, and	1564
communication with a consumer to obtain information necessary for	1565
the processing or underwriting of a residential mortgage loan.	1566

(O) "Appraisal company" means a sole proprietorship,	1567
partnership, corporation, limited liability company, or any other	1568
business entity or association, that employs or retains the	1569
services of a person licensed or certified under Chapter 4763. of	1570
the Revised Code for purposes of performing residential real	1571
estate appraisals for mortgage loans.	1572

(P) "Depository institution" has the same meaning as in	1573
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12	1574
U.S.C. 1813, and includes any credit union.	1575

(Q) "Federal banking agency" means the board of governors of	1576
the federal reserve system, the comptroller of the currency, the	1577
director of the office of thrift supervision, the national credit	1578
union administration, and the federal deposit insurance	1579
corporation.	1580

(R) "Immediate family" means an individual's spouse, child,	1581
stepchild, parent, stepparent, grandparent, grandchild, brother,	1582
sister, parent-in-law, brother-in-law, or sister-in-law.	1583

(S) "Individual" means a natural person.

1584

(T) "Loan processor or underwriter" means an individual who	1585
performs clerical or support duties at the direction of and	1586
subject to the supervision and instruction of a licensed loan	1587
originator or registered loan originator. For purposes of this	1588
division, to "perform clerical or support duties" includesmeans	1589
to do all of the following activities:	1590

(1) The receiptReceiving, collectioncollecting,	1591
distributiondistributing, and analysis ofanalyzing information	1592
common for the processing or underwriting of a residential	1593
mortgage loan;	1594

(2) Communicating with a buyer to obtain the information	1595
necessary for the processing or underwriting of a loan, to the	1596
extent the communication does not include offering or negotiating	1597
loan rates or terms or counseling buyers about residential	1598
mortgage loan rates or terms.	1599

(U) "Nationwide mortgage licensing system and registry" means	1600
a mortgage licensing system developed and maintained by the	1601
conference of state bank supervisors and the American association	1602
of residential mortgage regulators, or their successor entities,	1603
for the licensing and registration of loan originators, or any	1604
system established by the secretary of housing and urban	1605
development pursuant to the "Secure and Fair Enforcement for	1606
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	1607

(V) "Nontraditional mortgage product" means any mortgage	1608
product other than a thirty-year fixed rate mortgage.	1609

(W) "Real estate brokerage activity" means any activity that	1610
involves offering or providing real estate brokerage services to	1611
the public, including all of the following:	1612

(1) Acting as a real estate agent or real estate broker for a	1613
buyer, seller, lessor, or lessee of real property;	1614

(2) Bringing together parties interested in the sale,	1615
purchase, lease, rental, or exchange of real property, other than	1616
in connection with providing financing for any such transaction;	1617

(3) Negotiating, on behalf of any party, any portion of a	1618
contract relating to the sale, purchase, lease, rental, or	1619
exchange of real property, other than in connection with providing	1620
financing for any such transaction;	1621

(4) Engaging in any activity for which a person engaged in	1622
that activity is required to be registered or licensed as a real	1623
estate agent or real estate broker under any applicable law;	1624

(5) Offering to engage in any activity, or to act in any	1625
capacity, described in division (W) of this section.	1626

(X) "Residential mortgage loan" means any loan primarily for	1627
personal, family, or household use that is secured by a mortgage	1628
or other equivalent consensual security interest on a dwelling or	1629
on residential real estate upon which is constructed or intended	1630
to be constructed a dwelling. For purposes of this division,	1631
"dwelling" has the same meaning as in section 103 of the "Truth in	1632
Lending Act," 82 Stat. 146, 15 U.S.C 1602.	1633

(Y) "State," in the context of referring to states in	1634
addition to Ohio, means any state of the United States, the	1635
district of Columbia, any territory of the United States, Puerto	1636
Rico, Guam, American Samoa, the trust territory of the Pacific	1637
islands, the virgin islands, and the northern Mariana islands;.	1638

(Z) "Unique identifier" means a number or other identifier	1639
that permanently identifies a loan originator and is assigned by	1640
protocols established by the nationwide mortgage licensing system	1641
and registry or federal banking agencies to facilitate electronic	1642
tracking of loan originators and uniform identification of, and	1643
public access to, the employment history of and the publicly	1644
adjudicated disciplinary and enforcement actions against loan	1645
originators.	1646

Sec. 1322.02.  (A)(1) No person, on the person's own behalf	1647
or on behalf of any other person, shall act as a mortgage broker	1648
without first having obtained a certificate of registration from	1649
the superintendent of financial institutions for every office to	1650
be maintained by the person for the transaction of business as a	1651
mortgage broker in this state. A registrant shall maintain an	1652
office location in this state for the transaction of business as a	1653
mortgage broker in this state.	1654

(2) No person shall act or hold that person's self out as a	1655
mortgage broker under the authority or name of a registrant or	1656
person exempt from sections 1322.01 to 1322.12 of the Revised Code	1657
without first having obtained a certificate of registration from	1658
the superintendent for every office to be maintained by the person	1659
for the transaction of business as a mortgage broker in this	1660
state.	1661

(B)(1) No individual shall act as a loan originator without	1662
first having obtained a license from the superintendent. A loan	1663
originator shall be employed by or associated with a mortgage	1664
broker or any person or entity listed in division (G)(2) of	1665
section 1322.01 of the Revised Code, but shall not be employed by	1666
or associated with more than one mortgage broker or person or	1667
entity at any one time.	1668

(2) An individual acting under the individual's authority as	1669
a registered loan originator shall not be required to be licensed	1670
under division (B)(1) of this section.	1671

(C)(1) Each licenseeNo person acting as a mortgage broker or	1672
loan originator shall fail to register with, and maintain a valid	1673
unique identifier issued by, the nationwide mortgage licensing	1674
system and registry.	1675

(2) No person shall use a licensee'smortgage broker's or	1676
loan originator's unique identifier for any purpose other than as	1677
set forth in the "Secure and Fair Enforcement for Mortgage	1678
Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.	1679

Sec. 1322.022.  (A) A mortgage banker seeking exemption from	1680
registration pursuant to division (G)(2)(h) of section 1322.01 of	1681
the Revised Code shall submit an application to the superintendent	1682
of financial institutions along with a nonrefundable fee of three	1683
hundred fifty dollars for each location of an office to be	1684
maintained by the mortgage banker. The application shall be in a	1685
form prescribed by the superintendent and shall include all of the	1686
following:	1687

(1) The mortgage banker's business name and state of	1688
incorporation or business registration;	1689

(2) The names of the owners, officers, or partners having	1690
control of the business;	1691

(3) An attestation to all of the following:

1692

(a) That the mortgage banker and its owners, officers, or	1693
partners identified in division (A)(2) of this section have not	1694
had a mortgage banker license, mortgage broker certificate of	1695
registration, or loan originator license, or any comparable	1696
authority, revoked in any governmental jurisdiction;	1697

(b) That the mortgage banker and its owners, officers, or	1698
partners identified in division (A)(2) of this section have not	1699
been convicted of, or pleaded guilty or nolo contendere to, any of	1700
the following in a domestic, foreign, or military court:	1701

(i) During the seven-year period immediately preceding the	1702
date of application for exemption, any felony or a misdemeanor	1703
involving theft or any felony;	1704

(ii) At any time prior to the date the application for	1705
exemption is approved, a felony involving an act of fraud,	1706
dishonesty, a breach of trust, theft, or money laundering.	1707

(c) That, with respect to financing residential mortgage	1708
loans, the mortgage banker conducts business with residents of	1709
this state, or secures its loans with property located in this	1710
state, under authority of an approval described in division	1711
(G)(2)(h) of section 1322.01 of the Revised Code.	1712

(4) The names of all loan originators or licensees under the	1713
mortgage banker's control and direction;	1714

(5) An acknowledgment of understanding that the mortgage	1715
banker is subject to the regulatory authority of the division of	1716
financial institutions as provided in this section;	1717

(6) Any further reasonable information that the	1718
superintendent may require.	1719

(B)(1) If the superintendent determines that the mortgage	1720
banker honestly made the attestation required under division	1721
(A)(3) of this section and otherwise qualifies for exemption, the	1722
superintendent shall issue a letter of exemption. Additional	1723
certified copies of a letter of exemption shall be provided upon	1724
request and the payment of seventy-five dollars per copy.	1725

(2) If the superintendent determines that the mortgage banker	1726
does not qualify for exemption, the superintendent shall issue a	1727
notice of denial, and the mortgage banker may request a hearing in	1728
accordance with Chapter 119. of the Revised Code.	1729

(C) All of the following conditions apply to any mortgage	1730
banker holding a valid letter of exemption:	1731

(1) The mortgage banker shall be subject to examination in	1732
the same manner as a registrant with respect to the conduct of the	1733
mortgage banker's loan originators. In conducting any out-of-state	1734
examination, a mortgage banker shall be responsible for paying the	1735
costs of the division in the same manner as a registrant.	1736

(2) The mortgage banker shall have an affirmative duty to	1737
supervise the conduct of its loan originators, and to cooperate	1738
with investigations by the division with respect to that conduct,	1739
in the same manner as is required of registrants.	1740

(3) The mortgage banker shall keep and maintain records of	1741
all transactions relating to the conduct of its loan originators	1742
in the same manner as is required of registrants.	1743

(4) The mortgage banker may provide the surety bond for its	1744
licensees in the same manner as is permitted for registrants.	1745

(D) A letter of exemption expires annually on the	1746
thirty-first day of December and may be renewed on or before that	1747
date by submitting an application that meets the requirements of	1748
division (A) of this section and a nonrefundable renewal fee of	1749
three hundred fifty dollars for each location of an office to be	1750
maintained by the mortgage banker.	1751

(E) The superintendent may issue a notice to revoke or	1752
suspend a letter of exemption if the superintendent finds that the	1753
letter was obtained through a false or fraudulent representation	1754
of a material fact, or the omission of a material fact, required	1755
by law, or that a condition for exemption is no longer being met.	1756
Prior to issuing an order of revocation or suspension, the	1757
mortgage banker shall be given an opportunity for a hearing in	1758
accordance with Chapter 119. of the Revised Code.	1759

(F) All information obtained by the division pursuant to an	1760
examination or investigation under this section shall be subject	1761
to the confidentiality requirements set forth in section 1322.061	1762
of the Revised Code.	1763

(G) All money collected under this section shall be deposited	1764
into the state treasury to the credit of the consumer finance fund	1765
created in section 1321.21 of the Revised Code.	1766

(H) A mortgage banker that holds a valid letter of exemption,	1767
and any licensee employed by the mortgage banker, shall not be	1768
required to comply with section 1322.062 of the Revised Code with	1769
respect to any transaction covered under the authority of an	1770
approval described in division (G)(2)(h) of section 1322.01 of the	1771
Revised Code. Compliance shall be required, however, with respect	1772
to transactions not covered under the authority of an approval	1773
described in that division.	1774

Sec. 1322.023. (A) A credit union service organization	1775
seeking exemption from registration pursuant to division (G)(2)(j)	1776
of section 1322.01 of the Revised Code shall submit an application	1777
to the superintendent of financial institutions along with a	1778
nonrefundable fee of three hundred fifty dollars for each location	1779
of an office to be maintained by the organization. The application	1780
shall be in a form prescribed by the superintendent and shall	1781
include all of the following:	1782

(1) The organization's business name and state of	1783
incorporation;	1784

(2) The names of the owners, officers, or partners having	1785
control of the organization;	1786

(3) An attestation to all of the following:

1787

(a) That the organization and its owners, officers, or	1788
partners identified in division (A)(2) of this section have not	1789
had a mortgage broker certificate of registration or loan	1790
originator license, or any comparable authority, revoked in any	1791
governmental jurisdiction;	1792

(b) That the organization and its owners, officers, or	1793
partners identified in division (A)(2) of this section have not	1794
been convicted of, or pleaded guilty or nolo contendere to, any of	1795
the following in a domestic, foreign, or military court:	1796

(i) During the seven-year period immediately preceding the	1797
date of application for exemption, any felony or a misdemeanor	1798
involving theft or any felony;	1799

(ii) At any time prior to the date the application for	1800
exemption is approved, a felony involving an act of fraud,	1801
dishonesty, a breach of trust, theft, or money laundering.	1802

(c) That, with respect to financing residential mortgage	1803
loans, the organization conducts business with residents of this	1804
state or secures its loans with property located in this state.	1805

(4) The names of all loan originators or licensees under the	1806
organization's control and direction;	1807

(5) An acknowledgment of understanding that the organization	1808
is subject to the regulatory authority of the division of	1809
financial institutions;	1810

(6) Any further information that the superintendent may	1811
require.	1812

(B)(1) If the superintendent determines that the credit union	1813
service organization honestly made the attestation required under	1814
division (A)(3) of this section and otherwise qualifies for	1815
exemption, the superintendent shall issue a letter of exemption.	1816
Additional certified copies of a letter of exemption shall be	1817
provided upon request and the payment of seventy-five dollars per	1818
copy.	1819

(2) If the superintendent determines that the organization	1820
does not qualify for exemption, the superintendent shall issue a	1821
notice of denial, and the organization may request a hearing in	1822
accordance with Chapter 119. of the Revised Code.	1823

(C) All of the following conditions apply to any credit union	1824
service organization holding a valid letter of exemption:	1825

(1) The organization shall be subject to examination in the	1826
same manner as a registrant with respect to the conduct of the	1827
organization's loan originators. In conducting any out-of-state	1828
examination, the organization shall be responsible for paying the	1829
costs of the division in the same manner as a registrant.	1830

(2) The organization shall have an affirmative duty to	1831
supervise the conduct of its loan originators, and to cooperate	1832
with investigations by the division with respect to that conduct,	1833
in the same manner as is required of registrants.	1834

(3) The organization shall keep and maintain records of all	1835
transactions relating to the conduct of its loan originators in	1836
the same manner as is required of registrants.	1837

(4) The organization may provide the surety bond for its	1838
licensees in the same manner as is permitted for registrants.	1839

(D) A letter of exemption expires annually on the	1840
thirty-first day of December and may be renewed on or before that	1841
date by submitting an application that meets the requirements of	1842
division (A) of this section and a nonrefundable renewal fee of	1843
three hundred fifty dollars for each location of an office to be	1844
maintained by the credit union service organization.	1845

(E) The superintendent may issue a notice to revoke or	1846
suspend a letter of exemption if the superintendent finds that the	1847
letter was obtained though a false or fraudulent representation of	1848
a material fact, or the omission of a material fact, required by	1849
law, or that a condition for exemption is no longer being met.	1850
Prior to issuing an order of revocation or suspension, the credit	1851
union service organization shall be given an opportunity for a	1852
hearing in accordance with Chapter 119. of the Revised Code.	1853

(F) All information obtained by the division pursuant to an	1854
examination or investigation under this section shall be subject	1855
to the confidentiality requirements set forth in section 1322.061	1856
of the Revised Code.	1857

(G) All money collected under this section shall be deposited	1858
into the state treasury to the credit of the consumer finance fund	1859
created in section 1321.21 of the Revised Code.	1860

Sec. 1322.03.  (A) An application for a certificate of	1861
registration as a mortgage broker shall be in writing, under oath,	1862
and in the form prescribed by the superintendent of financial	1863
institutions. The application shall be accompanied by a	1864
nonrefundable application fee of five hundred dollars for each	1865
location of an office to be maintained by the applicant in	1866
accordance with division (A) of section 1322.02 of the Revised	1867
Code and any additional fee required by the nationwide mortgage	1868
licensing system and registry. The application shall provide all	1869
of the following:	1870

(1) The location or locations where the business is to be	1871
transacted and whether any location is a residence. If any	1872
location where the business is to be transacted is a residence,	1873
the superintendent may require that the application be accompanied	1874
by a copy of a zoning permit authorizing the use of the residence	1875
for commercial purposes, or by a written opinion or other document	1876
issued by the county or political subdivision where the residence	1877
is located certifying that the use of the residence to transact	1878
business as a mortgage broker is not prohibited by the county or	1879
political subdivision.	1880

(2)(a) In the case of a sole proprietor, the name and address	1881
of the sole proprietor;	1882

(b) In the case of a partnership, the name and address of	1883
each partner;	1884

(c) In the case of a corporation, the name and address of	1885
each shareholder owning five per cent or more of the corporation;	1886

(d) In the case of any other entity, the name and address of	1887
any person that owns five per cent or more of the entity that will	1888
transact business as a mortgage broker.	1889

(3) Each applicant shall designate an employee or owner of	1890
the applicant as the applicant's operations manager. While acting	1891
as the operations manager, the employee or owner shall be licensed	1892
as a loan originator under sections 1322.01 to 1322.12 of the	1893
Revised Code and shall not be employed by any other mortgage	1894
broker.	1895

(4) Evidence that the person designated on the application	1896
pursuant to division (A)(3) of this section possesses at least	1897
three years of experience in the residential mortgage and lending	1898
field, which experience may include employment with or as a	1899
mortgage broker or with a depository institution, mortgage lending	1900
institution, or other lending institution, or possesses at least	1901
three years of other experience related specifically to the	1902
business of residential mortgage loans that the superintendent	1903
determines meets the requirements of division (A)(4) of this	1904
section;	1905

(5) Evidence that the person designated on the application	1906
pursuant to division (A)(3) of this section has successfully	1907
completed the pre-licensing instruction requirements set forth in	1908
section 1322.031 of the Revised Code.;	1909

(6) Evidence of compliance with the surety bond requirements	1910
of section 1322.05 of the Revised Code and with sections 1322.01	1911
to 1322.12 of the Revised Code;	1912

(7) In the case of a foreign business entity, evidence that	1913
it maintains a license or registration pursuant to Chapter 1703.,	1914
1705., 1775., 1776., 1777., 1782., or 1783. of the Revised Code to	1915
transact business in this state;	1916

(8) Evidence that the applicant's operations manager has	1917
successfully completed the written test required under division	1918
(A) of section 1322.051 of the Revised Code;	1919

(9) Any further information that the superintendent requires.

1920

(B) Upon the filing of the application and payment of the	1921
nonrefundable application fee and any fee required by the	1922
nationwide mortgage licensing system and registry, the	1923
superintendent of financial institutions shall investigate the	1924
applicant, and any individual whose identity is required to be	1925
disclosed in the application, as set forth in division (B) of this	1926
section.	1927

(1)(a) Notwithstanding division (K) of section 121.08 of the	1928
Revised Code, the superintendent shall obtain a criminal history	1929
records check and, as part of that records check, request that	1930
criminal record information from the federal bureau of	1931
investigation be obtained. To fulfill this requirement, the	1932
superintendent shall do either of the following:	1933

(i) Request the superintendent of the bureau of criminal	1934
identification and investigation, or a vendor approved by the	1935
bureau, to conduct a criminal records check based on the	1936
applicant's fingerprints or, if the fingerprints are unreadable,	1937
based on the applicant's social security number, in accordance	1938
with division (A)(12) of section 109.572 of the Revised Code;	1939

(ii) Authorize the nationwide mortgage licensing system and	1940
registry to request a criminal history background check.	1941

(b) Any fee required under division (C)(3) of section 109.572	1942
of the Revised Code or by the nationwide mortgage licensing system	1943
and registry shall be paid by the applicant.	1944

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

1945

(3) If, in order to issue a certificate of registration to an	1946
applicant, additional investigation by the superintendent outside	1947
this state is necessary, the superintendent may require the	1948
applicant to advance sufficient funds to pay the actual expenses	1949
of the investigation, if it appears that these expenses will	1950
exceed five hundred dollars. The superintendent shall provide the	1951
applicant with an itemized statement of the actual expenses that	1952
the applicant is required to pay.	1953

(C) The superintendent shall pay all funds advanced and	1954
application and renewal fees and penalties the superintendent	1955
receives pursuant to this section and section 1322.04 of the	1956
Revised Code to the treasurer of state to the credit of the	1957
consumer finance fund created in section 1321.21 of the Revised	1958
Code.	1959

(D) If an application for a mortgage broker certificate of	1960
registration does not contain all of the information required	1961
under division (A) of this section, and if that information is not	1962
submitted to the superintendent or to the nationwide mortgage	1963
licensing system and registry within ninety days after the	1964
superintendent or the nationwide mortgage licensing system and	1965
registry requests the information in writing, including by	1966
electronic transmission or facsimile, the superintendent may	1967
consider the application withdrawn.	1968

(E) A mortgage broker certificate of registration and the	1969
authority granted under that certificate is not transferable or	1970
assignable and cannot be franchised by contract or any other	1971
means.	1972

(F) The registration requirements of this chapter apply to	1973
any person acting as a mortgage broker, and no person is exempt	1974
from the requirements of this chapter on the basis of prior work	1975
or employment as a mortgage broker.	1976

(G) The superintendent may establish relationships or enter	1977
into contracts with the nationwide mortgage licensing system and	1978
registry, or any entities designated by it, to collect and	1979
maintain records and process transaction fees or other fees	1980
related to mortgage broker certificates of registration or the	1981
persons associated with a mortgage broker.	1982

Sec. 1322.031. (A) An application for a license as a loan	1983
originator shall be in writing, under oath, and in the form	1984
prescribed by the superintendent of financial institutions. The	1985
application shall be accompanied by a nonrefundable application	1986
fee of one hundred fifty dollars and any additional fee required	1987
by the nationwide mortgage licensing system and registry.	1988

(B)(1) The application shall provide evidence, acceptable to	1989
the superintendent, that the applicant has successfully completed	1990
at least twenty-four hours of pre-licensing instruction consisting	1991
of all of the following:	1992

(a) Twenty hours of instruction in a course or program of	1993
study reviewed and approved by the nationwide mortgage licensing	1994
system and registry;	1995

(b) Four hours of instruction in a course or program of study	1996
reviewed and approved by the superintendent concerning state	1997
lending laws and the Ohio consumer sales practices act, Chapter	1998
1345. of the Revised Code, as it applies to registrants and	1999
licensees.	2000

(2) Notwithstanding division (B)(1) of this section, until	2001
the nationwide mortgage licensing system and registry implements a	2002
review and approval program, the application shall provide	2003
evidence, as determined by the superintendent, that the applicant	2004
has successfully completed at least twenty-four hours of	2005
instruction in a course or program of study approved by the	2006
superintendent that consists of at least all of the following:	2007

(a) Four hours of instruction concerning state and federal	2008
mortgage lending laws, which shall include no less than two hours	2009
on this chapter;	2010

(b) Four hours of instruction concerning the Ohio consumer	2011
sales practices act, Chapter 1345. of the Revised Code, as it	2012
applies to registrants and licensees;	2013

(c) Four hours of instruction concerning the loan application	2014
process;	2015

(d) Two hours of instruction concerning the underwriting	2016
process;	2017

(e) Two hours of instruction concerning the secondary market	2018
for mortgage loans;	2019

(f) Four hours of instruction concerning the loan closing	2020
process;	2021

(g) Two hours of instruction covering basic mortgage	2022
financing concepts and terms;	2023

(h) Two hours of instruction concerning the ethical	2024
responsibilities of a registrant and a licensee, including with	2025
respect to confidentiality, consumer counseling, and the duties	2026
and standards of care created in section 1322.081 of the Revised	2027
Code.	2028

(3) For purposes of division (B)(1)(a) of this section, the	2029
review and approval of a course or program of study includes the	2030
review and approval of the provider of the course or program of	2031
study.	2032

(4) If an applicant held a valid loan originator license	2033
issued by this state at any time during the immediately preceding	2034
five-year period, the applicant shall not be required to complete	2035
any additional pre-licensing instruction. For this purpose, any	2036
time during which the individual is a registered loan originator	2037
shall not be taken into account.	2038

(5) A person having successfully completed the pre-licensing	2039
education requirement reviewed and approved by the nationwide	2040
mortgage licensing system and registry for any state within the	2041
previous five years shall be granted credit toward completion of	2042
the pre-licensing education requirement of this state.	2043

(C) In addition to the information required under division	2044
(B) of this section, the application shall provide both of the	2045
following:	2046

(1) Evidence that the applicant passed a written test that	2047
meets the requirements described in division (B) of section	2048
1322.051 of the Revised Code;	2049

(2) Any further information that the superintendent requires.

2050

(D) Upon the filing of the application and payment of the	2051
application fee and any fee required by the nationwide mortgage	2052
licensing system and registry, the superintendent of financial	2053
institutions shall investigate the applicant as set forth in	2054
division (D) of this section.	2055

(1)(a) Notwithstanding division (K) of section 121.08 of the	2056
Revised Code, the superintendent shall obtain a criminal history	2057
records check and, as part of the records check, request that	2058
criminal record information from the federal bureau of	2059
investigation be obtained. To fulfill this requirement, the	2060
superintendent shall do either of the following:	2061

(i) Request the superintendent of the bureau of criminal	2062
identification and investigation, or a vendor approved by the	2063
bureau, to conduct a criminal records check based on the	2064
applicant's fingerprints or, if the fingerprints are unreadable,	2065
based on the applicant's social security number, in accordance	2066
with division (A)(12) of section 109.572 of the Revised Code;	2067

(ii) Authorize the nationwide mortgage licensing system and	2068
registry to request a criminal history background check.	2069

(b) Any fee required under division (C)(3) of section 109.572	2070
of the Revised Code or by the nationwide mortgage licensing system	2071
and registry shall be paid by the applicant.	2072

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

2073

(3) If, in order to issue a license to an applicant,	2074
additional investigation by the superintendent outside this state	2075
is necessary, the superintendent may require the applicant to	2076
advance sufficient funds to pay the actual expenses of the	2077
investigation, if it appears that these expenses will exceed one	2078
hundred fifty dollars. The superintendent shall provide the	2079
applicant with an itemized statement of the actual expenses that	2080
the applicant is required to pay.	2081

(E)(1) In connection with applying for a loan originator	2082
license, the applicant shall furnish to the nationwide mortgage	2083
licensing system and registry the following information concerning	2084
the applicant's identity:	2085

(a) The applicant's fingerprints for submission to the	2086
federal bureau of investigation, and any other governmental agency	2087
or entity authorized to receive such information, for purposes of	2088
a state, national, and international criminal history background	2089
check;	2090

(b) Personal history and experience in a form prescribed by	2091
the nationwide mortgage licensing system and registry, along with	2092
authorization for the superintendent and the nationwide mortgage	2093
licensing system and registry to obtain the following:	2094

(i) An independent credit report from a consumer reporting	2095
agency;	2096

(ii) Information related to any administrative, civil, or	2097
criminal findings by any governmental jurisdiction.	2098

(2) In order to effectuate the purposes of divisions	2099
(E)(1)(a) and (E)(1)(b)(ii) of this section, the superintendent	2100
may use the conference of state bank supervisors, or a wholly	2101
owned subsidiary, as a channeling agent for requesting information	2102
from and distributing information to the United States department	2103
of justice or any other governmental agency. The superintendent	2104
may also use the nationwide mortgage licensing system and registry	2105
as a channeling agent for requesting information from and	2106
distributing information to any source related to matters subject	2107
to those divisions of this section.	2108

(F) The superintendent shall pay all funds advanced and	2109
application and renewal fees and penalties the superintendent	2110
receives pursuant to this section and section 1322.041 of the	2111
Revised Code to the treasurer of state to the credit of the	2112
consumer finance fund created in section 1321.21 of the Revised	2113
Code.	2114

(G) If an application for a loan originator license does not	2115
contain all of the information required under this section, and if	2116
that information is not submitted to the superintendent or to the	2117
nationwide mortgage licensing system and registry within ninety	2118
days after the superintendent or the nationwide mortgage licensing	2119
system and registry requests the information in writing, including	2120
by electronic transmission or facsimile, the superintendent may	2121
consider the application withdrawn.	2122

(H)(1) The business of a loan originator shall principally be	2123
transacted at an office of the mortgage broker with whom the	2124
licensee is employed or associated, which office is registered in	2125
accordance with division (A) of section 1322.02 of the Revised	2126
Code. Each original loan originator license shall be deposited	2127
with and maintained by the mortgage broker at the mortgage	2128
broker's main office. A copy of the license shall be maintained	2129
and displayed at the office where the loan originator principally	2130
transacts business.	2131

(2) If a loan originator's employment or association is	2132
terminated for any reason, the mortgage broker shall return the	2133
original loan originator license to the superintendent within five	2134
business days after the termination. The licensee may request the	2135
transfer of the license to another mortgage broker by submitting a	2136
transfer application, along with a fifteen dollar fee and any fee	2137
required by the national mortgage licensing system and registry,	2138
to the superintendent or may request the superintendent in writing	2139
to hold the license in escrow. Any licensee whose license is held	2140
in escrow shall cease activity as a loan originator. A licensee	2141
whose license is held in escrow shall be required to apply for	2142
renewal annually and to comply with the annual continuing	2143
education requirement.	2144

(3) A mortgage broker may employ or be associated with a loan	2145
originator on a temporary basis pending the transfer of the loan	2146
originator's license to the mortgage broker, if the mortgage	2147
broker receives written confirmation from the superintendent that	2148
the loan originator is licensed under sections 1322.01 to 1322.12	2149
of the Revised Code.	2150

(4) Notwithstanding divisions (H)(1) to (3) of this section,	2151
if a licensee is employed by or associated with a person or entity	2152
listed in division (G)(2) of section 1322.01 of the Revised Code,	2153
all of the following apply:	2154

(a) The licensee shall maintain and display the original loan	2155
originator license at the office where the licensee principally	2156
transacts business;	2157

(b) If the loan originator's employment or association is	2158
terminated, the loan originator shall return the original loan	2159
originator license to the superintendent within five business days	2160
after termination. The licensee may request the transfer of the	2161
license to a mortgage broker or another person or entity listed in	2162
division (G)(2) of section 1322.01 of the Revised Code by	2163
submitting a transfer application, along with a fifteen-dollar fee	2164
and any fee required by the national mortgage licensing system and	2165
registry, to the superintendent or may request the superintendent	2166
in writing to hold the license in escrow. A licensee whose license	2167
is held in escrow shall cease activity as a loan originator. A	2168
licensee whose license is held in escrow shall be required to	2169
apply for renewal annually and to comply with the annual	2170
continuing education requirement.	2171

(c) The licensee may seek to be employed or associated with a	2172
mortgage broker or person or entity listed in division (G)(2) of	2173
section 1322.01 of the Revised Code if the mortgage broker or	2174
person or entity receives written confirmation from the	2175
superintendent that the loan originator is licensed under sections	2176
1322.01 to 1322.12 of the Revised Code.	2177

(I) The superintendent may establish relationships or enter	2178
into contracts with the nationwide mortgage licensing system and	2179
registry, or any entities designated by it, to collect and	2180
maintain records and process transaction fees or other fees	2181
related to loan originator licenses or the persons associated with	2182
a licensee.	2183

(J) A loan originator license, or the authority granted under	2184
that license, is not assignable and cannot be franchised by	2185
contract or any other means.	2186

Sec. 1322.04.  (A) Upon the conclusion of the investigation	2187
required under division (B) of section 1322.03 of the Revised	2188
Code, the superintendent of financial institutions shall issue a	2189
certificate of registration to the applicant if the superintendent	2190
finds that the following conditions are met:	2191

(1) The application is accompanied by the application fee and	2192
any fee required by the nationwide mortgage licensing system and	2193
registry.	2194

(a) If a check or other draft instrument is returned to the	2195
superintendent for insufficient funds, the superintendent shall	2196
notify the applicant by certified mail, return receipt requested,	2197
that the application will be withdrawn unless the applicant,	2198
within thirty days after receipt of the notice, submits the	2199
application fee and a one-hundred-dollar penalty to the	2200
superintendent. If the applicant does not submit the application	2201
fee and penalty within that time period, or if any check or other	2202
draft instrument used to pay the fee or penalty is returned to the	2203
superintendent for insufficient funds, the application shall be	2204
withdrawn.	2205

(b) If a check or other draft instrument is returned to the	2206
superintendent for insufficient funds after the certificate of	2207
registration has been issued, the superintendent shall notify the	2208
registrant by certified mail, return receipt requested, that the	2209
certificate of registration issued in reliance on the check or	2210
other draft instrument will be canceled unless the registrant,	2211
within thirty days after receipt of the notice, submits the	2212
application fee and a one-hundred-dollar penalty to the	2213
superintendent. If the registrant does not submit the application	2214
fee and penalty within that time period, or if any check or other	2215
draft instrument used to pay the fee or penalty is returned to the	2216
superintendent for insufficient funds, the certificate of	2217
registration shall be canceled immediately without a hearing, and	2218
the registrant shall cease activity as a mortgage broker.	2219

(2) If the application is for a location that is a residence,	2220
evidence that the use of the residence to transact business as a	2221
mortgage broker is not prohibited.	2222

(3) The person designated on the application pursuant to	2223
division (A)(3) of section 1322.03 of the Revised Code meets the	2224
experience requirements provided in division (A)(4) of section	2225
1322.03 of the Revised Code and the education requirements set	2226
forth in division (A)(5) of section 1322.03 of the Revised Code.	2227

(4) The applicant maintains all necessary filings and	2228
approvals required by the secretary of state.	2229

(5) The applicant complies with the surety bond requirements	2230
of section 1322.05 of the Revised Code.	2231

(6) The applicant complies with sections 1322.01 to 1322.12	2232
of the Revised Code and the rules adopted thereunder.	2233

(7) Neither the applicant nor any person whose identity is	2234
required to be disclosed on an application for a mortgage broker	2235
certificate of registration has had a mortgage broker certificate	2236
of registration or loan originator license, or any comparable	2237
authority, revoked in any governmental jurisdiction or has pleaded	2238
guilty or nolo contendere to or been convicted of any of the	2239
following in a domestic, foreign, or military court:	2240

(a) During the seven-year period immediately preceding the	2241
date of application for the certificate of registration, any	2242
felony or a misdemeanor involving theft or any felony;	2243

(b) At any time prior to the date the application for the	2244
certificate of registration is approved, a felony involving an act	2245
of fraud, dishonesty, a breach of trust, theft, or money	2246
laundering.	2247

(8) Based on the totality of the circumstances and	2248
information submitted in the application, the applicant has proven	2249
to the superintendent, by a preponderance of the evidence, that	2250
the applicant is of good business repute, appears qualified to act	2251
as a mortgage broker, has fully complied with sections 1322.01 to	2252
1322.12 of the Revised Code and the rules adopted thereunder, and	2253
meets all of the conditions for issuing a mortgage broker	2254
certificate of registration.	2255

(9) The applicant's operations manager successfully completed	2256
the examination required under division (A) of section 1322.051 of	2257
the Revised Code.	2258

(10) The applicant's financial responsibility, experience,	2259
character, and general fitness command the confidence of the	2260
public and warrant the belief that the business will be operated	2261
honestly and fairly in compliance with the purposes of sections	2262
1322.01 to 1322.12 of the Revised Code and the rules adopted	2263
thereunder. The superintendent shall not use a credit score as the	2264
sole basis for registration denial.	2265

(B) For purposes of determining whether an applicant that is	2266
a partnership, corporation, or other business entity or	2267
association has met the conditions set forth in divisions (A)(7),	2268
(A)(8), and (A)(10) of this section, the superintendent shall	2269
determine which partners, shareholders, or persons named in the	2270
application pursuant to division (A)(2) of section 1322.03 of the	2271
Revised Code must meet the conditions set forth in divisions	2272
(A)(7), (A)(8), and (A)(10) of this section. This determination	2273
shall be based on the extent and nature of the partner's,	2274
shareholder's, or person's ownership interest in the partnership,	2275
corporation, or other business entity or association that is the	2276
applicant and on whether the person is in a position to direct,	2277
control, or adversely influence the operations of the applicant.	2278

(C) The certificate of registration issued pursuant to	2279
division (A) of this section may be renewed annually on or before	2280
the thirty-first day of December if the superintendent finds that	2281
all of the following conditions are met:	2282

(1) The renewal application is accompanied by a nonrefundable	2283
renewal fee of five hundred dollars for each location of an office	2284
to be maintained by the applicant in accordance with division (A)	2285
of section 1322.02 of the Revised Code and any fee required by the	2286
nationwide mortgage licensing system and registry. If a check or	2287
other draft instrument is returned to the superintendent for	2288
insufficient funds, the superintendent shall notify the registrant	2289
by certified mail, return receipt requested, that the certificate	2290
of registration renewed in reliance on the check or other draft	2291
instrument will be canceled unless the registrant, within thirty	2292
days after receipt of the notice, submits the renewal fee and a	2293
one-hundred-dollar penalty to the superintendent. If the	2294
registrant does not submit the renewal fee and penalty within that	2295
time period, or if any check or other draft instrument used to pay	2296
the fee or penalty is returned to the superintendent for	2297
insufficient funds, the certificate of registration shall be	2298
canceled immediately without a hearing and the registrant shall	2299
cease activity as a mortgage broker.	2300

(2) The operations manager designated under division (A)(3)	2301
of section 1322.03 of the Revised Code has completed, at least	2302
eight hours of continuing education as required under section	2303
1322.052 of the Revised Code.	2304

(3) The applicant meets the conditions set forth in divisions	2305
(A)(2) to (10) of this section.	2306

(4) The applicant's mortgage broker certificate of	2307
registration is not subject to an order of suspension or an unpaid	2308
and past due fine imposed by the superintendent.	2309

(D)(1) Subject to division (D)(2) of this section, if a	2310
renewal fee or additional fee required by the nationwide mortgage	2311
licensing system and registry is received by the superintendent	2312
after the thirty-first day of December, the mortgage broker	2313
certificate of registration shall not be considered renewed, and	2314
the applicant shall cease activity as a mortgage broker.	2315

(2) Division (D)(1) of this section shall not apply if the	2316
applicant, no later than the thirty-first day of January, submits	2317
the renewal fee or additional fee and a one-hundred-dollar penalty	2318
to the superintendent.	2319

(E) If the person designated as the operations manager	2320
pursuant to division (A)(3) of section 1322.03 of the Revised Code	2321
is no longer the operations manager, the registrant shall do all	2322
of the following:	2323

(1) Within ninety days after the departure of the designated	2324
operations manager, designate another person as the operations	2325
manager;	2326

(2) Within ten days after the designation described in	2327
division (E)(1) of this section, notify the superintendent in	2328
writing of the designation;	2329

(3) Submit any additional information that the superintendent	2330
requires to establish that the newly designated operations manager	2331
complies with the requirements set forth in section 1322.03 of the	2332
Revised Code.	2333

(F) The registrant shall cease operations if it is without an	2334
operations manager approved by the superintendent for more than	2335
one hundred eighty days unless otherwise authorized in writing by	2336
the superintendent due to exigent circumstances.	2337

(G) Mortgage broker certificates of registration issued on or	2338
after May 1, 2010, annually expire on the thirty-first day of	2339
December.	2340

Sec. 1322.041. (A) Upon the conclusion of the investigation	2341
required under division (D) of section 1322.031 of the Revised	2342
Code, the superintendent of financial institutions shall issue a	2343
loan originator license to the applicant if the superintendent	2344
finds that the following conditions are met:	2345

(1) The application is accompanied by the application fee and	2346
any fee required by the nationwide mortgage licensing system and	2347
registry.	2348

(a) If a check or other draft instrument is returned to the	2349
superintendent for insufficient funds, the superintendent shall	2350
notify the applicant by certified mail, return receipt requested,	2351
that the application will be withdrawn unless the applicant,	2352
within thirty days after receipt of the notice, submits the	2353
application fee and a one-hundred-dollar penalty to the	2354
superintendent. If the applicant does not submit the application	2355
fee and penalty within that time period, or if any check or other	2356
draft instrument used to pay the fee or penalty is returned to the	2357
superintendent for insufficient funds, the application shall be	2358
withdrawn.	2359

(b) If a check or other draft instrument is returned to the	2360
superintendent for insufficient funds after the license has been	2361
issued, the superintendent shall notify the licensee by certified	2362
mail, return receipt requested, that the license issued in	2363
reliance on the check or other draft instrument will be canceled	2364
unless the licensee, within thirty days after receipt of the	2365
notice, submits the application fee and a one-hundred-dollar	2366
penalty to the superintendent. If the licensee does not submit the	2367
application fee and penalty within that time period, or if any	2368
check or other draft instrument used to pay the fee or penalty is	2369
returned to the superintendent for insufficient funds, the license	2370
shall be canceled immediately without a hearing, and the licensee	2371
shall cease activity as a loan originator.	2372

(2) The applicant complies with sections 1322.01 to 1322.12	2373
of the Revised Code and the rules adopted thereunder.	2374

(3)(a) During the seven-year period immediately preceding the	2375
date of application for the license, theThe applicant has not	2376
been convicted of or pleaded guilty or nolo contendere to any	2377
felony or a misdemeanor involving theftof the following in a	2378
domestic, foreign, or military court.:	2379

(a) During the seven-year period immediately preceding the	2380
date of application for the license, a misdemeanor involving theft	2381
or any felony;	2382

(b) At any time prior to the date the application for the	2383
license is approved, the applicant has not been convicted of or	2384
pleaded guilty to a felony involving an act of fraud, dishonesty,	2385
a breach of trust, theft, or money laundering in a domestic,	2386
foreign, or military court.	2387

(4) Based on the totality of the circumstances and	2388
information submitted in the application, the applicant has proven	2389
to the superintendent, by a preponderance of the evidence, that	2390
the applicant is of good business repute, appears qualified to act	2391
as a loan originator, has fully complied with sections 1322.01 to	2392
1322.12 of the Revised Code and the rules adopted thereunder, and	2393
meets all of the conditions for issuing a loan originator license.	2394

(5) The applicant successfully completed the written test	2395
required under division (B) of section 1322.051 of the Revised	2396
Code and completed the prelicensing instruction set forth in	2397
division (B) of section 1322.031 of the Revised Code.	2398

(6) The applicant's financial responsibility, character, and	2399
general fitness command the confidence of the public and warrant	2400
the belief that the business will be operated honestly and fairly	2401
in compliance with the purposes of sections 1322.01 to 1322.12 of	2402
the Revised Code. The superintendent shall not use a credit score	2403
as the sole basis for a license denial.	2404

(7) The applicant is in compliance with the surety bond	2405
requirements of section 1322.05 of the Revised Code.	2406

(8) The applicant has not had a loan originator license, or	2407
comparable authority, revoked in any governmental jurisdiction.	2408

(B) The license issued under division (A) of this section may	2409
be renewed annually on or before the thirty-first day of December	2410
if the superintendent finds that all of the following conditions	2411
are met:	2412

(1) The renewal application is accompanied by a nonrefundable	2413
renewal fee of one hundred fifty dollars and any fee required by	2414
the nationwide mortgage licensing system and registry. If a check	2415
or other draft instrument is returned to the superintendent for	2416
insufficient funds, the superintendent shall notify the licensee	2417
by certified mail, return receipt requested, that the license	2418
renewed in reliance on the check or other draft instrument will be	2419
canceled unless the licensee, within thirty days after receipt of	2420
the notice, submits the renewal fee and a one-hundred-dollar	2421
penalty to the superintendent. If the licensee does not submit the	2422
renewal fee and penalty within that time period, or if any check	2423
or other draft instrument used to pay the fee or penalty is	2424
returned to the superintendent for insufficient funds, the license	2425
shall be canceled immediately without a hearing, and the licensee	2426
shall cease activity as a loan originator.	2427

(2) The applicant has completed at least eight hours of	2428
continuing education as required under section 1322.052 of the	2429
Revised Code.	2430

(3) The applicant meets the conditions set forth in divisions	2431
(A)(2) to (8) of this section; provided, however, that an	2432
applicant who was issued a loan officer license prior to January	2433
1, 2010, and has continuously maintained that license shall not be	2434
required to meet the condition described in division (B)(1)(b) of	2435
section 1322.031 of the Revised Code.	2436

(4) The applicant's license is not subject to an order of	2437
suspension or an unpaid and past due fine imposed by the	2438
superintendent.	2439

(C)(1) Subject to division (C)(2) of this section, if a	2440
license renewal application or renewal fee, including any fee	2441
required by the nationwide mortgage licensing system and registry,	2442
is received by the superintendent after the thirty-first day of	2443
December, the license shall not be considered renewed, and the	2444
applicant shall cease activity as a loan originator.	2445

(2) Division (C)(1) of this section shall not apply if the	2446
applicant, no later than the thirty-first day of January, submits	2447
the renewal application and fees and a one-hundred-dollar penalty	2448
to the superintendent.	2449

(D) Loan originator licenses issued on or after May 1, 2010,	2450
annually expire on the thirty-first day of December.	2451

Sec. 1322.062. (A)(1) Within three business days after taking	2452
an application for a residential mortgage loan from a buyer, a	2453
registrant or licensee shall deliver to the buyer a residential	2454
mortgage loan origination disclosure statement that contains all	2455
of the following:	2456

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

2457

(b) The typewritten name of the loan originator and the	2458
number designated on the loan originator's license;	2459

(c) The street address, telephone number, and facsimile	2460
number of the registrant and the number designated on the	2461
registrant's certificate of registration;	2462

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

2463

(e) A statement indicating whether the buyer is to pay for	2464
the services of a bona fide third party if the registrant is	2465
unable to assist the buyer in obtaining a mortgage;	2466

(f) A statement that describes the method by which the fee to	2467
be paid by the buyer to the registrant will be calculated and a	2468
good faith estimate of the total amount of that fee;	2469

(g) A statement that the lender may pay compensation to the	2470
registrant;	2471

(h) A description of all the services the registrant has	2472
agreed to perform for the buyer;	2473

(i) A statement that the buyer has not entered into an	2474
exclusive agreement for brokerage services;	2475

(j) If the residential mortgage loan applied for will exceed	2476
ninety per cent of the value of the real property, a statement,	2477
printed in boldface type of the minimum size of sixteen points, as	2478
follows: "You are applying for a loan that is more than 90% of	2479
your home's value. It will be hard for you to refinance this loan.	2480
If you sell your home, you might owe more money on the loan than	2481
you get from the sale."	2482

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

2483

(2) If the loan is a covered loan as defined in section	2484
1349.25 of the Revised Code, the registrant shall also deliver a	2485
copy of the residential mortgage loan origination disclosure	2486
statement to the lender.	2487

(B) If there is any change in the information provided under	2488
division (A)(1) of this section, the registrant or licensee shall	2489
provide the buyer with the revised residential mortgage loan	2490
origination disclosure statement and a written explanation of why	2491
the change occurred no later than twenty-four hours after the	2492
change occurs, or twenty-four hours before the loan is closed,	2493
whichever is earlier.	2494

(C) A registrant or licensee shall deliver to the buyer,	2495
immediately upon receipt, a copy of any nonproprietary or publicly	2496
available credit score and report obtained regarding the buyer by	2497
the registrant or licensee for the purpose of the residential	2498
mortgage loan application;.	2499

If the loan originator or registrant uses an automated	2500
valuation model to determine an appraisal report, the registrant	2501
or licensee also shall include a copy of the automated valuation	2502
model report.	2503

(D) A registrant or licensee shall deliver to the buyer, at	2504
the same time that the registrant or licensee delivers the	2505
residential mortgage loan origination disclosure statement	2506
pursuant to division (A) of this section, aboth of the following	2507
documents:	2508

(1) A good faith estimate statement that discloses the amount	2509
of or range of charges for the specific settlement services the	2510
buyer is likely to incur in connection with the residential	2511
mortgage loan. The good faith estimate statement shall meet the	2512
requirements of the "Real Estate Settlement Procedures Act," 88	2513
Stat. 1724 (1974), 12 U.S.C.A. 2601 et seq., and shall include the	2514
following	2515

(2) An underlined notice in at least ten-point type, new	2516
roman style, as follows:	2517

"Nature of Relationship: In connection with this residential	2518
mortgage loan, you, the borrower(s), has/have requested assistance	2519
from ............ (company name) in arranging credit. We do not	2520
distribute all products in the marketplace and cannot guarantee	2521
the lowest rate.	2522

Termination: This agreement will continue until one of the	2523
following events occur:	2524

1. The loan closes.

2525

2. The request is denied.

2526

3. The borrower withdraws the request.

2527

4. The borrower decides to use another source for	2528
origination.	2529

5. The borrower is provided a revised good faith estimate	2530
statement.	2531

Notice to borrower(s): Signing this document does not obligate you	2532
to obtain a residential mortgage loan through this mortgage	2533
originator nor is this a loan commitment or an approval; nor is	2534
your interest rate locked at this time unless otherwise disclosed	2535
on a separate Rate Lock Disclosure Form. Do not sign this document	2536
until you have read and understood the information in it. You will	2537
receive a redisclosure of any increase in interest rate or if the	2538
total sum of disclosed settlement/closing costs increases by 10%	2539
or more of the original estimate. Should any such increase occur,	2540
mandatory redisclosure must occur prior to the settlement or close	2541
of escrow."	2542

(E) No registrant or licensee shall fail to comply with this	2543
section.	2544

Sec. 1322.07.  No registrant, licensee, person required to be	2545
registered or licensed under sections 1322.01 to 1322.12 of the	2546
Revised Code, or individual disclosed in an application as	2547
required by division (A)(2) of section 1322.03 of the Revised Code	2548
shall do any of the following:	2549

(A) Obtain a mortgage broker certificate of registration or	2550
loan originator license through any false or fraudulent	2551
representation of a material fact or any omission of a material	2552
fact required by state law, or make any substantial	2553
misrepresentation in any registration or license application;	2554

(B) Make false or misleading statements of a material fact,	2555
omissions of statements required by state or federal law, or false	2556
promises regarding a material fact, through advertising or other	2557
means, or engage in a continued course of misrepresentations;	2558

(C) Engage in conduct that constitutes improper, fraudulent,	2559
or dishonest dealings;	2560

(D) Fail to notify the division of financial institutions	2561
within thirty days after any of the following:	2562

(1) Being convicted of or pleading guilty or nolo contendere	2563
to a felony in a domestic, foreign, or military court;	2564

(2) Being convicted of or pleading guilty or nolo contendere	2565
to any criminal offense involving theft, receiving stolen	2566
property, embezzlement, forgery, fraud, passing bad checks, money	2567
laundering, breach of trust, dishonesty, or drug trafficking, or	2568
any criminal offense involving money or securities, in a domestic,	2569
foreign, or military court;	2570

(3) Having a mortgage broker certificate of registration or	2571
loan originator license, or any comparable authority, revoked in	2572
any governmental jurisdiction.	2573

(E) Knowingly make, propose, or solicit fraudulent, false, or	2574
misleading statements on any mortgage loan document or on any	2575
document related to a mortgage loan, including a mortgage	2576
application, real estate appraisal, or real estate settlement or	2577
closing document. For purposes of this division, "fraudulent,	2578
false, or misleading statements" does not include mathematical	2579
errors, inadvertent transposition of numbers, typographical	2580
errors, or any other bona fide error.	2581

(F) Knowingly instruct, solicit, propose, or otherwise cause	2582
a buyer to sign in blank a mortgage related document;	2583

(G) Knowingly compensate, instruct, induce, coerce, or	2584
intimidate, or attempt to compensate, instruct, induce, coerce, or	2585
intimidate, a person licensed or certified under Chapter 4763. of	2586
the Revised Code for the purpose of corrupting or improperly	2587
influencing the independent judgment of the person with respect to	2588
the value of the dwelling offered as security for repayment of a	2589
mortgage loan;	2590

(H) Promise to refinance a loan in the future at a lower	2591
interest rate or with more favorable terms, unless the promise is	2592
set forth in writing and is initialed by the buyer;	2593

(I) Engage in any unfair, deceptive, or unconscionable act or	2594
practice prohibited under sections 1345.01 to 1345.13 of the	2595
Revised Code.	2596

Sec. 1322.074. (A) Except as otherwise provided in division	2597
(B) of this section, no registrant, or any member of the immediate	2598
family of an owner of a registrant, shall own or control a	2599
majority interest in an appraisal company.	2600

(B) Division (A) of this section shall not apply to any	2601
registrant, or any member of the immediate family of an owner of a	2602
registrant, who, on the effective date of this amendmentJanuary	2603
1, 2010, directly or indirectly owns or controls a majority	2604
interest in an appraisal company. However, such ownership or	2605
control is subject to the following conditions:	2606

(1) The registrant and members of the immediate family of an	2607
owner of a registrant shall not increase their interest in the	2608
company.	2609

(2) The interest is not transferable to a member of the	2610
immediate family of an owner of a registrant.	2611

(3) If the registrant is convicted of or pleads guilty or	2612
nolo contendere to a criminal violation of sections 1322.01 to	2613
1322.12 of the Revised Code or any criminal offense described in	2614
division (A)(1)(b) of section 1322.10 of the Revised Code, the	2615
superintendent of financial institutions may, in addition to any	2616
of the actions authorized under section 1322.10 of the Revised	2617
Code, order the registrant or members of the immediate family of	2618
an owner of a registrant to divest their interest in the company.	2619

Sec. 1322.10.  (A) After notice and opportunity for a hearing	2620
conducted in accordance with Chapter 119. of the Revised Code, the	2621
superintendent of financial institutions may do the following:	2622

(1) Suspend, revoke, or refuse to issue or renew a	2623
certificate of registration or license if the superintendent finds	2624
any of the following:	2625

(a) A violation of or failure to comply with any provision of	2626
sections 1322.01 to 1322.12 of the Revised Code or the rules	2627
adopted under those sections, federal lending law, or any other	2628
law applicable to the business conducted under a certificate of	2629
registration or license;	2630

(b) A conviction of or guilty or nolo contendere plea to a	2631
felony in a domestic, foreign, or military court;	2632

(c) A conviction of or guilty or nolo contendere plea to any	2633
criminal offense involving theft, receiving stolen property,	2634
embezzlement, forgery, fraud, passing bad checks, money	2635
laundering, breach of trust, dishonesty, or drug trafficking, or	2636
any criminal offense involving money or securities, in a domestic,	2637
foreign, or military court;	2638

(d) The revocation of a mortgage broker certificate of	2639
registration or loan originator license, or any comparable	2640
authority, in any governmental jurisdiction.	2641

(2) Impose a fine of not more than one thousand dollars, for	2642
each day a violation of a law or rule is committed, repeated, or	2643
continued. If the registrant or licensee engages in a pattern of	2644
repeated violations of a law or rule, the superintendent may	2645
impose a fine of not more than two thousand dollars for each day	2646
the violation is committed, repeated, or continued. All fines	2647
collected pursuant to this division shall be paid to the treasurer	2648
of state to the credit of the consumer finance fund created in	2649
section 1321.21 of the Revised Code. In determining the amount of	2650
a fine to be imposed pursuant to this division, the superintendent	2651
may consider all of the following, to the extent known by the	2652
division of financial institutions:	2653

(a) The seriousness of the violation;

2654

(b) The registrant's or licensee's good faith efforts to	2655
prevent the violation;	2656

(c) The registrant's or licensee's history regarding	2657
violations and compliance with division orders;	2658

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

2659

(e) Any other matters the superintendent considers	2660
appropriate in enforcing sections 1322.01 to 1322.12 of the	2661
Revised Code.	2662

(B) The superintendent may investigate alleged violations of	2663
sections 1322.01 to 1322.12 of the Revised Code or the rules	2664
adopted under those sections or complaints concerning any	2665
violation.	2666

(1) The superintendent may make application to the court of	2667
common pleas for an order enjoining any violation and, upon a	2668
showing by the superintendent that a person has committed or is	2669
about to commit that violation, the court shall grant an	2670
injunction, restraining order, or other appropriate relief.	2671

(2) The superintendent may make application to the court of	2672
common pleas for an order enjoining any person from acting as a	2673
mortgage broker, registrant, loan originator, or licensee in	2674
violation of division (A) or (B) of section 1322.02 of the Revised	2675
Code, and may seek and obtain civil penalties for unregistered or	2676
unlicensed conduct of not more than five thousand dollars per	2677
violation.	2678

(C) In conducting any investigation pursuant to this section,	2679
the superintendent may compel, by subpoena, witnesses to testify	2680
in relation to any matter over which the superintendent has	2681
jurisdiction and may require the production of any book, record,	2682
or other document pertaining to that matter. If a person fails to	2683
file any statement or report, obey any subpoena, give testimony,	2684
produce any book, record, or other document as required by a	2685
subpoena, or permit photocopying of any book, record, or other	2686
document subpoenaed, the court of common pleas of any county in	2687
this state, upon application made to it by the superintendent,	2688
shall compel obedience by attachment proceedings for contempt, as	2689
in the case of disobedience of the requirements of a subpoena	2690
issued from the court or a refusal to testify therein.	2691

(D) If the superintendent determines that a person is engaged	2692
in or is believed to be engaged in activities that may constitute	2693
a violation of sections 1322.01 to 1322.12 of the Revised Code or	2694
any rule adopted thereunder, the superintendent, after notice and	2695
a hearing conducted in accordance with Chapter 119. of the Revised	2696
Code, may issue a cease and desist order. If the administrative	2697
action is to enjoin a person from acting as a mortgage broker or	2698
loan originator in violation of division (A) or (B) of section	2699
1322.02 of the Revised Code, the superintendent may seek and	2700
impose fines for that conduct in an amount not to exceed five	2701
thousand dollars per violation. Such an order shall be enforceable	2702
in the court of common pleas.	2703

(E) If the superintendent revokes a mortgage broker	2704
certificate of registration or loan originator license, the	2705
revocation shall be permanent and with prejudice.	2706

(F)(1) To protect the public interest, the superintendent	2707
may, without a prior hearing, do any of the following:	2708

(a) Suspend the mortgage broker certificate of registration	2709
or loan originator license of a registrant or licensee who is	2710
convicted of or pleads guilty or nolo contendere to a criminal	2711
violation of any provision of sections 1322.01 to 1322.12 of the	2712
Revised Code or any criminal offense described in division	2713
(A)(1)(b) or (c) of this section;	2714

(b) Suspend the mortgage broker certificate of registration	2715
of a registrant who violates division (F) of section 1322.05 of	2716
the Revised Code;	2717

(c) Suspend the mortgage broker certificate of registration	2718
or loan originator license of a registrant or licensee who fails	2719
to comply with a request made by the superintendent under section	2720
1322.03 or 1322.031 of the Revised Code to inspect qualifying	2721
education transcripts located at the registrant's or licensee's	2722
place of business.	2723

(2) The superintendent may, in accordance with Chapter 119.	2724
of the Revised Code, subsequently revoke any registration or	2725
license suspended under division (F)(1) of this section.	2726

(3) The superintendent shall, in accordance with Chapter 119.	2727
of the Revised Code, adopt rules establishing the maximum amount	2728
of time a suspension under division (F)(1) of this section may	2729
continue before a hearing is conducted.	2730

(G) The imposition of fines under this section does not	2731
preclude any penalty imposed under section 1322.99 of the Revised	2732
Code.	2733

Sec. 1322.99. (A) Whoever violates division (A)(1) or (2) of	2734
section 1322.02, division (E), (F), or (G) of section 1322.07,	2735
division (B)(1) or (2) of section 1322.071, or section 1322.08 of	2736
the Revised Code is guilty of a felony of the fifth degree.	2737

(B) Whoever violates division (B)(3) of section 1322.071 of	2738
the Revised Code is guilty of a felony of the fourth degree.	2739

(C) Whoever violates division (B) or (C)(1) or (2) of section	2740
1322.02 of the Revised Code is guilty of a misdemeanor of the	2741
first degree.	2742

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

2743

(1) "Discount points" means any charges, whether or not	2744
actually denominated as "discount points," that are paid by the	2745
seller or the buyer of residential real property to a residential	2746
mortgage lender or that are deducted and retained by a residential	2747
mortgage lender from the proceeds of the residential mortgage.	2748
"Discount points" does not include the costs associated with	2749
settlement services as defined in the "Real Estate Settlement	2750
Procedures Act of 1974," 88 Stat. 1724, 12 U.S.C. 2601, amendments	2751
thereto, reenactments thereof, enactments parallel thereto, or in	2752
substitution therefor, or regulations issued thereunder.	2753

(2) "Residential mortgage" means an obligation to pay a sum	2754
of money evidenced by a note and secured by a lien upon real	2755
property located within this state containing two or fewer	2756
residential units or on which two or fewer residential units are	2757
to be constructed and includes such an obligation on a residential	2758
condominium or cooperative unit.	2759

(3) "Residential mortgage lender" means any person, bank, or	2760
savings and loan association that lends money or extends or grants	2761
credit and obtains a residential mortgage to assure payment of the	2762
debt. The term also includes the holder at any time of a	2763
residential mortgage obligation.	2764

(B) Except residential mortgage loans described in division	2765
(B)(3) of section 1343.01 of the Revised Code, no residential	2766
mortgage lender shall receive either directly or indirectly from a	2767
seller or buyer of real estate any discount points in excess of	2768
two per cent of the original principal amount of the residential	2769
mortgage. This division is not a limitation on discount points or	2770
other charges for purposes of section 501(b)(4) of the "Depository	2771
Institutions Deregulation and Monetary Control Act of 1980," 94	2772
Stat. 161, 12 U.S.C.A. 1735f-7a.	2773

(C)(1) Except as provided in division (C)(2) of this section,	2774
residential mortgage obligations may be prepaid or refinanced	2775
without penalty at any time after five years from the execution	2776
date of the mortgage. Prior to such time a prepayment or	2777
refinancing penalty may be provided not in excess of one per cent	2778
of the original principal amount of the residential mortgage.	2779

(2)(a) No penalty may be charged for the prepayment or	2780
refinancing of a residential mortgage obligation of less than	2781
seventy-five thousand dollars that is made or arranged by a	2782
mortgage broker, loan originatorofficer, or nonbank mortgage	2783
lender, as those terms are defined in section 1345.01 of the	2784
Revised Code, and that is secured by a mortgage on a borrower's	2785
real estate that is a first lien on the real estate.	2786

(b) The amount specified in division (C)(2)(a) of this	2787
section shall be adjusted annually on the first day of January by	2788
the annual percentage change in the consumer price index for all	2789
urban consumers, midwest region, all items, as determined by the	2790
bureau of labor statistics of the United States department of	2791
labor or, if that index is no longer published, a generally	2792
available comparable index, as reported on the first day of June	2793
of the year preceding the adjustment. The department of commerce	2794
shall publish the adjusted amounts on its official web site.	2795

Sec. 1345.01.  As used in sections 1345.01 to 1345.13 of the	2796
Revised Code:	2797

(A) "Consumer transaction" means a sale, lease, assignment,	2798
award by chance, or other transfer of an item of goods, a service,	2799
a franchise, or an intangible, to an individual for purposes that	2800
are primarily personal, family, or household, or solicitation to	2801
supply any of these things. "Consumer transaction" does not	2802
include transactions between persons, defined in sections 4905.03	2803
and 5725.01 of the Revised Code, and their customers, except for	2804
transactions involving a loan made pursuant to sections 1321.35 to	2805
1321.48 of the Revised Code and transactions in connection with	2806
residential mortgages between loan originatorsofficers, mortgage	2807
brokers, or nonbank mortgage lenders and their customers;	2808
transactions between certified public accountants or public	2809
accountants and their clients; transactions between attorneys,	2810
physicians, or dentists and their clients or patients; and	2811
transactions between veterinarians and their patients that pertain	2812
to medical treatment but not ancillary services.	2813

(B) "Person" includes an individual, corporation, government,	2814
governmental subdivision or agency, business trust, estate, trust,	2815
partnership, association, cooperative, or other legal entity.	2816

(C) "Supplier" means a seller, lessor, assignor, franchisor,	2817
or other person engaged in the business of effecting or soliciting	2818
consumer transactions, whether or not the person deals directly	2819
with the consumer. If the consumer transaction is in connection	2820
with a residential mortgage, "supplier" does not include an	2821
assignee or purchaser of the loan for value, except as otherwise	2822
provided in section 1345.091 of the Revised Code. For purposes of	2823
this division, in a consumer transaction in connection with a	2824
residential mortgage, "seller" means a loan originatorofficer,	2825
mortgage broker, or nonbank mortgage lender.	2826

(D) "Consumer" means a person who engages in a consumer	2827
transaction with a supplier.	2828

(E) "Knowledge" means actual awareness, but such actual	2829
awareness may be inferred where objective manifestations indicate	2830
that the individual involved acted with such awareness.	2831

(F) "Natural gas service" means the sale of natural gas,	2832
exclusive of any distribution or ancillary service.	2833

(G) "Public telecommunications service" means the	2834
transmission by electromagnetic or other means, other than by a	2835
telephone company as defined in section 4927.01 of the Revised	2836
Code, of signs, signals, writings, images, sounds, messages, or	2837
data originating in this state regardless of actual call routing.	2838
"Public telecommunications service" excludes a system, including	2839
its construction, maintenance, or operation, for the provision of	2840
telecommunications service, or any portion of such service, by any	2841
entity for the sole and exclusive use of that entity, its parent,	2842
a subsidiary, or an affiliated entity, and not for resale,	2843
directly or indirectly; the provision of terminal equipment used	2844
to originate telecommunications service; broadcast transmission by	2845
radio, television, or satellite broadcast stations regulated by	2846
the federal government; or cable television service.	2847

(H)(1) "Loan originatorofficer" has the same meaningmeans	2848
an individual who for compensation or gain, or in anticipation of	2849
compensation or gain, takes or offers to take a residential	2850
mortgage loan application; assists or offers to assist a buyer in	2851
obtaining or applying to obtain a residential mortgage loan by,	2852
among other things, advising on loan terms, including rates, fees,	2853
and other costs; offers or negotiates terms of a residential	2854
mortgage loan; or issues or offers to issue a commitment for a	2855
residential mortgage loan. "Loan officer" also includes a loan	2856
originator as defined in division (E)(1) of section 1322.01 of the	2857
Revised Code, and includes a "mortgage loan originator" as defined	2858
in section 1321.51 of the Revised Code, except that it.	2859

(2) "Loan officer" does not include an employee of a bank,	2860
savings bank, savings and loan association, credit union, or	2861
credit union service organization organized under the laws of this	2862
state, another state, or the United States; an employee of a	2863
subsidiary of such a bank, savings bank, savings and loan	2864
association, or credit union; or an employee of an affiliate that	2865
(1)(a) controls, is controlled by, or is under common control	2866
with, such a bank, savings bank, savings and loan association, or	2867
credit union and (2)(b) is subject to examination, supervision,	2868
and regulation, including with respect to the affiliate's	2869
compliance with applicable consumer protection requirements, by	2870
the board of governors of the federal reserve system, the	2871
comptroller of the currency, the office of thrift supervision, the	2872
federal deposit insurance corporation, or the national credit	2873
union administration.	2874

(I) "Residential mortgage" or "mortgage" means an obligation	2875
to pay a sum of money evidenced by a note and secured by a lien	2876
upon real property located within this state containing two or	2877
fewer residential units or on which two or fewer residential units	2878
are to be constructed and includes such an obligation on a	2879
residential condominium or cooperative unit.	2880

(J)(1) "Mortgage broker" has the same meaning as in section	2881
1322.01 of the Revised Code, except that itmeans any of the	2882
following:	2883

(a) A person that holds that person out as being able to	2884
assist a buyer in obtaining a mortgage and charges or receives	2885
from either the buyer or lender money or other valuable	2886
consideration readily convertible into money for providing this	2887
assistance;	2888

(b) A person that solicits financial and mortgage information	2889
from the public, provides that information to a mortgage broker or	2890
a person that makes residential mortgage loans, and charges or	2891
receives from either of them money or other valuable consideration	2892
readily convertible into money for providing the information;	2893

(c) A person engaged in table-funding or warehouse-lending	2894
mortgage loans that are residential mortgage loans.	2895

(2) "Mortgage broker" does not include a bank, savings bank,	2896
savings and loan association, credit union, or credit union	2897
service organization organized under the laws of this state,	2898
another state, or the United States; a subsidiary of such a bank,	2899
savings bank, savings and loan association, or credit union; an	2900
affiliate that (1)(a) controls, is controlled by, or is under	2901
common control with, such a bank, savings bank, savings and loan	2902
association, or credit union and (2)(b) is subject to examination,	2903
supervision, and regulation, including with respect to the	2904
affiliate's compliance with applicable consumer protection	2905
requirements, by the board of governors of the federal reserve	2906
system, the comptroller of the currency, the office of thrift	2907
supervision, the federal deposit insurance corporation, or the	2908
national credit union administration; or an employee of any such	2909
entity.	2910

(K) "Nonbank mortgage lender" means any person that engages	2911
in a consumer transaction in connection with a residential	2912
mortgage, except for a bank, savings bank, savings and loan	2913
association, credit union, or credit union service organization	2914
organized under the laws of this state, another state, or the	2915
United States; a subsidiary of such a bank, savings bank, savings	2916
and loan association, or credit union; or an affiliate that (1)	2917
controls, is controlled by, or is under common control with, such	2918
a bank, savings bank, savings and loan association, or credit	2919
union and (2) is subject to examination, supervision, and	2920
regulation, including with respect to the affiliate's compliance	2921
with applicable consumer protection requirements, by the board of	2922
governors of the federal reserve system, the comptroller of the	2923
currency, the office of thrift supervision, the federal deposit	2924
insurance corporation, or the national credit union	2925
administration.	2926

(L) For purposes of divisions (H), (J), and (K) of this	2927
section:	2928

(1) "Control" of another entity means ownership, control, or	2929
power to vote twenty-five per cent or more of the outstanding	2930
shares of any class of voting securities of the other entity,	2931
directly or indirectly or acting through one or more other	2932
persons.	2933

(2) "Credit union service organization" means a CUSO as	2934
defined in 12 C.F.R. 702.2.	2935

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

2936

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

2937

(2) Adopt as a rule a description of the organization of the	2938
attorney general's office, stating the general courses and methods	2939
of operation of the section of the office of the attorney general,	2940
which is to administer Chapter 1345. of the Revised Code and	2941
methods whereby the public may obtain information or make	2942
submissions or requests, including a description of all forms and	2943
instructions used by that office;	2944

(3) Make available for public inspection all rules and all	2945
other written statements of policy or interpretations adopted or	2946
used by the attorney general in the discharge of the attorney	2947
general's functions, together with all judgments, including	2948
supporting opinions, by courts of this state that determine the	2949
rights of the parties and concerning which appellate remedies have	2950
been exhausted, or lost by the expiration of the time for appeal,	2951
determining that specific acts or practices violate section	2952
1345.02, 1345.03, or 1345.031 of the Revised Code;	2953

(4) Inform consumers and suppliers on a continuing basis of	2954
acts or practices that violate Chapter 1345. of the Revised Code	2955
by, among other things, publishing an informational document	2956
describing acts and practices in connection with residential	2957
mortgages that are unfair, deceptive, or unconscionable, and by	2958
making that information available on the attorney general's	2959
official web site;	2960

(5) Cooperate with state and local officials, officials of	2961
other states, and officials of the federal government in the	2962
administration of comparable statutes;	2963

(6) Report annually on or before the first day of January to	2964
the governor and the general assembly on the operations of the	2965
attorney general in respect to Chapter 1345. of the Revised Code,	2966
and on the acts or practices occurring in this state that violate	2967
such chapter. The report shall include a statement of	2968
investigatory and enforcement procedures and policies, of the	2969
number of investigations and enforcement proceedings instituted	2970
and of their disposition, and of other activities of the state and	2971
of other persons to promote the purposes of Chapter 1345. of the	2972
Revised Code.	2973

(7) In carrying out official duties, the attorney general	2974
shall not disclose publicly the identity of suppliers investigated	2975
or the facts developed in investigations unless these matters have	2976
become a matter of public record in enforcement proceedings, in	2977
public hearings conducted pursuant to division (B)(1) of this	2978
section, or the suppliers investigated have consented in writing	2979
to public disclosure.	2980

(B) The attorney general may:

2981

(1) Conduct research, make inquiries, hold public hearings,	2982
and publish studies relating to consumer transactions;	2983

(2) Adopt, amend, and repeal substantive rules defining with	2984
reasonable specificity acts or practices that violate sections	2985
1345.02, 1345.03, and 1345.031 of the Revised Code. In adopting,	2986
amending, or repealing substantive rules defining acts or	2987
practices that violate section 1345.02 of the Revised Code, due	2988
consideration and great weight shall be given to federal trade	2989
commission orders, trade regulation rules and guides, and the	2990
federal courts' interpretations of subsection 45(a)(1) of the	2991
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.	2992
41, as amended.	2993

In adopting, amending, or repealing such rules concerning a	2994
consumer transaction in connection with a residential mortgage,	2995
the attorney general shall consult with the superintendent of	2996
financial institutions and shall give due consideration to state	2997
and federal statutes, regulations, administrative agency	2998
interpretations, and case law.	2999

(C) In the conduct of public hearings authorized by this	3000
section, the attorney general may administer oaths, subpoena	3001
witnesses, adduce evidence, and require the production of relevant	3002
material. Upon failure of a person without lawful excuse to obey a	3003
subpoena or to produce relevant matter, the attorney general may	3004
apply to a court of common pleas for an order compelling	3005
compliance.	3006

(D) The attorney general may request that an individual who	3007
refuses to testify or to produce relevant material on the ground	3008
that the testimony or matter may incriminate the individual be	3009
ordered by the court to provide the testimony or matter. With the	3010
exception of a prosecution for perjury and an action for damages	3011
under section 1345.07 or 1345.09 of the Revised Code, an	3012
individual who complies with a court order to provide testimony or	3013
matter, after asserting a privilege against self incrimination to	3014
which the individual is entitled by law, shall not be subjected to	3015
a criminal proceeding on the basis of the testimony or matter	3016
discovered through that testimony or matter.	3017

(E) Any person may petition the attorney general requesting	3018
the adoption, amendment, or repeal of a rule. The attorney general	3019
shall prescribe by rule the form for such petitions and the	3020
procedure for their submission, consideration, and disposition.	3021
Within sixty days of submission of a petition, the attorney	3022
general shall either deny the petition in writing, stating the	3023
reasons for the denial, or initiate rule-making proceedings. There	3024
is no right to appeal from such denial of a petition.	3025

(F) All rules shall be adopted subject to Chapter 119. of the	3026
Revised Code.	3027

(G) The informational document published in accordance with	3028
division (A)(4) of this section shall be made available for	3029
distribution to consumers who are applying for a mortgage loan. An	3030
acknowledgement of receipt shall be retained by the lender,	3031
mortgage broker, and loan originatorofficer, as applicable,	3032
subject to review by the attorney general and the department of	3033
commerce.	3034

Sec. 1345.09.  For a violation of Chapter 1345. of the	3035
Revised Code, a consumer has a cause of action and is entitled to	3036
relief as follows:	3037

(A) Where the violation was an act prohibited by section	3038
1345.02, 1345.03, or 1345.031 of the Revised Code, the consumer	3039
may, in an individual action, rescind the transaction or recover	3040
the consumer's actual economic damages plus an amount not	3041
exceeding five thousand dollars in noneconomic damages.	3042

(B) Where the violation was an act or practice declared to be	3043
deceptive or unconscionable by rule adopted under division (B)(2)	3044
of section 1345.05 of the Revised Code before the consumer	3045
transaction on which the action is based, or an act or practice	3046
determined by a court of this state to violate section 1345.02,	3047
1345.03, or 1345.031 of the Revised Code and committed after the	3048
decision containing the determination has been made available for	3049
public inspection under division (A)(3) of section 1345.05 of the	3050
Revised Code, the consumer may rescind the transaction or recover,	3051
but not in a class action, three times the amount of the	3052
consumer's actual economic damages or two hundred dollars,	3053
whichever is greater, plus an amount not exceeding five thousand	3054
dollars in noneconomic damages or recover damages or other	3055
appropriate relief in a class action under Civil Rule 23, as	3056
amended.	3057

(C)(1) Except as otherwise provided in division (C)(2) of	3058
this section, in any action for rescission, revocation of the	3059
consumer transaction must occur within a reasonable time after the	3060
consumer discovers or should have discovered the ground for it and	3061
before any substantial change in condition of the subject of the	3062
consumer transaction.	3063

(2) If a consumer transaction between a loan originator	3064
officer, mortgage broker, or nonbank mortgage lender and a	3065
customer is in connection with a residential mortgage, revocation	3066
of the consumer transaction in an action for rescission is only	3067
available to a consumer in an individual action, and shall occur	3068
for no reason other than one or more of the reasons set forth in	3069
the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635,	3070
not later than the time limit within which the right of rescission	3071
under section 125(f) of the "Truth in Lending Act" expires.	3072

(D) Any consumer may seek a declaratory judgment, an	3073
injunction, or other appropriate relief against an act or practice	3074
that violates this chapter.	3075

(E) When a consumer commences an individual action for a	3076
declaratory judgment or an injunction or a class action under this	3077
section, the clerk of court shall immediately mail a copy of the	3078
complaint to the attorney general. Upon timely application, the	3079
attorney general may be permitted to intervene in any private	3080
action or appeal pending under this section. When a judgment under	3081
this section becomes final, the clerk of court shall mail a copy	3082
of the judgment including supporting opinions to the attorney	3083
general for inclusion in the public file maintained under division	3084
(A)(3) of section 1345.05 of the Revised Code.	3085

(F) The court may award to the prevailing party a reasonable	3086
attorney's fee limited to the work reasonably performed, if either	3087
of the following apply:	3088

(1) The consumer complaining of the act or practice that	3089
violated this chapter has brought or maintained an action that is	3090
groundless, and the consumer filed or maintained the action in bad	3091
faith;	3092

(2) The supplier has knowingly committed an act or practice	3093
that violates this chapter.	3094

(G) As used in this section, "actual economic damages" means	3095
damages for direct, incidental, or consequential pecuniary losses	3096
resulting from a violation of Chapter 1345. of the Revised Code	3097
and does not include damages for noneconomic loss as defined in	3098
section 2315.18 of the Revised Code.	3099

(H) Nothing in this section shall preclude a consumer from	3100
also proceeding with a cause of action under any other theory of	3101
law.	3102

Sec. 1349.31.  (A)(1) No creditor shall willfully and	3103
knowingly fail to comply with section 1349.26 or 1349.27 of the	3104
Revised Code. For purposes of division (A)(1) of this section,	3105
"willfully and knowingly" has the same meaning as in section 112	3106
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.	3107
1611, as amended.	3108

(2) Whoever violates division (A)(1) of this section is	3109
guilty of a felony of the fifth degree.	3110

(B) The superintendent of financial institutions may directly	3111
bring an action to enjoin a violation of this section. The	3112
attorney general may directly bring an action against a mortgage	3113
broker, loan originatorofficer, or nonbank mortgage lender to	3114
enjoin a violation of this section with the same rights,	3115
privileges, and powers as those described in section 1345.06 of	3116
the Revised Code. The prosecuting attorney of the county in which	3117
the action may be brought may bring an action against a mortgage	3118
broker, loan originatorofficer, or nonbank mortgage lender to	3119
enjoin a violation of this section only if the prosecuting	3120
attorney first presents any evidence of the violation to the	3121
attorney general and, within a reasonable period of time, the	3122
attorney general has not agreed to bring the action.	3123

For purposes of this division, "loan originatorofficer,"	3124
"mortgage broker," and "nonbank mortgage lender" have the same	3125
meanings as in section 1345.01 of the Revised Code.	3126

(C)(1) The superintendent of financial institutions may	3127
initiate criminal proceedings under this section by presenting any	3128
evidence of criminal violations to the prosecuting attorney of the	3129
county in which the offense may be prosecuted. If the prosecuting	3130
attorney does not prosecute the violations, or at the request of	3131
the prosecuting attorney, the superintendent shall present any	3132
evidence of criminal violations to the attorney general, who may	3133
proceed in the prosecution with all the rights, privileges, and	3134
powers conferred by law on prosecuting attorneys, including the	3135
power to appear before grand juries and to interrogate witnesses	3136
before such grand juries. These powers of the attorney general	3137
shall be in addition to any other applicable powers of the	3138
attorney general.	3139

(2) The prosecuting attorney of the county in which an	3140
alleged offense may be prosecuted may initiate criminal	3141
proceedings under this section.	3142

(3) In order to initiate criminal proceedings under this	3143
section, the attorney general shall first present any evidence of	3144
criminal violations to the prosecuting attorney of the county in	3145
which the alleged offense may be prosecuted. If, within a	3146
reasonable period of time, the prosecuting attorney has not agreed	3147
to prosecute the violations, the attorney general may proceed in	3148
the prosecution with all the rights, privileges, and powers	3149
described in division (C)(1) of this section.	3150

Sec. 1349.43. (A) As used in this section, "loan originator	3151
officer," "mortgage broker," and "nonbank mortgage lender" have	3152
the same meanings as in section 1345.01 of the Revised Code.	3153

(B) The department of commerce shall establish and maintain	3154
an electronic database accessible through the internet that	3155
contains information on all of the following:	3156

(1) The enforcement actions taken by the superintendent of	3157
financial institutions for each violation of or failure to comply	3158
with any provision of sections 1322.01 to 1322.12 of the Revised	3159
Code, upon final disposition of the action;	3160

(2) The enforcement actions taken by the attorney general	3161
under Chapter 1345. of the Revised Code against loan originators	3162
officers, mortgage brokers, and nonbank mortgage lenders, upon	3163
final disposition of each action;	3164

(3) All judgments by courts of this state, concerning which	3165
appellate remedies have been exhausted or lost by the expiration	3166
of the time for appeal, finding either of the following:	3167

(a) A violation of any provision of sections 1322.01 to	3168
1322.12 of the Revised Code;	3169

(b) That specific acts or practices by a loan originator	3170
officer, mortgage broker, or nonbank mortgage lender violate	3171
section 1345.02, 1345.03, or 1345.031 of the Revised Code.	3172

(C) The attorney general shall submit to the department, on	3173
the first day of each January, April, July, and October, a list of	3174
all enforcement actions and judgments described in divisions	3175
(B)(2) and (3)(b) of this section.	3176

(D) The department may adopt rules in accordance with Chapter	3177
119. of the Revised Code that are necessary to implement this	3178
section.	3179

(E) The electronic database maintained by the department in	3180
accordance with this section shall not include information that,	3181
pursuant to section 1322.061 of the Revised Code, is confidential.	3182

Sec. 1541.083.  The chief of the division of parks and	3183
recreation, with the approval of the director of natural	3184
resources, the attorney general, and the governor, may make leases	3185
to parties making application thereforfor leases granting	3186
permission to take and remove halite from beneath the surface of	3187
Headlands state park in Lake county, and coal by underground	3188
mining methods from beneath the surface of Jefferson state park in	3189
Jefferson county and from beneath the surface of Burr Oak state	3190
park in Athens and Morgan counties pursuant to lease agreements	3191
and real estate transactions that have been entered into not later	3192
than January 1, 2011, if hethe chief finds that such taking and	3193
removal will in no way affect the surface of the land or the use	3194
thereofof the land as a public park. As the chief deems in the	3195
best interest of the state, suchthose leases may be made either	3196
upon a royalty or rental basis, and may be either for a term of	3197
years or until the economic extraction of the mineral covered	3198
therebyby the lease has been completed. Upon request from the	3199
lessee of any such lease, the chief may consent to its	3200
cancellation, but any equipment or improvement thereon owned by	3201
the lessee may be held as security by the chief for payment of all	3202
rentals, royalties, and damages due the state at the time of	3203
cancellation.	3204

Sec. 1733.252.  (A) As used in this section, "nationwide	3205
mortgage licensing system and registry" has the same meaning as in	3206
section 1322.01 of the Revised Code.	3207

(B) Subject to division (C) of this section, each credit	3208
union, the subsidiaries of the credit union, and the loan	3209
originators employed by the credit union, shall comply with the	3210
"Secure and Fair Enforcement for Mortgage Licensing Act of 2008,"	3211
122 Stat. 2810, 12 U.S.C. 5101, and register with the nationwide	3212
mortgage licensing system and registry.	3213

(C) ComplianceUnless otherwise preempted by federal law,	3214
compliance by a credit union insured by a credit union share	3215
guaranty corporation established under Chapter 1761. of the	3216
Revised Code, the subsidiaries of the credit union, and the loan	3217
originators employed by the credit union shall be determined by	3218
rules adopted by the superintendent of financial institutions in	3219
accordance with Chapter 119. of the Revised Code. At a minimum,	3220
the rules shall require loan originators to furnish to the	3221
nationwide mortgage licensing system and registry information	3222
concerning the loan originator's identity and be consistent with	3223
the requirements for federally insured credit unions adopted by	3224
the national credit union administration pursuant to the "Secure	3225
and Fair Enforcement for Mortgage Licensing Act of 2008.	3226

Sec. 5302.01.  The forms set forth in sections 5302.05,	3227
5302.07, 5302.09, 5302.11, 5302.12, 5302.14, and 5302.17, and	3228
5302.22 of the Revised Code may be used and shall be sufficient	3229
for their respective purposes. They shall be known as "Statutory	3230
Forms" and may be referred to as such. They may be altered as	3231
circumstances require, and the authorization of suchthose forms	3232
shall not prevent the use of other forms. Wherever the phrases	3233
defined in sections 5302.06, 5302.08, 5302.10, and 5302.13 of the	3234
Revised Code are to be incorporated in instruments by reference,	3235
the method of incorporation as indicated in the statutory forms	3236
shall be sufficient, but shall not preclude other methods.	3237

Sec. 5302.02.  The rules and definitions contained in	3238
sections 5302.03, 5302.04, 5302.06, 5302.08, 5302.10, 5302.13,	3239
5302.17, 5302.18, 5302.19, 5302.20, and 5302.21, and 5302.22 of	3240
the Revised Code apply to all deeds or other instruments relating	3241
to real estate, whether the statutory forms or other forms are	3242
used, where the instruments are executed on or after October 1,	3243
1965, or, in relation to the. The rules and definitions contained	3244
in section 5302.22 of the Revised Code, as it existed prior to the	3245
effective date of this amendment, apply to instruments executed on	3246
or after August 29, 2000, and prior to the effective date of this	3247
amendment. The rules and definitions contained in section 5302.22	3248
of the Revised Code apply to instruments executed on or after the	3249
effective date of this amendment.	3250

Sec. 5302.22.  (A) A deed conveying any interest in real	3251
property, and in substance following the form set forth in this	3252
division, when duly executed in accordance with Chapter 5301. of	3253
the Revised Code and recorded in the office of the county	3254
recorder, creates a present interest as sole owner or as a tenant	3255
in common in the grantee and creates a transfer on death interest	3256
in the beneficiary or beneficiaries. Upon the death of the	3257
grantee, the deed vests the interest of the decedent in the	3258
beneficiary or beneficiaries. The deed described in this division	3259
shall in substance conform to the following form:	3260

"Transfer on Death Deed	3261

.................... (marital status), of ........... County,	3262
.................... (for valuable consideration paid, if any),	3263
grant(s) (with covenants, if any), to .................... whose	3264
tax mailing address is ...................., transfer on death to	3265
...................., beneficiary(s), the following real property:	3266

(Description of land or interest in land and encumbrances,	3267
reservations, and exceptions, if any.)	3268

Prior Instrument Reference: .............................

3269

...................., wife (husband) of the grantor, releases all	3270
rights of dower therein.	3271

Executed this ............... day of ................

3272

	...............................		3273
	(Signature of Grantor)		3274

(Execution in accordance with Chapter 5301. of the Revised	3275
Code)"As used in sections 5302.22, 5302.222, 5302.23, and 5302.24	3276
of the Revised Code:	3277

(1) "Affidavit of confirmation" means an affidavit executed	3278
under division (A) of section 5302.222 of the Revised Code.	3279

(2) "Survivorship tenancy" means an ownership of real	3280
property or any interest in real property by two or more persons	3281
that is created by executing a deed pursuant to section 5302.17 of	3282
the Revised Code.	3283

(3) "Survivorship tenant" means one of the owners of real	3284
property or any interest in real property in a survivorship	3285
tenancy.	3286

(4) "Tenants by the entireties" mean only those persons who	3287
are vested as tenants in an estate by the entireties with	3288
survivorship pursuant to any deed recorded between February 9,	3289
1972, and April 3, 1985, under section 5302.17 of the Revised Code	3290
as it existed during that period of time. Nothing in sections	3291
5302.22, 5302.222, 5302.23, and 5302.24 of the Revised Code	3292
authorizes the creation of a tenancy by the entireties or	3293
recognizes a tenancy by the entireties created outside that period	3294
of time.	3295

(5) "Transfer on death designation affidavit" means an	3296
affidavit executed under this section.	3297

(6) "Transfer on death beneficiary or beneficiaries" means	3298
the beneficiary or beneficiaries designated in a transfer on death	3299
designation affidavit.	3300

(B) Any personindividual who, under the Revised Code or the	3301
common law of this state, owns real property or any interest in	3302
real property as a sole owner or, as a tenant in common, or as a	3303
survivorship tenant, or together with the individual's spouse owns	3304
an indivisible interest in real property as tenants by the	3305
entireties, may create andesignate the entire interest, or any	3306
specified part that is less than the entire interest, in thethat	3307
real property as transferable on death to a designated beneficiary	3308
or beneficiaries by executing and recording a deed, together with	3309
the individual's spouse, if any, a transfer on death designation	3310
affidavit as provided in this section conveying the person's	3311
entire, separate interest in the real property to one or more	3312
individuals, including the grantor, and designating one or more	3313
other persons, identified in the deed by name, as transfer on	3314
death beneficiaries.	3315

A deed conveying an interest in real property that includes a	3316
transfer on death beneficiary designation need not be supported by	3317
consideration and need not be delivered to the transfer on death	3318
beneficiary to be effective.If the affidavit is executed by an	3319
individual together with the individual's spouse, if any, the	3320
dower rights of the spouse are subordinate to the vesting of title	3321
to the interest in the real property in the transfer on death	3322
beneficiary or beneficiaries designated under this section. The	3323
affidavit shall be recorded in the office of the county recorder	3324
in the county in which the real property is located, and, when so	3325
recorded, the affidavit or a certified copy of the affidavit shall	3326
be evidence of the transfer on death beneficiary or beneficiaries	3327
so designated in the affidavit insofar as the affidavit affects	3328
title to the real property.	3329

(C) Upon(1) If an individual who owns real property or an	3330
interest in real property as a sole owner or as a tenant in common	3331
executes a transfer on death designation affidavit, upon the death	3332
of that individual, title to the real property or interest in the	3333
real property specified in the affidavit vests in the transfer on	3334
death beneficiary or beneficiaries designated in the affidavit.	3335

(2) If an individual who owns real property or an interest in	3336
real property as a survivorship tenant executes a transfer on	3337
death designation affidavit, upon the death of that individual or	3338
of one but not all of the surviving survivorship tenants, title to	3339
the real property or interest in the real property specified in	3340
the affidavit vests in the surviving survivorship tenant or	3341
tenants. Upon the death of the last surviving survivorship tenant,	3342
title to the real property or interest in the real property vests	3343
in the transfer on death beneficiary or beneficiaries designated	3344
in the affidavit, subject to division (B)(7) of section 5302.23 of	3345
the Revised Code.	3346

(3) If an individual who together with the individual's	3347
spouse owns an indivisible interest in real property as tenants by	3348
the entireties executes a transfer on death designation affidavit,	3349
upon the death of that individual, title to the real property or	3350
interest in the real property vests in the remaining tenant by the	3351
entireties. Upon the death of the remaining tenant by the	3352
entireties, title to the real property or interest in the real	3353
property vests in the transfer on death beneficiary or	3354
beneficiaries designated in the affidavit, subject to division	3355
(B)(7) of section 5302.23 of the Revised Code.	3356

(D) A transfer on death designation affidavit shall be	3357
verified before any person authorized to administer oaths and	3358
shall include all of the following:	3359

(1) A description of the real property the title to which is	3360
affected by the affidavit and a reference to an instrument of	3361
record containing that description;	3362

(2) If less than the entire interest in the real property is	3363
to be transferred on death under the affidavit, a statement of the	3364
specific interest or part of the interest in the real property	3365
that is to be so transferred;	3366

(3) A statement by the individual executing the affidavit	3367
that the individual is the person appearing on the record of the	3368
real property as the owner of the real property or interest in the	3369
real property at the time of the recording of the affidavit and	3370
the marital status of that owner. If the owner is married, the	3371
affidavit shall include a statement by the owner's spouse stating	3372
that the spouse's dower rights are subordinate to the vesting of	3373
title to the real property or interest in the real property in the	3374
transfer on death beneficiary or beneficiaries designated in the	3375
affidavit.	3376

(4) A statement designating one or more persons, identified	3377
by name, as transfer on death beneficiary or beneficiaries.	3378

(E) The county recorder of the county in which a transfer on	3379
death designation affidavit is offered for recording shall receive	3380
the affidavit and cause it to be recorded in the same manner as	3381
deeds are recorded. The county recorder shall collect a fee for	3382
recording the affidavit in the same amount as the fee for	3383
recording deeds. The county recorder shall index the affidavit in	3384
the name of the owner of record of the real property or interest	3385
in the real property who executed the affidavit.	3386

(F) A transfer on death designation affidavit need not be	3387
supported by consideration and need not be delivered to the	3388
transfer on death beneficiary or beneficiaries designated in the	3389
affidavit to be effective. However, in order to be effective, that	3390
affidavit shall be recorded with the county recorder as described	3391
in this section prior to the death of the individual who executed	3392
the affidavit.	3393

(G) Subject to division (C) of this section, upon the death	3394
of any individual who owns real property or an interest in real	3395
property that is subject to a transfer on death beneficiary	3396
designation made under a transfer on death deeddesignation	3397
affidavit as provided in this section, the deceased owner'sthat	3398
real property or interest in real property of the deceased owner	3399
shall be transferred only to the transfer on death beneficiary or	3400
beneficiaries who are identified in the deedaffidavit by name and	3401
who survive the deceased owner or that are in existence on the	3402
date of death of the deceased owner. The transfer of the deceased	3403
owner's interest shall be recorded by presenting to the county	3404
auditor and filing with the county recorder an affidavit,	3405
accompanied by a certified copy of a death certificate for the	3406
deceased owner. The affidavit shall recite the name and address of	3407
each designated transfer on death beneficiary who survived the	3408
deceased owner or that is in existence on the date of the deceased	3409
owner's death, the date of the deceased owner's death, a	3410
description of the subject real property or interest in real	3411
property, and the names of each designated transfer on death	3412
beneficiary who has not survived the deceased owner or that is not	3413
in existence on the date of the deceased owner's death. The	3414
affidavit shall be accompanied by a certified copy of a death	3415
certificate for each designated transfer on death beneficiary who	3416
has not survived the deceased owner. The county recorder shall	3417
make an index reference to any affidavit so filed in the record of	3418
deeds.	3419

Upon the death of any individual holding real property or an	3420
interest in real property that is subject to a transfer on death	3421
beneficiary designation made under a transfer on death deed as	3422
provided in this section, if the title to the real property is	3423
registered pursuant to Chapter 5309. of the Revised Code, the	3424
procedure for the transfer of the interest of the deceased owner	3425
shall be pursuant to section 5309.081 of the Revised CodeFor	3426
purposes of this division, if a natural or legal person designated	3427
by name in the affidavit as a transfer on death beneficiary or as	3428
a contingent transfer on death beneficiary as provided in division	3429
(B)(2) of section 5302.23 of the Revised Code solely in that	3430
person's capacity as a trustee of a trust has died, has resigned,	3431
or otherwise has been replaced by a successor trustee of the trust	3432
on the date of death of the deceased owner, the successor trustee	3433
of the trust shall be considered the transfer on death beneficiary	3434
or contingent transfer on death beneficiary in existence on the	3435
date of death of the deceased owner in full compliance with this	3436
division, notwithstanding that the successor trustee is not named	3437
as a transfer on death beneficiary or contingent transfer on death	3438
beneficiary in the affidavit.	3439

(H) Any person who knowingly makes any false statement in a	3440
transfer on death designation affidavit is guilty of falsification	3441
under division (A)(6) of section 2921.13 of the Revised Code.	3442

Sec. 5302.221. (A) As used in this section:

3443

"Estate" has the same meaning as in section 5111.11 of the	3444
Revised Code.	3445

"Medicaid estate recovery program" means the program	3446
instituted under section 5111.11 of the Revised Code.	3447

(B) The administrator of the medicaid estate recovery program	3448
shall prescribe a form on which a beneficiary of a transfer on	3449
death deeddesignation affidavit as provided in section 5302.22 of	3450
the Revised Code, who survives the deceased owner of the real	3451
property or an interest in the real property or that is in	3452
existence on the date of death of the deceased owner, or such a	3453
that beneficiary's representative is to indicate both of the	3454
following:	3455

(1) Whether the deceased owner was either of the following:

3456

(a) A decedent subject to the medicaid estate recovery	3457
program;	3458

(b) The spouse of a decedent subject to the medicaid estate	3459
recovery program.	3460

(2) Whether the real property or interest in the real	3461
property was part of the estate of a decedent subject to the	3462
medicaid estate recovery program.	3463

(C) A county recorder shall obtain a properly completed form	3464
prescribed under division (B) of this section from the beneficiary	3465
of a transfer on death deeddesignation affidavit or the	3466
beneficiary's representative and send a copy of the form to the	3467
administrator of the medicaid estate recovery program before	3468
recording the transfer of the real property or interest in the	3469
real property under division (C) of section 5302.225302.222 of	3470
the Revised Code.	3471

Sec. 5302.222. (A) The transfer of a deceased owner's real	3472
property or interest in real property as designated in a transfer	3473
on death designation affidavit provided in section 5302.22 of the	3474
Revised Code shall be recorded by presenting to the county auditor	3475
of the county in which the real property is located and filing	3476
with the county recorder of that county an affidavit of	3477
confirmation executed by any transfer on death beneficiary to whom	3478
the transfer is made. The affidavit of confirmation shall be	3479
verified before a person authorized to administer oaths and shall	3480
be accompanied by a certified copy of the death certificate for	3481
the deceased owner. The affidavit of confirmation shall contain	3482
all of the following information:	3483

(1) The name and address of each transfer on death	3484
beneficiary who survived the deceased owner or that is in	3485
existence on the date of death of the deceased owner. If a named	3486
beneficiary was designated as a transfer on death beneficiary	3487
solely in that person's capacity as a trustee of a trust and that	3488
trustee subsequently has been replaced by a successor trustee, the	3489
affidavit of confirmation shall include the name and address of	3490
the successor trustee and shall be accompanied by a copy of the	3491
recorded successor trustee affidavit described in section 5302.171	3492
of the Revised Code.	3493

(2) The date of death of the deceased owner;

3494

(3) A description of the subject real property or interest in	3495
real property;	3496

(4) The name of each transfer on death beneficiary who has	3497
not survived the deceased owner or that is not in existence on the	3498
date of death of the deceased owner.	3499

(B) The affidavit of confirmation shall be accompanied by a	3500
certified copy of the death certificate for each transfer on death	3501
beneficiary who has not survived the deceased owner.	3502

(C) The county recorder shall make an index reference in the	3503
record of deeds to any affidavit of confirmation filed with the	3504
county recorder under this section.	3505

(D) Upon the death of any individual holding real property or	3506
an interest in real property that is the subject of a transfer on	3507
death designation affidavit as provided in section 5302.22 of the	3508
Revised Code, if the title to the real property is registered	3509
pursuant to Chapter 5309. of the Revised Code, the procedure for	3510
the transfer of the interest of the deceased owner to the transfer	3511
on death beneficiary or beneficiaries designated in the affidavit	3512
shall be pursuant to section 5309.081 of the Revised Code.	3513

(E) Any person who knowingly makes any false statement in an	3514
affidavit of confirmation is guilty of falsification under	3515
division (A)(6) of section 2921.13 of the Revised Code.	3516

Sec. 5302.23.  (A) Any deedaffidavit containing language	3517
that shows a clear intent to designate a transfer on death	3518
beneficiary shall be liberally construed to do so.	3519

(B) Real property or an interest in real property that is the	3520
subject toof a transfer on death beneficiary designation	3521
affidavit as provided in section 5302.22 of the Revised Code or as	3522
described in division (A) of this section has all of the following	3523
characteristics and ramifications:	3524

(1) An interest of a deceased owner shall be transferred to	3525
the transfer on death beneficiaries who are identified in the deed	3526
affidavit by name and who survive the deceased owner or that are	3527
in existence on the date of the deceased owner's death. If there	3528
is a designation of more than one transfer on death beneficiary,	3529
the beneficiaries shall take title into the interest in equal	3530
shares as tenants in common, unless the deceased owner has	3531
specifically designated other than equal shares or has designated	3532
that the beneficiaries take title as survivorship tenants, subject	3533
to division (B)(3) of this section. If a transfer on death	3534
beneficiary does not survive the deceased owner or is not in	3535
existence on the date of the deceased owner's death, and the	3536
deceased owner has designated one or more persons as contingent	3537
transfer on death beneficiaries as provided in division (B)(2) of	3538
this section, the designated contingent transfer on death	3539
beneficiaries shall take the same interest that would have passed	3540
to the transfer on death beneficiary had that transfer on death	3541
beneficiary survived the deceased owner or been in existence on	3542
the date of the deceased owner's death. If none of the designated	3543
transfer on death beneficiaries survives the deceased owner or is	3544
in existence on the date of the deceased owner's death and no	3545
contingent transfer on death beneficiaries have been designated	3546
or, have survived the deceased owner, or are in existence on the	3547
date of death of the deceased owner, the interest of the deceased	3548
owner shall be distributed as part of the probate estate of the	3549
deceased owner of the interest. If there are two or more transfer	3550
on death beneficiaries and the deceased owner has designated that	3551
title to the interest in the real property be taken by those	3552
beneficiaries as survivorship tenants, no designated contingent	3553
transfer on death beneficiaries shall take title to the interest	3554
unless none of the transfer on death beneficiaries survives the	3555
deceased owner on the date of death of the deceased owner.	3556

(2) A transfer on death deeddesignation affidavit may	3557
contain a designation of one or more persons as contingent	3558
transfer on death beneficiaries, who shall take the interest of	3559
the deceased owner that would otherwise have passed to the	3560
designated transfer on death beneficiary if that named designated	3561
transfer on death beneficiary does not survive the deceased owner	3562
or is not in existence on the date of death of the deceased owner.	3563
Persons designated as contingent transfer on death beneficiaries	3564
shall be identified in the deedaffidavit by name.	3565

(3) Any transfer on death beneficiary or contingent transfer	3566
on death beneficiary may be a natural or legal person, including,	3567
but not limited to, a bank as trustee of a trust, except that if	3568
two or more transfer on death beneficiaries are designated as	3569
survivorship tenants, all of those beneficiaries shall be natural	3570
persons and if two or more contingent transfer on death	3571
beneficiaries are designated as survivorship tenants, all of those	3572
contingent beneficiaries shall be natural persons. A natural	3573
person who is designated a transfer on death beneficiary or	3574
contingent transfer on death beneficiary solely in that natural	3575
person's capacity as a trustee of a trust is not considered a	3576
natural person for purposes of designating the transfer on death	3577
beneficiaries or contingent transfer on death beneficiaries as	3578
survivorship tenants under division (B)(3) of this section.	3579

(4) The designation of a transfer on death beneficiary has no	3580
effect on the present ownership of real property, and a person	3581
designated as a transfer on death beneficiary has no interest in	3582
the real property until the death of the owner of the interest.	3583

(4)(5) The designation in a deedtransfer on death	3584
designation affidavit of any transfer on death beneficiary may be	3585
revoked or changed at any time, without the consent of that	3586
designated transfer on death beneficiary, by the owner of the	3587
interest, by the surviving survivorship tenants of the interest,	3588
or by the remaining tenant by the entireties of the interest, by	3589
executing in accordance with Chapter 5301. of the Revised Code and	3590
recording, prior to the death of the owner of the interest, of the	3591
surviving survivorship tenants of the interest, or of the	3592
remaining tenant by the entireties of the interest, as the case	3593
may be, a deed conveying the grantor's entire, separate interest	3594
in the real property to one or more persons, including the	3595
grantor, with or without the designation of another transfer on	3596
death beneficiarynew transfer on death designation affidavit	3597
pursuant to section 5302.22 of the Revised Code stating the	3598
revocation or change in that designation. The new transfer on	3599
death designation affidavit shall automatically supersede and	3600
revoke all prior recorded transfer on death designation affidavits	3601
with respect to the real property or the interest in real property	3602
identified in the new affidavit, provided that the prior recorded	3603
affidavit was executed before the later recorded affidavit.	3604

(5)(6) A fee simple title or any fractional interest in a fee	3605
simple title may be subjected to a transfer on death beneficiary	3606
designation.	3607

(6)(7)(a) A designated transfer on death beneficiary takes	3608
only the interest that the deceased owner or owners of the	3609
interest held on the date of death, subject to all encumbrances,	3610
reservations, and exceptions.	3611

(7)(b) If the owners hold title to the interest in a	3612
survivorship tenancy, the death of all except the last	3613
survivorship tenant automatically terminates and nullifies any	3614
transfer on death beneficiary designations made solely by the	3615
deceased survivorship tenant or tenants without joinder by the	3616
last surviving survivorship tenant. The termination or	3617
nullification of any transfer on death beneficiary designations	3618
under division (B)(7)(b) of this section is effective as of the	3619
date of death of a deceased survivorship tenant. No affirmative	3620
act of revocation is required of the last surviving survivorship	3621
tenant for the termination or nullification of the transfer on	3622
death beneficiary designations to occur as described in division	3623
(B)(7)(b) of this section. If the last surviving survivorship	3624
tenant dies with no transfer on death beneficiary designation, the	3625
entire interest of that last surviving survivorship tenant shall	3626
be distributed as part of the tenant's probate estate.	3627

(c) If the owners hold title to the interest in a tenancy by	3628
the entireties, the death of the first tenant by the entireties	3629
automatically terminates and nullifies any transfer on death	3630
beneficiary designations made solely by that deceased first tenant	3631
without joinder by the remaining tenant by the entireties. The	3632
termination or nullification of any transfer on death beneficiary	3633
designations under division (B)(7)(c) of this section is effective	3634
as of the date of death of the first tenant by the entireties. No	3635
affirmative act of revocation is required of the remaining tenant	3636
by the entireties for the termination or nullification of the	3637
transfer on death beneficiary designations to occur as described	3638
in division (B)(7)(c) of this section. If the remaining tenant by	3639
the entireties dies with no transfer on death beneficiary	3640
designation, the entire interest of that remaining tenant shall be	3641
distributed as part of the tenant's probate estate.	3642

(8) No rights of any lienholder, including, but not limited	3643
to, any mortgagee, judgment creditor, or mechanic's lien holder,	3644
shall be affected by the designation of a transfer on death	3645
beneficiary pursuant to this section and section 5302.22 of the	3646
Revised Code. If any lienholder takes action to enforce the lien,	3647
by foreclosure or otherwise through a court proceeding, it is not	3648
necessary to join theany transfer on death beneficiary as a party	3649
defendant in the action unless the transfer on death beneficiary	3650
has another interest in the real property that is currently	3651
vested.	3652

(8)(9) Any transfer on death of real property or of an	3653
interest in real property that results from a deedtransfer on	3654
death designation affidavit designating a transfer on death	3655
beneficiary is not testamentary. That transfer on death shall	3656
supersede any attempted testate or intestate transfer of that real	3657
property or interest in real property.	3658

(10) The execution and recording of a transfer on death	3659
designation affidavit shall be effective to terminate the	3660
designation of a transfer on death beneficiary in a transfer on	3661
death deed involving the same real property or interest in real	3662
property and recorded prior to the effective date of this section.	3663

(11) The execution and recording of a transfer on death	3664
designation affidavit shall be effective to bar the vesting of any	3665
rights of dower in a subsequent spouse of the owner of the real	3666
property who executed that affidavit unless the affidavit is	3667
revoked or changed.	3668

Sec. 5302.24. Sections 5302.22, 5302.222, and 5302.23 of the	3669
Revised Code do not affect any deed that was executed and recorded	3670
prior to the effective date of this section, or any transfer on	3671
death beneficiary designation made, pursuant to section 5302.22 of	3672
the Revised Code as it existed prior to the effective date of this	3673
section. If that deed or designation is valid on the day prior to	3674
the effective date of this section, the deed or designation	3675
continues to be valid on and after the effective date of this	3676
section. A grantee of that deed need not execute a transfer on	3677
death designation affidavit that designates the same transfer on	3678
death beneficiary or beneficiaries as in the deed unless the	3679
grantee chooses to do so.	3680

Sec. 5815.36.  (A) As used in this section:

3681

(1) "Disclaimant" means any person, any guardian or personal	3682
representative of a person or estate of a person, or any	3683
attorney-in-fact or agent of a person having a general or specific	3684
authority to act granted in a written instrument, who is any of	3685
the following:	3686

(a) With respect to testamentary instruments and intestate	3687
succession, an heir, next of kin, devisee, legatee, donee, person	3688
succeeding to a disclaimed interest, surviving joint tenant,	3689
surviving tenant by the entireties, surviving tenant of a tenancy	3690
with a right of survivorship, beneficiary under a testamentary	3691
instrument, or person designated to take pursuant to a power of	3692
appointment exercised by a testamentary instrument;	3693

(b) With respect to nontestamentary instruments, a grantee,	3694
donee, person succeeding to a disclaimed interest, surviving joint	3695
tenant, surviving tenant by the entireties, surviving tenant of a	3696
tenancy with a right of survivorship, beneficiary under a	3697
nontestamentary instrument, or person designated to take pursuant	3698
to a power of appointment exercised by a nontestamentary	3699
instrument;	3700

(c) With respect to fiduciary rights, privileges, powers, and	3701
immunities, a fiduciary under a testamentary or nontestamentary	3702
instrument. Division (A)(1)(c) of this section does not authorize	3703
a fiduciary who disclaims fiduciary rights, privileges, powers,	3704
and immunities to cause the rights of any beneficiary to be	3705
disclaimed unless the instrument creating the fiduciary	3706
relationship authorizes the fiduciary to make such a disclaimer.	3707

(d) Any person entitled to take an interest in property upon	3708
the death of a person or upon the occurrence of any other event.	3709

(2) "Personal representative" includes any fiduciary as	3710
defined in section 2109.01 of the Revised Code and any executor,	3711
trustee, guardian, or other person or entity having a fiduciary	3712
relationship with regard to any interest in property passing to	3713
the fiduciary, executor, trustee, guardian, or other person or	3714
entity by reason of a disclaimant's death.	3715

(3) "Property" means all forms of property, real and	3716
personal, tangible and intangible.	3717

(B)(1) A disclaimant, other than a fiduciary under an	3718
instrument who is not authorized by the instrument to disclaim the	3719
interest of a beneficiary, may disclaim, in whole or in part, the	3720
succession to any property by executing and by delivering, filing,	3721
or recording a written disclaimer instrument in the manner	3722
provided in this section.	3723

(2) A disclaimant who is a fiduciary under an instrument may	3724
disclaim, in whole or in part, any right, power, privilege, or	3725
immunity, by executing and by delivering, filing, or recording a	3726
written disclaimer instrument in the manner provided in this	3727
section.	3728

(3) The written instrument of disclaimer shall be signed and	3729
acknowledged by the disclaimant and shall contain all of the	3730
following:	3731

(a) A reference to the donative instrument;

3732

(b) A description of the property, part of property, or	3733
interest disclaimed, and of any fiduciary right, power, privilege,	3734
or immunity disclaimed;	3735

(c) A declaration of the disclaimer and its extent.

3736

(4) The guardian of the estate of a minor or an incompetent,	3737
or the personal representative of a deceased person, whether or	3738
not authorized by the instrument to disclaim, with the consent of	3739
the probate division of the court of common pleas may disclaim, in	3740
whole or in part, the succession to any property, or interest in	3741
property, that the ward, if an adult and competent, or the	3742
deceased, if living, might have disclaimed. The guardian or	3743
personal representative, or any interested person may file an	3744
application with the probate division of the court of common pleas	3745
that has jurisdiction of the estate, asking that the court order	3746
the guardian or personal representative to execute and deliver,	3747
file, or record the disclaimer on behalf of the ward, estate, or	3748
deceased person. The court shall order the guardian or personal	3749
representative to execute and deliver, file, or record the	3750
disclaimer if the court finds, upon hearing after notice to	3751
interested parties and such other persons as the court shall	3752
direct, that:	3753

(a) It is in the best interests of those interested in the	3754
estate of the person and of those who will take the disclaimed	3755
interest;	3756

(b) It would not materially, adversely affect the minor or	3757
incompetent, or the beneficiaries of the estate of the decedent,	3758
taking into consideration other available resources and the age,	3759
probable life expectancy, physical and mental condition, and	3760
present and reasonably anticipated future needs of the minor or	3761
incompetent or the beneficiaries of the estate of the decedent.	3762

A written instrument of disclaimer ordered by the court under	3763
this division shall be executed and be delivered, filed, or	3764
recorded within the time and in the manner in which the person	3765
could have disclaimed if the person were living, an adult, and	3766
competent.	3767

(C) A partial disclaimer of property that is subject to a	3768
burdensome interest created by the donative instrument is not	3769
effective unless the disclaimed property constitutes a gift that	3770
is separate and distinct from undisclaimed gifts.	3771

(D) The disclaimant shall deliver, file, or record the	3772
disclaimer, or cause the same to be done, prior to accepting any	3773
benefits of the disclaimed interest and at any time after the	3774
latest of the following dates:	3775

(1) The effective date of the donative instrument if both the	3776
taker and the taker's interest in the property are finally	3777
ascertained on that date;	3778

(2) The date of the occurrence of the event upon which both	3779
the taker and the taker's interest in the property become finally	3780
ascertainable;	3781

(3) The date on which the disclaimant attains eighteen years	3782
of age or is no longer an incompetent, without tendering or	3783
repaying any benefit received while the disclaimant was under	3784
eighteen years of age or an incompetent, and even if a guardian of	3785
a minor or incompetent had filed an application pursuant to	3786
division (B)(4) of this section and the probate division of the	3787
court of common pleas involved did not consent to the guardian	3788
executing a disclaimer.	3789

(E) No disclaimer instrument is effective under this section	3790
if either of the following applies under the terms of the	3791
disclaimer instrument:	3792

(1) The disclaimant has power to revoke the disclaimer.

3793

(2) The disclaimant may transfer, or direct to be	3794
transferred, to self the entire legal and equitable ownership of	3795
the property subject to the disclaimer instrument.	3796

(F)(1) Subject to division (F)(2) of this section, if the	3797
interest disclaimed is created by a nontestamentary instrument,	3798
including, but not limited to, a transfer on death designation	3799
affidavit pursuant to section 5302.22 of the Revised Code, the	3800
disclaimer instrument shall be delivered personally or by	3801
certified mail to the trustee or other person who has legal title	3802
to, or possession of, the property disclaimed. If the interest	3803
disclaimed is created by a transfer on death designation affidavit	3804
pursuant to section 5302.22 of the Revised Code, the disclaimer	3805
instrument shall be filed with the county recorder of the county	3806
in which the real property that is the subject of that affidavit	3807
is located.	3808

(2) If the interest disclaimed is created by a testamentary	3809
instrument, by intestate succession, by a transfer on death deed	3810
pursuant to section 5302.22 of the Revised Code, or by a	3811
certificate of title to a motor vehicle, watercraft, or outboard	3812
motor that evidences ownership of the motor vehicle, watercraft,	3813
or outboard motor that is transferable on death pursuant to	3814
section 2131.13 of the Revised Code, the disclaimer instrument	3815
shall be filed in the probate division of the court of common	3816
pleas in the county in which proceedings for the administration of	3817
the decedent's estate have been commenced, and an executed copy of	3818
the disclaimer instrument shall be delivered personally or by	3819
certified mail to the personal representative of the decedent's	3820
estate.	3821

(3) If no proceedings for the administration of the	3822
decedent's estate have been commenced, the disclaimer instrument	3823
shall be filed in the probate division of the court of common	3824
pleas in the county in which proceedings for the administration of	3825
the decedent's estate might be commenced according to law. The	3826
disclaimer instrument shall be filed and indexed, and fees	3827
charged, in the same manner as provided by law for an application	3828
to be appointed as personal representative to administer the	3829
decedent's estate. The disclaimer is effective whether or not	3830
proceedings thereafter are commenced to administer the decedent's	3831
estate. If proceedings thereafter are commenced for the	3832
administration of the decedent's estate, they shall be filed	3833
under, or consolidated with, the case number assigned to the	3834
disclaimer instrument.	3835

(4) If an interest in real estate is disclaimed, an executed	3836
copy of the disclaimer instrument also shall be recorded in the	3837
office of the recorder of the county in which the real estate is	3838
located. The disclaimer instrument shall include a description of	3839
the real estate with sufficient certainty to identify it, and	3840
shall contain a reference to the record of the instrument that	3841
created the interest disclaimed. If title to the real estate is	3842
registered under Chapters 5309. and 5310. of the Revised Code, the	3843
disclaimer interest shall be entered as a memorial on the last	3844
certificate of title. A spouse of a disclaimant has no dower or	3845
other interest in the real estate disclaimed.	3846

(G) If a donative instrument expressly provides for the	3847
distribution of property, part of property, or interest in	3848
property if there is a disclaimer, the property, part of property,	3849
or interest disclaimed shall be distributed or disposed of, and	3850
accelerated or not accelerated, in accordance with the donative	3851
instrument. In the absence of express provisions to the contrary	3852
in the donative instrument, the property, part of property, or	3853
interest in property disclaimed, and any future interest that is	3854
to take effect in possession or enjoyment at or after the	3855
termination of the interest disclaimed, shall descend, be	3856
distributed, or otherwise be disposed of, and shall be	3857
accelerated, in the following manner:	3858

(1) If intestate or testate succession is disclaimed, as if	3859
the disclaimant had predeceased the decedent;	3860

(2) If the disclaimant is one designated to take pursuant to	3861
a power of appointment exercised by a testamentary instrument, as	3862
if the disclaimant had predeceased the donee of the power;	3863

(3) If the donative instrument is a nontestamentary	3864
instrument, as if the disclaimant had died before the effective	3865
date of the nontestamentary instrument;	3866

(4) If the disclaimer is of a fiduciary right, power,	3867
privilege, or immunity, as if the right, power, privilege, or	3868
immunity was never in the donative instrument.	3869

(H) A disclaimer pursuant to this section is effective as of,	3870
and relates back for all purposes to, the date upon which the	3871
taker and the taker's interest have been finally ascertained.	3872

(I) A disclaimant who has a present and future interest in	3873
property, and disclaims the disclaimant's present interest in	3874
whole or in part, is considered to have disclaimed the	3875
disclaimant's future interest to the same extent, unless a	3876
contrary intention appears in the disclaimer instrument or the	3877
donative instrument. A disclaimant is not precluded from	3878
receiving, as an alternative taker, a beneficial interest in the	3879
property disclaimed, unless a contrary intention appears in the	3880
disclaimer instrument or in the donative instrument.	3881

(J) The disclaimant's right to disclaim under this section is	3882
barred if the disclaimant does any of the following:	3883

(1) Assigns, conveys, encumbers, pledges, or transfers, or	3884
contracts to assign, convey, encumber, pledge, or transfer, the	3885
property or any interest in it;	3886

(2) Waives in writing the disclaimant's right to disclaim and	3887
executes and delivers, files, or records the waiver in the manner	3888
provided in this section for a disclaimer instrument;	3889

(3) Accepts the property or an interest in it;

3890

(4) Permits or suffers a sale or other disposition of the	3891
property pursuant to judicial action against the disclaimant.	3892

(K) Neither a fiduciary's application for appointment or	3893
assumption of duties as a fiduciary nor a beneficiary's	3894
application for appointment as a personal representative or	3895
fiduciary waives or bars the disclaimant's right to disclaim a	3896
right, power, privilege, or immunity as a personal representative	3897
or fiduciary or the beneficiary's right to disclaim property.	3898

(L) The right to disclaim under this section exists	3899
irrespective of any limitation on the interest of the disclaimant	3900
in the nature of a spendthrift provision or similar restriction.	3901

(M) A disclaimer instrument or written waiver of the right to	3902
disclaim that has been executed and delivered, filed, or recorded	3903
as required by this section is final and binding upon all persons.	3904

(N) The right to disclaim and the procedures for disclaimer	3905
established by this section are in addition to, and do not exclude	3906
or abridge, any other rights or procedures that exist or formerly	3907
existed under any other section of the Revised Code or at common	3908
law to assign, convey, release, refuse to accept, renounce, waive,	3909
or disclaim property.	3910

(O)(1) No person is liable for distributing or disposing of	3911
property in a manner inconsistent with the terms of a valid	3912
disclaimer if the distribution or disposition is otherwise proper	3913
and the person has no actual knowledge of the disclaimer.	3914

(2) No person is liable for distributing or disposing of	3915
property in reliance upon the terms of a disclaimer that is	3916
invalid because the right of disclaimer has been waived or barred	3917
if the distribution or disposition is otherwise proper and the	3918
person has no actual knowledge of the facts that constitute a	3919
waiver or bar to the right to disclaim.	3920

(P)(1) A disclaimant may disclaim pursuant to this section	3921
any interest in property that is in existence on September 27,	3922
1976, if either the interest in the property or the taker of the	3923
interest in the property is not finally ascertained on that date.	3924

(2) No disclaimer executed pursuant to this section destroys	3925
or diminishes an interest in property that exists on September 27,	3926
1976, in any person other than the disclaimant.	3927

(Q) This section may be applied separately to different	3928
interests or powers created in the disclaimant by the same	3929
testamentary or nontestamentary instrument.	3930

Section 2. That existing sections 317.114, 1321.51, 1321.522,	3931
1321.53, 1321.531, 1321.532, 1321.533, 1321.535, 1321.54, 1321.55,	3932
1321.59, 1322.01, 1322.02, 1322.022, 1322.023, 1322.03, 1322.031,	3933
1322.04, 1322.041, 1322.062, 1322.07, 1322.074, 1322.10, 1322.99,	3934
1343.011, 1345.01, 1345.05, 1345.09, 1349.31, 1349.43, 1541.083,	3935
1733.252, 5302.01, 5302.02, 5302.22, 5302.221, 5302.23, and	3936
5815.36 of the Revised Code are hereby repealed.	3937

Section 3. That Section 745.60 of Am. Sub. H.B. 1 of the	3938
128th General Assembly be amended to read as follows:	3939

Sec. 745.60.  (A) Sections 1321.20, 1321.51, 1321.52,	3940
1321.521, 1321.522, 1321.53, 1321.531, 1321.532, 1321.533,	3941
1321.534, 1321.535, 1321.536, 1321.54, 1321.55, 1321.551,	3942
1321.552, 1321.57, 1321.59, 1321.591, 1321.592, 1321.593,	3943
1321.594, 1321.60, 1321.99, 1322.01, 1322.02, 1322.022, 1322.023,	3944
1322.024, 1322.025, 1322.03, 1322.031, 1322.04, 1322.041, 1322.05,	3945
1322.051, 1322.052, 1322.06, 1322.061, 1322.062, 1322.063,	3946
1322.064, 1322.065, 1322.07, 1322.071, 1322.072, 1322.074,	3947
1322.075, 1322.08, 1322.081, 1322.09, 1322.10, 1322.11, 1322.99,	3948
1343.011, 1345.01, 1345.05, 1345.09, 1349.31, and 1349.43,	3949
1733.252, and 1733.26 of the Revised Code, as amended or enacted	3950
by this actAm. Sub. H.B. 1 of the 128th General Assembly, shall	3951
apply on and after January 1, 2010, unless otherwise provided in	3952
this section.	3953

(B)(1) The Division of Financial Institutions shall begin	3954
accepting applications for a mortgage loan originator license, and	3955
applications for an exemption from registration under sections	3956
1321.51 to 1321.60 or 1322.01 to 1322.12 of the Revised Code, on	3957
the effective date of this sectionOctober 16, 2009.	3958

(2) In order to continue to operate as an exempt entity, any	3959
credit union service organization in operation as of January 1,	3960
2010, that seeks exemption from registration under sections	3961
1321.51 to 1321.60 of the Revised Code shall obtain a valid letter	3962
of exemption issued by the Superintendent of Financial	3963
Institutions not later than July 1, 2010. Any person performing	3964
the duties of a mortgage loan originator as of January 1, 2010,	3965
shall obtain a mortgage loan originator license from the Division	3966
not later than January 1, 2011, in order to continue to perform	3967
those duties.	3968

(3) In order to continue to operate as an exempt entity, any	3969
mortgage banker or credit union service organization in operation	3970
as of January 1, 2010, that seeks exemption from registration	3971
under sections 1322.01 to 1322.12 of the Revised Code shall obtain	3972
a valid letter of exemption issued by the Superintendent not later	3973
than May 1, 2010. Any individual who, as of January 1, 2010,	3974
performs the duties of a loan originator and is employed by or	3975
associated with any person or entity listed in division (G)(2) of	3976
section 1322.01 of the Revised Code shall obtain a loan originator	3977
license from the Superintendent not later than May 1, 2010, in	3978
order to continue to perform those duties.	3979

(C) Individuals holding a valid mortgage lender certificate	3980
of registration, mortgage broker certificate of registration, or	3981
loan officer license as of January 1, 2010, shall not be required	3982
to be in compliance with the sections described in division (A) of	3983
this section until the first renewal of that certificate or	3984
license after that date.	3985

(D) Sections 1733.252 and 1733.26 of the Revised Code, as	3986
amended or enacted by Am. Sub. H.B. 1 of the 128th General	3987
Assembly, shall apply on and after January 1, 2011.	3988

Section 4. That existing Section 745.60 of Am. Sub. H.B. 1 of	3989
the 128th General Assembly is hereby repealed.	3990

Section 5. (A) Sections 1321.51, 1321.522, 1321.53, 1321.531,	3991
1321.532, 1321.533, 1321.535, 1321.54, 1321.55, 1321.59, 1322.01,	3992
1322.02, 1322.022, 1322.023, 1322.03, 1322.031, 1322.04, 1322.041,	3993
1322.062, 1322.07, 1322.074, 1322.10, 1322.99, 1343.011, 1345.01,	3994
1345.05, 1345.09, 1349.31, and 1349.43 of the Revised Code, as	3995
amended by this act, shall apply on and after January 1, 2010.	3996

(B) Section 1733.252 of the Revised Code, as amended by this	3997
act, shall apply on and after January 1, 2011.	3998

Section 6. A prosecuting attorney or treasurer of a county	3999
with a population greater than eight hundred thousand but less	4000
than nine hundred thousand may determine that the amount of money	4001
appropriated to the respective office from the county Delinquent	4002
Tax and Assessment Collection Fund under division (A) of section	4003
321.261 of the Revised Code exceeds the amount required to be used	4004
by that office as prescribed by division (A)(1) of that section.	4005
If a prosecuting attorney or treasurer of a county with that	4006
population makes such a determination, the prosecuting attorney or	4007
treasurer may expend up to fifty per cent of the excess so	4008
determined to pay the expenses of operating the respective office	4009
that otherwise would be payable from appropriations from the	4010
county general fund, notwithstanding section 321.261 of the	4011
Revised Code.	4012

This section expires December 31, 2011.

4013

Section 7. This act is hereby declared to be an emergency	4014
measure necessary for the immediate preservation of the public	4015
peace, health, and safety. The reason for such necessity is that	4016
this act makes changes to the sections amended or enacted by Am.	4017
Sub. H.B. 1 of the 128th General Assembly in the implementation of	4018
the federal Secure and Fair Enforcement for Mortgage Licensing Act	4019
of 2008 ("S.A.F.E. Act"), and those sections apply on and after	4020
January 1, 2010. Therefore, this act shall go into immediate	4021
effect.	4022

Section 8.  The Governor is hereby authorized to execute a	4023
release of reversionary interest in the name of the state	4024
releasing the state's reversionary interest retained in the	4025
Governor's Deed dated August 2, 1978, and authorized by Sub. H.B.	4026
489 of the 108th General Assembly. That deed was recorded on June	4027
29, 1979, at Deed Volume 248, Page 193 in the records of the	4028
Auglaize County Recorder and was a corrective deed to a Governor's	4029
Deed dated November 20, 1969, which was recorded on January 20,	4030
1970, at Deed Volume 207, Page 157 in the records of the Auglaize	4031
County Recorder. The reversionary interest retained by the state	4032
in these deeds provided for the real estate to revert to the state	4033
if the real estate ceased to be used for youth recreation center	4034
purposes or related civic purposes.	4035

The Auditor of State, with the assistance of the Attorney	4036
General, shall prepare a release of reversionary interest to the	4037
real estate described in this section. The release shall be	4038
executed by the Governor in the name of the state, countersigned	4039
by the Secretary of State, sealed with the Great Seal of the	4040
State, presented in the office of the Auditor of State for	4041
recording, and delivered to the Wapakoneta Family Young Men's	4042
Christian Association, Inc. The Wapakoneta Family Young Men's	4043
Christian Association, Inc., shall present the release for	4044
recording in the office of the Auglaize County Recorder.	4045