The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
***
An attempt was made to recreate these historic documents. The original text was retained, however, during the process some errors in formatting may have been introduced. The official version of the act may be obtained from the Secretary of State's Office listed above.
***
|
(122nd General Assembly)(Substitute House Bill Number 522)
AN ACT
To amend sections 1155.08, 1163.11, 1322.01, 1322.02, 1322.03, 1322.04,
1322.10, 1322.101, and 1343.011,
to enact new section 1322.05, and
to repeal
section 1322.05 of the Revised Code to
modify the
registration
requirements of mortgage brokers; to require that mortgage loans be originated
from a location at which the mortgage
broker registration certificate is
maintained; to require that a mortgage
broker business location be in this
state; to eliminate the net worth requirements
of mortgage brokers
and to substitute certain surety bond requirements;
to specify fines to be charged for a violation
of a law or rule
adopted under the Mortgage Broker Law;
to eliminate the requirement
that the board of directors or auditing committee
of a savings and loan
association or savings bank attest to the contents
of annual and semiannual
reports filed with the Superintendent of
Financial Institutions; to
eliminate the requirement that a savings and
loan association or savings bank
publish its annual statement of assets and
liabilities in a local
newspaper; and to
expressly state that the statutory limitation on discount points
received by a residential mortgage lender is not a limitation on
discount points or other charges for purposes of the federal
"Depository Institutions Deregulation and Monetary Control Act
of 1980."
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 1155.08, 1163.11, 1322.01, 1322.02, 1322.03, 1322.04,
1322.10, 1322.101, and 1343.011
be amended and new section 1322.05 of the
Revised Code
be enacted to read as follows:
Sec. 1155.08. (A)(1) The annual and semiannual reports
required from a building savings and loan association by section
1155.07
of the Revised Code shall be in such a form and contain
such
information as that is prescribed by the superintendent of
building
and loan associations. They shall be sworn to by the managing
officer of the association to the best of his
knowledge and belief, and their correctness may be attested to
by at least three of its directors or an auditing committee appointed by its
board of directors financial institutions. The original annual and
semiannual reports
shall be filed with the superintendent within thirty days after
the close of the respective half year. The annual statement of
assets and liabilities shall be published in a newspaper or
periodical, regularly issued and of general circulation in the
county in which such association is located. A (2) A copy of the annual
statement as published of condition shall be
available for public inspection
on demand at the association's place of business. (B) All monthly reports which may be required by the
superintendent shall be filed by the tenth day of the succeeding
month. (C) When an association is in process of liquidation, the
liquidating officers shall make all reports to the superintendent
that are required by law from solvent associations. Sec. 1163.11. (A)(1) The annual and semiannual reports
required from a savings bank by section 1163.09 of the Revised
Code shall be in a form and contain information that is
prescribed by the superintendent of savings banks, they shall be
sworn to by the managing officer of the savings bank to the best
of his knowledge and belief, and their
correctness may be attested to by at least three of its directors or an
auditing committee appointed by its board of directors financial
institutions. The original
annual and semiannual reports shall be filed with the
superintendent within thirty days after the close of the
respective half year. The annual statement of assets and
liabilities shall be published in a newspaper or periodical,
regularly issued and of general circulation in the county in
which the savings bank is located. A (2) A copy of the annual statement
as
published of condition shall be available for public
inspection on demand at
the savings bank's place of business. (B) All monthly reports that may be required by the
superintendent shall be filed by the tenth day of the succeeding
month. (C) When a savings bank is in process of liquidation, the
liquidating officers shall make all reports to the superintendent
that are required by law from solvent savings banks. Sec. 1322.01. As used in sections 1322.01 to 1322.12 of the Revised Code: (A) "Buyer" means an individual who is solicited to
purchase or who purchases the services of a mortgage broker for
purposes other than obtaining a business loan as described in
division (B)(6) of section 1343.01 of the Revised Code. (B) "Consumer reporting agency" has the same meaning as in
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A.
1681a, as amended. (C) "Mortgage" means any indebtedness secured by a deed of
trust, security deed, or other lien on real property. (D) "Mortgage banker" means any person that makes,
services, or buys and sells mortgage loans, and is approved as a
direct
endorsement lender
required to submit audited financial statements to, and is
subject to a possible audit
by, the
United States department of housing and urban development, the
United States department of veterans affairs, the federal
national mortgage association, the federal home loan mortgage
corporation, or the government national mortgage association, or an
approved correspondent with the United States department of
housing and urban development. (E) "Mortgage broker" means a person that, in the regular
course of business, holds himself, herself, or itself that
person out
as being able to assist a buyer in obtaining a mortgage and charges or
receives money or
other valuable consideration readily convertible into money for
providing this assistance. "Mortgage broker" does not include
any of the following: (1) A person that makes or collects loans, to the extent
these activities are subject to licensure or registration by this
state; (2) A lender approved by the United States secretary of
housing and urban development for participation in a mortgage
insurance program under the "National Housing Act," 48 Stat. 1246
(1934), 12 U.S.C.A. 1701, as amended; (3) A bank, savings bank, or savings and loan association,
or a subsidiary or an affiliate of a bank, savings bank, or
savings and loan association. For purposes of division
(E)(3) of
this section, "affiliate" has the same meaning as in division (A)
of section 1101.01 of the Revised Code, and "bank," as used in
division (A) of section 1101.01 of the Revised Code, is deemed to
include a savings bank or savings and loan association. (4) A credit union organized and qualified under Chapter
1733. of the Revised Code or the "Federal Credit Union Act," 84
Stat. 994 (1970), 12 U.S.C.A. 1751, as amended; (5) A budget and debt counseling service, as defined in
division (D) of section 2716.03 of the Revised Code, provided
that the service is a nonprofit organization exempt from taxation
under section 501(c)(3) of the "Internal Revenue Code of 1986,"
100 Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service
is in compliance with Chapter 4710. of the Revised Code; (6) A consumer reporting agency that is in substantial
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128,
15 U.S.C.A. 1681a, as amended; (7) A mortgage banker; (8) Any political subdivision, or any governmental or
other public entity, corporation, or agency, in or of the United
States or any state of the United States; (9) A college or university, or controlled entity of a
college or university, as defined in section 1713.05 of the
Revised Code. (F) "Registrant" means any person that
has been issued a
certificate of registration under sections 1322.01 to 1322.12 of
the Revised Code. (G) "Superintendent of financial institutions" includes
the deputy superintendent for consumer finance as provided in section 1181.21
of the Revised Code. Sec. 1322.02. (A) No person, on the person's own behalf or on
behalf of
any other person, shall act
as a mortgage broker without first having obtained a certificate of
registration from the superintendent of financial
institutions for the person's main office and for every other
office to be
maintained by the person for the transaction of business as a mortgage broker
in this state.
A registrant
shall maintain an office location in this state for the transaction of
business as a
mortgage broker in this state. (B) No registrant or employee of a registrant shall originate a
mortgage loan, unless the mortgage loan is originated at a location where the
registrant's certificate of registration is maintained, and where the
registrant or the employee of the registrant regularly transacts mortgage
broker business. (C) No person shall
originate mortgage loans for a registrant, unless that person is an employee
of the registrant. (D) As used in this section: (1) "Employee" means a person who may be required or directed by a
registrant to originate mortgage loans in consideration of direct or indirect
gain or profit. "Employee" does not include an independent contractor or
any person WHO has a similar employment relationship with a
mortgage broker. (2) "Originate" means any of the following: (a) To negotiate or arrange, or to offer to negotiate
or arrange, a mortgage loan between a person that makes or funds
mortgage loans and a buyer; (b) To issue a commitment for a mortgage loan to a
buyer; (c) To place, assist in placement, or find a mortgage
loan for a buyer. Sec. 1322.03. (A) An application for a certificate of
registration as a mortgage broker shall be in writing, under
oath, and in the form prescribed by the superintendent of
financial institutions. The application shall
be accompanied by an application fee of three hundred fifty dollars for each
location of an office to be maintained by the applicant in accordance with
division (A) of section 1322.02 Of the Revised Code and shall provide all
of the following: (1) The location or locations where the business is to be transacted
and whether any location is a residence. If any location
where the business is to be transacted is a residence, the
application shall be accompanied by a certified copy of a zoning
permit authorizing the use of the residence for commercial
purposes, or shall be accompanied by a written opinion or other
document issued by the county or political subdivision where the
residence is located certifying that the use of the residence to
transact business as a mortgage broker is not prohibited by the
county or political subdivision. The application also
shall be accompanied by a photograph of
each location at which the business will be transacted. (2)(a) In the case of a sole proprietor, the name and address of the sole
proprietor; (b) In the case of a partnership, the name and
address of each partner; (c) In the case of a corporation, the name and
address of each shareholder owning five per cent or more of the
corporation; (d) in the case of any other entity, the name
and address of any person that owns five per cent or more of the
entity that will transact business as a mortgage broker. (3)(a) If the applicant is a partnership, the applicant shall designate one
of the partners
named in the
application pursuant to division (A)(2)(b) of this
section as responsible for managing the operations
of the location or locations where the business is to be transacted. (b) If the applicant is a corporation, the
applicant shall designate one of the shareholders
named in the
application pursuant to division (A)(2)(c) of this
section as responsible for managing the operations
of the location or locations where the business is to be transacted. (c) if the applicant is any other entity, the
applicant shall designate a natural person that owns five per
cent or more of the entity that will transact business as a
mortgage broker as responsible for managing the operations of
the location or locations where the business is to be
transacted. (4) Evidence that at least one of the following applies to
the sole proprietor, partner, or shareholder, or natural
person designated on
the application pursuant to division (A)(3) of this section as
responsible for managing the operations of
the location or locations where the business is to be
transacted: (a) The Except as provided in division (D)(2) of this
section, the sole proprietor, partner, or shareholder, or
natural person has earned at
least an associate's associate degree in an area
relating to finance, banking, or business administration, and
the degree was earned at an accredited college or university, including an
accredited community or technical college. (b) The sole proprietor, partner, or shareholder, or natural
person possesses at
least three years of experience in the mortgage and
lending field, which experience may include employment with or as a mortgage
broker or with a
financial institution, mortgage lending institution, or other
lending institution, or possesses at least three years of other experience
related specifically to the business of mortgage loans
that the superintendent determines meets the requirements of
division (A)(4)(b) of this section. Evidence of
experience submitted with the
application may include letters of employment from present or
prior employers. (5) Evidence of compliance with the financial surety bond
requirements
of section 1322.05 of the Revised Code and with sections 1322.01
to 1322.12 of the Revised Code; (6) In the case of a foreign corporation, evidence that it
maintains a license pursuant to Chapter 1703. of the Revised Code
to transact business in this state; (7) A statement that the applicant has not been convicted
of or pleaded guilty to a criminal offense, the violation of
which is a felony, or any criminal offense involving fraud; (8) Any further information that the superintendent
requires. (B) Upon the filing of the application and payment of the
application fee, the superintendent shall investigate the
applicant. If, in order to issue a certificate of registration
to an applicant, investigation by the
superintendent outside this
state is necessary, the superintendent may require the applicant
to advance sufficient funds to pay the actual expenses of the
investigation, if it appears that these expenses will exceed three hundred
fifty dollars. The superintendent shall provide the applicant
with an itemized statement of the actual expenses that the
applicant is required to pay. (C) All funds advanced and application and renewal fees
paid to the superintendent under this section and section
1322.04
of the Revised Code shall be paid by the superintendent to the
treasurer of state to the credit of the consumer
finance fund created in section 1321.21 of the Revised Code. (D)(1) Division (A)(4) of this section does not
apply to any registrant that, on the effective date of
this
amendment March 4, 1996, is registered as a
mortgage broker under sections 1322.01 to 1322.12
of
the Revised Code under a certificate of
registration issued pursuant to those sections
prior to the
effective date of this amendment March 4, 1996,
provided that the certificate
of registration is not surrendered by the registrant or
revoked
or refused renewal by the superintendent of consumer finance
financial institutions at
any time after the effective date of this amendment
March 4, 1996. (2) Except as provided in division (D)(3) of this
section, on and after the effective date of this
amendment, Evidence of education provided in division
(A)(4)(a)
of this section shall not be
accepted on an application of a person applying as a new
applicant for a certificate of registration as a mortgage
broker. However, On and after the effective date of this
amendment, a person who, prior to that date, submitted evidence
of education as provided for in division
(A)(4)(a)of this section may renew a certificate of registration as a
mortgage broker, provided that the person is registered on that
date as a mortgage broker pursuant to section 1322.04 of the
Revised
Code, and a certificate of
registration as a mortgage broker is not surrendered by the
person or revoked or refused renewal by the superintendent at
any time after that date. (3) For a period ending three years after the effective date of this
amendment, evidence that the person designated as responsible for managing the
operation of a location or locations where business is or will be transacted
meets the educational requirements specified in division
(A)(4)(a) of this section
shall be acceptable on an application for a certificate of registration as a
mortgage broker, if the superintendent determines that both of the following
apply: (a) Prior to the effective date of this amendment,
the person was designated pursuant to division
(A)(3) of this section as responsible for
managing the operations OF a LOCATION Or LOCATIONS WHERE a registrant's
BUSINESS was TRANSACTED, having met the educational requirements provided in
division (A)(4)(a) of this
section; (b) The person is designated as responsible for
managing the operations of an entity described in division
(A)(2) of this section WHERE the mortgage
broker business is or will be transacted. Sec. 1322.04. (A) Upon the conclusion of the
investigation required under division (B) of section 1322.03 of
the Revised Code, the superintendent of financial
institutions shall issue a certificate of registration
to the applicant if
the
superintendent finds that the following conditions are met: (1) The application is accompanied by the application fee
of three hundred fifty dollars for each location of an office to be
maintained by the applicant in accordance with division (A) of
section 1322.02 Of the Revised Code and complies with division (A) of
section 1322.03 of the Revised Code. (2) If the application is for a location that is a residence,
that the applicant has obtained a valid zoning permit
authorizing the use of the residence for commercial purposes, or has obtained
a valid written opinion or other document
issued by the county or political subdivision where the
residence is located certifying that the use of the residence to
transact business as a mortgage broker is not prohibited by the
county or political subdivision. The
application also is accompanied by a photograph of each
location at which the mortgage broker's business will be
transacted. (3)(a) The sole proprietor, partner, or shareholder,
or natural person designated on
the
application, pursuant to division (A)(3) of section 1322.03 of the Revised
Code, as
responsible for managing the
operation of the location or locations where the business is to be
transacted
meets the educational or experience requirements described
provided in division
(A)(4) of section 1322.03 of the Revised Code. (b) If a partner,
shareholder, or natural person designated pursuant to division
(A)(3)
of section 1322.03 of the
Revised
Code ceases to be
responsible for managing the operation of the location or
locations where the business is to be transacted,
the applicant shall comply with the requirements that apply to a registrant
under division (E) of this section. (4) In the case of a foreign corporation, the applicant
maintains a license pursuant to Chapter 1703. of the Revised Code
to transact business in this state. (5) The applicant complies with the financial surety bond
requirements
of section 1322.05 of the Revised Code. (6) The applicant complies with sections 1322.01 to
1322.12 of the Revised Code. (7) The applicant has not pleaded guilty to or been
convicted of a criminal offense, the violation of which is a
felony, or any criminal offense involving fraud. (8) The applicant's financial responsibility, experience,
character, and general fitness command the confidence of the
public and warrant the belief that the business will be operated
honestly and fairly in compliance with the purposes of sections
1322.01 to 1322.12 of the Revised Code. For purposes of determining whether an applicant that is a
partnership or, corporation, or other entity has
met the conditions set forth in
division (A)(8) of this
section, the superintendent shall determine which partners or,
shareholders, or persons named in the application pursuant to
division
(A)(2) of section 1322.03 of
the Revised
Code must meet the conditions set forth in division (A)(8) of
this section. This determination shall be based on the extent
and nature of the partner's or, shareholder's, or
person's ownership interest
in the partnership or, corporation, or entity that
is the applicant. (B) The certificate of registration issued pursuant to
division (A) of this section may be renewed annually on or before
the thirtieth day of April upon payment of a renewal fee of three hundred
fifty dollars for each location of an office to be maintained
by the applicant in accordance with division (A) of section
1322.02 Of the Revised Code and a finding by the superintendent that the
applicant meets the conditions set forth in divisions (A)(2) to
(8) of this section and that the applicant's certificate of
registration is not subject to an order of suspension or
revocation by the superintendent. If a renewal fee is submitted to
received by the
superintendent after the thirtieth day of April but prior to the first day
of
June, the fee shall be accompanied by a late renewal fee of one
hundred dollars for each location of an office maintained by the
applicant for which the renewal fee is late, the certificate of
registration shall not be
considered renewed, and the applicant shall cease activity as a
mortgage broker and apply for a certificate of registration
as a mortgage broker. (C) No application, or renewal, or late renewal fee
required by division (A)
or (B) of this section shall be returned after a certificate of
registration has been issued or renewed by the superintendent. (D) Division (A)(3) of this section does not
apply to any registrant that, on the effective date of
this
amendment March 4, 1996, is registered as a
mortgage broker under sections 1322.01 to 1322.12 of
the Revised Code under a certificate of
registration issued pursuant to those sections
prior to the
effective date of this amendment March 4, 1996,
provided that the certificate
of registration is not surrendered by the registrant or
revoked
or refused renewal by the superintendent of consumer finance
financial institutions at
any time after the effective date of this amendment
March 4, 1996. (E) If a partner, shareholder, or natural person designated
pursuant to division (A)(3) of
section 1322.03 of the Revised
Code is no longer responsible
for managing the operation of the location or locations where
business is to be transacted, the registrant
shall do all of the
following: (1) Designate another partner,
shareholder, or natural person as responsible for managing the operation of
the
location or locations where business is to be transacted; (2) Within ten days after the
designation described in division
(E)(1)
of this section, notify the superintendent in writing of
the designation; (3) Submit any additional
information that the Superintendent requires to establish that
the newly designated partner, shareholder, or natural person complies with the
experience requirements set forth in division
(A)(4)(b) of section 1322.03 of
the Revised
Code. Sec. 1322.05. (A) No registrant
shall conduct business in
this state, unless the registrant has obtained a corporate
surety bond issued by a bonding company or insurance company
authorized to do business in this state. The bond shall be in
favor of the superintendent of financial institutions and in the
penal sum of at least twenty-five thousand dollars and an
additional penal sum of five thousand dollars for each
location, in excess of one, at which the registrant
conducts business. A copy of the bond shall be filed with the
superintendent. The bond shall be
for the exclusive benefit of any person
injured by a violation of any provision of sections 1322.01 to
1322.12 of the Revised
Code.
THE AGGREGATE LIABILITY OF THE CORPORATE
SURETY FOR ANY AND ALL BREACHES OF THE CONDITIONS OF THE BOND SHALL NOT EXCEED
THE PENAL SUM OF THE BOND. (B) The registrant
shall give notice to the superintendent by certified mail
of any action that is brought against the registrant and of
any judgment that is entered against the registrant by a
person injured by a violation of any provision of sections
1322.01 to 1322.12 of the
Revised
Code. The notice shall provide
details sufficient to identify the action or judgment, and shall be
filed with the superintendent within ten days after the
commencement of the action or notice to the registrant of
entry of a judgment. The corporate surety, within ten days
after it pays any claim or judgment, shall give notice to the
superintendent by certified mail of the payment, with details
sufficient to identify the person and the claim or judgment
paid. (C) Whenever the
penal sum of the corporate surety bond is reduced by one or
more recoveries or payments, the registrant shall
furnish a new or additional bond under this section, so that the
total or aggregate penal sum of the bond or bonds equals the
sum required by this section, or shall furnish an endorsement
executed by the corporate surety reinstating the bond to the
required penal sum of it. (D) The liability of
the corporate surety on the bond to the superintendent and to
any person injured by a violation of any provision of sections
1322.01 to 1322.12 of the
Revised
Code shall not be affected in
any way by any misrepresentation, breach of warranty, or failure
to pay the premium, by any act or omission upon the part of the
registrant, by the insolvency or bankruptcy of the
registrant, or by the insolvency of the registrant's
estate. The liability for any act or omission that occurs during the term of
the corporate surety bond shall be maintained and in effect for at least two
years after the date on which the corporate surety bond is terminated or
canceled. (E) The corporate
surety bond shall not be canceled by the registrant or the
corporate surety except upon notice to the superintendent by
certified mail, return receipt requested. The cancellation
shall not be effective prior to thirty days after the
superintendent receives the notice. (F) No registrant
shall fail to comply with
this section. Sec. 1322.10. (A) After notice and opportunity for a
hearing conducted in accordance with Chapter 119. of the Revised
Code, the superintendent of financial
institutions may suspend do the following: (1) Suspend, revoke, or refuse to issue or renew a
certificate of registration
if the
superintendent finds a violation of division (B) of section 1322.02
or
1322.06, or section 1322.05, 1322.07, 1322.08, or 1322.09 of the
Revised Code or the rules adopted thereunder under those
sections; (2) Impose a fine of not more than
one thousand dollars, for each day a violation of a
law or rule is committed, repeated, or continued. If the
registrant engages in a pattern of repeated violations of
a law or rule, the superintendent may impose a fine of not more than
two thousand dollars for each day the violation is committed, repeated, or
continued. All
fines collected
pursuant to this division shall be paid to the treasurer of
state to the credit of the consumer finance fund created in
section 1321.21 of the Revised
Code. in determining the amount of a fine to be imposed
pursuant
to this division, the superintendent shall consider all of the
following: (a) the seriousness of the
violation; (b) the registrant's good faith
efforts to prevent the violation; (c) the registrant's history
regarding violations and compliance with division orders; (d) the registrant's financial
resources; (e) any other matters the
superintendent considers appropriate in enforcing sections 1322.01 to 1322.12
Of the Revised Code. (B) The superintendent may investigate alleged violations
of section 1322.01 to 1322.12 of the Revised Code, or the rules
adopted thereunder, under those sections or complaints
concerning any such violation.
The superintendent may make application to the court of common pleas for an
order enjoining any such violation, and, upon a
showing by the superintendent that a person has committed, or is
about to commit, such a violation, the court shall grant an
injunction, restraining order, or other appropriate relief. (C) In conducting any investigation pursuant to this
section, the superintendent may compel, by subpoena, witnesses,
to testify in relation to any matter over which the
superintendent has jurisdiction, and may require the production
of any book, record, or other document pertaining to such that
matter. If a person fails to file any statement or report, obey any
subpoena, give testimony, produce any book, record, or other
document as required by such a subpoena, or permit photocopying
of any book, record, or other document subpoenaed, the court of
common pleas of any county in this state, upon application made
to it by the superintendent, shall compel obedience by attachment
proceedings for contempt, as in the case of disobedience of the
requirements of a subpoena issued from the court or a refusal to
testify therein. (D) If the superintendent determines that a person is
engaged in, or is believed to be engaged in, activities that may
constitute a violation of sections 1322.01 to 1322.12 of the
Revised Code, the superintendent may, after notice and a hearing
conducted in accordance with Chapter 119. of the Revised Code, may
issue a cease and desist order. Such an order shall be
enforceable in the court of common pleas. Sec. 1322.101. On receipt of a notice pursuant to
section 2301.373 of the Revised Code, the division of consumer finance
financial institutions shall comply with that
section with respect to a certificate issued pursuant to this chapter. Sec. 1343.011. (A) As used in this section: (1) "Discount points" means any charges, whether or not
actually denominated as "discount points," which that are
paid by the
seller or the buyer of residential real property to a residential
mortgage lender or which that are deducted and retained by a
residential mortgage lender from the proceeds of the residential
mortgage. "Discount points do" does not include
the costs associated
with settlement services as defined in the "Real Estate
Settlement Procedures Act of 1974," 88 Stat. 1724, 12 U.S.C.
2601, amendments thereto, reenactments thereof, enactments
parallel thereto, or in substitution therefor, or regulations
issued thereunder. (2) "Residential mortgage" means an obligation to pay a
sum of money evidenced by a note and secured by a lien upon real
property located within this state containing two or fewer
residential units or on which two or fewer residential units are
to be constructed and includes such an obligation on a
residential condominium or cooperative unit. (3) "Residential mortgage lender" means any person, bank,
or savings and loan association which that lends money or
extends or
grants credit and obtains a residential mortgage to assure
payment of the debt. The term shall also include
includes the holder at
any time of a residential mortgage obligation. (B) Except residential mortgage loans described in
division (B)(3) of section 1343.01 of the Revised Code, no
residential mortgage lender shall receive either directly or
indirectly from a seller or buyer of real estate any discount
points in excess of two per cent of the original principal amount
of the residential mortgage. This division is not a limitation on discount
points or other charges for purposes of section 501(b)(4) of
the "Depository Institutions Deregulation and
Monetary Control Act of 1980," 94 Stat.
161, 12 U.S.C.A. 1735f-7a. (C) Residential mortgage obligations contracted for on or
after November 4, 1975, may be prepaid or refinanced without
penalty at any time after five years from the execution date of
such the mortgage. Prior to such time a prepayment or
refinancing
penalty may be provided not in excess of one per cent of the
original principal amount of the residential mortgage. SECTION 2 . That existing sections 1155.08, 1163.11, 1322.01, 1322.02, 1322.03,
1322.04, 1322.10,
1322.101, and 1343.011 and section 1322.05 of the Revised Code are hereby
repealed.
SECTION 3 . With respect to any person that, on the effective date of this
act, is registered as a mortgage broker under sections 1322.01 to 1322.12 of
the Revised Code under a certificate of registration issued prior to that
date,
section 1322.02 of the Revised Code, as amended by this act, and section
1322.05 of the Revised Code, as repealed and reenacted by this act, first
apply
upon the renewal of the person's certificate of registration in 1999.
SECTION 4 . The amendment by this act of section 1343.011 of
the Revised Code is intended as a clarification of existing law
and not as a substantive change in the law.
|