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.
|
Sub. S. B. No. 76 As Reported by the House Financial Institutions CommitteeAs Reported by the House Financial Institutions Committee
124th General Assembly | Regular Session | 2001-2002 |
| |
SENATORS Harris, White, Prentiss, Spada, Carnes, Robert Gardner, Hottinger, Fingerhut, Hagan, Johnson, Jacobson
REPRESENTATIVES Salerno, Blasdel, Beatty, Coates, Collier, Evans, Hoops, Husted, Kilbane, R. Miller, Ogg, Otterman, Reidelbach, Reinhard, Schmidt, Setzer, G. Smith, Sulzer, Webster, Wilson
A BILL
| To amend sections 1322.01, 1322.02, 1322.03, 1322.04, | 1 |
|
1322.05, 1322.06, 1322.07, 1322.08, 1322.09, | 2 |
|
1322.10, 1322.101, 1322.11, 1322.99, and
4712.01 | 3 |
|
and to enact sections 1322.021, 1322.031, | 4 |
|
1322.041, 1322.051, 1322.052, 1322.061, 1322.062, | 5 |
|
1322.071, 1322.072, and 1322.073 of the
Revised | 6 |
|
Code to revise the laws
governing mortgage
brokers | 7 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1322.01, 1322.02, 1322.03, 1322.04, | 9 |
1322.05, 1322.06, 1322.07, 1322.08, 1322.09, 1322.10, 1322.101, | 10 |
1322.11, 1322.99, and 4712.01 be amended and sections
1322.021, | 11 |
1322.031, 1322.041, 1322.051, 1322.052, 1322.061,
1322.062, | 12 |
1322.071, 1322.072, and 1322.073 of the
Revised
Code be enacted to | 13 |
read as follows: | 14 |
Sec. 1322.01. As used in sections 1322.01 to 1322.12 of the | 15 |
Revised Code: | 16 |
(A) "Buyer" means an individual who is solicited to
purchase | 17 |
or who purchases the services of a mortgage broker for
purposes | 18 |
other than obtaining a business loan as described in
division | 19 |
(B)(6) of section 1343.01 of the Revised Code. | 20 |
(B) "Consumer reporting agency" has the same meaning as in | 21 |
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A.
1681a, | 22 |
as amended. | 23 |
(C)
"Employee" means an individual for whom a mortgage | 24 |
broker, in addition to providing a wage or salary, pays social | 25 |
security and unemployment taxes, provides workers' compensation | 26 |
coverage, and withholds local, state, and federal income taxes. | 27 |
"Employee" also includes any shareholder, member, or partner of a | 28 |
registrant who acts as a loan officer or operations manager of the | 29 |
registrant, but for whom the registrant is prevented by law from | 30 |
making income tax withholdings. | 31 |
(D) "Licensee" means any person that has been issued a loan | 32 |
officer license under sections 1322.01 to 1322.12 of the Revised | 33 |
Code. | 34 |
(E) "Loan officer" means an employee who originates | 35 |
mortgage loans in consideration of direct or indirect gain, | 36 |
profit, fees, or charges. "Loan officer" also includes an | 37 |
employee who solicits financial and mortgage information from the | 38 |
public for sale to another mortgage broker. | 39 |
(F) "Mortgage" means any indebtedness secured by a deed of | 40 |
trust, security deed, or other lien on real property. | 41 |
(D) "Mortgage banker" means any person that makes,
services, | 42 |
or buys and sells mortgage loans, and is
required to submit | 43 |
audited financial statements to, and is
subject to a possible | 44 |
audit
by, the
United States department of housing and urban | 45 |
development, the
United States department of veterans affairs, the | 46 |
federal
national mortgage association, the federal home loan | 47 |
mortgage
corporation, or the government national mortgage | 48 |
association. | 49 |
(E)(G) "Mortgage broker" means
aany of the following: | 50 |
(1) A person that, in the regular
course of business, holds | 51 |
that
person out
as being able to assist a buyer in obtaining a | 52 |
mortgage and charges or
receives
from either the buyer or lender | 53 |
money or
other valuable consideration readily convertible into | 54 |
money for
providing this assistance. "Mortgage broker" does not | 55 |
include
any of the following: | 56 |
(1) A person that makes or collects loans, to the extent | 57 |
these activities are subject to licensure or registration by this | 58 |
state; | 59 |
(2) A
lender approved by the United States secretary of | 60 |
housing and urban development for participation in a mortgage | 61 |
insurance program under the "National Housing Act," 48 Stat. 1246 | 62 |
(1934), 12 U.S.C.A. 1701, as amendedperson that solicits | 63 |
financial and mortgage information from the public, provides that | 64 |
information to a mortgage broker, and charges or receives from the | 65 |
mortgage broker money or
other valuable consideration readily | 66 |
convertible into money for
providing the information; | 67 |
(3) A
bank, savings bank, savings and loan association,
or | 68 |
subsidiary or affiliate of a bank, savings bank, or
savings and | 69 |
loan association. For purposes of division
(E)(3) of
this | 70 |
section, "affiliate" has the same meaning as in division (A)
of | 71 |
section 1101.01 of the Revised Code, and "bank," as used in | 72 |
division (A) of section 1101.01 of the Revised Code, is deemed to | 73 |
include a savings bank or savings and loan association. | 74 |
(4) A credit union organized and qualified under Chapter | 75 |
1733. of the Revised Code or the "Federal Credit Union Act," 84 | 76 |
Stat. 994 (1970), 12 U.S.C.A. 1751, as amended; | 77 |
(5) A budget and debt counseling service, as defined in | 78 |
division (D) of section 2716.03 of the Revised Code, provided
that | 79 |
the service is a nonprofit organization exempt from taxation
under | 80 |
section 501(c)(3) of the "Internal Revenue Code of 1986,"
100 | 81 |
Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service
is | 82 |
in compliance with Chapter 4710. of the Revised Code; | 83 |
(6) A consumer reporting agency that is in substantial | 84 |
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128,
15 | 85 |
U.S.C.A. 1681a, as amended; | 86 |
(8) Any political subdivision, or any governmental or
other | 88 |
public entity, corporation, or agency, in or of the United
States | 89 |
or any state of the United States; | 90 |
(9) A college or university, or controlled entity of a | 91 |
college or university, as defined in section 1713.05 of the | 92 |
Revised Code. | 93 |
(F)person engaged in table-funding or warehouse-lending | 94 |
mortgage loans that are first lien mortgage loans. | 95 |
(H) "Operations manager" means the individual responsible | 96 |
for the everyday operations, compliance requirements, and | 97 |
management of a mortgage broker business. | 98 |
(I) "Originate" means to do any of the following: | 99 |
(1) Negotiate or arrange, or offer to negotiate or arrange, | 100 |
a mortgage loan between a person that makes or funds mortgage | 101 |
loans and a buyer; | 102 |
(2) Issue a commitment for a mortgage loan to a buyer; | 103 |
(3) Place, assist in placement, or find a mortgage loan for | 104 |
a buyer. | 105 |
(J)
"Registrant" means any person that
has been issued a | 106 | mortgage broker certificate of registration under sections 1322.01 | 107 |
to 1322.12 of
the Revised Code. | 108 |
(G)(K) "Superintendent of financial institutions" includes | 109 |
the deputy superintendent for consumer finance as provided in | 110 |
section 1181.21
of the Revised Code. | 111 |
(L) "Table-funding mortgage loan" means a mortgage loan | 112 |
transaction in which the mortgage is initially payable to the | 113 |
mortgage broker, the mortgage broker does not use the mortgage | 114 |
broker's own funds to fund the transaction, and, by the terms of | 115 |
the mortgage or other agreement, the mortgage is simultaneously | 116 |
assigned to another person.
| 117 |
(M) "Warehouse-lending mortgage loan" means a mortgage loan | 118 |
transaction in which the mortgage is initially payable to the | 119 |
mortgage broker, the mortgage broker uses the mortgage broker's | 120 |
own funds to fund the transaction, and the mortgage is sold or | 121 |
assigned before the mortgage broker receives a scheduled
payment | 122 |
on
the mortgage. | 123 |
Sec. 1322.02. (A)(1) No person, on the person's own behalf | 124 |
or
on
behalf of any other person, shall act
as a mortgage broker | 125 |
without first having obtained a certificate of
registration from | 126 |
the superintendent of financial
institutions for every
office to | 127 |
be
maintained by the person for the transaction of business as a | 128 |
mortgage broker
in this state.
A registrant
shall maintain an | 129 |
office location in this state for the transaction of
business as a | 130 |
mortgage broker in this state. | 131 |
(2) No person shall act or hold that person's self out as a | 132 |
mortgage broker under the authority or name of a registrant or | 133 |
person exempt from sections 1322.01 to 1322.12 of the Revised Code | 134 |
without first having obtained a certificate of registration from | 135 |
the superintendent for every office to be maintained by the person | 136 |
for the transaction of business as a mortgage broker in this | 137 |
state. | 138 |
(B) No person, on the person's own behalf or on behalf of | 139 |
any other person, shall
originate mortgage loans for a registrant, | 140 |
unless that person is an employee
of the registrantact as a loan | 141 |
officer without first having obtained a license from the | 142 |
superintendent. A loan officer shall not be employed by more than | 143 |
one mortgage broker at any one time. | 144 |
(C)
As used in this section: | 145 |
(1)
Employee means a person who may be required or directed | 146 |
by a
registrant to originate mortgage loans in consideration of | 147 |
direct or indirect
gain or profit. Employee does not include an | 148 |
independent contractor or
any person who has a similar employment | 149 |
relationship with a
mortgage brokerThe following persons are | 150 |
exempt from sections 1322.01 to
1322.12 of the Revised Code only | 151 |
with respect
to business engaged
in or authorized by their | 152 |
charter, license,
authority, approval,
or certificate, or as | 153 |
otherwise authorized by division (C)(1)(g) of this section: | 154 |
(a) A bank, savings bank, savings and loan association, or | 155 |
credit union organized under the laws of this state, another | 156 |
state, or the United States, or a subsidiary or affiliate of a | 157 |
bank, savings bank, savings and loan association, or credit union; | 158 |
(b) A budget and debt counseling service, as defined in | 159 |
division (D) of section 2716.03 of the Revised Code, provided that | 160 |
the service is a nonprofit organization exempt from taxation under | 161 |
section 501(c)(3) of the "Internal Revenue Code of 1986," 100 | 162 |
Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service is | 163 |
in compliance with Chapter 4710. of the Revised Code; | 164 |
(c) A consumer reporting agency that is in substantial | 165 |
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128, 15 | 166 |
U.S.C.A. 1681a, as amended; | 167 |
(d) Any political subdivision, or any governmental or other | 168 |
public entity, corporation, or agency, in or of the United States | 169 |
or any state of the United States; | 170 |
(e) A college or university, or controlled entity of a | 171 |
college or university, as defined in section 1713.05 of the | 172 |
Revised Code; | 173 |
(f) A person registered under sections 1321.51 to 1321.60 of | 174 |
the Revised Code, provided that not more than five per cent of the | 175 |
person's mortgage loans constitute table-funding mortgage loans or | 176 |
warehouse-lending mortgage loans. Division (C)(1)(f) of this | 177 |
section does not include any person that is also registered or | 178 |
licensed under sections 1322.01 to 1322.12 of the Revised Code. | 179 |
(g) A mortgage banker. For purposes of division (C)(1)(g) | 180 |
of this section, "mortgage banker" means any person that makes, | 181 |
services, buys, or sells mortgage loans, that underwrites the | 182 |
loans, and that meets at least
one of the following criteria: | 183 |
(i) The person has been directly approved by the United | 184 |
States department of housing and urban development as a | 185 |
nonsupervised mortgagee with participation in the direct | 186 |
endorsement program, or, provided that the loans in all respects, | 187 |
except loan amounts, comply with the underwriting and | 188 |
documentation requirements of the United States department of | 189 |
housing and urban development, the person makes loans in excess of | 190 |
the applicable loan limit set by the federal national mortgage | 191 |
association. Division (C)(1)(g)(i) of this section does
not | 192 |
include a mortgagee approved as a loan correspondent. | 193 |
(ii) The person has been directly approved by the federal | 194 |
national mortgage association as a seller/servicer, or, provided | 195 |
that the loans in all respects, except loan amounts, comply with | 196 |
the underwriting and documentation requirements of the federal | 197 |
national mortgage association, the person makes loans in excess of | 198 |
the applicable loan limit set by the federal national mortgage | 199 |
association. | 200 |
(iii) The person has been directly approved by the federal | 201 |
home loan mortgage corporation as a seller/servicer, or, provided | 202 |
that the loans in all respects, except loan amounts, comply with | 203 |
the underwriting and documentation requirements of the federal | 204 |
home loan mortgage corporation, the person makes loans in excess | 205 |
of the applicable loan limit set by the federal home loan mortgage | 206 |
corporation. | 207 |
(iv) The person has been directly approved by the United | 208 |
States department of veterans affairs as a nonsupervised automatic | 209 |
lender. Division (C)(1)(g)(iv) of this section does not include a | 210 |
person directly approved by the United States department of | 211 |
veterans affairs as a nonsupervised lender, an agent of a | 212 |
nonsupervised automatic lender, or an agent of a nonsupervised | 213 |
lender. | 214 |
(h) A person created solely for the purpose of securitizing | 215 |
loans secured by an interest in real estate, provided the person | 216 |
does not service the loans. For purposes of division (C)(1)(h) of | 217 |
this section, "securitizing" means the packaging and sale of | 218 |
mortgage loans as a unit for sale as investment securities, but | 219 |
only to the extent of those activities. | 220 |
(2) Originate means any of the following: | 221 |
(a) To negotiate or arrange, or to offer to negotiate
or | 222 |
arrange, a mortgage loan between a person that makes or funds | 223 |
mortgage loans and a buyer; | 224 |
(b) To issue a commitment for a mortgage loan to a
buyer; | 225 |
(c) To place, assist in placement, or find a mortgage
loan | 226 |
for a buyerAny individual who is employed by a person exempt from | 227 |
sections 1322.01 to 1322.12 of the Revised Code is also exempt | 228 |
from those sections to the extent the individual is acting within | 229 |
the scope of the individual's employment and within the scope of | 230 |
the exempt person's charter, license, authority, approval, or | 231 |
certificate. | 232 |
Sec. 1322.021. (A) A registrant that is a corporation, | 233 |
limited liability company, partnership, trust, or other business | 234 |
entity or association shall notify the division of financial | 235 |
institutions of every sale, transfer, or hypothecation of any | 236 |
stock, security, membership, partnership, or other equitable, | 237 |
beneficial, or ownership interest in the entity or association, if | 238 |
the interest represents at least a five per cent membership, | 239 |
partnership, or other equitable, beneficial, or ownership interest | 240 |
in the entity or association. | 241 |
(B) Every person that acquires or otherwise receives an | 242 |
interest described in division (A) of this section is subject to | 243 |
sections 1322.01 to 1322.12 of the Revised Code. The division may | 244 |
make any investigation necessary to determine whether any fact or | 245 |
condition exists that, if it had existed at the time of the | 246 |
original application for a certificate of registration, the fact | 247 |
or condition would have warranted the division to deny the | 248 |
application under section 1322.04 of the Revised Code. If such a | 249 |
fact or condition is found, the division may, in accordance with | 250 |
Chapter 119. of the Revised Code, revoke the registrant's | 251 |
certificate. | 252 |
Sec. 1322.03. (A) An application for a certificate of | 253 |
registration as a mortgage broker shall be in writing, under
oath, | 254 |
and in the form prescribed by the superintendent of
financial | 255 |
institutions. The application shall
be accompanied by
ana | 256 |
nonrefundable application fee of three hundred fifty dollars for | 257 |
each
location
of an office to be maintained by the applicant in | 258 |
accordance with
division (A) of section 1322.02 of the Revised | 259 |
Code
and; however, an applicant that is registered under sections | 260 |
1321.51 to 1321.60 of the Revised Code shall not be required to | 261 |
pay an application fee. The application shall
provide all
of the | 262 |
following: | 263 |
(1) The location or locations where the business is to be | 264 |
transacted
and whether any location is a residence. If any | 265 |
location
where the business is to be transacted is a residence, | 266 |
the
application shall be accompanied by a certified copy of a | 267 |
zoning
permit authorizing the use of the residence for commercial | 268 |
purposes, or shall be accompanied by a written opinion or other | 269 |
document issued by the county or political subdivision where the | 270 |
residence is located certifying that the use of the residence to | 271 |
transact business as a mortgage broker is not prohibited by the | 272 |
county or political subdivision. The application also
shall be | 273 |
accompanied by a photograph of
each location at which the business | 274 |
will be transacted. | 275 |
(2)(a) In the case of a sole proprietor, the name and | 276 |
address of the sole
proprietor; | 277 |
(b) In the case of a partnership, the name and
address of | 278 |
each partner; | 279 |
(c) In the case of a corporation, the name and
address of | 280 |
each shareholder owning five per cent or more of the
corporation; | 281 |
(d) In the case of any other entity, the name
and address of | 282 |
any person that owns five per cent or more of the
entity that will | 283 |
transact business as a mortgage broker. | 284 |
(3)(a) If the applicant is a partnership,
the applicant | 285 |
shall designate one
of the partners
named in the
application | 286 |
pursuant to division (A)(2)(b) of this
section as responsible for | 287 |
managing the operations
of the location or locations where the | 288 |
business is to be transacted. | 289 |
(b) If the applicant is a corporation, the
applicant shall | 290 |
designate one of the shareholders
named in the
application | 291 |
pursuant to division (A)(2)(c) of this
section as responsible for | 292 |
managing the operations
of the location or locations where the | 293 |
business is to be transacted. | 294 |
(c) If the applicant iscorporation, limited liability | 295 |
company, or any other
business entity
or association, the | 296 |
applicant
shall designate
a natural person that owns five per
cent | 297 |
or more
of the entity that will transact business as a
mortgage | 298 |
broker as
responsible for managing thean employee or owner of the | 299 |
applicant as the applicant's operations
of
the location or | 300 |
locations where the business is to be
transactedmanager. While | 301 |
acting as the operations manager, the employee or owner shall not | 302 |
be employed by any other mortgage broker. | 303 |
(4) Evidence that
at least one of the following applies to | 304 |
the sole proprietor, partner, shareholder, or
naturalthe person | 305 |
designated on
the application pursuant to division (A)(3) of this | 306 |
section, as
responsible for managing the operations of
the | 307 |
location
or locations where the business is to be
transacted: | 308 |
(a) Except as provided in division (D)(2) of this
section, | 309 |
the sole proprietor, partner, shareholder, or
natural person has | 310 |
earned at
least an associate degree in an area
relating to | 311 |
finance, banking, or business administration, and
the degree was | 312 |
earned at an accredited college or university, including an | 313 |
accredited community or technical college. | 314 |
(b) The sole proprietor, partner, shareholder, or natural | 315 |
personapplicable, possesses at
least three years of experience in | 316 |
the
mortgage and
lending field, which experience may include | 317 |
employment with or as a mortgage
broker or with a
financial | 318 |
institution, mortgage lending institution, or other
lending | 319 |
institution, or possesses at least three years of other experience | 320 |
related specifically to the business of mortgage loans
that the | 321 |
superintendent determines meets the requirements of
division | 322 |
(A)(4)(b) of this section.; | 323 |
(5) Evidence of compliance with the surety bond
requirements | 324 |
of section 1322.05 of the Revised Code and with sections 1322.01 | 325 |
to 1322.12 of the Revised Code; | 326 |
(6) In the case of a foreign
corporationbusiness entity, | 327 |
evidence that it
maintains a license
or registration pursuant to | 328 |
Chapter 1703., 1705., 1775., 1777., 1782., or 1783. of the Revised | 329 |
Code
to transact business in this state; | 330 |
(7) A statement
thatas to whether the applicant
or, to the | 331 |
best of the applicant's knowledge, any
shareholder, member, | 332 |
partner, operations manager, or
employee of the applicant has
not | 333 |
been convicted
of
or pleaded
guilty to
aany criminal offense, the | 334 |
violation of
which is
a
felonyinvolving theft, receiving stolen | 335 |
property, embezzlement,
forgery, fraud, passing bad checks, money | 336 |
laundering, or drug
trafficking, or any criminal offense involving | 337 | fraudmoney or
securities; | 338 |
(8)
A statement as to whether the applicant or, to the best | 339 |
of the applicant's knowledge, any
shareholder, member, partner, | 340 |
operations manager, or
employee of the applicant has been subject | 341 |
to any adverse judgment
for conversion, embezzlement, | 342 |
misappropriation of funds, fraud,
misfeasance or malfeasance, or | 343 |
breach of fiduciary duty; | 344 |
(9) Evidence that the applicant's operations manager has | 345 |
successfully completed the examination required under division (A) | 346 |
of section 1322.051 of the Revised Code; | 347 |
(10) Any further information that the superintendent | 348 |
requires. | 349 |
(B) Upon the filing of the application and payment of the | 350 |
application fee, the superintendent shall investigate the | 351 |
applicant.
The investigation shall include a criminal records | 352 |
check based on the fingerprints of the applicant and a civil | 353 |
records check. If, in order to issue a certificate of | 354 |
registration
to
an applicant, investigation by the
superintendent | 355 |
outside this
state is necessary, the superintendent may require | 356 |
the applicant
to advance sufficient funds to pay the actual | 357 |
expenses of the
investigation, if it appears that these expenses | 358 |
will exceed three
hundred
fifty dollars. The superintendent shall | 359 |
provide the
applicant
with an itemized statement of the actual | 360 |
expenses that
the
applicant is required to pay. | 361 |
(C) All funds advanced and application and renewal fees
and | 362 |
penalties paid
to the superintendent under this section and | 363 |
section
1322.04
of
the Revised Code shall be paid by the | 364 |
superintendent to the
treasurer of state to the credit of the | 365 |
consumer
finance fund
created in section 1321.21 of the Revised | 366 |
Code. | 367 |
(D)(1) Division (A)(4) of this section does not
apply to any | 368 |
registrant that, on March 4, 1996, is
registered as a
mortgage | 369 |
broker under sections 1322.01 to 1322.12
of
the Revised Code under | 370 |
a certificate of
registration issued pursuant to those sections | 371 |
prior to March 4, 1996,
provided that the certificate
of | 372 |
registration is not surrendered by the registrant or
revoked
or | 373 |
refused renewal by the superintendent of
financial institutions at | 374 |
any time after
March 4, 1996. | 375 |
(2) Except as provided in division (D)(3) of this
section, | 376 |
on and after
the effective date of this
amendment,
evidence of | 377 |
education
provided in division
(A)(4)(a)
of this
section shall not | 378 |
be
accepted on an application of a person
applying as a new | 379 |
applicant for a certificate of registration as a
mortgage
broker. | 380 |
However, on and after
the effective date of this
amendment, a | 381 |
person who, prior to
that date,
submitted evidence
of education as | 382 |
provided for in division
(A)(4)(a)
of this section may renew a | 383 |
certificate of registration
as a
mortgage broker, provided that | 384 |
the person is registered on
that
date as a mortgage broker | 385 |
pursuant to section 1322.04 of the
Revised
Code, and a certificate | 386 |
of
registration as a mortgage
broker is not surrendered by the | 387 |
person or revoked or refused
renewal by the superintendent at
any | 388 |
time after that date. | 389 |
(3) For a period ending three years after
the effective date | 390 |
of this
amendment, evidence that the
person
designated as | 391 |
responsible for managing the
operation of a location
or locations | 392 |
where business is or will be transacted
meets the
educational | 393 |
requirements specified in division
(A)(4)(a) of this
section
shall | 394 |
be acceptable on an application for a certificate of
registration | 395 |
as a
mortgage broker, if the superintendent
determines that both | 396 |
of the following
apply: | 397 |
(a) Prior to
the effective date of this amendment,
the | 398 |
person was designated pursuant to division
(A)(3) of
this section | 399 |
as responsible for
managing the operations of a
location or | 400 |
locations where a registrant's
business was
transacted, having met | 401 |
the educational requirements provided in
division (A)(4)(a) of | 402 |
this
section; | 403 |
(b) The person is designated as responsible for
managing the | 404 |
operations of an entity described in division
(A)(2) of this | 405 |
section where the mortgage
broker business is or will be | 406 |
transactedIf an application for a certificate of registration | 407 |
does not contain all of the information required under division | 408 |
(A) of this section, and if that information is not submitted to | 409 |
the superintendent within ninety days after the superintendent | 410 |
requests the information in writing, the superintendent may | 411 |
consider the application withdrawn.
| 412 |
(E) A certificate of registration, or the authority granted | 413 |
under such a certificate, is not transferable or assignable and | 414 |
cannot be franchised by contract or any other means. | 415 |
Sec. 1322.031. (A) An application for a license as a loan | 416 |
officer shall be in writing, under oath, and in the form | 417 |
prescribed by the superintendent of financial institutions. The | 418 |
application shall be accompanied by a nonrefundable application | 419 |
fee of one hundred dollars and shall provide all of the following: | 420 |
(1) The name and address of the applicant; | 421 |
(2) A statement as to whether the applicant has been | 422 |
convicted of
or pleaded guilty to any criminal offense involving | 423 |
theft,
receiving stolen property, embezzlement, forgery, fraud, | 424 |
passing
bad checks, money laundering, or drug trafficking, or any | 425 |
criminal
offense involving money or securities; | 426 |
(3) A statement as to whether the applicant has been subject | 427 |
to
an adverse judgment for conversion, embezzlement, | 428 |
misappropriation
of funds, fraud, misfeasance or malfeasance, or | 429 |
breach of
fiduciary duty; | 430 |
(4) Any further information that the superintendent | 431 |
requires. | 432 |
(B) Upon the filing of the application and payment of the | 433 |
application fee, the superintendent shall investigate the | 434 |
applicant. The investigation shall include a criminal records | 435 |
check based on the fingerprints of the applicant and a civil | 436 |
records check. If, in order to issue a license to an applicant, | 437 |
investigation by the superintendent outside this state is | 438 |
necessary, the superintendent may require the applicant to advance | 439 |
sufficient funds to pay the actual expenses of the investigation, | 440 |
if it appears that these expenses will exceed one hundred dollars. | 441 |
The superintendent shall provide the applicant with an
itemized | 442 |
statement of the actual expenses that the applicant is
required to | 443 |
pay. | 444 |
(C) All funds advanced and application and renewal fees and | 445 |
penalties paid
to the superintendent under this section and | 446 |
section 1322.041 of
the Revised Code shall be paid by the | 447 |
superintendent to the
treasurer of state to the credit of the | 448 |
consumer finance fund
created in section 1321.21 of the Revised | 449 |
Code. | 450 |
(D) If an application for a license does not contain all of | 451 |
the information required under division (A) of this section, and | 452 |
if that information is not submitted to the superintendent within | 453 |
ninety days after the superintendent requests the information in | 454 |
writing, the superintendent may consider the application | 455 |
withdrawn. | 456 |
(E)(1) The business of a loan officer shall principally be | 457 |
transacted at an office of the employing mortgage broker, which | 458 |
office is
registered in accordance with division (A) of section | 459 |
1322.02
of the Revised Code. Each original license shall be | 460 |
deposited
with and maintained by the employing mortgage broker at | 461 |
the
mortgage broker's main office. A copy of the license shall be | 462 |
maintained and displayed at the office where the loan officer | 463 |
principally
transacts business. | 464 |
(2) If a loan officer's employment is terminated, the | 465 |
mortgage
broker shall return the original license to the | 466 |
superintendent
within five business days after the termination. | 467 |
The licensee may
request the transfer of the license to another | 468 |
mortgage broker by
submitting a relocation application, along with | 469 |
a fifteen dollar
fee, to the superintendent or may request the | 470 |
superintendent in
writing to hold the license in escrow for a | 471 |
period not to exceed
one year. Any licensee whose license is held | 472 |
in escrow shall
cease activity as a loan officer. | 473 |
A mortgage broker may employ a loan officer on a temporary | 474 |
basis pending the transfer of the loan officer's license to the | 475 |
mortgage broker, if the mortgage broker receives written | 476 |
confirmation from the superintendent that the loan officer is | 477 |
licensed under sections 1322.01 to 1322.12 of the Revised Code. | 478 |
(F)
A license, or the authority granted under such a license, | 479 |
is
not assignable and cannot be franchised by
contract or any | 480 |
other means. | 481 |
Sec. 1322.04. (A) Upon the conclusion of the
investigation | 482 |
required under division (B) of section 1322.03 of
the Revised | 483 |
Code, the superintendent of financial
institutions shall issue a | 484 |
certificate of registration
to the applicant if
the
superintendent | 485 |
finds that the following conditions are met: | 486 |
(1)
TheExcept as otherwise provided in division (A) of | 487 |
section 1322.03 of the Revise Code, the application is accompanied | 488 |
by the application fee
of three hundred fifty dollars for each | 489 |
location of an office to be
maintained by the applicant in | 490 |
accordance with division (A) of
section 1322.02 of the Revised | 491 |
Code and complies with division (A) of
section 1322.03 of the | 492 |
Revised Code. If a check or other draft instrument is returned to | 493 |
the superintendent for insufficient funds, the
superintendent | 494 |
shall notify the registrant by certified mail,
return receipt | 495 |
requested, that the certificate of registration
issued in reliance | 496 |
on the check or other draft instrument will be
canceled unless the | 497 |
registrant, within thirty days after receipt
of the notice, | 498 |
submits the application fee and a
one-hundred-dollar penalty to | 499 |
the superintendent. If the
registrant does not submit the | 500 |
application fee and penalty within
that time period, or if any | 501 |
check or other draft instrument used
to pay the fee or penalty is | 502 |
returned to the superintendent for
insufficient funds, the | 503 |
certificate of registration shall be
canceled immediately without | 504 |
a hearing and the registrant shall
cease activity as a mortgage | 505 |
broker. | 506 |
(2) If the application is for a location that is a | 507 |
residence,
that the applicant has obtained a valid zoning permit | 508 |
authorizing the use of the residence for commercial purposes, or | 509 |
has obtained
a valid written opinion or other document
issued by | 510 |
the county or political subdivision where the
residence is located | 511 |
certifying that the use of the residence to
transact business as a | 512 |
mortgage broker is not prohibited by the
county or political | 513 |
subdivision. The
application also is accompanied by a photograph | 514 |
of each
location at which the mortgage broker's business will be | 515 |
transacted. | 516 |
(3)(a) The sole proprietor, partner, shareholder,
or
natural | 517 | the person designated on
the
application, pursuant to division | 518 |
(A)(3) of section 1322.03 of the Revised
Code, as
responsible for | 519 |
managing the
operation of the location or locations where the | 520 |
business is to be
transactedapplicable, meets the
educational or | 521 |
experience requirements
provided in division
(A)(4) of section | 522 |
1322.03 of the Revised Code. | 523 |
(b) If a partner,
shareholder, or natural person designated | 524 |
pursuant to division
(A)(3)
of section 1322.03 of the
Revised
Code | 525 |
ceases to be
responsible for managing the operation of the | 526 |
location or
locations where the business is to be transacted,
the | 527 |
applicant shall comply with the requirements that apply to a | 528 |
registrant
under division (E) of this section. | 529 |
(4)
In the case of a foreign corporation, theThe applicant | 530 |
maintains
a license pursuant to Chapter 1703. of the Revised Code | 531 |
to transact business in thisall licenses and registrations | 532 |
required by the secretary of state. | 533 |
(5) The applicant complies with the surety bond
requirements | 534 |
of section 1322.05 of the Revised Code. | 535 |
(6) The applicant complies with sections 1322.01 to
1322.12 | 536 |
of the Revised Code. | 537 |
(7)
TheNeither the applicant
nor any shareholder, member, | 538 |
partner, operations manager, or employee of the
applicant has
not | 539 |
pleaded guilty to or been
convicted of
aany
criminal offense, the | 540 |
violation of which is a
felony, or any
criminal offense involving | 541 |
frauddescribed in division (A)(7) of
section 1322.03 of the | 542 |
Revised Code, or, if the applicant or any of those other persons | 543 |
has pleaded guilty to or been convicted of such an offense, the | 544 |
applicant has proven to the superintendent, by a preponderance of | 545 |
the evidence, that the applicant's or other person's activities | 546 |
and employment record since the conviction show that the applicant | 547 |
or other person is honest, truthful, and of good reputation, and | 548 |
there is no basis in fact for believing that the applicant or | 549 |
other person will commit such an offense again. | 550 |
(8)
Neither the applicant nor any shareholder, member, | 551 |
partner, operations manager, or employee of the
applicant has been | 552 |
subject to any adverse judgment for conversion,
embezzlement, | 553 |
misappropriation of funds, fraud, misfeasance or
malfeasance, or | 554 |
breach of fiduciary duty, or, if the applicant or any of those | 555 |
other persons has been subject to such a judgment, the applicant | 556 |
has proven to the superintendent, by a preponderance of the | 557 |
evidence, that the applicant's or other person's activities and | 558 |
employment record since the judgment show that the applicant or | 559 |
other person is honest, truthful, and of good reputation, and | 560 |
there is no basis in fact for believing that the applicant or | 561 |
other person will be subject to such a judgment again. | 562 |
(9) The applicant's operations manager successfully completed | 563 |
the examination required under division (A) of section 1322.051 of | 564 |
the Revised Code. | 565 |
(10) The applicant's financial responsibility, experience, | 566 |
character, and general fitness command the confidence of the | 567 |
public and warrant the belief that the business will be operated | 568 |
honestly and fairly in compliance with the purposes of sections | 569 |
1322.01 to 1322.12 of the Revised Code. | 570 |
For purposes of determining whether an applicant that is a | 571 |
partnership, corporation, or other
business entity
or association | 572 |
has
met the conditions set forth in
divisiondivisions (A)(7), | 573 |
(A)(8), and (A)(10) of this
section, the superintendent shall | 574 |
determine which partners,
shareholders, or persons named in the | 575 |
application pursuant to
division
(A)(2) of section 1322.03 of
the | 576 |
Revised
Code must meet the conditions set forth in
division | 577 | divisions (A)(7), (A)(8), and (A)(10) of
this section. This | 578 |
determination shall be based on the extent
and nature of the | 579 |
partner's, shareholder's, or
person's ownership interest
in the | 580 |
partnership, corporation, or
other business entity
or association | 581 |
that
is the applicant. | 582 |
(B) The certificate of registration issued pursuant to | 583 |
division (A) of this section may be renewed annually on or before | 584 |
the thirtieth day of April
upon payment of aif the superintendent | 585 |
finds that all of the following conditions are met:
| 586 |
(1) The renewal application is accompanied by a | 587 |
nonrefundable
renewal fee of three hundred
fifty dollars for | 588 |
each location of an office to be maintained
by the applicant in | 589 |
accordance with division (A) of section
1322.02 of the Revised | 590 |
Code
and a finding by the superintendent that the; however, an | 591 |
applicant that is registered under sections 1321.51 to 1321.60 of | 592 |
the Revised Code shall not be required to pay a renewal fee. If a | 593 |
check or other draft instrument is returned to the superintendent | 594 |
for insufficient funds, the superintendent shall notify the | 595 |
registrant by
certified mail, return receipt requested, that the | 596 |
certificate of
registration renewed in reliance on the check or | 597 |
other draft
instrument will be canceled unless the registrant, | 598 |
within thirty
days after receipt of the notice, submits the | 599 |
renewal fee and a
one-hundred-dollar penalty to the | 600 |
superintendent. If the
registrant does not submit the renewal fee | 601 |
and penalty within that
time period, or if any check or other | 602 |
draft instrument used to pay
the fee or penalty is returned to the | 603 |
superintendent for
insufficient funds, the certificate of | 604 |
registration shall be
canceled immediately without a hearing and | 605 |
the registrant shall
cease activity as a mortgage broker. | 606 |
(2) On and after January 1, 2003, the operations manager | 607 |
designated under division (A)(3) of section 1322.03 of the Revised | 608 |
Code has completed, during the immediately preceding calendar | 609 |
year, at least six hours of continuing education as required under | 610 |
section 1322.052 of the Revised Code. | 611 |
(3) The applicant meets the conditions set forth in | 612 |
divisions (A)(2) to
(8)(10) of this section
and that the. | 613 |
(4) The applicant's certificate of
registration is not | 614 |
subject to an order of suspension or
revocation by the | 615 |
superintendent.
If | 616 |
(C)(1) Subject to division (C)(2) of this section, if a | 617 |
renewal fee is
received by the
superintendent after
the thirtieth | 618 |
day of April, the certificate of
registration shall
not be | 619 |
considered renewed, and the applicant shall cease activity
as a | 620 |
mortgage broker and apply for a certificate of registration
as a | 621 |
mortgage broker. | 622 |
(C) No application or renewal fee
required by division (A) | 623 |
or (B) of this section shall be returned after a certificate of | 624 |
registration has been issued or renewed by the superintendent. | 625 |
(D) Division (A)(3) of this section does not
apply to any | 626 |
registrant that, on March 4, 1996, is
registered as a
mortgage | 627 |
broker under sections 1322.01 to 1322.12 of
the Revised Code under | 628 |
a certificate of
registration issued pursuant to those sections | 629 |
prior to March 4, 1996,
provided that the certificate
of | 630 |
registration is not surrendered by the registrant or
revoked
or | 631 |
refused renewal by the superintendent of
financial institutions at | 632 |
any time after
March 4, 1996. | 633 |
(E)(2) Division (C)(1) of
this section shall not apply if | 634 |
the
applicant, no later than the
thirty-first day of May, submits | 635 |
the
renewal fee and a
one-hundred-dollar penalty to the | 636 |
superintendent. | 637 |
(D) If
a partner, shareholder, or naturalthe person | 638 |
designated
as the operations manager pursuant to division (A)(3) | 639 |
of
section 1322.03 of the Revised
Code is no longer
responsible | 640 |
for managing the operation of the location or locations where | 641 |
business is to be transactedthe operations manager, the | 642 |
registrant
shall do all of the
following: | 643 |
(1) Designate another
partner,
shareholder, or natural | 644 |
person as
responsible for managing the operation of
the
location | 645 |
or locations where business is to be transactedthe operations | 646 |
manager; | 647 |
(2) Within ten days after the
designation described in | 648 |
division
(E)(D)(1)
of this section, notify the superintendent in | 649 |
writing of
the designation; | 650 |
(3) Submit any additional
information that the | 651 |
superintendent requires to establish that
the newly designated | 652 | partner, shareholder, or natural personoperations manager | 653 |
complies with the
experience requirements set forth in division | 654 |
(A)(4)(b) of section 1322.03 of
the Revised
Code. | 655 |
Sec. 1322.041. (A) Upon the conclusion of the investigation | 656 |
required under division (B) of section 1322.031 of the Revised | 657 |
Code, the superintendent of financial institutions shall issue a | 658 |
loan officer license to the applicant if the superintendent finds | 659 |
that the following conditions are met: | 660 |
(1) The application is accompanied by the application fee. | 661 |
If a check or other draft instrument is returned to the | 662 |
superintendent for insufficient funds, the
superintendent shall | 663 |
notify the licensee by certified mail, return
receipt requested, | 664 |
that the license issued in reliance on the
check or other draft | 665 |
instrument will be canceled unless the
licensee, within thirty | 666 |
days after receipt of the notice, submits
the application fee and | 667 |
a one-hundred-dollar penalty to the
superintendent. If the | 668 |
licensee does not submit the application
fee and penalty within | 669 |
that time period, or if any check or other
draft instrument used | 670 |
to pay the fee or penalty is returned to the
superintendent for | 671 |
insufficient funds, the license shall be
canceled immediately | 672 |
without a hearing and the licensee shall
cease activity as a loan | 673 |
officer. | 674 |
(2) The applicant complies with sections 1322.01 to 1322.12 | 675 |
of the Revised Code. | 676 |
(3) The applicant has not been convicted of or pleaded | 677 |
guilty to any criminal offense described in division (A)(2) of | 678 |
section 1322.031 of the Revised Code, or, if the applicant has | 679 |
been convicted of or pleaded guilty to such an offense, the | 680 |
applicant has proven to the superintendent, by a preponderance of | 681 |
the evidence, that the applicant's activities and employment | 682 |
record since the conviction show that the applicant is honest, | 683 |
truthful, and of good reputation, and there is no basis in fact | 684 |
for believing that the applicant will commit such an offense | 685 |
again. | 686 |
(4) The applicant has not been subject to an adverse judgment | 687 |
for conversion, embezzlement, misappropriation of funds, fraud, | 688 |
misfeasance or malfeasance, or breach of fiduciary duty, or, if | 689 |
the applicant has been subject to such a judgment, the applicant | 690 |
has proven to the superintendent, by a preponderance of the | 691 |
evidence, that the applicant's activities and employment record | 692 |
since the judgment show that the applicant is honest, truthful, | 693 |
and of good reputation, and there is no basis in fact for | 694 |
believing that the applicant will be subject to such a judgment | 695 |
again. | 696 |
(5) The applicant's character and general fitness command the | 697 |
confidence of the public and warrant the belief that the business | 698 |
will be operated honestly and fairly in compliance with the | 699 |
purposes of sections 1322.01 to 1322.12 of the Revised Code. | 700 |
(B) The license issued under division (A) of this
section | 701 |
may be renewed annually on or before the thirtieth day of
April if | 702 |
the superintendent finds that all of the following
conditions are | 703 |
met: | 704 |
(1) The renewal application is accompanied by a | 705 |
nonrefundable renewal fee of one hundred dollars. If a check or | 706 |
other draft instrument is returned to the superintendent for | 707 |
insufficient funds, the superintendent shall notify
the licensee | 708 |
by certified mail, return receipt requested, that the
license | 709 |
renewed in reliance on the check or other draft instrument
will be | 710 |
canceled unless the licensee, within thirty days after
receipt of | 711 |
the notice, submits the renewal fee and a
one-hundred-dollar | 712 |
penalty to the superintendent. If the licensee
does not submit | 713 |
the renewal fee and penalty within that time
period, or if any | 714 |
check or other draft instrument used to pay the
fee or penalty is | 715 |
returned to the superintendent for insufficient
funds, the license | 716 |
shall be canceled immediately without a hearing
and the licensee | 717 |
shall cease activity as a loan officer. | 718 |
(2) On and after January 1, 2003, the loan officer has | 719 |
completed, during the immediately preceding calendar year, at | 720 |
least six hours of continuing education as required under section | 721 |
1322.052 of the Revised Code. | 722 |
(3) The applicant meets the conditions set forth in | 723 |
divisions (A)(2) to (5) of this section. | 724 |
(4) The applicant's license is not subject to an order of | 725 |
suspension or revocation by the superintendent. | 726 |
(C)(1) Subject to division (C)(2) of this section, if a | 727 |
license renewal application or renewal fee is
received by the | 728 |
superintendent after the thirtieth day of April,
the license shall | 729 |
not be considered renewed, and the applicant
shall cease activity | 730 |
as a loan officer. | 731 |
(2) Division (C)(1) of this section shall not apply if the | 732 |
applicant, no later than the thirty-first day of May, submits the | 733 |
renewal application and fee and a one-hundred-dollar penalty to | 734 |
the superintendent. | 735 |
Sec. 1322.05. (A) No registrant
shall conduct business in | 736 |
this state, unless the registrant has obtained
and maintains in | 737 |
effect at all times a corporate
surety bond issued by a bonding | 738 |
company or insurance company
authorized to do business in this | 739 |
state. The bond shall be in
favor of the superintendent of | 740 |
financial institutions and in the
penal sum of at least | 741 | twenty-fivefifty thousand dollars and an
additional penal sum of | 742 | fiveten thousand dollars for each
location, in excess of one, at | 743 |
which the registrant
conducts business.
The term of the bond shall | 744 |
coincide with the term of registration. A copy of the bond shall | 745 |
be filed with the
superintendent. The bond shall be
for the | 746 |
exclusive benefit of any
personbuyer injured by a violation
by an | 747 |
employee, licensee, or registrant of
any provision of sections | 748 |
1322.01 to
1322.12 of the Revised
Code.
The aggregate liability | 749 |
of the corporate
surety for any and all
breaches of the conditions | 750 |
of the bond shall not exceed
the penal
sum of the bond. | 751 |
(B)(1) The registrant
shall give notice to the | 752 |
superintendent by certified mail
of any action that is brought
by | 753 |
a buyer against the registrant
or loan officer of the registrant | 754 |
alleging injury by a violation of any provision of sections | 755 |
1322.01 to 1322.12 of the Revised Code, and of
any judgment that | 756 |
is entered against the registrant
or loan officer of the | 757 |
registrant by a
personbuyer injured by a violation of any | 758 |
provision of sections
1322.01 to 1322.12 of the
Revised
Code. The | 759 |
notice shall provide
details sufficient to identify the action or | 760 |
judgment, and shall be
filed with the superintendent within ten | 761 |
days after the
commencement of the action or notice to the | 762 |
registrant of
entry of a judgment.
The | 763 |
(2) A corporate surety, within ten days
after it pays any | 764 |
claim or judgment, shall give notice to the
superintendent by | 765 |
certified mail of the payment, with details
sufficient to identify | 766 |
the person and the claim or judgment
paid. | 767 |
(C) Whenever the
penal sum of the corporate surety bond is | 768 |
reduced by one or
more recoveries or payments, the registrant | 769 |
shall
furnish a new or additional bond under this section, so that | 770 |
the
total or aggregate penal sum of the bond or bonds equals the | 771 |
sum required by this section, or shall furnish an endorsement | 772 |
executed by the corporate surety reinstating the bond to the | 773 |
required penal sum of it. | 774 |
(D) The liability of
the corporate surety on the bond to the | 775 |
superintendent and to
any
personbuyer injured by a violation of | 776 |
any provision of sections
1322.01 to 1322.12 of the
Revised
Code | 777 |
shall not be affected in
any way by any misrepresentation, breach | 778 |
of warranty, or failure
to pay the premium, by any act or omission | 779 |
upon the part of the
registrant, by the insolvency or bankruptcy | 780 |
of the
registrant, or by the insolvency of the registrant's | 781 |
estate. The liability for any act or omission that occurs during | 782 |
the term of
the corporate surety bond shall be maintained and in | 783 |
effect for at least two
years after the date on which the | 784 |
corporate surety bond is terminated or
canceled. | 785 |
(E) The corporate
surety bond shall not be canceled by the | 786 |
registrant or the
corporate surety except upon notice to the | 787 |
superintendent by
certified mail, return receipt requested. The | 788 |
cancellation
shall not be effective prior to thirty days after the | 789 |
superintendent receives the notice. | 790 |
(F) No registrant
shall fail to comply with
this section. | 791 | Any registrant that fails to comply with this section shall cease | 792 |
all mortgage broker activity in this state until the registrant | 793 |
complies with this section. | 794 |
Sec. 1322.051. (A) Each person designated under division | 795 |
(A)(3) of section 1322.03 of the Revised Code to act as operations | 796 |
manager for a mortgage broker business shall submit to an | 797 |
examination approved by the superintendent of financial | 798 |
institutions. | 799 |
(B) Each licensee, within ninety days after the original | 800 |
issuance of the loan officer license, shall successfully complete | 801 |
an examination approved by the superintendent. Failure to comply | 802 |
with this division results in the termination of the license by | 803 |
operation of law. | 804 |
Sec. 1322.052. On and after January 1, 2002, each licensee | 805 |
and each person designated under division (A)(3) of section | 806 |
1322.03 of the Revised Code to act as operations manager for a | 807 |
mortgage broker business shall complete at least six hours of | 808 |
continuing education every calendar year. To fulfill this | 809 |
requirement, the six hours of continuing education must be offered | 810 |
in a course or program of study approved by the superintendent of | 811 |
financial institutions. | 812 |
Sec. 1322.06. (A) As often as the superintendent of | 813 |
financial institutions considers it necessary, the superintendent | 814 |
may
examine the registrant's
records pertaining to business | 815 |
transacted pursuant to sections 1322.01 to
1322.12 of the Revised | 816 |
Code. | 817 |
(B) A registrant shall maintain records pertaining to | 818 |
business transacted
pursuant to sections 1322.01 to 1322.12 of the | 819 |
Revised Code for
twofour years
or
more after the final entry on | 820 |
such records. No registrant shall fail to
comply with this | 821 |
division. | 822 |
(C) All information obtained by the superintendent or the | 823 |
superintendent's deputies, examiners, assistants, agents, or | 824 |
clerks by reason
of their official position, including information | 825 |
obtained by such persons in
the course of examining a registrant | 826 |
or investigating an applicant for a
certificate of registration, | 827 |
is privileged and confidential. All such
information shall remain | 828 |
privileged and confidential for all purposes except
when it is | 829 |
necessary for the superintendent and the superintendent's | 830 |
deputies,
examiners, assistants, agents, or clerks to take | 831 |
official action regarding the
affairs of the registrant or in | 832 |
connection with criminal proceedings. | 833 |
Sec. 1322.061. (A)(1) The following information is | 834 |
privileged and confidential: | 835 |
(a) Examination information, and any information leading to | 836 |
or arising from an examination; | 837 |
(b) Investigation information, and any information arising | 838 |
from or leading to an investigation. | 839 |
(2) The information described in division (A)(1) of this | 840 |
section shall remain privileged and confidential for all purposes | 841 |
except when it is necessary for the superintendent of financial | 842 |
institutions to take official action regarding the affairs of a | 843 |
registrant, or in connection with civil or criminal investigations | 844 |
or proceedings conducted by the attorney general or a county | 845 |
prosecutor. The superintendent may share examination and | 846 |
investigation information with any law enforcement agency or any | 847 |
other state or federal regulatory agency. Any information shared | 848 |
with the attorney general, a county prosecutor, or a law | 849 |
enforcement agency or other state or federal regulatory agency | 850 |
shall remain privileged and confidential and shall only be used in | 851 |
connection with an official investigation, proceeding, or action. | 852 |
(B) All application information, except social security | 853 |
numbers, employer identification numbers, financial account | 854 |
numbers, the identity of the institution where financial accounts | 855 |
are maintained, personal financial information, fingerprint cards | 856 |
and the information contained on such cards, and criminal | 857 |
background information, is a public record as defined in section | 858 |
149.43 of the Revised Code. | 859 |
Sec. 1322.062. (A) Within three business days after taking | 860 |
an
application for a loan from a buyer, a registrant shall deliver | 861 |
to the
buyer a mortgage loan origination disclosure statement that | 862 |
contains all of
the following: | 863 |
(1) The name, address, and telephone number of the buyer; | 864 |
(2) The typewritten name of the loan officer and the number | 865 |
designated on the loan officer's license; | 866 |
(3) The street address, telephone number, and facsimile | 867 |
number of
the registrant and the number designated on the | 868 |
registrant's
certificate of registration;
| 869 |
(4)
The signature of the loan officer or
registrant;
| 870 |
(5) A statement indicating whether the buyer is to pay for | 871 |
the services of a bona fide third party if the registrant is | 872 |
unable to assist the buyer in obtaining a mortgage;
| 873 |
(6) A statement that describes the method by which the fee | 874 |
to be paid by the buyer to the registrant will be calculated; | 875 |
(7) A statement that the lender may pay compensation to the | 876 |
registrant; | 877 |
(8) A description of all the services the registrant has | 878 |
agreed to perform for the buyer; | 879 |
(9) A statement that the buyer has not entered into an | 880 |
exclusive agreement for brokerage services. | 881 |
(B) If there is any change in the information provided under | 882 |
division (A)(6) or (8) of this section, the registrant shall | 883 |
provide the buyer with the revised mortgage loan origination | 884 |
disclosure statement no later than three days after the change | 885 |
occurs, or the date the loan is closed, whichever is earlier. | 886 |
(C) No registrant shall fail to comply with
this section. | 887 |
Sec. 1322.07. No
mortgage broker, registrant, licensee, or | 888 |
applicant for
a certificate
of registration
or license under | 889 |
sections 1322.01 to
1322.12 of the Revised
Code shall do any of | 890 |
the following: | 891 |
(A) Obtain a certificate of registration
or license
through | 892 |
any false
or fraudulent representation
of a material fact or any | 893 |
omission of a material fact required by state law,
or make any | 894 |
substantial
misrepresentation in any registration
or license | 895 |
application; | 896 |
(B) Make false
or misleading statements of a material fact, | 897 |
omissions of statements required by state law, or false promises | 898 | regarding a material fact, through advertising or other
means,
or | 899 |
engage in a continued course
of misrepresentations; | 900 |
(C) Engage in conduct that constitutes improper,
fraudulent, | 901 |
or dishonest dealings; | 902 |
(D) Fail to notify the division of financial
institutions
if | 903 | within thirty days after the registrant, licensee, or applicant, | 904 |
in a court of competent
jurisdiction of this state or any other | 905 |
state, is convicted of or
pleads
guilty to
aany criminal offense, | 906 |
the violation of which is
a felonyinvolving theft, receiving | 907 |
stolen property, embezzlement,
forgery, fraud, passing bad checks, | 908 |
money laundering, or drug
trafficking, or any
criminal offense | 909 |
involving
fraudmoney or
securities; | 910 |
(E) Knowingly make, propose, or solicit fraudulent, false, | 911 |
or
misleading
statements on any mortgage document or on any | 912 |
document
related to
a mortgage, including a mortgage application, | 913 |
real
estate
appraisal, or real estate settlement or closing | 914 |
document.
For purposes of this division, "fraudulent, false, or | 915 |
misleading
statements" does not include mathematical errors, | 916 |
inadvertent
transposition of numbers, typographical errors, or any | 917 |
other bona
fide error. | 918 |
(F) Knowingly instruct, solicit, propose, or otherwise cause | 919 |
a buyer
to sign in blank a mortgage related document. | 920 |
Sec. 1322.071. (A) As used in this section, "bona fide third | 921 |
party" has the same meaning as in section 1322.08 of the Revised | 922 |
Code. | 923 |
(B) No mortgage broker, registrant, or licensee shall do any | 924 |
of the following: | 925 |
(1) Retain original documents provided to the mortgage | 926 |
broker, registrant, or
licensee by the buyer in connection with | 927 |
the loan application,
including income tax returns, account | 928 |
statements, or other
financial related documents;
| 929 |
(2) Receive, directly or indirectly, a premium on the fees | 930 |
charged for services performed by a bona fide third party;
| 931 |
(3) Pay or receive, directly or indirectly, a referral fee | 932 |
or kickback of any kind to or from a bona fide third party or | 933 |
other party with a related interest in the transaction, such as a | 934 |
home improvement builder, real estate developer, or real estate | 935 |
broker or agent, for the referral of business. | 936 |
Sec. 1322.072. No person, in connection with any examination | 937 |
or investigation conducted by the superintendent of financial | 938 |
institutions under sections 1322.01 to 1322.12 of the Revised | 939 |
Code, shall knowingly do either of the following: | 940 |
(A) Circumvent, interfere with, obstruct, or fail to | 941 |
cooperate, including making a false or misleading statement, | 942 |
failing to produce records, or intimidating or suborning any | 943 |
witness; | 944 |
(B) Tamper with, alter, or manufacture any evidence. | 945 |
Sec. 1322.073. No person shall acquire, sell, transfer, or | 946 |
hypothecate any interest in a registrant or an applicant for a | 947 |
certificate of registration in order to obfuscate or conceal the | 948 |
true ownership or control of the registrant or applicant.
| 949 |
Sec. 1322.08. (A)No
registrant shall fail to do any of the | 950 |
following: | 951 |
(1) Maintain a special account; | 952 |
(2) Deposit into the registrant's special account any bona | 953 |
fide third-party fee the registrant receives; | 954 |
(3) Pay bona fide third-party fees to a bona fide third | 955 |
party from the registrant's special account. | 956 |
(B) Except as otherwise provided in this
division, no | 957 |
registrant shall charge or receive, directly or
indirectly, fees | 958 |
for assisting a buyer in obtaining a mortgage,
until all of the | 959 |
services that the registrant has agreed to
perform for the buyer | 960 |
are completed, and the proceeds of the
mortgage loan have been | 961 |
disbursed to or on behalf of the buyer. However,
prior to | 962 |
completion of such services the following fees may be paid for | 963 |
services performed by a bona fide third party in assisting the | 964 |
buyer to obtain a mortgage if the fees are either paid directly
by | 965 |
the buyer to the bona fide third party or, except as provided in | 966 |
division
(A)(6)(B)(5) of this section, the fees are
deposited by | 967 |
the registrant into the registrant's special account
for services | 968 |
performed by the bona fide third party: | 969 |
(1) Fees to obtain a report from a credit reporting agency; | 970 |
(2) Fees for notary services; | 971 |
(3)
Fees authorized by law to record, file, or release a | 972 |
security interest or mortgage; | 973 |
(4) Fees for the performance of a title search, appraisal
of | 974 |
the real estate, or survey of the real estate; | 975 |
(5)(4) Fees charged by a lender for locking in an interest | 976 |
rate in connection
with obtaining or refinancing a mortgage, | 977 |
provided that the fees
do not exceed an amount equal to one and | 978 |
one-half per cent of
the mortgage loan amount; | 979 |
(6)(5) Fees not exceeding five hundred dollars paid directly | 980 |
by the buyer to
a state or federal
government agency or | 981 |
instrumentality for purposes of processing a mortgage
application | 982 |
relating to a government sponsored or guaranteed mortgage program. | 983 |
(B)(C) If fees are paid by a buyer for the performance of | 984 |
any
of the services described in division
(A)(4)(B)(3) of this | 985 |
section and
the registrant is unable to assist in obtaining a | 986 |
mortgage for
the buyer, the registrant shall return to the buyer | 987 |
the original
documents prepared by the bona fide third party at | 988 |
the time that
the request for the mortgage is refused or denied. | 989 | With respect to any appraisal, however, the registrant may return | 990 |
either the original or a copy.
No registrant
shall fail to comply | 991 |
with
this division. | 992 |
(C)(D) For purposes of this section: | 993 |
(1) "Bona fide third party" means a person that is not an | 994 |
employee of, related to, or affiliated with, the registrant, and | 995 |
that is not used for the purpose of circumvention or evasion of | 996 |
this section. | 997 |
(2) "Special account" means a depository account with a | 998 |
financial institution, the deposits of which are insured by the | 999 |
federal deposit insurance corporation, that is separate and | 1000 |
distinct from any personal or other account of the registrant,
and | 1001 |
that is maintained solely for the holding and payment of fees | 1002 |
described in
division (A) of this section for services performed | 1003 |
by bona fide third parties and received by the registrant from | 1004 |
buyers that the registrant assists in obtaining mortgages. | 1005 |
Sec. 1322.09. A mortgage broker shall disclose in any | 1006 |
printed, televised, broadcast, electronically transmitted, or | 1007 |
published
advertisement relating to the mortgage broker's | 1008 |
services,
including on any electronic site accessible through the | 1009 |
internet, the name and street address of the mortgage broker and | 1010 |
the number
designated on the certificate of registration that is | 1011 |
issued to the mortgage
broker by the superintendent of financial | 1012 |
institutions under sections 1322.01 to 1322.12 of the Revised | 1013 |
Code.
No | 1014 |
No mortgage broker shall fail to comply with this section. | 1015 |
Sec. 1322.10. (A) After notice and opportunity for a | 1016 |
hearing conducted in accordance with Chapter 119. of the Revised | 1017 |
Code, the superintendent of financial
institutions may do the | 1018 |
following: | 1019 |
(1) Suspend, revoke, or refuse to issue or renew a | 1020 |
certificate of registration
or license if the
superintendent finds | 1021 | aeither of the following: | 1022 |
(a) A violation of
division (B) of section
1322.06 or | 1023 |
section 1322.05, 1322.07, 1322.08, or 1322.09or failure to comply | 1024 |
with any provision of sections 1322.01 to 1322.12 of the
Revised | 1025 |
Code or the rules adopted under those sections
or any other law | 1026 |
applicable to the business conducted under a certificate of | 1027 |
registration; | 1028 |
(b) A conviction of or guilty plea to any criminal offense | 1029 |
involving theft, receiving stolen property, embezzlement, forgery, | 1030 |
fraud, passing bad checks, money laundering, or drug trafficking, | 1031 |
or any criminal offense involving money or securities.
| 1032 |
(2) Impose a fine of not more than
one thousand dollars, for | 1033 |
each day a violation of a
law or rule is committed, repeated, or | 1034 |
continued. If the
registrant
or licensee engages in a pattern of | 1035 |
repeated violations of
a law or rule, the superintendent may | 1036 |
impose a fine of not more than
two thousand dollars for each day | 1037 |
the violation is committed, repeated, or
continued. All fines | 1038 |
collected
pursuant to this division shall be paid to the treasurer | 1039 |
of
state to the credit of the consumer finance fund created in | 1040 |
section 1321.21 of the Revised
Code. In determining the amount of | 1041 |
a fine to be imposed
pursuant
to this division, the superintendent | 1042 |
shall consider all of the
following: | 1043 |
(a) The seriousness of the violation; | 1044 |
(b) The registrant's
or licensee's good faith efforts to | 1045 |
prevent the violation; | 1046 |
(c) The registrant's
or licensee's history
regarding | 1047 |
violations and compliance with division orders; | 1048 |
(d) The registrant's
or licensee's financial resources; | 1049 |
(e) Any other matters the
superintendent considers | 1050 |
appropriate in enforcing sections 1322.01 to 1322.12
of the | 1051 |
Revised Code. | 1052 |
(B) The superintendent may investigate alleged violations
of | 1053 | sectionsections 1322.01 to 1322.12 of the Revised Code or
the | 1054 |
rules
adopted under those sections or complaints
concerning any | 1055 |
such violation.
The superintendent may make application to the | 1056 |
court of common pleas for an
order enjoining any such violation, | 1057 |
and, upon a
showing by the superintendent that a person has | 1058 |
committed or is
about to commit such a violation, the court shall | 1059 |
grant an
injunction, restraining order, or other appropriate | 1060 |
relief. | 1061 |
(C) In conducting any investigation pursuant to this | 1062 |
section, the superintendent may compel, by subpoena, witnesses
to | 1063 |
testify in relation to any matter over which the
superintendent | 1064 |
has jurisdiction and may require the production
of any book, | 1065 |
record, or other document pertaining to that
matter. If a person | 1066 |
fails to file any statement or report, obey any
subpoena, give | 1067 |
testimony, produce any book, record, or other
document as required | 1068 |
by a subpoena, or permit photocopying
of any book, record, or | 1069 |
other document subpoenaed, the court of
common pleas of any county | 1070 |
in this state, upon application made
to it by the superintendent, | 1071 |
shall compel obedience by attachment
proceedings for contempt, as | 1072 |
in the case of disobedience of the
requirements of a subpoena | 1073 |
issued from the court or a refusal to
testify therein. | 1074 |
(D) If the superintendent determines that a person is | 1075 |
engaged in or is believed to be engaged in activities that may | 1076 |
constitute a violation of sections 1322.01 to 1322.12 of the | 1077 |
Revised Code, the superintendent, after notice and a hearing | 1078 |
conducted in accordance with Chapter 119. of the Revised Code, may | 1079 |
issue a cease and desist order. Such an order shall be | 1080 |
enforceable in the court of common pleas. | 1081 |
(E) If the superintendent revokes the certificate of | 1082 |
registration or license of a registrant or licensee who is | 1083 |
convicted of or pleads guilty to a criminal violation of any | 1084 |
provision of sections 1322.01 to 1322.12 of the Revised Code or | 1085 |
any criminal offense described in division (A)(1)(b) of this | 1086 |
section, the revocation shall be permanent. | 1087 |
Sec. 1322.101. On receipt of a notice pursuant to
section | 1088 |
3123.43 of the Revised Code, the division of
financial | 1089 |
institutions shall comply with sections 3123.41 to 3123.50 of the | 1090 |
Revised Code and any applicable rules adopted under
section | 1091 |
3123.63 of the Revised Code
with respect to a certificate
or | 1092 |
license issued pursuant to this chapter. | 1093 |
Sec. 1322.11. (A)(1) A buyer injured by a violation of | 1094 |
section 1322.02
or, 1322.062, 1322.07,
division (B) of section | 1095 |
1322.06, or
division (A) or (B) of section1322.071,
1322.08, or | 1096 |
1322.09 of the Revised Code may
bring an action for
recovery of | 1097 |
damages. | 1098 |
(2) Damages awarded under division (A)(1) of this section | 1099 |
shall not be less than the amount paid by the buyer to the | 1100 |
mortgage broker, plus reasonable attorney's fees and court costs. | 1101 |
(3) The buyer may be awarded punitive damages. | 1102 |
(B)(1) The superintendent of financial
institutions, the | 1103 |
attorney general, or a buyer may bring an action to
enjoin a | 1104 |
violation of sections 1322.01 to 1322.12 of the Revised Code. | 1105 |
(2) The superintendent may initiate
criminatecriminal | 1106 |
proceedings
under sections 1322.01 to 1322.12 of the Revised Code | 1107 |
by
presenting any evidence of criminal violation to the | 1108 |
prosecuting
attorney of the county in which the offense may be | 1109 |
prosecuted.
If
the prosecuting attorney does not prosecute the | 1110 |
violations, or
at
the request of the prosecuting attorney, the | 1111 |
superintendent
shall
present any evidence of criminal violations | 1112 |
to the attorney
general, who may proceed in the prosecution with | 1113 |
all the rights,
privileges, and powers conferred by law on | 1114 |
prosecuting attorneys,
including the power to appear before grand | 1115 |
juries and to
interrogate witnesses before such grand juries. | 1116 |
These powers of
the attorney general shall be in addition to any | 1117 |
other applicable
powers of the attorney general. | 1118 |
(C) The remedies provided by this section are in addition
to | 1119 |
any other remedy provided by law. | 1120 |
(D) In any proceeding or action brought under sections | 1121 |
1322.01 to 1322.12 of the Revised Code, the burden of proving an | 1122 |
exemption under those sections is on the person claiming the | 1123 |
benefit of the exemption. | 1124 |
(E) No person shall be deemed to violate sections 1322.01
to | 1125 |
1322.12 of the Revised Code with respect to any act taken or | 1126 |
omission made in reliance on a written notice, written | 1127 |
interpretation, or written report from the superintendent, unless | 1128 |
there is a subsequent amendment to those sections, or rules | 1129 |
promulgated thereunder, that affects the superintendent's notice, | 1130 |
interpretation, or report. | 1131 |
(F) Upon disbursement of mortgage loan proceeds to or on | 1132 |
behalf of the buyer, the registrant that assisted the buyer to | 1133 |
obtain the mortgage loan is deemed to have completed the | 1134 |
performance of the registrant's services for the buyer and owes
no | 1135 |
additional duties or obligations to the buyer with respect to
the | 1136 |
mortgage loan. However, nothing in this division shall be | 1137 |
construed to limit or preclude the civil or criminal liability of | 1138 |
a registrant
for failing to comply with sections 1322.01 to | 1139 |
1322.12 of the Revised Code or
any rule adopted under those | 1140 |
sections, for failing to comply with any
provision of or
duty | 1141 |
arising under an agreement with a buyer or lender under sections | 1142 |
1322.01
to 1322.12 of the Revised Code, or for violating any other | 1143 |
provision of
state or federal law. | 1144 |
Sec. 1322.99. (A) Whoever violates
division (A)(1) or (2) of | 1145 |
section 1322.02, division (E) or
(F) of section 1322.07
or, | 1146 |
division
(A)(B)(1) or
(B)(2) of section
1322.071, or section | 1147 |
1322.08 of the Revised Code is
guilty of a felony of the
fifth | 1148 |
degree. | 1149 |
(B) Whoever violates division (B)(3) of section 1322.071 of | 1150 |
the Revised Code is guilty of a felony of the fourth degree. | 1151 |
(C) Whoever violates division (B) of section 1322.02 of the | 1152 |
Revised Code is guilty of a misdemeanor of the first degree. | 1153 |
Sec. 4712.01. As used in sections 4712.01 to 4712.14 of
the | 1154 |
Revised Code: | 1155 |
(A)
"Buyer" means an individual who is solicited to
purchase | 1156 |
or who purchases the services of a credit services
organization | 1157 |
for purposes other than obtaining a business loan as
described in | 1158 |
division (B)(6) of section 1343.01 of the Revised
Code. | 1159 |
(B)
"Consumer reporting agency" has the same meaning as in | 1160 |
the
"Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A.
1681a, | 1161 |
as amended. | 1162 |
(C)(1)
"Credit services organization" means any person
that, | 1163 |
in return for the
payment of money or other
valuable consideration | 1164 |
readily convertible into money for the following
services,
sells, | 1165 |
provides, or performs, or represents that the person can
or will | 1166 |
sell, provide, or perform, one or more of the
following services: | 1167 |
(a) Improving a buyer's credit record, history, or rating; | 1168 |
(b) Obtaining an extension of credit by others for a buyer; | 1169 |
(c) Providing advice or assistance to a buyer in
connection | 1170 |
with division (C)(1)(a) or (b) of this section; | 1171 |
(d) Removing adverse credit information that is accurate
and | 1172 |
not obsolete from the buyer's credit record, history, or
rating; | 1173 |
(e) Altering the buyer's identification to prevent the | 1174 |
display of the buyer's credit record, history, or rating. | 1175 |
(2)
"Credit services organization" does not include any of | 1176 |
the following: | 1177 |
(a) A person that makes or collects loans, to the extent | 1178 |
these activities are subject to licensure or registration by this | 1179 |
state; | 1180 |
(b) A mortgage broker, as defined in
division (E) of
section | 1181 |
1322.01 of the Revised Code, that holds a valid
certificate of | 1182 |
registration under sections 1322.01 to 1322.12 of
the Revised | 1183 |
Code; | 1184 |
(c) A lender approved by the United States secretary of | 1185 |
housing and urban development for participation in a mortgage | 1186 |
insurance program under the
"National Housing Act," 48 Stat. 1246 | 1187 |
(1934), 12 U.S.C.A. 1701, as amended; | 1188 |
(d) A bank, savings bank, or savings and loan association, | 1189 |
or a subsidiary or an affiliate of a bank, savings bank, or | 1190 |
savings and loan association. For purposes of division (C)(2)(d) | 1191 |
of this section,
"affiliate" has the same meaning as in division | 1192 |
(A) of section 1101.01 of the Revised Code and
"bank," as used in | 1193 |
division (A) of section 1101.01 of the Revised Code, is deemed to | 1194 |
include a savings bank or savings and loan association. | 1195 |
(e) A credit union organized and qualified under Chapter | 1196 |
1733. of the Revised Code or the
"Federal Credit Union Act," 84 | 1197 |
Stat. 994 (1970), 12 U.S.C.A. 1751, as amended; | 1198 |
(f) A budget and debt counseling service, as defined
in | 1199 |
division (D) of section 2716.03 of the Revised Code, provided
that | 1200 |
the service is a nonprofit organization exempt from taxation
under | 1201 |
section 501(c)(3) of the
"Internal Revenue Code of 1986,"
100 | 1202 |
Stat. 2085, 26 U.S.C.A. 501, as amended, and that the service
is | 1203 |
in compliance with Chapter 4710. of the Revised Code; | 1204 |
(g) A consumer reporting agency that is in substantial | 1205 |
compliance with the
"Fair Credit Reporting Act," 84 Stat. 1128,
15 | 1206 |
U.S.C.A. 1681a, as amended. | 1207 |
(h) A mortgage banker; | 1208 |
(i) Any political subdivision, or any governmental or
other | 1209 |
public entity, corporation, or agency, in or of the United
States | 1210 |
or any state of the United States; | 1211 |
(j) A college or university, or controlled entity of a | 1212 |
college or university, as defined in section 1713.05 of the | 1213 |
Revised Code; | 1214 |
(k) A motor vehicle dealer licensed pursuant to Chapter | 1215 |
4517. of the Revised Code acting within the scope and authority of | 1216 |
that license or a motor
vehicle auction owner licensed pursuant to | 1217 |
Chapters 4517. and 4707. of the Revised Code acting within the | 1218 |
scope and authority
of that license. | 1219 |
(D)
"Extension of credit" means the right to defer payment
of | 1220 |
debt, or to incur debt and defer its payment, offered or
granted | 1221 |
primarily for personal, family, or household purposes.
"Extension | 1222 |
of credit" does not include a mortgage. | 1223 |
(E)
"Mortgage" means any indebtedness secured by a deed of | 1224 |
trust, security deed, or other lien on real property. | 1225 |
(F)
"Mortgage banker" means any person that makes,
services, | 1226 |
or buys and sells mortgage loans and is approved by the
United | 1227 |
States department of housing and urban development, the
United | 1228 |
States department of veterans affairs, the federal
national | 1229 |
mortgage association, or the federal home loan mortgage | 1230 |
corporation. | 1231 |
(G)
"Superintendent of financial institutions" includes
the | 1232 |
deputy superintendent for consumer finance as provided in section | 1233 |
1181.21
of the Revised Code. | 1234 |
Section 2. That existing sections 1322.01, 1322.02, 1322.03, | 1235 |
1322.04, 1322.05, 1322.06, 1322.07, 1322.08, 1322.09, 1322.10, | 1236 |
1322.101, 1322.11, 1322.99, and 4712.01 of the Revised
Code are | 1237 |
hereby repealed. | 1238 |
Section 3. Sections 1 and 2 of this act shall take effect six | 1239 |
months after the effective date of this act. | 1240 |
Section 4. It is the intent of the General Assembly that the | 1241 |
Superintendent of Financial Institutions take any action necessary | 1242 |
to provide for an orderly transition for those persons who, on the | 1243 |
effective date of this act, perform the functions, duties, or | 1244 |
powers prescribed for registrants and licensees under this act. | 1245 |
Consequently, the Division of Financial Institutions shall accept | 1246 |
registration and license applications submitted by such persons | 1247 |
beginning on the effective date of this act and shall make every | 1248 |
effort possible to act upon such applications within the six-month | 1249 |
period immediately following that date. | 1250 |
Section 5. The prior operation of section 1322.03 of the | 1251 |
Revised Code, which permitted evidence on an application for a | 1252 |
certificate of registration as a mortgage broker that the person | 1253 |
designated as responsible for managing the operations of a | 1254 |
mortgage broker business meets the educational requirements then | 1255 |
in effect if, prior to March 18, 1999, that person was designated | 1256 |
as being responsible for managing the operations of the | 1257 |
registrant's business, shall continue and not be affected by the | 1258 |
enactment of this act until March 18, 2002; except that, all | 1259 |
requirements, except the experience requirements, applicable to | 1260 |
operations managers under this act apply to that person on the | 1261 |
date this act takes effect. On and after March 18, 2002, a person | 1262 |
not meeting the experience requirements provided in division | 1263 |
(A)(4) of section 1322.03 of the Revised Code, as amended by this | 1264 |
act, or any other requirement applicable to an operations manager | 1265 |
under this act shall not be designated as an operations manager on | 1266 |
an application for a certificate of registration as a mortgage | 1267 |
broker. | 1268 |
|