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Sub. S. B. No. 185 As Passed by the Senate
As Passed by the Senate
126th General Assembly | Regular Session | 2005-2006 |
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Senators Padgett, Schuring, Roberts, Carey, Amstutz, Armbruster, Brady, Dann, Fedor, Fingerhut, Grendell, Hagan, Harris, Jacobson, Miller, Prentiss, Spada, Zurz, Mumper, Clancy
A BILL
To amend sections 109.572, 1322.03, 1322.031, 1322.04, 1322.041, 1322.051, 1322.06, 1322.061, 1322.062, 1322.07, 1322.10, 1322.11, 1322.99, 1345.01, 1345.09, 1349.31, 4735.05, 4763.03, 4763.05, 4763.06, 4763.12, 4763.13, and 4763.99 and to enact sections 1321.541, 1322.063, 1322.064, 1322.074, 1322.075, 1322.081, 1345.091, 1349.41, 1349.43, 1349.44, and 4763.19 of the Revised Code to modify the application of, and damages available under, the Consumer Sales Practices Act; to generally prohibit the appraisal of real estate for a mortgage loan without state certification or licensure; to require that a national criminal background check be conducted on all applicants for a mortgage broker certificate of registration, loan officer license, or real estate appraiser certificate or license; to modify the Mortgage Broker/Loan Officer Law with respect to disclosure of information, fiduciary duties, prohibited acts, record keeping, and pre-licensure examination; and to make other changes relative to mortgage lending.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 109.572, 1322.03, 1322.031, 1322.04, 1322.041, 1322.051, 1322.06, 1322.061, 1322.062, 1322.07, 1322.10, 1322.11, 1322.99, 1345.01, 1345.09, 1349.31, 4735.05, 4763.03, 4763.05, 4763.06, 4763.12, 4763.13, and 4763.99 be amended and sections 1321.541, 1322.063, 1322.064, 1322.074, 1322.075, 1322.081, 1345.091, 1349.41, 1349.43, 1349.44, and 4763.19 of the Revised Code be enacted to read as follows:
Sec. 109.572. (A)(1) Upon receipt of a request pursuant to section 121.08, 3301.32, 3301.541, 3319.39, 5104.012, 5104.013, or 5153.111 of the Revised Code, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code, felonious sexual penetration in violation of former section 2907.12 of the Revised Code, a violation of section 2905.04 of the Revised Code as it existed prior to July 1, 1996, a violation of section 2919.23 of the Revised Code that would have been a violation of section 2905.04 of the Revised Code as it existed prior to July 1, 1996, had the violation been committed prior to that date, or a violation of section 2925.11 of the Revised Code that is not a minor drug possession offense; (b) A violation of an existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(1)(a) of this section. (2) On receipt of a request pursuant to section 5123.081 of the Revised Code with respect to an applicant for employment in any position with the department of mental retardation and developmental disabilities, pursuant to section 5126.28 of the Revised Code with respect to an applicant for employment in any position with a county board of mental retardation and developmental disabilities, or pursuant to section 5126.281 of the Revised Code with respect to an applicant for employment in a direct services position with an entity contracting with a county board for employment, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check. The superintendent shall conduct the criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, or 3716.11 of the Revised Code; (b) An existing or former municipal ordinance or law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(2)(a) of this section. (3) On receipt of a request pursuant to section 173.41, 3712.09, 3721.121, or 3722.151 of the Revised Code, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check with respect to any person who has applied for employment in a position that involves providing direct care to an older adult. The superintendent shall conduct the criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13, 2925.22, 2925.23, or 3716.11 of the Revised Code; (b) An existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(3)(a) of this section. (4) On receipt of a request pursuant to section 3701.881 of the Revised Code with respect to an applicant for employment with a home health agency as a person responsible for the care, custody, or control of a child, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check. The superintendent shall conduct the criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a violation of section 2925.11 of the Revised Code that is not a minor drug possession offense; (b) An existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(4)(a) of this section. (5) On receipt of a request pursuant to section 5111.95 or 5111.96 of the Revised Code with respect to an applicant for employment with a waiver agency participating in a department of job and family services administered home and community-based waiver program or an independent provider participating in a department administered home and community-based waiver program in a position that involves providing home and community-based waiver services to consumers with disabilities, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check. The superintendent shall conduct the criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request
previously has been
convicted of or pleaded guilty to any of
the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04,
2903.041, 2903.11, 2903.12, 2903.13, 2903.16,
2903.21, 2903.34, 2905.01, 2905.02, 2905.05, 2905.11, 2905.12, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.12, 2919.24, 2919.25, 2921.36, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.13, 2925.22, 2925.23, or 3716.11 of the Revised Code, felonious sexual penetration in violation of former section 2907.12 of the Revised Code, a violation of section 2905.04 of the Revised Code as it existed prior to July 1, 1996, a violation of section 2919.23 of the Revised Code that would have been a violation of section 2905.04 of the Revised Code as it existed prior to July 1, 1996, had the violation been committed prior to that date;
(b) An existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(5)(a) of this section. (6) On receipt of a request pursuant to section 3701.881 of the Revised Code with respect to an applicant for employment with a home health agency in a position that involves providing direct care to an older adult, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check. The superintendent shall conduct the criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21, 2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13, 2925.22, 2925.23, or 3716.11 of the Revised Code; (b) An existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(6)(a) of this section. (7) When conducting a criminal records check upon a request pursuant to section 3319.39 of the Revised Code for an applicant who is a teacher, in addition to the determination made under division (A)(1) of this section, the superintendent shall determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any offense specified in section 3319.31 of the Revised Code. (8) On a request pursuant to section 2151.86 of the Revised Code, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code, a violation of section 2905.04 of the Revised Code as it existed prior to July 1, 1996, a violation of section 2919.23 of the Revised Code that would have been a violation of section 2905.04 of the Revised Code as it existed prior to July 1, 1996, had the violation been committed prior to that date, a violation of section 2925.11 of the Revised Code that is not a minor drug possession offense, or felonious sexual penetration in violation of former section 2907.12 of the Revised Code; (b) A violation of an existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses listed in division (A)(8)(a) of this section. (9) When conducting a criminal records check on a request pursuant to section 5104.013 of the Revised Code for a person who is an owner, licensee, or administrator of a child day-care center or type A family day-care home or an authorized provider of a certified type B family day-care home, the superintendent, in addition to the determination made under division (A)(1) of this section, shall determine whether any information exists that indicates that the person has been convicted of or pleaded guilty to any of the following: (a) A violation of section 2913.02, 2913.03, 2913.04, 2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32, 2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44, 2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2921.11, 2921.13, or 2923.01 of the Revised Code, a violation of section 2923.02 or 2923.03 of the Revised Code that relates to a crime specified in this division or division (A)(1)(a) of this section, or a second violation of section 4511.19 of the Revised Code within five years of the date of application for licensure or certification.
(b) A violation of an existing or former law of this state, any other state, or the United States that is substantially equivalent to any of the offenses or violations described in division (A)(9)(a) of this section. (10) On receipt of a request for a criminal records check from an individual pursuant to section 4749.03 or 4749.06 of the Revised Code, accompanied by a completed copy of the form prescribed in division (C)(1) of this section and a set of fingerprint impressions obtained in a manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check in the manner described in division (B) of this section to determine whether any information exists indicating that the person who is the subject of the request has been convicted of or pleaded guilty to a felony in this state or in any other state. If the individual indicates that a firearm will be carried in the course of business, the superintendent shall require information from the federal bureau of investigation as described in division (B)(2) of this section. The superintendent shall report the findings of the criminal records check and any information the federal bureau of investigation provides to the director of public safety. (11) On receipt of a request pursuant to section 1322.03, 1322.031, or 4763.05 of the Revised Code, a completed form prescribed pursuant to division (C)(1) of this section, and a set of fingerprint impressions obtained in the manner described in division (C)(2) of this section, the superintendent of the bureau of criminal identification and investigation shall conduct a criminal records check with respect to any person who has applied for a license, permit, or certification from the department of commerce or a division in the department. The superintendent shall conduct the criminal records check in the manner described in division (B) of this section to determine whether any information exists that indicates that the person who is the subject of the request previously has been convicted of or pleaded guilty to any of the following: a violation of section 2913.02, 2913.11, 2913.31, 2913.51, or 2925.03 of the Revised Code; any other criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, or drug trafficking, or any criminal offense involving money or securities, as set forth in Chapters 2909., 2911., 2913., 2915., 2921., 2923., and 2925. of the Revised Code; or any existing or former law of this state, any other state, or the United States that is substantially equivalent to those offenses. (12) Not later than thirty days after the date the superintendent receives the request, completed form, and fingerprint impressions, the superintendent shall send the person, board, or entity that made the request any information, other than information the dissemination of which is prohibited by federal law, the superintendent determines exists with respect to the person who is the subject of the request that indicates that the person previously has been convicted of or pleaded guilty to any offense listed or described in division (A)(1), (2), (3), (4), (5), (6), (7), (8), (9), or (10), or (11) of this section, as appropriate. The superintendent shall send the person, board, or entity that made the request a copy of the list of offenses specified in division (A)(1), (2), (3), (4), (5), (6), (7), (8), (9), or (10), or (11) of this section, as appropriate. If the request was made under section 3701.881 of the Revised Code with regard to an applicant who may be both responsible for the care, custody, or control of a child and involved in providing direct care to an older adult, the superintendent shall provide a list of the offenses specified in divisions (A)(4) and (6) of this section. (B) The superintendent shall conduct any criminal records check requested under section 121.08, 173.41, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code as follows: (1) The superintendent shall review or cause to be reviewed any relevant information gathered and compiled by the bureau under division (A) of section 109.57 of the Revised Code that relates to the person who is the subject of the request, including any relevant information contained in records that have been sealed under section 2953.32 of the Revised Code; (2) If the request received by the superintendent asks for information from the federal bureau of investigation, the superintendent shall request from the federal bureau of investigation any information it has with respect to the person who is the subject of the request and shall review or cause to be reviewed any information the superintendent receives from that bureau.
(3) The superintendent or the superintendent's designee may request criminal history records from other states or the federal government pursuant to the national crime prevention and privacy compact set forth in section 109.571 of the Revised Code. (C)(1) The superintendent shall prescribe a form to obtain the information necessary to conduct a criminal records check from any person for whom a criminal records check is required by section 121.08, 173.41, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. The form that the superintendent prescribes pursuant to this division may be in a tangible format, in an electronic format, or in both tangible and electronic formats. (2) The superintendent shall prescribe standard impression sheets to obtain the fingerprint impressions of any person for whom a criminal records check is required by section 121.08, 173.41, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. Any person for whom a records check is required by any of those sections shall obtain the fingerprint impressions at a county sheriff's office, municipal police department, or any other entity with the ability to make fingerprint impressions on the standard impression sheets prescribed by the superintendent. The office, department, or entity may charge the person a reasonable fee for making the impressions. The standard impression sheets the superintendent prescribes pursuant to this division may be in a tangible format, in an electronic format, or in both tangible and electronic formats. (3) Subject to division (D) of this section, the superintendent shall prescribe and charge a reasonable fee for providing a criminal records check requested under section 121.08, 173.41, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. The person making a criminal records request under section 121.08, 173.41, 1322.03, 1322.031, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4749.03, 4749.06, 4763.05, 5104.012, 5104.013, 5111.95, 5111.96, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code shall pay the fee prescribed pursuant to this division. A person making a request under section 3701.881 of the Revised Code for a criminal records check for an applicant who may be both responsible for the care, custody, or control of a child and involved in providing direct care to an older adult shall pay one fee for the request. (4) The superintendent of the bureau of criminal identification and investigation may prescribe methods of forwarding fingerprint impressions and information necessary to conduct a criminal records check, which methods shall include, but not be limited to, an electronic
method. (D) A determination whether any information exists that indicates that a person previously has been convicted of or pleaded guilty to any offense listed or described in division (A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or (b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7)(a) or (b), (A)(8)(a) or (b), or (A)(9)(a) or (b), or (A)(11) of this section that is made by the superintendent with respect to information considered in a criminal records check in accordance with this section is valid for the person who is the subject of the criminal records check for a period of one year from the date upon which the superintendent makes the determination. During the period in which the determination in regard to a person is valid, if another request under this section is made for a criminal records check for that person, the superintendent shall provide the information that is the basis for the superintendent's initial determination at a lower fee than the fee prescribed for the initial criminal records check. (E) As used in this section: (1) "Criminal records check" means any criminal records check conducted by the superintendent of the bureau of criminal identification and investigation in accordance with division (B) of this section. (2) "Home and community-based waiver services" and "waiver agency" have the same meanings as in section 5111.95 of the Revised Code. (3) "Independent provider" has the same meaning as in section 5111.96 of the Revised Code. (4) "Minor drug possession offense" has the same meaning as in section 2925.01 of the Revised Code. (5) "Older adult" means a person age sixty or older.
Sec. 1321.541. (A) The attorney general may directly bring an action to enjoin a violation of sections 1321.51 to 1321.60 of the Revised Code with the same rights, privileges, and powers as those described in section 1345.06 of the Revised Code. The prosecuting attorney of the county in which the action may be brought may bring an action to enjoin a violation of sections 1321.51 to 1321.60 of the Revised Code only if the prosecuting attorney first presents any evidence of the violation to the attorney general and, within a reasonable period of time, the attorney general has not agreed to bring the action. (B)(1) The prosecuting attorney of the county in which an alleged offense may be prosecuted may initiate criminal proceedings under sections 1321.51 to 1321.60 of the Revised Code.
(2) In order to initiate criminal proceedings under sections 1321.51 to 1321.60 of the Revised Code, the attorney general shall first present any evidence of criminal violations to the prosecuting attorney of the county in which the alleged offense may be prosecuted. If, within a reasonable period of time, the prosecuting attorney has not agreed to prosecute the violations, the attorney general may proceed in the prosecution with all the rights, privileges, and powers conferred by law on prosecuting attorneys, including the power to appear before grand juries and to interrogate witnesses before such grand juries.
(C) These powers of the attorney general shall be in addition to any other applicable powers of the attorney general.
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
a
nonrefundable 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; however, an applicant that is registered under sections
1321.51 to 1321.60 of the Revised Code shall not be required to
pay an application fee. The application 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) If the applicant is a partnership,
corporation, limited
liability
company, or any other
business entity
or association,
the
applicant
shall designate
an employee or owner of the
applicant as the applicant's operations
manager. While
acting as
the operations manager, the employee or owner shall not
be
employed by any other mortgage broker. (4) Evidence that
the sole proprietor or
the person
designated on
the application pursuant to division (A)(3) of this
section, as
applicable, 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) of this section; (5) Evidence of compliance with the 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
business entity,
evidence that
it
maintains a license
or registration pursuant to
Chapter 1703.,
1705., 1775., 1777., 1782., or 1783. of the Revised
Code
to
transact business in this state; (7) A statement
as to whether the applicant
or, to the
best
of the applicant's knowledge, any
shareholder, member,
partner,
operations manager, or
employee of the applicant has
been
convicted
of
or pleaded
guilty to
any criminal offense
involving
theft, receiving stolen
property, embezzlement,
forgery, fraud,
passing bad checks, money
laundering, or drug
trafficking, or any
criminal offense involving
money or
securities; (8)
A statement as to whether the applicant or, to the best
of the applicant's knowledge, any
shareholder, member, partner,
operations manager, or
employee of the applicant has been subject
to any adverse judgment
for conversion, embezzlement,
misappropriation of funds, fraud,
misfeasance or malfeasance, or
breach of fiduciary duty;
(9) Evidence that the applicant's operations manager has
successfully completed the examination required under division (A)
of section 1322.051 of the Revised Code;
(10) Any further information that the superintendent
requires. (B) Upon the filing of the application and payment of the
application fee, the superintendent of financial institutions shall investigate the
applicant as set forth in this division.
The investigation shall include (1) The superintendent shall request the superintendent of the bureau of criminal identification and investigation, or a vendor approved by the bureau, to conduct a criminal records
check based on the applicant's fingerprints of the applicant and in accordance with division (A)(11) of section 109.572 of the Revised Code. Notwithstanding division (J) of section 121.08 of the Revised Code, the superintendent of financial institutions shall request that criminal record information from the federal bureau of investigation be obtained as part of the criminal records check. Any fee required under division (C)(3) of section 109.572 of the Revised Code shall be paid by the applicant.
(2) The superintendent shall conduct a civil
records check. If, (3) If, in order to issue a certificate of
registration
to
an applicant, additional 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 The superintendent shall pay all funds advanced and application and renewal fees
and
penalties paid
to the superintendent under receives pursuant to 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)
If an application for a certificate of registration
does
not contain all of the information required under division
(A) of
this section, and if that information is not submitted to
the
superintendent within ninety days after the superintendent
requests the information in writing, the superintendent may
consider the application withdrawn.
(E) A certificate of registration, or and the authority granted
under such a that certificate, is not transferable or assignable and
cannot be franchised by contract or any other means.
Sec. 1322.031. (A) An application for a license as a loan
officer shall be in writing, under oath, and in the form
prescribed by the superintendent of financial institutions. The
application shall be accompanied by a nonrefundable application
fee of one hundred dollars and shall provide all of the following:
(1) The name and address of the applicant;
(2) A statement as to whether the applicant has been
convicted of
or pleaded guilty to any criminal offense involving
theft,
receiving stolen property, embezzlement, forgery, fraud,
passing
bad checks, money laundering, or drug trafficking, or any
criminal
offense involving money or securities;
(3) A statement as to whether the applicant has been subject
to
an adverse judgment for conversion, embezzlement,
misappropriation
of funds, fraud, misfeasance or malfeasance, or
breach of
fiduciary duty;
(4) Any further information that the superintendent
requires.
(B) Upon the filing of the application and payment of the
application fee, the superintendent of financial institutions shall investigate the
applicant as set forth in this division. The investigation shall include (1) The superintendent shall request the superintendent of the bureau of criminal identification and investigation, or a vendor approved by the bureau, to conduct a criminal records
check based on the applicant's fingerprints of the applicant and in accordance with division (A)(11) of section 109.572 of the Revised Code. Notwithstanding division (J) of section 121.08 of the Revised Code, the superintendent of financial institutions shall request that criminal record information from the federal bureau of investigation be obtained as part of the criminal records check. Any fee required under division (C)(3) of section 109.572 of the Revised Code shall be paid by the applicant.
(2) The superintendent shall conduct a civil
records check. If, (3) If, in order to issue a license to an applicant, additional
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 one hundred dollars.
The superintendent shall provide the applicant with an
itemized
statement of the actual expenses that the applicant is
required to
pay.
(C) All The superintendent shall pay all funds advanced and application and renewal fees and
penalties paid
to the superintendent under receives pursuant to this section and
section 1322.041 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) If an application for a license does not contain all of
the information required under division (A) of this section, and
if that information is not submitted to the superintendent within
ninety days after the superintendent requests the information in
writing, the superintendent may consider the application
withdrawn.
(E)(1) The business of a loan officer shall principally be
transacted at an office of the employing mortgage broker, which
office is
registered in accordance with division (A) of section
1322.02
of the Revised Code. Each original license shall be
deposited
with and maintained by the employing mortgage broker at
the
mortgage broker's main office. A copy of the license shall be
maintained and displayed at the office where the loan officer
principally
transacts business.
(2) If a loan officer's employment is terminated, the
mortgage
broker shall return the original license to the
superintendent
within five business days after the termination.
The licensee may
request the transfer of the license to another
mortgage broker by
submitting a relocation application, along with
a fifteen dollar
fee, to the superintendent or may request the
superintendent in
writing to hold the license in escrow for a
period not to exceed
one year. Any licensee whose license is held
in escrow shall
cease activity as a loan officer.
A mortgage broker may employ a loan officer on a temporary
basis pending the transfer of the loan officer's license to the
mortgage broker, if the mortgage broker receives written
confirmation from the superintendent that the loan officer is
licensed under sections 1322.01 to 1322.12 of the Revised Code. (F)
A license, or the authority granted under such a that license,
is
not assignable and cannot be franchised by
contract or any
other means.
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)
Except as otherwise provided in division (A) of
section
1322.03 of the
Revise
Revised Code, the application is accompanied
by the
application fee. If a check or other draft instrument is
returned
to
the superintendent for insufficient funds, the
superintendent
shall notify the registrant by certified mail,
return receipt
requested, that the certificate of registration
issued in reliance
on the check or other draft instrument will be
canceled unless the
registrant, within thirty days after receipt
of the notice,
submits the application fee and a
one-hundred-dollar penalty to
the superintendent. If the
registrant does not submit the
application fee and penalty within
that time period, or if any
check or other draft instrument used
to pay the fee or penalty is
returned to the superintendent for
insufficient funds, the
certificate of registration shall be
canceled immediately without
a hearing, and the registrant shall
cease activity as a mortgage
broker. (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) The sole proprietor
or
the person designated on
the
application pursuant to division
(A)(3) of section 1322.03 of the
Revised
Code, as
applicable, meets the
experience requirements
provided in division
(A)(4) of section
1322.03 of the Revised
Code. (4)
The applicant
maintains
all licenses and registrations
required by the secretary of state. (5) The applicant complies with the 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)
Neither the applicant
nor any shareholder, member,
partner, operations manager, or employee of the
applicant has
pleaded guilty to or been
convicted of
any
criminal offense
described in division (A)(7) of
section 1322.03 of the
Revised
Code, or any violation of an existing or former law of this state, any other state, or the United States that substantially is equivalent to a criminal offense described in that division. However, if the applicant or any of those other persons
has
pleaded guilty to or been convicted of such an offense, the superintendent shall not consider the offense if the
applicant has proven to the superintendent, by a preponderance of
the evidence, that the applicant's or other person's activities
and employment record since the conviction show that the applicant
or other person is honest, truthful, and of good reputation, and
there is no basis in fact for believing that the applicant or
other person will commit such an offense again. (8)
Neither the applicant nor any shareholder, member,
partner, operations manager, or employee of the
applicant has been
subject to any adverse judgment for conversion,
embezzlement,
misappropriation of funds, fraud, misfeasance or
malfeasance, or
breach of fiduciary duty, or, if the applicant or any of those
other persons has been subject to such a judgment, the applicant
has proven to the superintendent, by a preponderance of the
evidence, that the applicant's or other person's activities and
employment record since the judgment show that the applicant or
other person is honest, truthful, and of good reputation, and
there is no basis in fact for believing that the applicant or
other person will be subject to such a judgment again.
(9) The applicant's operations manager successfully completed
the examination required under division (A) of section 1322.051 of
the Revised Code.
(10) 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, corporation, or other
business entity
or association
has
met the conditions set forth in
divisions (A)(7),
(A)(8), and
(A)(10) of this
section, the superintendent shall
determine which
partners,
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
divisions (A)(7), (A)(8),
and (A)(10) of
this section. This
determination shall be based on
the extent
and nature of the
partner's, shareholder's, or
person's
ownership interest
in the
partnership, corporation, or
other
business entity
or association
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
if the superintendent
finds that all
of the following conditions are met:
(1) The renewal application is accompanied by a
nonrefundable
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; however, an
applicant that is registered under sections
1321.51 to 1321.60 of
the Revised Code shall not be required to
pay a renewal fee. If a
check or other draft instrument is
returned to the superintendent
for insufficient funds, the
superintendent shall notify the
registrant by
certified mail,
return receipt requested, that the
certificate of
registration
renewed in reliance on the check or
other draft
instrument will be
canceled unless the registrant,
within thirty
days after receipt
of the notice, submits the
renewal fee and a
one-hundred-dollar
penalty to the
superintendent. If the
registrant does not submit
the renewal fee
and penalty within that
time period, or if any
check or other
draft instrument used to pay
the fee or penalty is
returned to the
superintendent for
insufficient funds, the
certificate of
registration shall be
canceled immediately without
a hearing and
the registrant shall
cease activity as a mortgage
broker.
(2) On and after January 1, 2003, the operations manager
designated under division (A)(3) of section 1322.03 of the Revised
Code has completed, during the immediately preceding calendar
year, at least six hours of continuing education as required under
section 1322.052 of the Revised Code.
(3) The applicant meets the conditions set forth in
divisions (A)(2) to
(10) of this section.
(4) The applicant's certificate of
registration is not
subject to an order of suspension or
revocation by the
superintendent.
(C)(1) Subject to division (C)(2) of this section, if a
renewal fee is
received by the
superintendent after
the thirtieth
day of April, 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. (2) Division (C)(1) of
this section shall not apply if
the
applicant, no later than the
thirty-first day of May, submits
the
renewal fee and a
one-hundred-dollar penalty to the
superintendent. (D) If
the person
designated
as the operations manager
pursuant to division (A)(3)
of
section 1322.03 of the Revised
Code
is no longer
the operations manager, the
registrant
shall do all
of the
following: (1) Designate another
person as
the operations
manager; (2) Within ten days after the
designation described in
division
(D)(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
operations manager
complies with the
experience requirements set
forth in division
(A)(4) of section 1322.03 of
the Revised
Code.
Sec. 1322.041. (A) Upon the conclusion of the investigation
required under division (B) of section 1322.031 of the Revised
Code, the superintendent of financial institutions shall issue a
loan officer license to the applicant if the superintendent finds
that the following conditions are met:
(1) The application is accompanied by the application fee.
If a check or other draft instrument is returned to the
superintendent for insufficient funds, the
superintendent shall
notify the licensee by certified mail, return
receipt requested,
that the license issued in reliance on the
check or other draft
instrument will be canceled unless the
licensee, within thirty
days after receipt of the notice, submits
the application fee and
a one-hundred-dollar penalty to the
superintendent. If the
licensee does not submit the application
fee and penalty within
that time period, or if any check or other
draft instrument used
to pay the fee or penalty is returned to the
superintendent for
insufficient funds, the license shall be
canceled immediately
without a hearing, and the licensee shall
cease activity as a loan
officer.
(2) The applicant complies with sections 1322.01 to 1322.12
of the Revised Code.
(3) The applicant has not been convicted of or pleaded
guilty to any criminal offense described in division (A)(2) of
section 1322.031 of the Revised Code, or and the applicant has not pleaded guilty to or been convicted of a violation of an existing or former law of this state, any other state, or the United States that substantially is equivalent to a criminal offense described in that division. However, if the applicant has
been convicted of or pleaded guilty to such an offense, the superintendent shall not consider the offense if the
applicant has proven to the superintendent, by a preponderance of
the evidence, that the applicant's activities and employment
record since the conviction show that the applicant is honest,
truthful, and of good reputation, and there is no basis in fact
for believing that the applicant will commit such an offense
again.
(4) The applicant has not been subject to an adverse judgment
for conversion, embezzlement, misappropriation of funds, fraud,
misfeasance or malfeasance, or breach of fiduciary duty, or, if
the applicant has been subject to such a judgment, the applicant
has proven to the superintendent, by a preponderance of the
evidence, that the applicant's activities and employment record
since the judgment show that the applicant is honest, truthful,
and of good reputation, and there is no basis in fact for
believing that the applicant will be subject to such a judgment
again.
(5) The applicant successfully completed the examination required under division (B) of section 1322.051 of the Revised Code. (6) The applicant's 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.
(B) The license issued under division (A) of this
section
may be renewed annually on or before the thirtieth day of
April if
the superintendent finds that all of the following
conditions are
met:
(1) The renewal application is accompanied by a
nonrefundable renewal fee of one hundred dollars. If a check or
other draft instrument is returned to the superintendent for
insufficient funds, the superintendent shall notify
the licensee
by certified mail, return receipt requested, that the
license
renewed in reliance on the check or other draft instrument
will be
canceled unless the licensee, within thirty days after
receipt of
the notice, submits the renewal fee and a
one-hundred-dollar
penalty to the superintendent. If the licensee
does not submit
the renewal fee and penalty within that time
period, or if any
check or other draft instrument used to pay the
fee or penalty is
returned to the superintendent for insufficient
funds, the license
shall be canceled immediately without a hearing,
and the licensee
shall cease activity as a loan officer.
(2) On and after January 1, 2003, the loan officer has
completed, during the immediately preceding calendar year, at
least six hours of continuing education as required under section
1322.052 of the Revised Code.
(3) The applicant meets the conditions set forth in
divisions (A)(2) to (5)(6) of this section.
(4) The applicant's license is not subject to an order of
suspension or revocation by the superintendent.
(C)(1) Subject to division (C)(2) of this section, if a
license renewal application or renewal fee is
received by the
superintendent after the thirtieth day of April,
the license shall
not be considered renewed, and the applicant
shall cease activity
as a loan officer.
(2) Division (C)(1) of this section shall not apply if the
applicant, no later than the thirty-first day of May, submits the
renewal application and fee and a one-hundred-dollar penalty to
the superintendent.
Sec. 1322.051.
(A) Each person designated under division
(A)(3) of section 1322.03 of the Revised Code to act as operations
manager for a mortgage broker business shall submit to an
examination approved by the superintendent of financial
institutions.
(B) Each licensee, within ninety days after the original
issuance of the applicant for a loan officer license, shall successfully complete submit to
an examination approved by the superintendent. Failure to comply
with this division results in the termination of the license by
operation of law.
Sec. 1322.06. (A) As often as the superintendent of
financial institutions considers it necessary, the superintendent
may
examine the registrant's
records pertaining to business
transacted pursuant to sections 1322.01 to
1322.12 of the Revised
Code. (B) A registrant shall maintain records pertaining to
business transacted
pursuant to sections 1322.01 to 1322.12 of the
Revised Code, including copies of all mortgage loan origination disclosure statements prepared in accordance with section 1322.062 of the Revised Code, for
four years. No registrant shall fail to
comply
with this
division.
Sec. 1322.061. (A)(1) The following information is
privileged and confidential:
(a) Examination information, and any information leading to
or arising from an examination;
(b) Investigation information, and any information arising
from or leading to an investigation.
(2) The information described in division (A)(1) of this
section shall remain privileged and confidential for all purposes
except when it is necessary for the superintendent of financial
institutions to take official action regarding the affairs of a
registrant
or licensee, or in connection with
criminal
proceedings.
This information may also be introduced into
evidence
or disclosed
when and in the manner authorized by section
1181.25
of the
Revised Code.
(B) All application information, except social security
numbers, employer identification numbers, financial account
numbers, the identity of the institution where financial accounts
are maintained, personal financial information, fingerprint cards
and the information contained on such cards, and criminal
background information, is a public record as defined in section
149.43 of the Revised Code.
(C) This section does not prevent the division of financial
institutions from releasing to or exchanging with other financial
institution regulatory authorities information relating to
registrants and
licensees. For this purpose, a "financial
institution regulatory
authority" includes a regulator of a
business activity in which a
registrant or licensee is engaged, or
has applied to engage in, to the extent
that the regulator has
jurisdiction over a registrant or licensee engaged in
that
business activity. A registrant or licensee is engaged in a
business
activity, and a regulator of that business activity has
jurisdiction over the registrant or licensee, whether the
registrant or licensee conducts the
activity directly or a
subsidiary or affiliate of the registrant or licensee
conducts the
activity. (D) This section does not prevent the division from
releasing information relating to registrants and licensees to the
attorney
general for purposes relating to the attorney general's
administration of Chapter 1345. of the Revised Code, to the superintendent of real estate and professional licensing for purposes relating to the administration of Chapters 4735. and 4763. of the Revised Code, to the superintendent of insurance for purposes relating to the administration of Chapter 3953. of the Revised Code, or to local law enforcement agencies and local prosecutors. Information
the division releases to the attorney general pursuant to this
section remains privileged and confidential, and the attorney
general may not disclose the information or introduce the
information into evidence unless the superintendent authorizes the
disclosure or introduction into evidence in connection with the
attorney general's administration of Chapter 1345. of the Revised
Code.
Sec. 1322.062. (A)(1) Within three business days after
taking
an
application for a loan from a buyer, a registrant shall
deliver
to the
buyer a mortgage loan origination disclosure
statement that
contains all of
the following:
(a) The name, address, and telephone number of the buyer;
(b) The typewritten name of the loan officer and the
number
designated on the loan officer's license; (c) The street address, telephone number, and facsimile
number of
the registrant and the number designated on the
registrant's
certificate of registration; (d)
The signature of the loan officer or
registrant;
(e) A statement indicating whether the buyer is to pay
for
the services of a bona fide third party if the registrant is
unable to assist the buyer in obtaining a mortgage;
(f) A statement that describes the method by which the
fee
to be paid by the buyer to the registrant will be calculated and a good faith estimate of the total amount of that fee;
(g) A statement that the lender may pay compensation to
the
registrant;
(h) A description of all the services the registrant has
agreed to perform for the buyer;
(i) A statement that the buyer has not entered into an
exclusive agreement for brokerage services;
(j) If the loan applied for will exceed ninety per cent of the value of the real property, a statement, printed in boldface type of the minimum size of sixteen points, as follows: "You are applying for a loan that is more than 90% of your home's value. It will be hard for you to refinance this loan. If you sell your home, you might owe more money on the loan than you get from the sale."
(k) To acknowledge receipt, the signature of the buyer.
(2) If the loan is a covered loan as defined in section
1349.25 of the Revised Code, the registrant shall also deliver a
copy of the mortgage loan origination disclosure statement to the
lender. (B)(1) If there is any change in the information provided under
division (A)(1)(f) or
(h) of this section, the registrant
shall
provide the buyer with the revised mortgage loan origination
disclosure statement and a written explanation of why the change occurred no later than three days twenty-four hours after the change
occurs, or the date twenty-four hours before the loan is closed, whichever is earlier.
(2) If an increase in the total amount of the fee to be paid by the buyer to the registrant is not disclosed in accordance with division (B)(1) of this section, the registrant shall refund to the buyer the amount by which the fee exceeds the amount previously estimated under division (A)(1)(f) of this section. If the fee is financed into the loan, the registrant shall also refund to the buyer the interest that would accrue over the term of the loan on that excess amount.
(C) No registrant shall fail to comply with
this section.
Sec. 1322.063. (A) In addition to the disclosures required under section 1322.062 of the Revised Code, a registrant shall, not later than twenty-four hours before a loan is closed, deliver to the buyer a written disclosure that includes the following:
(1) A statement indicating whether property taxes will be escrowed;
(2) A description of what is covered by the regular monthly payment, including principal, interest, taxes, and insurance, as applicable.
(B) No registrant shall fail to comply with this section.
Sec. 1322.064. (A) No registrant or licensee shall fail to do either of the following:
(1) Timely inform the buyer of any material change in the terms of the loan. For purposes of division (A)(1) of this section, "material change" means the following:
(a) A change in the type of loan being offered, such as a fixed or variable rate loan or a loan with a balloon payment;
(b) A change in the term of the loan, as reflected in the number of monthly payments due before a final payment is scheduled to be made;
(c) A change in the interest rate of more than 0.15%;
(d) A change in the regular monthly payment of principal and interest of more than five per cent;
(e) A change regarding the escrow of taxes or insurance;
(f) A change regarding the payment of private mortgage insurance.
(2) Timely inform the buyer if the estimated cash out available to the buyer changes by more than ten per cent.
(B) The disclosures required by this section shall be deemed timely if the registrant provides the buyer with the revised information not later than twenty-four hours after the change occurs, or twenty-four hours before the loan is closed, whichever is earlier.
Sec. 1322.07. No
mortgage broker, registrant, licensee, or
applicant for
a certificate
of registration
or license under
sections 1322.01 to
1322.12 of the Revised
Code shall do any of
the following: (A) Obtain a certificate of registration
or license
through
any false
or fraudulent representation
of a material fact or any
omission of a material fact required by state law,
or make any
substantial
misrepresentation in any registration
or license
application; (B) Make false
or misleading statements of a material fact,
omissions of statements required by state law, or false promises
regarding a material fact, through advertising or other
means,
or
engage in a continued course
of misrepresentations; (C) Engage in conduct that constitutes improper,
fraudulent,
or dishonest dealings; (D) Fail to notify the division of financial
institutions
within thirty days after the registrant, licensee, or applicant,
in a court of competent
jurisdiction of this state or any other
state, is convicted of or
pleads
guilty to
any criminal offense
involving theft, receiving
stolen property, embezzlement,
forgery,
fraud, passing bad checks,
money laundering, or drug
trafficking,
or any
criminal offense
involving
money or
securities;
(E) Knowingly make, propose, or solicit fraudulent, false,
or
misleading
statements on any mortgage document or on any
document
related to
a mortgage, including a mortgage application,
real
estate
appraisal, or real estate settlement or closing
document.
For purposes of this division, "fraudulent, false, or
misleading
statements" does not include mathematical errors,
inadvertent
transposition of numbers, typographical errors, or any
other bona
fide error.
(F) Knowingly instruct, solicit, propose, or otherwise cause
a buyer
to sign in blank a mortgage related document; (G) Knowingly compensate, instruct, induce, coerce, or intimidate, or attempt to compensate, instruct, induce, coerce, or intimidate, a person licensed or certified under Chapter 4763. of the Revised Code for the purpose of corrupting or improperly influencing the independent judgment of the person with respect to the value of the dwelling offered as security for repayment of a mortgage loan; (H) Promise to refinance a loan in the future at a lower interest rate or with more favorable terms, unless the promise is set forth in writing and is initialed by the buyer.
Sec. 1322.074. (A) As used in this section and section 1322.075 of the Revised Code: (1) "Appraisal company" means a sole proprietorship, partnership, corporation, limited liability company, or any other business entity or association, that employs or retains the services of a person licensed or certified under Chapter 4763. of the Revised Code for purposes of performing residential real estate appraisals for mortgage loans. (2) "Immediate family" means a spouse residing in the person's household and any dependent child.
(3) "Title insurance," "the business of title insurance," "title insurance company," and "title insurance agent" have the same meanings as in section 3953.01 of the Revised Code.
(B) Except as otherwise provided in division (C) of this section, no registrant, or any member of the registrant's immediate family, shall own or control a majority interest in a title insurance company or an appraisal company. (C) Division (B) of this section shall not apply to any registrant, or any member of the registrant's immediate family, who, on the effective date of this section, owns or controls a majority interest in a title insurance company or an appraisal company. However, such ownership or control is subject to the following conditions:
(1) The registrant and members of the registrant's immediate family shall not increase their interest in the company.
(2) The interest is not transferable to a member of the registrant's immediate family.
(3) If the registrant is convicted of or pleads guilty to a criminal violation of sections 1322.01 to 1322.12 of the Revised Code or any criminal offense described in division (A)(1)(b) of section 1322.10 of the Revised Code, the superintendent of financial institutions may, as an alternative to any of the actions authorized under section 1322.10 of the Revised Code, order the registrant or members of the registrant's immediate family to divest their interest in the company. Sec. 1322.075. (A) No registrant or licensee shall refer a buyer to a title insurance company or title insurance agent for title insurance, the business of title insurance, or other title insurance services or products, or to an appraisal company, if the registrant or licensee, or a member of the registrant's or licensee's immediate family, has either of the following financial relationships with the title insurance company, title insurance agent, or appraisal company:
(1) An ownership or investment interest in the company or agent, whether through debt, equity, or other means;
(2) Any compensation arrangement involving any remuneration, directly or indirectly, overtly or covertly, in cash or in kind.
(B) No registrant or licensee shall knowingly enter into an arrangement or scheme, including a cross-referral arrangement, that has a principal purpose of assuring referrals by a registrant or licensee to a particular title insurance company, title insurance agent, or appraisal company that would violate division (A) of this section.
Sec. 1322.081. (A) With respect to a mortgage loan transaction, both the registrant and the licensee shall be a fiduciary of the buyer and shall use their best efforts to further the interest of the buyer, including complying with the reasonable and lawful instructions of the buyer and acting with reasonable care, skill, and diligence on behalf of the buyer. (B) The duty created by this section shall not be waived or modified.
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 do the
following: (1) Suspend, revoke, or refuse to issue or renew a
certificate of registration
or license if the
superintendent finds
either of the following:
(a) A violation of
or failure to comply
with any provision
of sections 1322.01 to 1322.12 of the
Revised
Code or the rules
adopted under those sections
or any other law
applicable to the
business conducted under a certificate of
registration;
(b) A conviction of or guilty plea to any criminal offense
involving theft, receiving stolen property, embezzlement, forgery,
fraud, passing bad checks, money laundering, or drug trafficking,
or any criminal offense involving money or securities.
(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
or licensee 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
or licensee's good faith efforts to
prevent the violation; (c) The registrant's
or licensee's history
regarding
violations and compliance with division orders; (d) The registrant's
or licensee'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
sections 1322.01 to 1322.12 of the Revised Code or
the
rules
adopted 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 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 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, 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.
(E) If the superintendent revokes the certificate of
registration or license of a registrant or licensee who is
convicted of or pleads guilty to a criminal violation of any
provision of sections 1322.01 to 1322.12 of the Revised Code or
any criminal offense described in division (A)(1)(b) of this
section, the revocation shall be permanent. (F)(1) To protect the public interest, the superintendent may, without a prior hearing, do either of the following:
(a) Suspend the certificate of registration or license of a registrant or licensee who is convicted of or pleads guilty to a criminal violation of any provision of sections 1322.01 to 1322.12 of the Revised Code or any criminal offense described in division (A)(1)(b) of this section;
(b) Suspend the certificate of registration of a registrant who violates division (F) of section 1322.05 of the Revised Code.
(2) The superintendent may, in accordance with Chapter 119. of the Revised Code, subsequently revoke any registration or license suspended under division (F)(1) of this section.
Sec. 1322.11. (A)(1) A buyer injured by a violation of
section 1322.02, 1322.062, 1322.063, 1322.064, 1322.07,
1322.071,
1322.08, or
1322.09
of the Revised Code may
bring an action for
recovery of
damages. (2) Damages awarded under division (A)(1) of this section
shall not be less than the amount paid by the buyer to the
mortgage broker, plus reasonable attorney's fees and court costs. (3) The buyer may be awarded punitive damages. (B)(1) The superintendent of financial
institutions, the
attorney general, or a buyer may directly bring an action to
enjoin a
violation of sections 1322.01 to 1322.12 of the Revised Code. The attorney general may directly bring an action to enjoin a violation of sections 1322.01 to 1322.12 of the Revised Code with the same rights, privileges, and powers as those described in section 1345.06 of the Revised Code. The prosecuting attorney of the county in which the action may be brought may bring an action to enjoin a violation of sections 1322.01 to 1322.12 of the Revised Code only if the prosecuting attorney first presents any evidence of the violation to the attorney general and, within a reasonable period of time, the attorney general has not agreed to bring the action. (2) The superintendent may initiate
criminal
proceedings
under sections 1322.01 to 1322.12 of the Revised Code
by
presenting any evidence of criminal violation to the
prosecuting
attorney of the county in which the offense may be
prosecuted.
If
the prosecuting attorney does not prosecute the
violations, or
at
the request of the prosecuting attorney, the
superintendent
shall
present any evidence of criminal violations
to the attorney
general, who may proceed in the prosecution with
all the rights,
privileges, and powers conferred by law on
prosecuting attorneys,
including the power to appear before grand
juries and to
interrogate witnesses before such grand juries.
These powers of
the attorney general shall be in addition to any
other applicable
powers of the attorney general. (3) The prosecuting attorney of the county in which an alleged offense may be prosecuted may initiate criminal proceedings under sections 1322.01 to 1322.12 of the Revised Code. (4) In order to initiate criminal proceedings under sections 1322.01 to 1322.12 of the Revised Code, the attorney general shall first present any evidence of criminal violations to the prosecuting attorney of the county in which the alleged offense may be prosecuted. If, within a reasonable period of time, the prosecuting attorney has not agreed to prosecute the violations, the attorney general may proceed in the prosecution with all the rights, privileges, and powers described in division (B)(2) of this section. (5) When a judgment under this section becomes final, the clerk of court shall mail a copy of the judgment, including supporting opinions, to the superintendent. (C) The remedies provided by this section are in addition
to
any other remedy provided by law. (D) In any proceeding or action brought under sections
1322.01 to 1322.12 of the Revised Code, the burden of proving an
exemption under those sections is on the person claiming the
benefit of the exemption. (E) No person shall be deemed to violate sections 1322.01
to
1322.12 of the Revised Code with respect to any act taken or
omission made in reliance on a written notice, written
interpretation, or written report from the superintendent, unless
there is a subsequent amendment to those sections, or rules
promulgated thereunder, that affects the superintendent's notice,
interpretation, or report. (F) Upon disbursement of mortgage loan proceeds to or on
behalf of the buyer, the registrant that assisted the buyer to
obtain the mortgage loan is deemed to have completed the
performance of the registrant's services for the buyer and owes
no
additional duties or obligations to the buyer with respect to
the
mortgage loan. However, nothing in this division shall be
construed to limit or preclude the civil or criminal liability of
a registrant
for failing to comply with sections 1322.01 to
1322.12 of the Revised Code or
any rule adopted under those
sections, for failing to comply with any
provision of or
duty
arising under an agreement with a buyer or lender under sections
1322.01
to 1322.12 of the Revised Code, or for violating any other
provision of
state or federal law.
Sec. 1322.99. (A) Whoever violates
division (A)(1) or (2) of
section 1322.02, division (E) or,
(F), or (G) of section 1322.07,
division
(B)(1) or
(2) of section
1322.071, or section
1322.08 of the
Revised Code is
guilty of a felony of the
fifth
degree.
(B) Whoever violates division (B)(3) of section 1322.071 of
the Revised Code is guilty of a felony of the fourth degree. (C) Whoever violates division (B) of section 1322.02 of the
Revised Code is guilty of a misdemeanor of the first degree.
Sec. 1345.01. As used in sections 1345.01 to 1345.13 of
the Revised Code: (A) "Consumer transaction" means a sale, lease,
assignment, award by chance, or other transfer of an item of
goods, a service, a franchise, or an intangible, to an individual
for purposes that are primarily personal, family, or household,
or solicitation to supply any of these things. "Consumer
transaction" does not include transactions between persons, defined in sections 4905.03 and 5725.01 of the Revised Code, and
their customers, other than transactions between loan officers, mortgage brokers, or nonbank mortgage lenders and their customers; transactions between certified public
accountants or public accountants and their clients; transactions
between attorneys, physicians, or dentists and their clients or
patients; and transactions between veterinarians and their
patients that pertain to medical treatment but not ancillary
services. (B) "Person" includes an individual, corporation,
government, governmental subdivision or agency, business trust,
estate, trust, partnership, association, cooperative, or other
legal entity. (C) "Supplier" means a seller, lessor, assignor,
franchisor, or other person engaged in the business of effecting
or soliciting consumer transactions, whether or not the
person deals directly with the consumer. (D) "Consumer" means a person who engages in a consumer
transaction with a supplier. (E) "Knowledge" means actual awareness, but such actual
awareness may be inferred where objective manifestations indicate
that the individual involved acted with such awareness. (F) "Natural gas service" means the sale of natural gas,
exclusive of any distribution or ancillary service. (G) "Public telecommunications service" means the
transmission by electromagnetic or other means,
other than by a telephone company as defined in section 4927.01 of the Revised Code,
of
signs, signals, writings, images, sounds, messages, or data originating
in this state regardless of actual
call routing. "Public telecommunications service" excludes a
system, including its construction, maintenance, or operation, for
the provision of telecommunications service, or any portion of
such service, by any entity for the sole and exclusive use of that
entity, its parent, a subsidiary, or an affiliated entity, and not
for resale, directly or indirectly; the provision of terminal
equipment used to originate telecommunications
service; broadcast transmission by radio, television, or satellite
broadcast stations regulated by the federal government; or cable
television service. (H) "Loan officer" has the same meaning as in section 1322.01 of the Revised Code, except that it does not include an employee of a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; an employee of a subsidiary of such a bank, savings bank, savings and loan association, or credit union; or an employee of an affiliate that (1) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (2) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration.
(I) "Mortgage" means any indebtedness secured by a deed of trust, security deed, or other lien on real property.
(J) "Mortgage broker" has the same meaning as in section 1322.01 of the Revised Code, except that it does not include a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; a subsidiary of such a bank, savings bank, savings and loan association, or credit union; an affiliate that (1) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (2) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration; or an employee of any such entity.
(K) "Nonbank mortgage lender" means any person that engages in a mortgage loan transaction with a consumer, except for a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; a subsidiary of such a bank, savings bank, savings and loan association, or credit union; or an affiliate that (1) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (2) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration. (L) For purposes of divisions (H), (J), and (K) of this section: (1) "Control" of another entity means ownership, control, or power to vote twenty-five per cent or more of the outstanding shares of any class of voting securities of the other entity, directly or indirectly or acting through one or more other persons. (2) "Credit union service organization" means a CUSO as defined in 12 C.F.R. 702.2.
Sec. 1345.09. For a violation of Chapter 1345. of the
Revised Code, a consumer has a cause of action and is entitled to
relief as follows: (A) Where the violation was an act prohibited by section
1345.02 or 1345.03 of the Revised Code, the consumer may, in an
individual action, rescind the transaction or recover his the
consumer's actual
damages. (B) Where the violation was an act or practice declared to
be deceptive or unconscionable by rule adopted under division (B)
(2) of section 1345.05 of the Revised Code before the consumer
transaction on which the action is based, or an act or practice
determined by a court of this state to violate section 1345.02 or
1345.03 of the Revised Code and committed after the decision
containing the determination has been made available for public
inspection under division (A)(3) of section 1345.05 of the
Revised Code, the consumer may rescind the transaction or
recover, but not in a class action, three times the amount of his
the consumer's
actual damages or two hundred dollars, whichever is greater, or
recover the consumer's actual damages or other appropriate relief in a class action
under Civil Rule 23, as amended. (C) In (1) Except as otherwise provided in division (C)(2) of this section, in any action for rescission, revocation of the
consumer transaction must occur within a reasonable time after
the consumer discovers or should have discovered the ground for
it and before any substantial change in condition of the subject
of the consumer transaction. (2) If the consumer transaction is secured by a mortgage loan, revocation of the consumer transaction in any action for rescission under this chapter shall only be available to a consumer, in an individual action, and shall occur not later than the time limit within which the right of rescission under section 125(f) of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635(f), as amended, expires. (D) Any consumer may seek a declaratory judgment, an
injunction, or other appropriate relief against an act or
practice that violates this chapter. (E) When a consumer commences an individual action for a
declaratory judgment or an injunction or a class action under
this section, the clerk of court shall immediately mail a copy of
the complaint to the attorney general. Upon timely application,
the attorney general may be permitted to intervene in any private
action or appeal pending under this section. When a judgment
under this section becomes final, the clerk of court shall mail a
copy of the judgment including supporting opinions to the
attorney general for inclusion in the public file maintained
under division (A)(3) of section 1345.05 of the Revised Code. (F)(1) The court may shall award to the prevailing party a
reasonable attorney's fee limited to the work reasonably
performed, if either of the following apply: (1) The consumer complaining of the act or practice that
violated this chapter has brought or maintained an action that is
groundless, and the consumer filed or maintained the action in
bad faith;.
(2) The court may award to the prevailing party a reasonable attorney's fee limited to the work reasonably performed, if the supplier has knowingly committed an act or
practice that violates this chapter.
Sec. 1345.091. (A) For purposes of this section, a loan is considered to be in default if it is at least thirty days past due. (B) Notwithstanding any other provision of this chapter, and except as otherwise provided in 16 C.F.R. 433.2, as amended, or section 1317.031 or 1317.032 of the Revised Code, no claim or defense under this chapter, except a claim or defense of rescission by a consumer as provided in division (C)(2) of section 1345.09 of the Revised Code, may be asserted by the attorney general or any consumer against an assignee or purchaser of a mortgage loan for value if any of the following applies:
(1) The violation was not committed by the assignee or purchaser after such assignment or purchase. (2) The assignee or purchaser is not affiliated by common control with the seller of the loan at the time of such assignment or purchase and the loan was not in default at the time of such assignment or purchase.
(3) The assignee or purchaser is a bank, savings bank, savings and loan association, credit union, or credit union service organization organized under the laws of this state, another state, or the United States; a subsidiary of such a bank, savings bank, savings and loan association, or credit union; or an affiliate that (a) controls, is controlled by, or is under common control with, such a bank, savings bank, savings and loan association, or credit union and (b) is subject to examination, supervision, and regulation, including with respect to the affiliate's compliance with applicable consumer protection requirements, by the board of governors of the federal reserve system, the comptroller of the currency, the office of thrift supervision, the federal deposit insurance corporation, or the national credit union administration.
Sec. 1349.31. (A)(1) No creditor shall willfully and
knowingly fail to comply with section 1349.26 or 1349.27 of the
Revised Code. For purposes of division (A)(1) of this section,
"willfully and knowingly" has the same meaning as in section 112
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.
1611, as amended.
(2) Whoever violates division (A)(1) of this section is
guilty of a felony of the fifth degree.
(B) The superintendent of financial institutions may directly bring an action to enjoin a violation of this section. The attorney general may directly bring an action to enjoin a violation of this section with the same rights, privileges, and powers as those described in section 1345.06 of the Revised Code. The prosecuting attorney of the county in which the action may be brought may bring an action to enjoin a violation of this section only if the prosecuting attorney first presents any evidence of the violation to the attorney general and, within a reasonable period of time, the attorney general has not agreed to bring the action. (C)(1) The superintendent of financial institutions may
initiate criminal proceedings under this section by presenting any
evidence of criminal violations to the prosecuting attorney of the
county in which the offense may be prosecuted. If the prosecuting
attorney does not prosecute the violations, or at the request of
the prosecuting attorney, the superintendent shall present any
evidence of criminal violations to the attorney general, who may
proceed in the prosecution with all the rights, privileges, and
powers conferred by law on prosecuting attorneys, including the
power to appear before grand juries and to interrogate witnesses
before such grand juries. These powers of the attorney general
shall be in addition to any other applicable powers of the
attorney general. (2) The prosecuting attorney of the county in which an alleged offense may be prosecuted may initiate criminal proceedings under this section. (3) In order to initiate criminal proceedings under this section, the attorney general shall first present any evidence of criminal violations to the prosecuting attorney of the county in which the alleged offense may be prosecuted. If, within a reasonable period of time, the prosecuting attorney has not agreed to prosecute the violations, the attorney general may proceed in the prosecution with all the rights, privileges, and powers described in division (C)(1) of this section.
Sec. 1349.41. (A) As used in this section: (1) "Consumer" means an individual to whom credit is offered or extended primarily for personal, family, or household purposes.
(2) "Lender" means a nonbank mortgage lender as defined in section 1345.01 of the Revised Code. "Lender" does not include a person that purchases or is assigned a loan or that functions solely as the servicer of a loan.
(3) "Mortgage" and "registrant" have the same meanings as in section 1322.01 of the Revised Code.
(4) "Net worth" means the net worth of an individual, as defined by common lending practices, with the following assets excluded:
(a) The value of the home that is the subject of the mortgage loan transaction;
(b) Any social security or pension payments or assets;
(c) Any life insurance assets.
(B) With respect to a mortgage loan transaction with a consumer who has less than twenty-five thousand dollars of net worth, the lender shall be a fiduciary of the consumer and shall use the lender's best efforts to further the interest of the consumer, including complying with the reasonable and lawful instructions of the consumer and acting with reasonable care, skill, and diligence on behalf of the consumer, if the transaction does not involve a registrant or the registrant does not have a material role in the transaction.
(C) The duty created by this section shall not be waived or modified.
(D) This section shall not be construed as obligating a lender to seek loan terms more favorable to the consumer from, or to make referrals to, any non-affiliated lending institution.
Sec. 1349.43. (A) As used in this section, "loan officer," "mortgage broker," and "nonbank mortgage lender" have the same meanings as in section 1345.01 of the Revised Code.
(B) The department of commerce shall establish and maintain an electronic database accessible through the internet that contains information on all of the following:
(1) The enforcement actions taken by the superintendent of financial institutions for each violation of or failure to comply with any provision of sections 1322.01 to 1322.12 of the Revised Code, upon final disposition of the action;
(2) The enforcement actions taken by the attorney general under Chapter 1345. of the Revised Code against loan officers, mortgage brokers, and nonbank mortgage lenders, upon final disposition of each action;
(3) All judgments by courts of this state, concerning which appellate remedies have been exhausted or lost by the expiration of the time for appeal, finding either of the following:
(a) A violation of any provision of sections 1322.01 to 1322.12 of the Revised Code;
(b) That specific acts or practices by a loan officer, mortgage broker, or nonbank mortgage lender violate section 1345.02 or 1345.03 of the Revised Code.
(C) The attorney general shall submit to the department, on the first day of each January, April, July, and October, a list of all enforcement actions and judgments described in divisions (B)(2) and (3)(b) of this section. (D) The department may adopt rules in accordance with Chapter 119. of the Revised Code that are necessary to implement this section.
Sec. 1349.44. (A) The superintendent of financial institutions shall report semi-annually to the governor and the general assembly on the operations of the division of financial institutions with respect to the following:
(1) Enforcement actions instituted by the superintendent for a violation of or failure to comply with any provision of sections 1322.01 to 1322.12 of the Revised Code, and their final dispositions;
(2) Suspensions, revocations, or refusals to issue or renew certificates of registration and licenses under sections 1322.01 to 1322.12 of the Revised Code;
(3) Outreach efforts of the office of consumer affairs to provide education regarding predatory lending, borrowing, and related financial topics.
(B) The information required under divisions (A)(1) and (2) of this section does not include information that, pursuant to section 1322.061 of the Revised Code, is privileged and confidential. Sec. 4735.05. (A) The Ohio real estate commission is a
part
of the department of commerce for administrative purposes.
The
director of commerce is ex officio the executive officer of
the
commission, or the director may designate any employee of the
department as superintendent of real estate and professional
licensing
to act as executive officer of the commission. The commission and the real estate appraiser board created
pursuant to section 4763.02 of the Revised Code shall each submit
to the director a list of three persons whom the commission and
the board consider qualified to be superintendent within sixty
days after the office of superintendent becomes vacant. The
director shall appoint a superintendent from the lists submitted
by the commission and the board, and the superintendent shall
serve at the pleasure of the director.
(B) The superintendent, except as otherwise provided,
shall
do all of the following in regard to this chapter: (1) Administer this chapter; (2) Issue all orders necessary to implement this chapter; (3) Investigate complaints concerning the violation of
this
chapter or the conduct of any licensee; (4) Establish and maintain an investigation and audit
section to investigate complaints and conduct inspections,
audits,
and other inquiries as in the judgment of the
superintendent are
appropriate to enforce this chapter. The
investigators or
auditors have the right to review and audit the
business records
of licensees and continuing education course providers
during
normal business hours. (5) Appoint a hearing examiner for any proceeding
involving
disciplinary action
under section 3123.47 or 4735.18 of
the
Revised Code; (6) Administer the real estate recovery fund. (C) The superintendent may do all of the following: (1) In connection with investigations and audits under
division (B) of this section, subpoena witnesses as provided in
section 4735.04 of the Revised Code; (2) Apply to the appropriate court to enjoin any violation
of this chapter. Upon a showing by the superintendent that any
person has violated or is about to violate any provision of this
chapter, the court shall grant an injunction, restraining order,
or other appropriate order. (3) Upon the death of a licensed broker or the revocation
or
suspension of the broker's license, if there is no other
licensed
broker within the business entity of the broker, appoint upon
application by any interested party, or, in the case of a
deceased
broker, subject to the approval by the appropriate
probate court,
recommend the appointment of, an ancillary trustee
who is
qualified as determined by the superintendent to conclude
the
business transactions of the deceased, revoked, or suspended
broker; (4) In conjunction with the enforcement of this chapter, when the superintendent of real estate has reasonable cause to believe that an applicant or licensee has committed a criminal offense, the superintendent of real estate may request the superintendent of the bureau of criminal identification and investigation to conduct a criminal records check of the applicant or licensee. The superintendent of the bureau of criminal identification and investigation shall obtain information from the federal bureau of investigation as part of the criminal records check of the applicant or licensee. The superintendent of real estate may assess the applicant or licensee a fee equal to the fee assessed for the criminal records check. (D) All information that is obtained by investigators and
auditors performing investigations or conducting inspections,
audits, and other inquiries pursuant to division (B)(4) of this
section, from licensees, complainants, or other persons, and all
reports, documents, and other work products that arise from that
information and that are prepared by the investigators, auditors,
or other personnel of the department, shall be held in confidence
by the superintendent, the investigators and auditors, and other
personnel of the department. Notwithstanding division (D) of section 2317.023 of the Revised Code, all information obtained by investigators or auditors from an informal mediation meeting held pursuant to section 4735.051 of the Revised Code, including but not limited to the agreement to mediate and the accommodation agreement, shall be held in confidence by the superintendent, investigators, auditors, and other personnel of the department. (E) This section does not prevent the division of real estate and professional licensing from releasing information relating to licensees to the superintendent of financial institutions for purposes relating to the administration of sections 1322.01 to 1322.12 of the Revised Code, to the superintendent of insurance for purposes relating to the administration of Chapter 3953. of the Revised Code, to the attorney general, or to local law enforcement agencies and local prosecutors. Information released by the division pursuant to this section remains confidential. Sec. 4763.03. (A) In addition to any other duties imposed
on the real estate appraiser board under this chapter, the board
shall: (1) Adopt rules, in accordance with Chapter 119. of the
Revised Code, in furtherance of this chapter, including, but not
limited to, all of the following: (a) Defining, with respect to state-certified
general real
estate appraisers, state-certified residential real
estate
appraisers, and state-licensed residential
real estate appraisers,
the type of educational experience,
appraisal experience, and
other equivalent experience that
satisfy the requirements of this
chapter. The rules shall
require that all appraisal experience
performed after January 1,
1996,
meet the uniform standards of
professional practice established by the
appraisal foundation. (b) Establishing the examination specifications for
state-certified general real estate appraisers, state-certified
residential real estate appraisers, and state-licensed
residential
real estate appraisers; (c) Relating to disciplinary proceedings conducted
in
accordance with section 4763.11 of the Revised Code, including
rules governing the reinstatement of certificates,
registrations,
and licenses
that have been suspended pursuant to those
proceedings; (d) Identifying any additional information to be
included on
the forms specified in division (C) of section
4763.12 of the
Revised Code, provided that the rules shall not
require any less
information than is required in that division; (e) Establishing the fees set forth in section
4763.09 of
the Revised Code; (f) Establishing the amount of the assessment
required by
division (A)(2) of section 4763.05 of the Revised
Code. The board
annually shall determine the amount due from
each applicant for an
initial certificate, registration, and
license in an
amount that
will maintain the real estate appraiser recovery fund
at the level
specified in division (A) of section 4763.16 of the
Revised Code.
The board may, if the fund falls below that
amount, require
current certificate holders, registrants, and
licensees to pay
an
additional assessment. (g) Defining, with respect to state-registered real estate
appraiser assistants, the educational and experience requirements
of
division (C)(1)(d) of section 4763.05 of the Revised Code; (h) Establishing a real estate appraiser assistant program
for
the registration of real estate appraiser assistants. (2) Provide or procure appropriate examination questions
and
answers for the examinations required by division (D) of
section
4763.05 of the Revised Code, and establish the criteria
for
successful completion of those examinations; (3) Periodically review the standards for preparation and
reporting of real estate appraisals provided in this chapter and
adopt rules explaining and interpreting those standards; (4) Hear appeals, pursuant to Chapter 119. of the Revised
Code, from decisions and orders the superintendent of real estate
issues pursuant to this chapter; (5) Request the initiation by the superintendent of
investigations of violations of this chapter or the rules adopted
pursuant thereto, as the board determines appropriate; (6) Determine the appropriate disciplinary actions to be
taken against certificate holders, registrants, and licensees
under this
chapter as provided in section 4763.11 of the Revised
Code. (B) In addition to any other duties imposed on the
superintendent of real estate under this chapter, the
superintendent shall: (1) Prescribe the form and content of all applications
required by this chapter; (2) Receive applications for certifications, registrations,
and
licenses
and renewal thereof under this chapter and establish
the
procedures for processing, approving, and disapproving those
applications; (3) Retain records and all application materials submitted
to the superintendent; (4) Establish the time and place for conducting the
examinations required by division (D) of section 4763.05 of the
Revised Code; (5) Issue certificates, registrations, and licenses and
maintain a
register of the names and addresses of all persons
issued a
certificate, registration, or license under this chapter; (6) Perform any other functions and duties, including the
employment of staff, necessary to administer this chapter; (7) Administer this chapter; (8) Issue all orders necessary to implement this chapter; (9) Investigate complaints, upon the superintendent's own
motion
or upon
receipt of a complaint or upon a request of the
board, concerning
any violation of this chapter or the rules
adopted pursuant
thereto or the conduct of any person holding a
certificate,
registration, or
license issued pursuant to this
chapter; (10) Establish and maintain an investigation and audit
section to investigate complaints and conduct inspections,
audits,
and other inquiries as in the judgment of the
superintendent are
appropriate to enforce this chapter. The
investigators and
auditors have the right to review and audit the
business records
of certificate holders, registrants, and
licensees during
normal
business hours. The superintendent may utilize the
investigators
and auditors employed pursuant to division (B)(4)
of section
4735.05 of the Revised Code or currently licensed certificate
holders or licensees to assist in performing the duties of
this
division. (11) Appoint a referee or examiner for any proceeding
involving the revocation or suspension of a certificate,
registration, or
license under section 3123.47 or 4763.11 of the
Revised Code; (12) Administer the real estate appraiser recovery fund; (13) Conduct the examinations required by division (D) of
section 4763.05 of the Revised Code at least four times per year. (C) The superintendent may do all of the following: (1) In connection with investigations and audits under
division (B) of this section, subpoena witnesses as provided in
section 4763.04 of the Revised Code; (2) Apply to the appropriate court to enjoin any violation
of this chapter. Upon a showing by the superintendent that any
person has violated or is about to violate this chapter, the
court
shall grant an injunction, restraining order, or other
appropriate
relief, or any combination thereof. (D) All information that is obtained by investigators and
auditors performing investigations or conducting inspections,
audits, and
other inquiries pursuant to division (B)(10) of this
section, from
certificate holders, registrants, licensees,
complainants, or other persons,
and all reports, documents, and
other work products that arise from that
information and that are
prepared by the investigators, auditors, or other
personnel of the
department of commerce, shall be held in confidence by the
superintendent, the investigators and auditors, and other
personnel of the
department. (E) This section does not prevent the division of real estate and professional licensing from releasing information relating to certificate holders, registrants, and licensees to the superintendent of financial institutions for purposes relating to the administration of sections 1322.01 to 1322.12 of the Revised Code, to the superintendent of insurance for purposes relating to the administration of Chapter 3953. of the Revised Code, to the attorney general, or to local law enforcement agencies and local prosecutors. Information released by the division pursuant to this section remains confidential.
Sec. 4763.05. (A)(1)(a) A person shall make application for
an
initial state-certified general real estate appraiser
certificate,
an initial state-certified residential
real estate appraiser
certificate, an initial state-licensed
residential real estate
appraiser license, or an initial state-registered real estate
appraiser assistant registration in writing to the superintendent
of real
estate
on a form the superintendent prescribes. The
application shall
include the address of the applicant's principal
place of
business and all other addresses at which the applicant
currently engages in
the business of preparing real estate
appraisals and the address
of the applicant's current residence.
The superintendent shall
retain the applicant's current residence
address in a separate
record which shall not constitute a public
record for purposes of
section 149.03 of the Revised Code. The
application shall
indicate whether the applicant seeks
certification as a general
real estate appraiser or as a
residential real estate appraiser,
licensure as a residential real
estate
appraiser, or registration as a real estate appraiser
assistant
and be accompanied by the prescribed examination and
certification, registration, or licensure fees set forth in
section 4763.09 of
the Revised Code. The application also shall
include a fingerprint of the applicant; a pledge,
signed by the applicant, that the applicant will
comply with the
standards
set forth in this chapter; and a
statement that the applicant
understands the
types of misconduct
for which disciplinary proceedings may be
initiated against the
applicant pursuant to this chapter.
(b) Upon the filing of an application and payment of any examination and certification, registration, or licensure fees, the superintendent of real estate shall request the superintendent of the bureau of criminal identification and investigation, or a vendor approved by the bureau, to conduct a criminal records check based on the applicant's fingerprints in accordance with division (A)(11) of section 109.572 of the Revised Code. Notwithstanding division (J) of section 121.08 of the Revised Code, the superintendent of real estate shall request that criminal record information from the federal bureau of investigation be obtained as part of the criminal records check. Any fee required under division (C)(3) of section 109.572 of the Revised Code shall be paid by the applicant.
(2) For purposes of providing funding for the real estate
appraiser recovery fund established by section 4763.16 of the
Revised Code, the real estate appraiser board shall levy an
assessment against each person issued an initial certificate,
registration, or
license and against current licensees,
registrants, and
certificate holders, as
required by board rule.
The assessment is in addition to the
application and examination
fees for initial applicants required
by division (A)(1) of this
section and the renewal fees required
for current certificate
holders, registrants, and licensees.
The
superintendent of real estate shall
deposit the assessment into the state
treasury to the credit of
the real estate appraiser recovery
fund. The assessment for
initial certificate holders,
registrants, and
licensees shall be
paid prior to the issuance of a certificate,
registration, or
license, and for current certificate holders,
registrants, and
licensees, at
the time of renewal. (B) An applicant for an initial general real estate
appraiser
certificate shall possess at least thirty months of
experience in real
estate appraisal, or any equivalent experience
the board prescribes. An
applicant for a
residential real estate
appraiser certificate or residential real
estate appraiser license
shall possess at least two years of experience in real estate
appraisal, or any equivalent experience the board prescribes. In
addition to any other information required by the board, the
applicant shall furnish, under oath, a detailed listing of the
appraisal reports or file memoranda for each year for which
experience is claimed and, upon request of the superintendent or
the board, shall make available for examination a sample of the
appraisal reports prepared by the applicant in the course of
the
applicant's practice. (C)(1) Except as provided in division (C)(2) of this
section, an applicant for an initial certificate, registration,
or
license shall
be at least eighteen years of age, honest, truthful,
and of good
reputation and shall present satisfactory evidence to
the
superintendent of the following, as
appropriate: (a) If the applicant is seeking a state-certified general
real estate appraiser certificate, that the applicant has
successfully
completed at least one hundred sixty-five classroom
hours
of courses
in subjects related to real estate appraisal,
including at least one
course devoted exclusively to federal,
state, and municipal fair housing
law, presented by a
nationally
recognized appraisal organization, an institution of
higher
education, a
career school registered by the state
board of
career colleges and
schools, a state or federal
commission or agency, or any other
organization that represents
the interests of financial
institutions or real estate brokers,
appraisers, or agents and
that provides appraisal education, plus
fifteen classroom hours
related to standards of professional
practice and the provisions
of this chapter; (b) If the applicant is seeking a state-certified
residential real estate
appraiser certificate, that the applicant
has successfully completed at least
one hundred
five classroom
hours of courses in subjects related to real estate
appraisal,
including at least one course devoted exclusively to
federal,
state, and municipal fair housing law,
presented by a nationally
recognized appraisal organization, an institution of
higher
education, a
career school registered by the state
board of
career colleges and
schools, or any other organization that represents the
interests
of financial institutions or real estate brokers, appraisers, or
agents and that provides appraisal education, plus fifteen
classroom hours
related to standards of professional practice and
the provisions of this
chapter; (c) If the applicant is seeking a state-licensed
residential
real estate appraiser license, that the applicant has
successfully
completed at least seventy-five classroom
hours of courses
in
subjects related to real estate appraisal, including at least one
course devoted exclusively to federal,
state, and municipal fair
housing law,
presented by a
nationally recognized appraisal
organization, an institution of
higher education, a
career school registered by the state
board of
career colleges and schools, a state or federal
commission or agency, or any other organization that represents
the interests of financial institutions or real estate brokers,
appraisers, or agents and that provides appraisal education, plus
fifteen classroom hours related to standards of professional
practice and the provisions of this chapter; (d) If the applicant is seeking a state-registered real
estate
appraiser assistant registration, that the applicant has
successfully
completed at least seventy-five classroom
hours of
courses in subjects related to real estate appraisal,
including at
least one course devoted exclusively to federal,
state, and
municipal fair housing law,
presented by a nationally recognized
appraisal
organization, an institution of higher education, a
career school
registered by the state board of
career colleges and schools, or
any other
organization that represents the interests of financial
institutions or real
estate brokers, appraisers, or agents, and
that provides appraisal education
that included at least fifteen
classroom hours of
instruction related to standards of
professional practice and the requirements of this chapter and the
rules
adopted under this chapter. (2) Each person who files an application for an initial
certificate or license within one year of the date established by
the board as the first date on which applications will be
accepted
under this section, which date shall be no later than
September 1,
1990, and who, at the time of filing that
application, does not
satisfy the educational requirements for
the certification or
licensure sought of either division
(C)(1)(a) or (b) of this
section is exempt from those educational
requirements for the term
of the initial certification or
licensure. In applying for a
renewal certificate or license
pursuant to section 4763.06 of the
Revised Code, a certificate
holder or licensee who was exempted
from the educational
requirements of division (C)(1)(a) or (b) of
this section when
applying for the initial certificate or license
shall
present
satisfactory evidence to the superintendent that the
certificate
holder or licensee has completed
the educational
requirements for the certification or licensure
to be renewed of
one of those divisions before the renewal
certificate or license
may be issued. (D) An applicant for an initial general real estate
appraiser or
residential real estate appraiser certificate or
residential real
estate appraiser license
shall take and
successfully complete a written examination in
order to qualify
for the certificate or license. The examination
shall require the
applicant to demonstrate all of the following: (1) Appropriate knowledge of technical terms commonly used
in or related to real estate appraising, appraisal report
writing,
and the economic concepts applicable to real estate; (2) Understanding of the principles of land economics,
real
estate appraisal processes, and problems likely to be
encountered
in gathering, interpreting, and processing of data in
carrying out
appraisal disciplines; (3) Understanding of the standards for the development and
communication of real estate appraisals as provided in this
chapter and the rules adopted thereunder; (4) Knowledge of theories of depreciation, cost
estimating,
methods of capitalization, direct sales comparison,
and the
mathematics of real estate appraisal that are appropriate
for the
certification or licensure for which the applicant has
applied; (5) Knowledge of other principles and procedures as
appropriate for the certification or license; (6) Basic understanding of real estate law; (7) Understanding of the types of misconduct for which
disciplinary proceedings may be initiated against a certificate
holder and licensee. (E)(1) A nonresident, natural person of this state who
has
complied with this section may obtain a certificate,
registration,
or
license. The board shall adopt rules relating to the
certification, registration, and licensure of a nonresident
applicant whose
state of residence the board determines to have
certification,
registration, or
licensure requirements that are
substantially similar to those
set forth in this chapter and the
rules adopted thereunder. (2) The board shall recognize on a temporary basis a certification or license issued in another state and shall register on a temporary basis an appraiser who is certified or licensed in another state if all of the following apply: (a) The temporary registration is to perform an appraisal assignment that is part of a federally related transaction;. (b) The appraiser's business in this state is of a temporary nature;. (c) The appraiser registers with the board pursuant to this division. An appraiser who is certified or licensed in another state shall register with the board for temporary practice before performing an appraisal assignment in this state in connection with a federally related transaction. The board shall adopt rules relating to registration for the temporary
recognition of certification and licensure of appraisers from another state. The registration for temporary recognition of certified or licensed appraisers from another state shall not authorize completion of more than one appraisal assignment in this state. The board shall not issue more
than two registrations for temporary practice to any one applicant in any calendar
year. (3) In addition to any other information required to be
submitted with the nonresident applicant's or appraiser's
application for a certificate, registration,
license, or
temporary recognition of a
certificate or license, each nonresident applicant or
appraiser
shall submit a statement consenting to the service of
process upon
the nonresident applicant or appraiser by means
of delivering that
process to the
secretary of state if, in an action against the
applicant,
certificate holder, registrant, or licensee arising
from the
applicant's,
certificate holder's, registrant's, or
licensee's activities as a
certificate
holder, registrant, or
licensee, the plaintiff, in the exercise
of due
diligence, cannot
effect personal service upon the applicant,
certificate holder,
registrant, or licensee. (F) The superintendent shall not issue a certificate,
registration,
or license to, or recognize on a temporary basis an appraiser from another state that is a
corporation,
partnership, or association. This prohibition shall
not be
construed to prevent a certificate holder or licensee from
signing an appraisal report on behalf of a corporation,
partnership, or association. (G) Every person licensed, registered, or certified under
this
chapter
shall notify the superintendent, on a form provided
by the
superintendent, of a change in the address of the
licensee's,
registrant's, or certificate holder's principal place
of business or
residence within thirty days of the change. If a
licensee's, registrant's, or
certificate holder's
license,
registration, or certificate is
revoked or not renewed, the
licensee, registrant, or
certificate holder
immediately shall
return the annual and any renewal
certificate,
registration, or
license to the superintendent. (H)(1) The superintendent shall not issue a certificate,
registration,
or license to any
person, or recognize on a temporary basis an appraiser from another state, who
does not meet applicable minimum criteria for state
certification,
registration, or licensure prescribed by federal
law or rule. (2) The superintendent shall not issue a general real estate appraiser certificate, residential real estate appraiser certificate, residential real estate appraiser license, or real estate appraiser assistant registration to any person who has been convicted of or pleaded guilty to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, or drug trafficking, or any criminal offense involving money or securities, including a violation of an existing or former law of this state, any other state, or the United States that substantially is equivalent to such an offense. However, if the applicant has pleaded guilty to or been convicted of such an offense, the superintendent shall not consider the offense if the applicant has proven to the superintendent, by a preponderance of the evidence, that the applicant's activities and employment record since the conviction show that the applicant is honest, truthful, and of good reputation, and there is no basis in fact for believing that the applicant will commit such an offense again.
Sec. 4763.06. (A) A person licensed, registered, or certified
under
this chapter may obtain a renewal certificate, registration, or
license by
filing a renewal application with and paying the renewal fee set
forth in section 4763.09 of the Revised Code and any amount
assessed pursuant to division (A)(2) of section 4763.05 of the
Revised Code to the superintendent of real estate. The renewal application shall include a statement, signed by the certificate holder, registrant, or licensee, that the certificate holder, registrant, or licensee has not, during the immediately preceding twelve-month period, been convicted of or pleaded guilty to any criminal offense described in division (H)(2) of section 4763.05 of the Revised Code. The
certificate holder, registrant, or licensee shall file the
renewal application
at least thirty days, but no earlier than one hundred twenty
days, prior to expiration of the certificate holder's,
registrant's, or
licensee's current certificate, registration, or license. A
certificate holder
or licensee who applies for a renewal certificate or license who,
pursuant to division (C)(2) of section 4763.05 of the Revised
Code, was exempted from the educational requirements of division
(C)(1) of that section during the term of the initial certificate
or license, as a condition of renewal, also shall present
satisfactory evidence of having completed the appropriate
educational requirements of either division (C)(1)(a) or (b) of
that section since the effective date of the initial certificate
or license. (B) A certificate holder, registrant, or licensee who fails to
renew a
certificate, registration, or license prior to its expiration is
ineligible to
obtain a renewal certificate, registration, or license and shall
comply with
section 4763.05 of the Revised Code in order to regain his
certification or licensure, except that a certificate holder,
registrant, or
licensee may, within three months after the expiration of the
certificate holder's, registrant's, or licensee's
certificate, registration, or license, renew the
certificate, registration, or license without
having to comply with section 4763.05 of the Revised Code by
payment of all fees for renewal and payment of the late filing
fee set forth in section 4763.09 of the Revised Code. A
certificate holder, registrant, or licensee who applies for late
renewal of
the certificate holder's, registrant's, or licensee's
certificate, registration, or license may engage in all
activities permitted
by the certification, registration, or license being renewed for
the three-month
period following the certificate's, registration's, or license's
normal expiration date.
Sec. 4763.12. (A) A person licensed or certified under
this chapter may be retained or employed to act as a
disinterested third party in rendering an unbiased valuation or
analysis of real estate or to provide specialized services to
facilitate the client or employer's objectives. An appraisal or
appraisal report rendered by a certificate holder or licensee
shall comply with this chapter. A certified appraisal or
certified appraisal report represents to the public that it
satisfies the standards set forth in this chapter. (B) No certificate holder or licensee shall accept a fee
for an appraisal assignment that is contingent, in whole or in
part, upon the reporting of a predetermined estimate, analysis,
or opinion or upon the opinion, conclusion, or valuation reached,
or upon consequences resulting from the appraisal assignment. A
certificate holder or licensee who enters into an agreement to
provide specialized services may charge a fixed fee or a fee that
is contingent upon the results achieved by the specialized
services, provided that this fact is clearly stated in each oral
report rendered pursuant to the agreement, and the existence of
the contingent fee arrangement is clearly stated in a prominent
place on each written report and in each letter of transmittal
and certification statement made by the certificate holder or
licensee within that report. (C) Every written report rendered by a certificate holder
or licensee
in conjunction with an appraisal assignment or specialized
service performed shall include the
following
information: (1) The name of the certificate holder or licensee; (2) The class of certification or licensure held by and
the certification or licensure number of the certificate holder
or licensee; (3) Whether the appraisal or specialized service is
performed within the scope of the certificate holder's or
licensee's certification or licensure; (4) Whether the appraisal or specialized service is
provided by a certificate holder or licensee as a disinterested
and unbiased third party or as a person on an interested and
biased basis or as an interested third party on a contingent fee
basis; (5) The signature of the person preparing and reporting
the appraisal or specialized service. If the certificate holder or licensee provides an oral real
estate appraisal or specialized service, the certificate holder
or licensee shall send, within seven days of providing the oral
report, a form to the client containing the appropriate
information specified in this division and the rules adopted
pursuant thereto to this division. (D) Nothing in this chapter shall be construed as
requiring a certificate holder or licensee to provide a client
with a copy of any writing prepared in support of an oral
appraisal report except as provided in division (C) of this
section or as agreed to between the certificate holder or
licensee and the certificate holder's or licensee's client.
(E) No person, directly or indirectly, shall knowingly compensate, instruct, induce, coerce, or intimidate, or attempt to compensate, instruct, induce, coerce, or intimidate, a certificate holder or licensee for the purpose of corrupting or improperly influencing the independent judgment of the certificate holder or licensee with respect to the value of the dwelling offered as security for repayment of a mortgage loan.
Sec. 4763.13. (A) In engaging in appraisal activities, a
person certified, registered, or licensed under this chapter
shall comply with
the applicable standards prescribed by the board of governors of
the federal reserve system, the federal deposit insurance
corporation, the comptroller of the currency, the office of
thrift supervision, the national credit union administration, and
the resolution trust corporation in connection with federally
related transactions under the jurisdiction of the applicable
agency or instrumentality. A certificate holder, registrant,
and licensee
also shall comply with the uniform standards of professional
appraisal practice, as adopted by the appraisal standards board
of the appraisal foundation and such other standards adopted by
the real estate appraiser board, to the extent that those
standards do not conflict with applicable federal standards in
connection with a particular federally related transaction. (B) The terms "state-licensed residential real estate
appraiser," "state-certified residential real
estate appraiser," "state-certified general real estate
appraiser," and "state-registered real estate appraiser
assistant" shall be
used to refer only to those persons who have been issued
the applicable certificate, registration, or license or renewal
certificate, registration, or
license pursuant to this chapter. None of these terms shall be
used following or in connection with the name or signature of a
partnership, corporation, or association or in a manner that
could be interpreted as referring to a person other than the
person to whom the certificate, registration, or license has
been issued. No person shall fail to comply with this division. (C) No person, other than a certificate holder, a registrant, or a
licensee, shall assume or use a title, designation, or
abbreviation that is likely to create the impression that the person
possesses certification, registration, or
licensure under this chapter,
provided that professional designations containing the term
"certified appraiser" and being used on or before July 26, 1989,
shall not be construed as being misleading under this division.
No person other than a person certified or licensed under this
chapter shall describe or refer to an appraisal or other
evaluation of real estate located in this state as being
certified. (D) The terms "state-certified or state-licensed real
estate appraisal report," "state-certified or state-licensed
appraisal report," or "state-certified or state-licensed
appraisal" shall be used to refer only to those real estate
appraisals conducted by a certificate holder or licensee as a
disinterested and unbiased third party provided that the
certificate holder or licensee provides certification with the
appraisal and provided further that if a licensee is providing
the appraisal, such terms shall only be used if the licensee
is
acting within the scope of the licensee's license. No person shall fail to comply with this division. (E) Nothing in this chapter shall preclude a partnership,
corporation, or association which employs or retains the services
of a certificate holder or licensee to advertise that the
partnership, corporation, or association offers state-certified
or state-licensed appraisals through a certificate holder or
licensee if the advertisement clearly states such fact in
accordance with guidelines for such advertisements established by
rule of the real estate appraiser board. (F) Nothing Except as otherwise provided in section 4763.19 of the Revised Code, nothing in this chapter shall preclude a person who is
not licensed or certified under this chapter from appraising real
estate for compensation.
Sec. 4763.19. (A) Subject to division (B) of this section, no person shall perform a real estate appraisal for a mortgage loan if the person is not licensed or certified under this chapter to do the appraisal. (B) Division (A) of this section does not apply to a lender using a market analysis or price opinion, an internal valuation analysis, or an automated valuation model or report based on an automated valuation model, and any person providing that report to the lender, in performing a valuation for purposes of a loan application, as long as the lender does both of the following:
(1) Gives the consumer loan applicant a copy of any written market analysis or price opinion or valuation report based on an automated valuation model;
(2) Includes a disclaimer on the consumer's copy specifying that the valuation used for purposes of the application was obtained from a market analysis or price opinion or automated valuation model report and not from a person licensed or certified under this chapter.
Sec. 4763.99. (A) Whoever violates division (B) of section 4763.12 or, division
(B), (C), or (D) of section 4763.13, or section 4763.19 of the Revised Code is guilty of a
misdemeanor of the first degree.
(B) Whoever violates division (E) of section 4763.12 of the Revised Code is guilty of a felony of the fifth degree.
Section 2. That existing sections 109.572, 1322.03, 1322.031, 1322.04, 1322.041, 1322.051, 1322.06, 1322.061, 1322.062, 1322.07, 1322.10, 1322.11, 1322.99, 1345.01, 1345.09, 1349.31, 4735.05, 4763.03, 4763.05, 4763.06, 4763.12, 4763.13, and 4763.99 of the Revised Code are hereby repealed. Section 3. Sections 4763.13 and 4763.19 of the Revised Code, as amended or enacted by this act, shall take effect six months after the effective date of this act. Section 4. Section 109.572 of the Revised Code is presented in
this act as a composite of the section as amended by both Am. Sub. H.B. 11 and Am. Sub. H.B. 117 of
the 125th General Assembly and Am. Sub. H.B. 68 of the 126th General Assembly. The General Assembly, applying the
principle stated in division (B) of section 1.52 of the Revised
Code that amendments are to be harmonized if reasonably capable of
simultaneous operation, finds that the composite is the resulting
version of the section in effect prior to the effective date of
the section as presented in this act.
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