130th Ohio General Assembly
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Sub. H. B. No. 3  As Pending in the House Housing and Urban Revitalization Committee
As Pending in the House Housing and Urban Revitalization Committee

128th General Assembly
Regular Session
2009-2010
Sub. H. B. No. 3


Representatives Foley, Driehaus 

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



A BILL
To amend sections 109.572 and 1321.52 and to enact sections 1323.01 to 1323.11, 1323.20 to 1323.36, 1323.361, 1323.37, 1323.99, 2303.33, 2308.01, 2308.02, 2308.03, and 2308.04 of the Revised Code to declare a six-month moratorium on mortgage foreclosures, to provide courts authority to modify mortgage payments on foreclosures of subprime mortgages, to require registration of residential mortgage servicers, to regulate residential mortgage servicers, to adopt procedures and requirements related to residential foreclosure actions, to adopt civil and criminal penalties for violations of the bill's provisions, to terminate provisions of this act six months after its effective date by repealing section 2308.03 of the Revised Code on that date, to terminate certain provisions of this act three years after its effective date by repealing section 2308.04 of the Revised Code on that date, and to declare an emergency.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 109.572 and 1321.52 be amended and sections 1323.01, 1323.02, 1323.04, 1323.05, 1323.06, 1323.07, 1323.08, 1323.09, 1323.10, 1323.11, 1323.20, 1323.21, 1323.22, 1323.23, 1323.24, 1323.25, 1323.26, 1323.27, 1323.28, 1323.29, 1323.30, 1323.31, 1323.32, 1323.33, 1323.34, 1323.35, 1323.36, 1323.361, 1323.37, 1323.99, 2303.33, 2308.01, 2308.02, 2308.03, and 2308.04 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, or 3319.39 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 173.27, 173.394, 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 for which a criminal records check is required by those sections. 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 5111.032, 5111.033, or 5111.034 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. 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, has pleaded guilty to, or has been found eligible for intervention in lieu of conviction for 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, 2907.24, 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, 2913.48, 2913.49, 2913.51, 2917.11, 2919.12, 2919.22, 2919.24, 2919.25, 2921.13, 2921.36, 2923.02, 2923.12, 2923.13, 2923.161, 2923.32, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2925.11, 2925.13, 2925.14, 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 receipt of 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 959.13, 2903.01, 2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21, 2903.211, 2903.22, 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, 2909.22, 2909.23, 2909.24, 2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02, 2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, 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, two or more OVI or OVUAC violations committed within the three years immediately preceding the submission of the application or petition that is the basis of the request, 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) Upon receipt of a request pursuant to section 5104.012 or 5104.013 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 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, 2903.22, 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, 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, 2919.12, 2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 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, a violation of section 2925.11 of the Revised Code that is not a minor drug possession offense, a violation of section 2923.02 or 2923.03 of the Revised Code that relates to a crime specified in this division, 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) Upon receipt of a request pursuant to section 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, 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, 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)(10)(a) of this section.
(11) 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.
(12) On receipt of a request pursuant to section 1321.37, 1322.03, 1322.031, 1323.23, 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.
(13) On receipt of a request for a criminal records check from the treasurer of state under section 113.041 of the Revised Code or from an individual under section 4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031, 4762.06, or 4779.091 of the Revised Code, accompanied by a completed form prescribed under 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 has been convicted of or pleaded guilty to any criminal offense in this state or any other state. The superintendent shall send the results of a check requested under section 113.041 of the Revised Code to the treasurer of state and shall send the results of a check requested under any of the other listed sections to the licensing board specified by the individual in the request.
(14) On receipt of a request pursuant to section 1121.23, 1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 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 criminal offense under any existing or former law of this state, any other state, or the United States.
(15) Not later than thirty days after the date the superintendent receives a request of a type described in division (A)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), or (14) of this section, the completed form, and the 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), (10), (11), (12), or (14) 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), (10), (11), (12), or (14) 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.
Not later than thirty days after the superintendent receives a request for a criminal records check pursuant to section 113.041 of the Revised Code, the completed form, and the fingerprint impressions, the superintendent shall send the treasurer of state any information, other than information the dissemination of which is prohibited by federal law, the superintendent determines exist 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 criminal offense in this state or any other state.
(B) The superintendent shall conduct any criminal records check requested under section 113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 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, if the criminal records check was requested under section 113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1321.37, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 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, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code, 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, including fingerprint-based checks of national crime information databases as described in 42 U.S.C. 671 if the request is made pursuant to section 2151.86, 5104.012, or 5104.013 of the Revised Code or if any other Revised Code section requires fingerprint-based checks of that nature, 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 requested under section 113.041 of the Revised Code or required by section 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 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 requested under section 113.041 of the Revised Code or required by section 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. Any person for whom a records check is requested under or 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 113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1322.03, 1322.031, 1323.23, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or 5153.111 of the Revised Code. The person making a criminal records request under any of those sections 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. In the case of a request under section 1121.23, 1155.03, 1163.05, 1315.141, 1733.47, 1761.26, or 5111.032 of the Revised Code, the fee shall be paid in the manner specified in that section.
(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)(8)(a) or (b), (A)(9)(a) or (b), (A)(10)(a) or (b), (A)(12), or (A)(14) of this section, or that indicates that a person previously has been convicted of or pleaded guilty to any criminal offense in this state or any other state regarding a criminal records check of a type described in division (A)(13) of this section, and 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) "Minor drug possession offense" has the same meaning as in section 2925.01 of the Revised Code.
(3) "Older adult" means a person age sixty or older.
(4) "OVI or OVUAC violation" means a violation of section 4511.19 of the Revised Code or a violation of an existing or former law of this state, any other state, or the United States that is substantially equivalent to section 4511.19 of the Revised Code.
Sec. 1321.52.  (A)(1) No person, on that person's own behalf or on behalf of any other person, shall do either of the following without having first obtained a certificate of registration from the division of financial institutions:
(a) Advertise, shall advertise, solicit, or hold out that the person is engaged in the business of making loans secured by a mortgage on a borrower's real estate which is other than a first lien on the real estate;
(b) Engage in the business of lending or collecting the person's own or another person's money, credit, or choses in action for such loans.
(2) Each person issued a certificate of registration is subject to all the rules prescribed under sections 1321.51 to 1321.60 of the Revised Code.
(B) All loans (1) Except as otherwise provided in division (B)(2) of this section, any loan made to persons a person who at the time are residents of the loan is a resident of this state are is considered as made within this state and subject to the laws of this state, regardless of any statement in the contract or note to the contrary.
(2) If a loan is primarily secured by a lien on real property in another state and that loan is arranged by a mortgage loan originator licensed by another state, the borrower may designate the transaction be governed by the law where the real property is located if the other state has consumer protection laws covering the borrower that are applicable to the transaction.
(C) A registrant may make unsecured loans, loans secured by a mortgage on a borrower's real estate which is a first lien or other than a first lien on the real estate, loans secured by other than real estate, and loans secured by any combination of mortgages and security interests, on terms and conditions provided by sections 1321.51 to 1321.60 of the Revised Code.
(D)(1) If a lender that is subject to sections 1321.51 to 1321.60 of the Revised Code makes a loan in violation of division (A)(1) of this section, the lender has no right to collect, receive, or retain any interest or charges on that loan.
(2) If a registrant applies to the division for a renewal of the registrant's certificate after the date required by division (A)(4) of section 1321.53 of the Revised Code, but prior to the first day of August of that year, and the division approves the application, division (D)(1) of this section does not apply with respect to any loan made by the registrant while the registrant's certificate was expired.
Sec. 1323.01. (A) As used in this chapter:
(1) "Mortgage servicer" or "servicer" means a person who engages directly or indirectly, whether for compensation, gain for another, or on the person's own behalf, in the business of receiving scheduled periodic payments from a borrower pursuant to the terms of a residential mortgage loan, including amounts received for deposit in an escrow account, and applying those payments received toward principal, interest, and other obligations of the borrower including amounts to be paid from an escrow account.
"Mortgage servicer" includes a person who makes or holds a loan if that person also services the loan.
"Mortgage servicer" does not include any of the following:
(a) The federal deposit insurance corporation or the resolution trust corporation, in connection with assets acquired, assigned, sold, or transferred pursuant to the "Federal Deposit Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C. 1823(c), or as receiver or conservator of an insured depository institution;
(b) The government national mortgage association, the federal national mortgage association, the federal home loan mortgage corporation, the resolution trust corporation, or the federal deposit insurance corporation, in any case in which the assignment, sale, or transfer of the servicing of the mortgage loan is preceded by:
(i) Termination of the contract for servicing the loan for cause;
(ii) Commencement of proceedings for bankruptcy of the servicer;
(iii) Commencement of proceedings by the federal deposit insurance corporation or the resolution trust corporation for conservatorship or receivership of the servicer or an entity by which the servicer is owned or controlled.
(2) "Mortgage lender" means a person engaged in the business of making residential mortgage loans for compensation or gain.
(3) "Residential mortgage" and "residential mortgage loan" mean an obligation to pay a sum of money evidenced by a note and secured by a lien upon real property located within this state containing four or fewer residential units and includes such an obligation on a residential condominium or cooperative unit.
(4) "Employee" means an individual for whom a person pays a wage or salary, pays social security and unemployment taxes, provides workers' compensation coverage, and withholds local, state, and federal income taxes. "Employee" includes any individual who acts as an operations manager of a registered mortgage servicer, but for whom the servicer is prevented by law from making income tax withholdings.
(5) "Operations manager" means the employee or owner responsible for the everyday operations, compliance requirements, and management of a registrant or applicant.
(6) "Subprime loan" or "subprime mortgage" means a home loan originated between January 1, 2001, and January 1, 2009, in which the difference between the annual percentage rate for the loan and the average prime offer rate for a comparable transaction, as of the date the interest rate is set, is greater than one and one-half percentage points if the loan is a first mortgage loan or three and one-half percentage points if the loan is a secondary mortgage loan. For the purposes of this definition, "average prime offer rate" has the meaning as provided in 12 C.F.R. 226.35.
(B) Sections 1323.01 to 1323.11 of the Revised Code shall be known as the "special program to reduce foreclosures act."
(C) The deputy superintendent for consumer finance, when authorized by the superintendent of financial institutions of the department of commerce, may act in place of the superintendent with respect to any duty or authority of the superintendent under this chapter.
Sec. 1323.02.  (A) At least sixty days prior to filing a complaint to initiate a foreclosure action that involves a residential mortgage loan on property occupied by an owner or a tenant of that owner, a mortgage servicer shall provide the borrower with a notice to inform the borrower of the amount due to the lender and the availability of resources to avoid foreclosure. This notice shall be on a form the superintendent of financial institutions in the department of commerce prescribes and shall include all of the following:
(1) An itemization of all past due amounts causing the loan to be in default;
(2) An itemization of any other charges that the borrower must pay in order to be current on loan payments;
(3) A statement that the borrower may have options available other than foreclosure, and that the borrower may discuss available options with the mortgage lender, the mortgage servicer, or a counselor approved by the United States department of housing and urban development;
(4) The address, telephone number, and other contact information for the mortgage lender, the mortgage servicer, or an agent for either of them who is authorized to work with the borrower to avoid foreclosure;
(5) The name, address, telephone number, and other contact information for one or more United States department of housing and urban development-approved counseling agencies operating to assist borrowers in Ohio to avoid foreclosure;
(6) The address, telephone number, and other contact information for the consumer complaint sections of the division of financial institutions of the Ohio department of commerce and the Ohio attorney general;
(7) The following information prominently displayed:
(8) Other information the director considers necessary and includes on the form.
"YOU HAVE THE RIGHT TO REMAIN IN THIS PROPERTY DURING THE FORECLOSURE PROCEEDINGS AND AFTER THE SHERIFF'S SALE UNTIL A COURT CONFIRMS THE SALE.
ADDRESS OF PROPERTY: ..........................."
(B) The notice this section requires shall be mailed to the last known address of the borrower and shall be evidenced by a certificate of mailing from the United States postal service.
Sec. 1323.04. (A) Within three business days after mailing the notice section 1323.02 of the Revised Code requires, a mortgage servicer shall file with the administrative director of the Ohio supreme court the date the notice was mailed to the borrower and, unless prohibited by state or federal law, any additional information the administrative director requests.
(B) Within seven days after entering into a modification agreement, a mortgage servicer shall notify the administrative director of the nature and terms of an agreement with a borrower to do any of the following:
(1) Reduce or forego any fees or arrearages, including acceptance of a deed in lieu of foreclosure;
(2) Alter the terms of the residential mortgage loan agreement by a reduction in interest rate, lessening of monthly payment, increase in the term for repayment, deferment of interest or other payment, or alteration of a variable rate adjustment date;
(3) Refinance the loan under new terms.
(C) Any notice or filing this section requires shall be made in an electronic format as the administrative director prescribes, and contain the name and address of the borrower, the name and address of the mortgage servicer, and the name and address of the holder of the mortgage.
(D) The administrative director shall include all information received pursuant to this section in the information database developed and maintained pursuant to section 1323.07 of the Revised Code. This information shall be available for review by the state foreclosure prevention project as described in section 1323.06 of the Revised Code.
Sec. 1323.05. (A) The superintendent of financial institutions of the department of commerce shall adopt comprehensive minimum loan modification standards by rule. The standards shall be designed to keep a borrower whose principal residence is in Ohio, in the borrower's home when the anticipated recovery under a loan modification or workout plan is greater than the anticipated recovery through foreclosure, on a net present value basis.
(B) The loan modification standards adopted pursuant to this section shall include some combination of the following features:
(1) An interest rate reduction, as needed, for a fixed term of at least five years;
(2) An extension of the amortization period for the loan term, to not more than forty years from the original date of the loan;
(3) Deferral of some portion of the principal amount of the unpaid principal balance until maturity of the loan;
(4) Reduction of principal;
(5) Compliance with a federally mandated loan modification program;
(6) Other factors the superintendent determines are appropriate, which may include efforts implemented in other states that have resulted in a reduction in foreclosures.
Sec. 1323.06.  The director of commerce shall establish the "state foreclosure prevention project" to collect residential mortgage foreclosure information, track loss mitigation efforts, encourage viable loan modifications, and seek solutions to avoid foreclosures for residential mortgage loans. In developing the project, the director may include input from the United States department of housing and urban development-approved housing counselors, community organizations, state agencies including the Ohio attorney general, mortgage lenders, mortgage servicers, and any other appropriate persons.
Sec. 1323.07. (A) The director of commerce shall design and develop, in consultation with the administrative director of the Ohio supreme court, the state foreclosure database to track residential mortgage foreclosure information and to promote the efforts of the state foreclosure prevention project. Not later than October 1, 2009, the administrative director of the Ohio supreme court shall implement the database.
(B) No person shall have access to the state foreclosure database except the following individuals or the individual's designated representative: the administrative director of the Ohio supreme court, the director of commerce, the superintendent of financial institutions, the Ohio attorney general, and the clerk of a court of common pleas for the purposes described in section 2303.33 of the Revised Code.
(C) Any information provided for inclusion in the foreclosure prevention database is exclusively for the use and purposes of the state foreclosure prevention project. The database is not a public record subject to section 149.43 of the Revised Code and the information provided for and included in the database may not be disclosed except as this section provides. Any mortgage servicer shall have access only to the information submitted with respect to its own loans.
(D) Providing information as this chapter requires for inclusion in the prevention foreclosure database does not violate any state law pertaining to financial privacy. A mortgage servicer shall be held harmless for any alleged breach of privacy rights of a borrower with respect to the information the mortgage servicer provides in accordance with this chapter.
Sec. 1323.08.  (A) The director of commerce annually shall submit a report to the general assembly describing the operation of the state foreclosure prevention project until the funds specifically appropriated to operate the project are completely disbursed. The director shall present information in the report in aggregate form, and may include the number of borrowers helped, the effectiveness of the funds in preventing foreclosure, recommendations for further efforts needed to reduce foreclosures, and any other aggregated information the director determines is pertinent or that the general assembly requests.
(B) In preparing the report, the director shall review information provided in the foreclosure prevention database to determine all of the following:
(1) Whether the loss mitigation programs and efforts effectively address loan default issues;
(2) The most effective means for establishing successful foreclosure alternatives including loan modification programs;
(3) Which procedures best comport with a servicer's obligation to investors to lessen losses resulting from borrower defaults.
Sec. 1323.09.  The superintendent of financial isntitutions in the department of commerce shall review the information in the mortgage foreclosure database to determine whether any mortgage servicer has failed to provide disclosures or information this chapter requires or is not acting in good faith to provide borrowers with an effective method to discuss payment options for past due amounts and alternatives to foreclosure. If the superintendent determines that a mortgage servicer has violated any of these requirements, the superintendent may consider that conduct or failure when determining the character and general fitness of the mortgage servicer for its licensure or certificate of registration as a mortgage servicer under this chapter or Chapter 1321. of the Revised Code.
Sec. 1323.10.  (A) There is hereby established in the state treasury the foreclosure prevention revolving trust fund, comprised of moneys collected or accruing to the trust fund, for the purpose of providing the following:
(1) Grants to counseling foreclosure prevention entities for the purpose of maintaining or expanding foreclosure prevention counseling and related services and activities to assist homeowners to prevent foreclosure;
(2) Grants to individuals or counseling entities for the purpose of providing emergency foreclosure prevention assistance loans;
(3) Loans and grants to nonprofit or local government entities to provide relocation assistance or acquire mortgage loans or properties from creditors in order to restructure the mortgage loans or restore the properties to productive use;
(4) Funding to establish, operate, and maintain the state foreclosure database established pursuant to section 1323.07 of the Revised Code;
(5) Funding for the expenses of the state foreclosure prevention project and the associated regulatory costs the superintendent of financial institutions of the department of commerce and the director of commerce incur in administering this chapter and sections 1321.51 to 1321.60 and 1322.01 to 1322.12 of the Revised Code.
(B) Each fiscal quarter the director of commerce shall distribute the amounts in the foreclosure prevention revolving trust fund as follows: ten per cent for administrative costs to the consumer finance fund in the state treasury, created under section 1321.21 of the Revised Code, up to five per cent to the office of the administrative director of the supreme court, and the balance to be divided between the department of development for deposit into the Ohio housing trust fund and boards of county commissioners. The amount awarded to boards of county commissioners shall be distributed on a pro rata basis of the funds submitted with respect to foreclosure filings in each county under section 1323.11 of the Revised Code.
(C) The director of development and boards of county commissioners shall establish rules governing the procedures to qualify counseling and foreclosure prevention entities, nonprofit entities, and individuals for loan assistance to receive moneys from the revolving trust fund to carry out the purposes of division (A) of this section.
(D) Any moneys collected under this section but not allocated by the end of the fiscal year shall be available for allocation in the subsequent fiscal year.
Sec. 1323.11.  (A) In addition to any filing fee required by law, a creditor that files a complaint to initiate a foreclosure action involving a residential mortgage loan simultaneously shall transmit a certified check in the amount of one thousand five hundred dollars payable to the department of commerce for deposit into the trust fund established under section 1323.10 of the Revised Code. The creditor may not in any manner add the amount paid pursuant to this division to the amount the borrower owes the creditor or seek to recover this cost from the borrower.
(B) No court shall permit the filing of an action for a mortgage foreclosure or grant a judgment of foreclosure to any creditor of a residential loan unless that creditor provides evidence to the court that the creditor has complied with this section.
(C) The director of commerce shall establish an accounting system to track the county that corresponds to each fee that is paid pursuant to this section. The accounting system shall be used to determine the share of the funds to be distributed to each county pursuant to section 1323.10 of the Revised Code.
(D) The fee this section requires shall not be charged with respect to a filing for a foreclosure action that is made for an unoccupied property.
Sec. 1323.20.  (A) Sections 1323.20 to 1323.37 of the Revised Code shall be known as the "residential mortgage servicers registration act."
(B) Sections 1323.20 to 1323.37 of the Revised Code do not apply to any of the following:
(1) Any entity that is chartered and lawfully doing business as a bank, savings bank, trust company, savings and loan association, or credit union under the authority of any law of this state, another state, or the United States;
(2) Life, property, or casualty insurance companies licensed to do business in this state;
(3) Any attorney or law firm acting on behalf of any mortgage note holder or mortgage servicer when acting in connection with the practice of law in this state, except as otherwise provided in division (D) of this section.
(4) Any political subdivision, or any governmental or other public agency, corporation, or instrumentality in or of the United States or any state;
(5) An institution of higher education as defined in section 1713.01 of the Revised Code;
(6) A debt collector acting under the name of, and as agent for, a mortgage servicer registrant to collect a debt in default.
(C) Mortgage lenders registered under section 1321.52 of the Revised Code and mortgage brokers registered under section 1322.02 of the Revised Code are exempt from the registration requirements of section 1323.21 of the Revised Code but shall comply with divisions (C), (D), (F), and (G) of section 1323.33, and sections 1323.34, 1323.35, and 1323.36 of the Revised Code in connection with the servicing of residential mortgage loans. Any violation of these sections is an unfair and deceptive practice in violation of section 1345.02 of the Revised Code and may result in administrative action and penalties the superintendent of financial institutions of the department of commerce imposes pursuant to sections 1321.54 and 1322.10 of the Revised Code.
(D) Any attorney or law firm primarily engaged in debt collection shall comply with division (D) of section 1323.33 and section 1323.36 of the Revised Code when acting as a mortgage servicer, notwithstanding the general exemption from the provisions of sections 1323.20 to 1323.37 of the Revised Code. Any violation of division (D) of section 1323.33 or section 1323.36 of the Revised Code, in connection with any debt collection activity that is not considered the practice of law, is deemed to be an unfair and deceptive practice in violation of section 1345.02 of the Revised Code.
Sec. 1323.21.  (A) No person, on that person's own behalf or on behalf of any other person, shall do either of the following unless that person is registered as a mortgage servicer and has a certificate of registration from the superintendent of financial institutions of the department of commerce:
(1) Engage in the business of collecting money, credit, or choses in action for residential mortgage loans or otherwise act as a mortgage servicer;
(2) Collect accelerated mortgage payments from a biweekly or other accelerated payment plan that the person operates, arranges, or offers to arrange in connection with a residential mortgage loan.
(B) Any person who acts in willful violation of division (A) of this section, after receiving written notice of the violation from the superintendent or a court, may not collect any amounts as interest or charges on that loan. Any amounts collected shall be credited as a principal reduction to the loan.
(C)(1) When a registration expires for any reason and the former registrant continues to service residential mortgage loans in violation of division (A) of this section, the superintendent may take administrative action, including action on any subsequent application for a certificate of registration.
(2) A servicer with an expired registration may not collect, charge, or retain any late fee, bad check charge except as incurred, charge related to default, cost to realize on its security interest, or prepayment penalty on any residential mortgage loan unless that servicer applies to the superintendent for a registration renewal and a certificate of registration prior to the first day of August of the year the registration expires and the superintendent approves that application.
(D) No person shall conduct the business of a mortgage servicer in association with any exempt business if the superintendent has ordered that exempt business, in writing, to desist from conduct that the superintendent found to be a mere conduit for the mortgage servicer and that the association of the servicer and the exempt business is intended to conceal an evasion of sections 1323.20 to 1323.37 of the Revised Code or the rules adopted pursuant to those sections. Any determination made pursuant to this division shall be made in accordance with Chapter 119. of the Revised Code.
Sec. 1323.22.  (A) Any application for registration as a mortgage servicer shall be in writing, under oath, and in the form the superintendent of financial institutions of the department of commerce prescribes. It shall contain an undertaking by the applicant to abide by this chapter and any other information that the superintendent requires. Applicants that are foreign corporations shall obtain and maintain a license pursuant to Chapter 1703. of the Revised Code before seeking registration or registration renewal as a mortgage servicer.
(B) Upon an applicant's filing an application and paying a nonrefundable two hundred dollar investigation fee, a nonrefundable one thousand dollar annual registration fee, and any additional fee required by law, the superintendent shall investigate the relevant facts. If the application requires investigation outside this state, the applicant may be required to advance sufficient funds to pay any of the actual expenses when it appears that these expenses will exceed two hundred dollars. The superintendent shall furnish an itemized statement of any expenses the applicant is required to pay. The superintendent shall not issue any certificate of registration unless all the required fees have been paid.
(C) An applicant shall designate an employee or owner who has at least three years' experience in the mortgage, collections, servicing, or lending field as the applicant's operations manager. No operations manager shall be employed by any other mortgage servicer while acting as an operations manager. Any operations manager must be acceptable to the superintendent.
(D) The superintendent may consider an application for registration as a mortgage servicer withdrawn if that application does not contain all of the information required under division (A) of this section and the applicant does not submit that information within ninety days after the superintendent requests the information in writing.
(E) The superintendent of financial institutions shall deposit any licensing fee, charge, or fine received pursuant to sections 1323.20 to 1323.37 of the Revised Code into the consumer finance fund in the state treasury, created under section 1321.21 of the Revised Code, unless otherwise specified by law.
Sec. 1323.23.  (A) Any investigation the superintendent of financial institutions of the department of commerce undertakes with respect to an application for registration as a mortgage servicer shall include a civil records check and criminal records check at the time of the initial application and every five years thereafter, or upon a change of control of the registrant if the persons acquiring control have not had a criminal records check submitted to the superintendent within the past five years. Where the applicant is a business entity, the superintendent may require a criminal background check of those persons that the superintendent determines have the authority to direct and control the operations of the applicant.
(B) When conducting a criminal background check, the superintendent shall request the superintendent of the bureau of criminal identification and investigation to conduct a criminal records check based on the applicant's fingerprints or if fingerprints are unreadable, based on the applicant's social security number. Notwithstanding division (K) 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.
(C) The applicant shall pay any fee required under division (C)(3) of section 109.572 of the Revised Code.
(D) The superintendent shall conduct the civil records checks this section requires pursuant to procedures the superintendent adopts by rule.
Sec. 1323.24.  (A) The superintendent of financial institutions of the department of commerce shall issue a certificate of registration as a mortgage servicer to an applicant if the superintendent finds that 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 this chapter and the rules promulgated under it, and that the applicant has the requisite bond or applicable net worth as this chapter requires.
(B) Upon finding an applicant does not meet the conditions set forth in this chapter, the superintendent shall issue a notice of intent to deny an application for registration or renewal. The superintendent forthwith shall notify the applicant of the denial, the grounds for the denial, and the applicant's opportunity to be heard on the action in accordance with Chapter 119. of the Revised Code.
(C) Any certificate issued pursuant to this section shall expire on the first day of July next after its issue, and on the first day of July in each succeeding year unless renewed by filing a renewal application and payment of an annual fee and any additional fee required by law, on or before the last day of June of each year.
Sec. 1323.25.  (A) To renew a registration as a mortgage servicer, a registrant shall timely file a renewal application on a form the superintendent of financial institutions of the department of commerce prescribes, along with any additional information that the superintendent requires.
(B) As a condition of renewal, a registrant must provide proof that the designated operation manager meets the criteria for initial approval set forth in section 1323.23 of the Revised Code and that the mortgage servicer meets the minimum standards for the issuance of the certificate of registration under sections 1323.22 to 1323.24 of the Revised Code.
(C) The superintendent shall not grant any renewal if the applicant's certificate of registration is subject to an order of suspension, revocation, or an unpaid and past due fine the superintendent has imposed.
(D) If an application for renewal of a certificate of registration does not contain all the information this section requires, and if the registrant does not submit that information to the superintendent within ninety days after the superintendent requests the information in writing, the superintendent may consider the application withdrawn.
Sec. 1323.26.  At any time there is a change of five per cent or more in the ownership of a registrant, the superintendent of financial institutions of the department of commerce may make any investigation necessary to determine whether any fact or condition presently exists that would have warranted the superintendent denying the original application had the fact or condition existed at the time of that application. If the superintendent finds such a fact or condition, the superintendent may revoke the registrant's registration and certificate pursuant to Chapter 119. of the Revised Code.
Sec. 1323.27.  (A) Each place of business to which borrowers are regularly directed to remit payment shall display its own certificate of registration. The superintendent of financial institutions of the department of commerce may issue additional certificates of registration to the same person for additional places of business upon compliance with the requirements governing the issuance of a single certificate.
(B)(1) Any change in the place of business to a location outside the original municipal corporation requires a new certificate of registration. A registrant who makes such a change of location shall submit a new application, pay the registration fee and, if the superintendent requires, pay an investigation fee of two hundred dollars. The registrant must have the new certificate before operating in the new location.
(2) A registrant who wishes to change its place of business within the same municipal corporation shall give written notice of the change in advance to the superintendent, who shall provide a certificate for the new address without cost.
(C) A registrant that changes its name shall give written notice of the change to the superintendent prior to acting as a mortgage servicer under the new name. The superintendent shall provide a certificate in the new name without cost.
(D) A registrant shall keep each certificate conspicuously posted in each place of business. A certificate of registration is not transferable or assignable.
Sec. 1323.28.  (A) Any person who acts as a mortgage servicer, if not bonded pursuant to division (B) of this section, shall maintain at all times both of the following:
(1) A net worth of at least two hundred fifty thousand dollars;
(2) For each additional certificate of registration beyond the first, assets of at least fifty thousand dollars either in use or readily available for use in the conduct of the business.
(B) Any person acting as a mortgage servicer by arranging biweekly or other accelerated payment plans and collecting those payments shall obtain and maintain in effect at all times a corporate surety bond issued by a bonding company or insurance company authorized to do business in this state. The servicer shall file a copy of the bond with the superintendent of financial institutions of the department of commerce. The bond shall meet all of the following conditions:
(1) Be in favor of the superintendent;
(2) Have a base penal sum of two hundred fifty thousand dollars for the first location and an additional penal sum of ten thousand dollars for each additional location that requires a separate certificate of registration;
(3) Have a term that coincides with the term of registration;
(4) Be for the exclusive benefit of any individual borrower injured by any violation of sections 1323.20 to 1323.37 of the Revised Code or the rules promulgated thereunder by a servicer, its employees, or agent;
(5) Have an aggregate liability of the corporate surety for any and all breaches of the conditions of the bond shall not exceed the penal sum of the bond.
(C)(1) A mortgage servicer shall give notice to the superintendent by certified mail of any action that is brought by a borrower brings against the servicer alleging injury by a violation of sections 1323.20 to 1323.37 of the Revised Code and of any judgment that is entered against the servicer by a borrower injured by a violation of those sections. The notice shall provide details sufficient to identify the action or judgment. The servicer shall file the notice with the superintendent within ten days after the commencement of the action or receipt of the notice of entry of a judgment.
(2) A corporate surety shall give notice of any payment to the superintendent by certified mail within ten days after it pays any claim or judgment, with details sufficient to identify the person and the claim or judgment paid.
(D) Whenever the penal sum of the corporate surety bond is reduced by one or more recoveries or payments, a servicer shall furnish a new or additional bond under this section, so that the total or aggregate penal sum of the bond or bonds equals the sum required by this section, or shall furnish an endorsement executed by the corporate surety reinstating the bond to the required penal sum set forth in division (B) of this section.
(E) The liability of the corporate surety on the bond to the superintendent and to any borrower injured by a violation of sections 1323.20 to 1323.37 of the Revised Code is not affected in any way by any misrepresentation, breach of warranty, or failure to pay the premium, by any act or omission upon the part of the servicer, by the insolvency or bankruptcy of the servicer, or by the insolvency of the servicer's estate. The servicer shall maintain in effect liability for any act or omission that occurs during the term of the corporate surety bond for at least two years after the date on which the corporate surety bond is terminated or canceled.
(F) Neither the servicer nor the corporate surety shall cancel a corporate surety bond except upon notice to the superintendent by certified mail, return receipt requested. A cancellation is not effective until thirty days after the superintendent receives the notice.
(G) No servicer shall fail to comply with this section. Any servicer that fails to comply shall cease acting as a mortgage servicer in this state until that servicer complies with this section.
Sec. 1323.29.  (A) The superintendent of financial institutions of the department of commerce may adopt, in accordance with Chapter 119. of the Revised Code, rules to administer and enforce this chapter and to carry out its purposes.
(B)(1) After written notice to the registrant stating the contemplated action, the grounds for the action, and the registrant's opportunity to be heard in accordance with Chapter 119. of the Revised Code, the superintendent may revoke, suspend, or refuse to renew any registration and certificate issued under this chapter if the superintendent finds any of the following:
(a) A violation of or failure to comply with any provision of sections 1323.20 to 1323.37 of the Revised Code or the rules adopted under those sections, under Chapter 1345. of the Revised Code, federal debt collection laws, or any other law applicable to the business conducted under the registrant's certificate of registration;
(b) The registrant has been convicted of or pleads guilty or nolo contendere in a domestic, foreign, or military court to any criminal felony offense or any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, breach of trust, dishonesty, or drug trafficking, or any criminal offense involving money or securities;
(c) The registrant's certificate of registration, license, or comparable authority as a mortgage servicer has been revoked in any other state.
(2) The superintendent may impose a monetary fine in addition to, or in lieu of, any revocation, suspension, or denial or in settlement of matters subject to claims under division (B)(1)(a) of this section.
(3) Except as otherwise provided in section 1323.21 of the Revised Code, the revocation, suspension, or refusal to renew a registration does not impair the obligation of any pre-existing lawful contract made under this chapter if a mortgage servicer makes a good faith effort to promptly transfer its collection rights to a registrant or person exempt from registration. A servicer that does not make the requisite good faith effort is subject to additional monetary fines and legal or administrative action by the superintendent. Nothing in this section limits a court's ability to impose a cease and desist order preventing any further business or servicing activity.
(C)(1) The superintendent may investigate alleged violations of sections 1323.20 to 1323.37 of the Revised Code or the rules adopted thereunder, or complaints concerning any such violation. The superintendent may apply to the court of common pleas for an order enjoining any violation. Upon a showing that a person has committed or is about to commit a violation, the court shall grant an injunction, restraining order, or other appropriate relief.
(2) In conducting an investigation, the superintendent, by subpoena, may compel witnesses to testify in relation to any matter over which the superintendent has jurisdiction, and may require the production or photocopying of any book, record, or other document pertaining to such matter. If a person fails to comply with the subpoena, or permit photocopying of any document subpoenaed, a court of common pleas, upon the superintendent's application, shall compel obedience by attachment proceedings for contempt or a refusal to testify.
(D) If the superintendent determines that a person is engaged in or may be engaged in activities that violate sections 1323.20 to 1323.37 of the Revised Code or the rules adopted thereunder, the superintendent, after notice and a hearing conducted in accordance with Chapter 119. of the Revised Code, may issue a cease and desist order.
(E)(1) The superintendent may impose a fine of not more than one thousand dollars for each day a violation of this chapter or the rules adopted under it is committed, repeated, or continued. All fines collected pursuant to this section 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 impose, the superintendent may consider all of the following:
(a) The seriousness of the violation;
(b) The servicer's good faith efforts to prevent the violation;
(c) The servicer's history regarding violations and compliance with the superintendent's orders;
(d) The servicer's financial resources;
(e) Any other matters the superintendent considers appropriate in enforcing this chapter.
(2) Monetary fines imposed under this section do not preclude any criminal fine described in section 1323.99 of the Revised Code.
Sec. 1323.30.  (A)(1) A mortgage servicer shall keep separate records pertaining to each loan serviced and preserve those records for so long as the servicer has responsibility for the loan. At any time responsibility for the loan is transferred to another servicer, the servicer who is ceasing responsibility shall transfer all original loan documents and records to the servicer who is assuming responsibility for the loan. Any system of electronic imaging of required records shall be approved by the superintendent of financial institutions of the department of commerce prior to its use but at no time shall such a system be a substitute for maintaining original documents as this section requires.
(2) As often as necessary, the superintendent may make or cause to be made an examination of records pertaining to loans serviced for the purpose of determining whether the servicer is complying with sections 1323.20 to 1323.37 of the Revised Code and of verifying any registrant's annual report.
(B)(1) The superintendent may require each servicer to file each year a report under oath or affirmation, on forms the superintendent supplies, concerning the business and operations for the preceding calendar year. A servicer that operates two or more registered offices or who operates registered offices with one or more affiliated servicers, may file a composite report of the group of registered offices in lieu of individual reports.
(2) The reports provided under division (B)(1) of this section are not public records and are not open to public inspection.
(C)(1) The following information is 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 this division is confidential for all purposes except when it is necessary for the superintendent to take official action regarding the affairs of a servicer or in connection with criminal or civil proceedings to be initiated by a prosecuting attorney or the attorney general. This information may be introduced into evidence or disclosed pursuant to section 1181.25 of the Revised Code.
(D) All application information is a public record as defined in section 149.43 of the Revised Code, 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.
(E) Nothing in this section prevents the superintendent from releasing information relating to servicers or exchanging that information with other financial institution regulatory authorities. For this purpose, a "financial institution regulatory authority" includes a regulator of a business activity in which a servicer is engaged or has applied to engage, to the extent that the regulator has jurisdiction over a servicer engaged in that business activity. A servicer is engaged in a business activity, and a regulator of that business activity has jurisdiction over the servicer, whether the servicer conducts the activity directly or a subsidiary or affiliate of the servicer conducts the activity.
(F) Nothing in this section prevents the superintendent of financial institutions from releasing information relating to mortgage servicers to the attorney general, to the superintendent of real estate and professional licensing of the department of commerce 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, to the commissioner of securities of the department of commerce for purposes relating to the administration of Chapter 1707. of the Revised Code, or to local law enforcement agencies and local prosecutors. Information released pursuant to this section remains confidential. The superintendent of financial institutions, by rule, may designate additional state agencies and regulatory authorities as entities with which to share this confidential information.
Sec. 1323.31.  No person, in connection with any examination or investigation conducted by the superintendent of financial institutions of the department of commerce under this chapter, shall knowingly do any of the following:
(A) Circumvent, interfere with, obstruct, or fail to cooperate, including making a false or misleading statement, failing to produce records, or intimidating or suborning any witness;
(B) Withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information;
(C) Tamper with, alter, or manufacture any evidence.
Sec. 1323.32.  (A) No mortgage servicer, through its operations manager or otherwise, shall fail to reasonably supervise persons the servicer employs or associates with, or to establish reasonable procedures to avoid violations of sections 1323.20 to 1323.37 of the Revised Code or the rules adopted thereunder, violations of applicable state and federal consumer and lending laws or rules by persons the servicer employs or associates with.
(B) Within ten business days of any change in a mortgage servicer's statutory agent designation or address, the servicer shall file with the superintendent of financial institutions of the department of commerce evidence that the servicer has filed such changes with the secretary of state.
(C)(1) At least thirty days prior to the closure of a registered office location, a mortgage servicer shall notify the superintendent by filing a notice of closure on a form approved by the superintendent. The notice shall indicate the custodian of the records and where the records will be maintained. Within five business days after the closure, the servicer shall surrender the certificate of registration issued to that location by returning it to the superintendent.
(2) The closure of an office and the surrender of a certificate does not affect a mortgage servicer's civil or criminal liability for acts committed before the surrender.
(D) A mortgage servicer shall maintain books and records in compliance with this chapter and make them available to the superintendent of financial institutions of the department of commerce. After any closure, records remain subject to examination and or investigation. The servicer shall send the superintendent written notice of any change in the location of the records or the custodian of those records.
Sec. 1323.33.  (A) No mortgage servicer shall refuse to provide information regarding the amount required to pay in full a residential mortgage loan when the borrower or a person the borrower designates makes that request in writing. The servicer shall provide the requested payoff statement without charge one time during any twelve-month period. If additional payoff statements are requested, the servicer may charge an amount not in excess of three dollars for each additional statement. The servicer shall provide any payoff statement within five business days of the request.
(B) No mortgage servicer shall obtain a certificate of registration through any false or fraudulent representation of a material fact or any omission of a material fact required by state or federal law, or make any substantial misrepresentation in the registration application.
(C) No mortgage servicer shall make false or misleading statements of a material fact, omissions of statements required by state or federal law, or false promises regarding a material fact, through advertising or other means, or engage in a continued course of misrepresentations.
(D) No mortgage servicer shall engage in conduct that constitutes improper, fraudulent, or dishonest dealings.
(E) No mortgage servicer or applicant for registration shall fail to notify the superintendent of financial institutions of the department of commerce within thirty days after the servicer or applicant has:
(1) Been convicted of or pleads guilty or nolo contendere in a domestic, foreign, or military court to any criminal felony offense;
(2) Been convicted of or pleads guilty or nolo contendere in a domestic, foreign, or military court to any criminal offense involving theft, receiving stolen property, embezzlement, forgery, fraud, passing bad checks, money laundering, breach of trust, dishonesty, or drug trafficking, or any criminal offense involving money or securities;
(3) Had a mortgage servicer registration, license, or comparable authority revoked in any other state.
(F) No mortgage servicer shall knowingly make, propose, or solicit fraudulent, false, or misleading statements on any mortgage servicing document or on any document related to an accounting of payments remitted or disbursed. 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.
(G) No mortgage servicer shall knowingly instruct, solicit, propose, or otherwise cause a borrower to sign in blank a document.
(H) Any violation of division (C), (D), (F), or (G) of this section, or section 1323.34, 1323.35, or 1323.36 of the Revised Code is an unfair and deceptive act or practice in violation of section 1345.02 of the Revised Code.
Sec. 1323.34. (A) In addition to the duties imposed by common law or state or federal law a mortgage servicer shall do all of the following:
(1) Act with good faith and fair dealing in any transaction, practice, or course of business associated with servicing;
(2) Act with reasonable skill, care, and diligence;
(3) Act in good faith to provide the borrower with the facts relating to the nature and extent of any delinquency or default and the amounts owed or necessary to reinstate the loan or cure the default;
(4) Subject to the servicer's duties and obligations under its mortgage servicing contract, attempt a resolution, modification, or workout to the delinquency of a borrower who requests assistance.
(5) Make a good faith effort to correct any erroneous information it has provided to any credit reporting agency;
(6) Make all payments from any escrow account in a timely manner, so as to avoid the assessment of late fees, penalties, or consequential damages, notwithstanding any loan delinquency, unless there are insufficient funds in the escrow account to cover the payments;
(7) Accept and credit each residential mortgage loan payment received on the date received;
(8) Take all steps necessary to terminate a foreclosure action when the condition giving rise to action has been fully cured. Upon cure of a default, the servicer shall reinstate the borrower to the same position as if the default had not occurred, and nullify, as of the date of the cure, any acceleration of any obligation under the residential mortgage loan or note arising from the default.
(9) In addition to the duties enumerated in sections 1323.20 to 1323.37 of the Revised Code, any mortgage servicer for a government-insured loan shall comply with the loss mitigation standards and guidelines as required by the insuring entity.
(B) When establishing a loan modification solution for a borrower, a mortgage servicer shall seek to achieve long-term sustainability for the borrower and adhere to the loan modification standards established under section 1323.05 of the Revised Code.
Sec. 1323.35.  No mortgage servicer shall do any of the following in connection with a residential mortgage loan:
(A) Collect, charge, or retain any fee from the borrower unless the fee is reasonable, for a bona fide service rendered, and specifically authorized by the residential mortgage loan and permitted by law;
(B) Initiate a foreclosure action without proof of ownership as evidenced by a declaration signed under penalty of perjury, stating that the party in interest has reviewed the original note and all subsequent assignments and has concluded that the party in interest owns the note or mortgage;
(C) Fail to provide written notice to the borrower before acquiring and placing hazard, homeowner's, or flood insurance on a property or acquiring and placing such insurance if the mortgage servicer knows, or has reason to know, that a policy for such insurance is in effect;
(D) Acquire and place hazard, homeowner's, or flood insurance on a property for an amount that exceeds the greater of the insurable improvements to the property, the last known coverage amount that was sufficient to meet the borrower's insurance obligations, or the unpaid balance owed by the borrower.
(E) Fail to refund unearned premiums for insurance the mortgage servicer or its agents placed upon the borrower, providing there is reasonable evidence that the needed coverage had been obtained, the forced placement is not necessary, and the property is properly insured in accordance with the loan or note.
Sec. 1323.36. (A) No mortgage servicer shall use unfair, deceptive or unconscionable means to collect or attempt to collect any claim in connection with a residential mortgage loan. Without limiting the general application of the foregoing, the following actions violate this section:
(1) The collection or the attempt to collect any interest or other charge, fee, or expense that is incidental to the principal obligation, unless expressly authorized by the agreement creating the obligation and by law, including division (A) of section 1323.35 of the Revised Code;
(2) Any communication with a borrower if the mortgage servicer knows that the borrower is represented by an attorney and the attorney's name and address are known or could be easily ascertained. This prohibition does not apply if the borrower's attorney fails to respond within thirty days to answer correspondence, return phone calls, or discuss the obligation in question, or the attorney consents to the servicer having direct communication with the borrower;
(3) Placing a telephone call or otherwise communicating by telephone with a borrower or third party, at any place including a place of employment, and falsely stating that the call is "urgent" or an "emergency";
(4) Using profane or obscene language or language that is intended to unreasonably abuse the listener or reader;
(5) Placing telephone calls without disclosure of the caller's identity and with the intent to annoy, harass, or threaten any person at the number called;
(6) Causing expense to any person in the form of long distance telephone tolls, text messaging fees, or other charges the servicer causes by concealing the true purpose of the communication;
(7) Causing a telephone to ring or engaging any person in a telephone conversation repeatedly or continuously, or at unusual times or times known to be inconvenient, with the intent to annoy, abuse, oppress, or threaten any person at the called number.
(B) The requirements set forth in this section are in addition to any other requirement set forth in federal or state law regulating the conduct of collection activities, including the federal fair debt collection practices act, 91 Stat. 874 (1977), 15 U.S.C. sec. 1692 et seq.
Sec. 1323.361.  (A) No mortgage servicer, in conducting a mortgage servicer business, shall engage in any unfair, deceptive or unconscionable act in violation of Chapter 1345. of the Revised Code. Any violation of the sections set forth in division (H) of section 1323.33 or section 1323.34, 1323.35, or 1323.36 of the Revised Code is an unfair and deceptive act or practice in violation of section 1345.02 of the Revised Code. The attorney general may take enforcement action and a borrower may seek recovery under Chapter 1345. of the Revised Code for the violations set forth in this division.
(B) A borrower injured by a violation of division (A) of this section may not recover damages, attorney's fees, and costs under Chapter 1345. of the Revised Code if the borrower has recovered damages in a cause of action initiated under section 1323.37 of the Revised Code and the damages sought under Chapter 1345. of the Revised Code are based on the same acts or circumstances as the damages awarded under section 1323.37 of the Revised Code.
Sec. 1323.37.  (A) A borrower injured by a violation of sections 1323.20 to 1323.37 of the Revised Code may recover damages in an amount not less than all improper charges or fees paid to the mortgage servicer, plus reasonable attorney's fees and court costs and also may be awarded punitive damages.
(B) Nothing in this section prevents recovery under division (A)(2) or (C) of section 1323.21. of the Revised Code.
(C) A borrower may not recover damages,attorney's fees, or costs under this section if the borrower also recovered damages in an action initiated under any section of Chapter 1321. or 1345. of the Revised Code and the damages so awarded were based on the same acts or circumstances as the damages sought under this section.
Sec. 1323.99.  (A) Whoever violates division (A)(1) or (2) of section 1323.21, or division (F) or (G) of section 1323.33 of the Revised Code is guilty of a felony of the fifth degree.
(B) Whoever violates section 1323.31 of the Revised Code with the intent to interfere or obstruct an examination or investigation is guilty of a felony of the fourth degree.
Sec. 2303.33.  (A) No clerk of court shall accept a complaint to initiate a foreclosure on a residential mortgage loan unless the filing contains a copy of the notice and information required by section 1323.02 of the Revised Code. These copies shall be filed under seal in connection with the foreclosure, along with a certification by the filer that all required notices and information were provided to the borrower and the requisite periods of time have elapsed.
(B) No clerk of courts shall accept a complaint to initiate a foreclosure on a residential mortgage unless that complaint is accompanied by the writing described in section 2308.02 of the Revised Code.
(C) A clerk of court of common pleas or other judicial officer in this state, may access the mortgage foreclosure database established pursuant to section 1323.07 of the Revised Code to confirm information provided pursuant to this section. A materially inaccurate statement in the filer's certification is cause for dismissal of the action without prejudice and for payment by the filing party of costs the borrower incurs in defending the foreclosure proceeding.
(D) Within three business days after issuing a writ of execution in a residential foreclosure action as described in section 2329.091 of the Revised Code, the clerk of court shall file information of that action with the administrative director of the Ohio supreme court for inclusion in the foreclosure database. The filing shall contain the name and address of the borrower, the date of the writ, and the name of the mortgage servicer or mortgage holder that filed the complaint to initiate the foreclosure action.
(E) As used in this section, "residential mortgage," "residential mortgage loan," and "mortgage servicer" have the same meanings as in section 1323.01 of the Revised Code.
Sec. 2308.01.  As used in this chapter, "residential mortgage," "residential mortgage loan," "mortgage servicer" have the same meanings as in section 1323.01 of the Revised Code.
Sec. 2308.02. (A) No person shall file a complaint to initiate a residential mortgage foreclosure action unless that complaint is accompanied by a writing that contains all of the following:
(1) A statement setting forth the name of the holder of the note and asserting that the named holder is the true party in interest with a right to file the action;
(2) A statement as to whether the mortgage note has been securitized and if so, the identity of any mortgage-backed security that holds the loan and the name of the trustee of that mortgage-backed security;
(3) A statement of the plaintiff's counsel or person filing the complaint asserting that the counsel or person filing the complaint is the designated representative of the true party in interest, is authorized to negotiate on behalf of the plaintiff, and is not an intermediary representative of the plaintiff;
(4) A statement as to whether the residential property is occupied and the date that its occupancy status last was assessed;
(5) Evidence that a certified check for fifteen hundred dollars has been transmitted to the department of commerce as required under section 1323.11 of the Revised Code, or evidence that such an amount was transmitted within the past twenty-four months for a filing with respect to the same property and the same mortgage loan, or a statement that the fee requirement does not apply because the property is not occupied at the time of filing.
(B) Any complaint to initiate a residential mortgage foreclosure action shall be accompanied by a copy of an appraisal of the property, conducted within the prior three months by an appraiser who is certified or licensed pursuant to Chapter 4763. of the Revised Code to perform residential appraisals.
Sec. 2308.03. (A) There is hereby declared a six-month moratorium on mortgage foreclosure actions on residential properties occupied by the owner of the property or the tenant of that owner, to commence on the effective date of this section.
(B) During the time of the moratorium, all of the following apply with respect to mortgage foreclosure actions on occupied residential properties:
(1) No court shall hear a complaint for foreclosure or issue a judgment on such a property.
(2) No clerk of court shall issue a writ of execution on such a property.
(3) No foreclosed property shall be sold at auction nor shall any auction be scheduled to conduct such a sale.
(4) No court shall confirm the sale at auction of such a property.
(C)(1) During the moratorium, a borrower shall make payments each month in an amount equal to one-half of the monthly payment that was in effect at the time the foreclosure action was filed, or other amount that the judge determines is just and equitable. The payments shall be allocated first for taxes and insurance if the borrower's mortgage loan required such payments into escrow, then to interest and any remaining amounts to principal. The borrower shall make the payments to the mortgage servicer to whom the borrower made payments at the time the foreclosure action was filed.
(2) No mortgage servicer shall refuse to accept the payments that this section describes.
(D)(1) If a borrower fails to make the payments that this section requires, thirty days after a missed payment, the party who filed the action may petition the court for the foreclosure action to resume and that action shall resume as if there were no moratorium.
(E) At any time during the moratorium, a borrower may petition the court to request that the foreclosure action on the borrower's property proceed as if there were no moratorium.
(F) Nothing in this section prevents the granting of a default judgment when the property is not occupied by the borrower or the borrower's tenant, when the borrower did not answer the complaint, or when the borrower without good cause does not appear at the hearing.
(G) During the time of the moratorium, the borrower shall make a good faith effort to maintain the property and shall grant entry to inspect the property to the servicer or other representative of the servicer or mortgagee, upon a twenty-four-hour written notice from the servicer.
(H) The moratorium this section provides does not apply to foreclosures that are filed by credit unions and depository institutions that service their own mortgage loans, when the mortgage loan that is being foreclosed is held and serviced by such a credit union or depository institution.
Sec. 2308.04. (A) For a period of three years after the effective date of this section, in a residential mortgage foreclosure action that was filed prior to January 1, 2009, a judge has discretion to reduce the interest rate of the loan to an amount the judge determines is just and equitable and would enable the borrower to make payments and retain the property if the mortgage is a subprime mortgage loan as defined in section 1323.01 of the Revised Code.
(B) If a reduced interest rate does not lower the loan payments to a reasonable amount, the judge may extend the term of the mortgage or otherwise reduce the loan payment to a reasonable amount. The judge shall reduce the loan payment in this manner only if in consideration of the appraised value of the property and other equitable considerations, including a finding that both parties would benefit from such a modification, that under all the circumstances, the modification appears just and equitable, and the modification would enable the borrower to make payments and retain the property;
(C) Any adjustment in mortgage payments a judge makes pursuant to this section shall be for not more than five years. Any difference in the payments the court establishes pursuant to this section and the payments due pursuant to the mortgage contract shall be due as a balloon payment at the end of the modification period. No interest shall accrue on this amount. During the time of the adjustment, the court shall maintain jurisdiction over the payments and may modify those payments as this section permits at any time as conditions merit and upon petition from the mortgagee.
(D) The director of commerce shall establish in chart form information that servicers may use to determine if a mortgage loan is a subprime loan. The chart shall disclose the appropriate interest rate triggers that determine if a loan is a subprime loan for each week of the period this section covers. A servicer who relies on the chart to determine if a loan is a subprime loan may not be held liable for any violation with respect to that error.
Section 2. Section 2308.03 of the Revised Code is hereby repealed, effective six months after the effective date of this act.
Section 3. Section 2308.04 of the Revised Code is hereby repealed, effective three years after the effective date of this act.
Section 4. That existing sections 109.572 and 1321.52 of the Revised Code are hereby repealed.
Section 5.  Section 109.572 of the Revised Code is presented in this act as a composite of the section as amended by Sub. H.B. 195, Sub. H.B. 545, and Sub. S.B. 247, all of the 127th 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.
Section 6. The General Assembly enacts sections 2308.03 and 2308.04 of the Revised Code as extraordinary measures necessary to respond to an emergency situation created by the mortgage foreclosure crisis in this state. The high rate of residential mortgage foreclosures is proving harmful to families, lenders, and communities alike. The purpose of enacting these sections is to mitigate the very negative impact of the current situation and to preserve property values by providing time for solutions to begin to have an impact. These solutions that need time to be effective include modifying loans in a manner beneficial to all parties concerned and implementing federal and state initiatives that provide assistance and guidance to homeowners, lenders, and communities.
Section 7. Sections 1323.20 to 1323.37 and section 2303.33 of the Revised Code take effect six months after the effective date of this act. During that six month period, the Superintendent of Financial Institutions of the Department of Commerce may take applications for registration as a mortgage servicer as the delayed sections provide and otherwise process the applications. When the delayed sections become effective, the superintendent may approve such registrations and issue certificates of registration.
Section 8. This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety. The reason for such necessity is the alarming rate of increase in mortgage foreclosures, with devastating impact on homeowners and communities alike, making immediate intervention and assistance necessary to allow owners an opportunity to explore alternatives and resolve problems so that they keep their homes and to halt and reverse the negative impact of vacant and foreclosed homes on the health and safety of communities. Therefore, this act shall go into immediate effect.
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