The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
Am. Sub. S. B. No. 124 As Passed by the HouseAs Passed by the House
128th General Assembly | Regular Session | 2009-2010 |
| |
Senators Faber, Schiavoni
Cosponsors:
Senators Seitz, Fedor, Schuler, Kearney, Miller, D., Carey, Harris, Hughes, Patton, Strahorn, Wagoner, Gibbs, Stewart, Miller, R., Sawyer, Turner, Wilson
Representatives Harwood, Mecklenborg, Stebelton, Adams, J., Bolon, Carney, Combs, Daniels, Dodd, Domenick, Gerberry, Hackett, Huffman, Letson, Luckie, Murray, Okey, Patten, Sayre, Slesnick, Stautberg
A BILL
To amend sections 317.114, 1321.51, 1321.522,
1321.53, 1321.531, 1321.532, 1321.533, 1321.535,
1321.54, 1321.55, 1321.59, 1322.01, 1322.02,
1322.022, 1322.023, 1322.03, 1322.031, 1322.04,
1322.041, 1322.062, 1322.07, 1322.074, 1322.10,
1322.99, 1343.011, 1345.01, 1345.05, 1345.09,
1349.31, 1349.43, 1541.083, 1733.252, 5302.01,
5302.02, 5302.22, 5302.221, 5302.23, and 5815.36,
to enact sections 5302.222 and 5302.24 of the
Revised Code, and to amend Section 745.60 of Am.
Sub. H.B. 1 of the 128th General Assembly to
change the transfer on death (TOD) designation
instrument from a deed to an affidavit, to allow
real property owners holding title in survivorship
tenancy to execute such an affidavit, to clarify
the status of a trustee of a trust as a TOD
beneficiary and the dower rights of the spouse of
the property owner, to make other changes
pertaining to the transfer on death of real
property, to modify the mortgage lending laws, to
temporarily authorize a treasurer or prosecuting
attorney of a county with a population of more
than 800,000 but less than 900,000 to designate
that part of any surplus balance in the county's
Delinquent Tax and Assessment Collection Fund be
used to pay operating expenses of the respective
office in lieu of county general fund money, to
allow a county recorder to accept for filing
certain nonconforming documents without charging
the fees otherwise required to be collected for
nonconforming documents, relative to coal mining
leases at Burr Oak State Park, to authorize the
Governor to execute a release of reversionary
interest in certain real estate located in
Auglaize County, and to declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 317.114, 1321.51, 1321.522, 1321.53,
1321.531, 1321.532, 1321.533, 1321.535, 1321.54, 1321.55, 1321.59,
1322.01, 1322.02, 1322.022, 1322.023, 1322.03, 1322.031, 1322.04,
1322.041, 1322.062, 1322.07, 1322.074, 1322.10, 1322.99, 1343.011,
1345.01, 1345.05, 1345.09, 1349.31, 1349.43, 1541.083, 1733.252,
5302.01, 5302.02, 5302.22, 5302.221, 5302.23, and 5815.36 be
amended and sections 5302.222 and 5302.24 of the Revised Code be
enacted to read as follows:
Sec. 317.114. (A) Except as otherwise provided in division
divisions (B) and (C) of this section, an instrument or document
presented for recording to the county recorder shall have been
prepared in accordance with all of the following requirements:
(1) Print Legible print size not smaller than a computer font
size of ten;
(2) Minimum paper size of eight and one-half inches by eleven
inches;
(3) Maximum paper size of eight and one-half inches by
fourteen inches;
(4) Black or blue ink only;
(5) No use of highlighting;
(6) Margins of one-inch width on each side of each page of
the instrument or document;
(7) A margin of one-inch width across the bottom of each page
of the instrument or document;
(8) A three-inch margin of blank space across the top of the
first page of each instrument or document to accommodate any
certification or indorsement of the county engineer, county
auditor, or county recorder, as may be required by law, with the
right half of that margin being reserved for the indorsement of
the county recorder required by section 317.12 of the Revised
Code; and
(9) A one and one-half-inch margin of blank space across the
top of each of the remaining pages of the instrument or document
to accommodate any certification or indorsement of the county
engineer, county auditor, or county recorder, as may be required
by law.
The (B)(1) Except as otherwise provided in division (B)(2) of
this section, the county recorder shall accept for recording an
instrument or document that does not conform to the foregoing
requirements
set forth in division (A) of this section but shall
charge and collect the following additional fees for each such
instrument or document: an additional base fee for the recorder's
services of ten dollars and a housing trust fund fee of ten
dollars, which shall be collected pursuant to section 317.36 of
the Revised Code.
(2) The county recorder shall accept for recording an
instrument or document that does not conform to the requirements
set forth in division (A) of this section but shall not charge and
collect the additional fees specified in division (B)(1) of this
section for page numbers, hand-written, typed, or printed
initials, bar codes, copyright information, trailing portions of
signatures, plat description of any oil and gas well location or
drilling unit or lease, or any other incidental information that
is not essential to the recording process or to the legal validity
of the instrument or document and that may appear in either of the
side margins or in the bottom margin. In addition, notary stamps
and seals and any signatures and initials that may appear within
the instrument or document need not satisfy the font size
requirement and no additional fees may be charged or collected by
the county recorder for such a nonconformance.
(B)(C) This section does not apply to any of the following:
(1) Any document that originates with any court or taxing
authority;
(2) Any document authorized to be recorded under section
317.24 of the Revised Code;
(3) Any plat, as defined in section 711.001 of the Revised
Code, that is required or authorized by the Revised Code to be
recorded;
(4) Any document authorized to be recorded that originates
from any state or federal agency;
(5) Any document executed before the effective date of this
section July 1, 2009.
Sec. 1321.51. As used in sections 1321.51 to 1321.60 of the
Revised Code:
(A) "Person" means an individual, partnership, association,
trust, corporation, or any other legal entity.
(B) "Certificate" means a certificate of registration issued
under sections 1321.51 to 1321.60 of the Revised Code.
(C) "Registrant" means a person to whom one or more
certificates of registration have been issued under sections
1321.51 to 1321.60 of the Revised Code.
(D) "Principal amount" means the amount of cash paid to, or
paid or payable for the account of, the borrower, and includes any
charge, fee, or expense that is financed by the borrower at
origination of the loan or during the term of the loan.
(E) "Interest" means all charges payable directly or
indirectly by a borrower to a registrant as a condition to a loan
or an application for a loan, however denominated, but does not
include default charges, deferment charges, insurance charges or
premiums, court costs, loan origination charges, check collection
charges, credit line charges, points, prepayment penalties, or
other fees and charges specifically authorized by law.
(F) "Interest-bearing loan" means a loan in which the debt is
expressed as the principal amount and interest is computed,
charged, and collected on unpaid principal balances outstanding
from time to time.
(G) "Precomputed loan" means a loan in which the debt is a
sum comprising the principal amount and the amount of interest
computed in advance on the assumption that all scheduled payments
will be made when due.
(H) "Actuarial method" means the method of allocating
payments made on a loan between the principal amount and interest
whereby a payment is applied first to the accumulated interest and
the remainder to the unpaid principal amount.
(I) "Applicable charge" means the amount of interest
attributable to each monthly installment period of the loan
contract. The applicable charge is computed as if each installment
period were one month and any charge for extending the first
installment period beyond one month is ignored. In the case of
loans originally scheduled to be repaid in sixty-one months or
less, the applicable charge for any installment period is that
proportion of the total interest contracted for, as the balance
scheduled to be outstanding during that period bears to the sum of
all of the periodic balances, all determined according to the
payment schedule originally contracted for. In all other cases,
the applicable charge for any installment period is that which
would have been made for such period had the loan been made on an
interest-bearing basis, based upon the assumption that all
payments were made according to schedule.
(J) "Broker" means a person who acts as an intermediary or
agent in finding, arranging, or negotiating loans, other than
residential mortgage loans, and charges or receives a fee for
these services.
(K) "Annual percentage rate" means the ratio of the interest
on a loan to the unpaid principal balances on the loan for any
period of time, expressed on an annual basis.
(L) "Point" means a charge equal to one per cent of either of
the following:
(1) The principal amount of a precomputed loan or
interest-bearing loan;
(2) The original credit line of an open-end loan.
(M) "Prepayment penalty" means a charge for prepayment of a
loan at any time prior to five years from the date the loan
contract is executed.
(N) "Refinancing" means a loan the proceeds of which are used
in whole or in part to pay the unpaid balance of a prior loan made
by the same registrant to the same borrower under sections 1321.51
to 1321.60 of the Revised Code.
(O) "Superintendent of financial institutions" includes the
deputy superintendent for consumer finance as provided in section
1181.21 of the Revised Code.
(P)(1) "Mortgage loan originator" means an individual who for
compensation or gain, or in anticipation of compensation or gain,
does any of the following:
(a) Takes or offers to take a residential mortgage loan
application;
(b) Assists or offers to assist a borrower in obtaining or
applying to obtain a residential mortgage loan by, among other
things, advising on loan terms, including rates, fees, and other
costs;
(c) Offers or negotiates terms of a residential mortgage
loan;
(d) Issues or offers to issue a commitment for a residential
mortgage loan to a borrower.
(2) "Mortgage loan originator" does not include any of the
following:
(a) An individual who performs purely administrative or
clerical tasks on behalf of a mortgage loan originator;
(b) A person licensed pursuant to Chapter 4735. of the
Revised Code, or under the similar law of another state, who
performs only real estate brokerage activities permitted by that
license, provided the person is not compensated by a mortgage
lender, mortgage broker, mortgage loan originator, or by any agent
thereof;
(c) A person solely involved in extensions of credit relating
to timeshare plans, as that term is defined in 11 U.S.C. 101, in
effect on January 1, 2009;
(d) A person acting solely as a loan processor or
underwriter, who does not represent to the public, through
advertising or other means of communicating, including the use of
business cards, stationery, brochures, signs, rate lists, or other
promotional items, that the person can or will perform any of the
activities of a mortgage loan originator;
(e) A loan originator licensed under sections 1322.01 to
1322.12 of the Revised Code, when acting solely under that
authority;
(f) A licensed attorney who negotiates the terms of a
residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client, unless the
attorney is compensated by a lender, a mortgage broker, or another
mortgage loan originator, or by any agent thereof;
(g) Any person engaged in the retail sale of manufactured
homes, mobile homes, or industrialized units if, in connection
with financing those retail sales, the person only assists the
borrower by providing or transmitting the loan application and
does not do any of the following:
(i) Offer or negotiate the residential mortgage loan rates or
terms;
(ii) Provide any counseling with borrowers about residential
mortgage loan rates or terms;
(iii) Receive any payment or fee from any company or
individual for assisting the borrower obtain or apply for
financing to purchase the manufactured home, mobile home, or
industrialized unit;
(iv) Assist the borrower in completing the residential
mortgage loan application.
(3) An individual acting exclusively as a servicer engaging
in loss mitigation efforts with respect to existing mortgage
transactions shall not be considered a mortgage loan originator
for purposes of sections 1321.51 to 1321.60 of the Revised Code
until July 1, 2011, unless such delay is denied by the United
States department of housing and urban development.
(Q) "Residential mortgage loan" means any loan primarily for
personal, family, or household use that is secured by a mortgage,
deed of trust, or other equivalent consensual security interest on
a dwelling or on residential real estate upon which is constructed
or intended to be constructed a dwelling. For purposes of this
division, "dwelling" has the same meaning as in the "Truth in
Lending Act," 82 Stat. 146, 15 U.S.C. 1602.
(R) "Nationwide mortgage licensing system and registry" means
a mortgage licensing system developed and maintained by the
conference of state bank supervisors and the American association
of residential mortgage regulators, or their successor entities,
for the licensing and registration of mortgage loan originators,
or any system established by the secretary of housing and urban
development pursuant to the "Secure and Fair Enforcement for
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.
(S) "Registered mortgage loan originator" means an individual
to whom both of the following apply:
(1) The individual is a mortgage loan originator and an
employee of a depository institution, a subsidiary that is owned
and controlled by a depository institution and regulated by a
federal banking agency, or an institution regulated by the farm
credit administration.
(2) The individual is registered with, and maintains a unique
identifier through, the nationwide mortgage licensing system and
registry.
(T) "Administrative or clerical tasks" means the receipt,
collection, and distribution of information common for the
processing or underwriting of a loan in the mortgage industry, and
communication with a consumer to obtain information necessary for
the processing or underwriting of a residential mortgage loan.
(U) "Federal banking agency" means the board of governors of
the federal reserve system, the comptroller of the currency, the
director of the office of thrift supervision, the national credit
union administration, and the federal deposit insurance
corporation.
(V) "Loan processor or underwriter" means an individual who
performs clerical or support duties at the direction of and
subject to the supervision and instruction of a licensed mortgage
loan originator or registered mortgage loan originator. For
purposes of this division, to "perform clerical or support duties"
includes means to do all of the following activities:
(1) The receipt Receiving, collection collecting,
distribution distributing, and analysis of analyzing information
common for the processing or underwriting of a residential
mortgage loan;
(2) Communicating with a borrower to obtain the information
necessary for the processing or underwriting of a loan, to the
extent the communication does not include offering or negotiating
loan rates or terms or counseling borrowers about residential
mortgage loan rates or terms.
(W) "Real estate brokerage activity" means any activity that
involves offering or providing real estate brokerage services to
the public, including all of the following:
(1) Acting as a real estate agent or real estate broker for a
buyer, seller, lessor, or lessee of real property;
(2) Bringing together parties interested in the sale,
purchase, lease, rental, or exchange of real property;
(3) Negotiating, on behalf of any party, any portion of a
contract relating to the sale, purchase, lease, rental, or
exchange of real property, other than in connection with providing
financing for any such transaction;
(4) Engaging in any activity for which a person engaged in
that activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law;
(5) Offering to engage in any activity, or to act in any
capacity, described in division (W) of this section.
(X) "Licensee" means any person that has been issued a
mortgage loan originator license under sections 1321.51 to 1321.60
of the Revised Code.
(Y) "Unique identifier" means a number or other identifier
that permanently identifies a mortgage loan originator and is
assigned by protocols established by the nationwide mortgage
licensing system and registry or federal banking agencies to
facilitate electronic tracking of mortgage loan originators and
uniform identification of, and public access to, the employment
history of and the publicly adjudicated disciplinary and
enforcement actions against mortgage loan originators.
(Z) "State" in the context of referring to states in addition
to Ohio means any state of the United States, the district of
Columbia, any territory of the United States, Puerto Rico, Guam,
American Samoa, the trust territory of the Pacific islands, the
virgin islands, and the northern Mariana islands.
(AA) "Depository institution" has the same meaning as in
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12
U.S.C. 1813, and includes any credit union.
(BB) "Bona fide third party" means a person that is not an
employee of, related to, or affiliated with, the registrant, and
that is not used for the purpose of circumvention or evasion of
sections 1321.51 to 1321.60 of the Revised Code.
(CC) "Nontraditional mortgage product" means any mortgage
product other than a thirty-year fixed rate mortgage.
(DD) "Employee" means an individual for whom a registrant or
applicant, in addition to providing a wage or salary, pays social
security and unemployment taxes, provides workers' compensation
coverage, and withholds local, state, and federal income taxes.
"Employee" also includes any individual who acts as a mortgage
loan originator or operations manager of the registrant, but for
whom the registrant is prevented by law from making income tax
withholdings.
(EE) "Primary point of contact" means the employee or owner
designated by the registrant or applicant to be the individual who
the division of financial institutions can contact regarding
compliance or licensing matters relating to the registrant's or
applicant's business or lending activities secured by an interest
in real estate.
(FF) "Consumer reporting agency" has the same meaning as in
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C. 1681a,
as amended.
(GG) "Mortgage broker" has the same meaning as in section
1322.01 of the Revised Code.
Sec. 1321.522. (A) A credit union service organization
seeking exemption from registration pursuant to division (D)(6) of
section 1321.53 of the Revised Code shall submit an application to
the superintendent of financial institutions along with a
nonrefundable fee of three hundred fifty dollars for each location
of an office to be maintained by the organization. The application
shall be in a form prescribed by the superintendent and shall
include all of the following:
(1) The organization's business name and state of
incorporation;
(2) The names of the owners, officers, or partners having
control of the organization;
(3) An attestation to all of the following:
(a) That the organization and its owners, officers, or
partners identified in division (A)(2) of this section have not
had a mortgage lender certificate of registration or mortgage loan
originator license, or any comparable authority, revoked in any
governmental jurisdiction;
(b) That the organization and its owners, officers, or
partners identified in division (A)(2) of this section have not
been convicted of, or pleaded guilty or nolo contendere to, any of
the following in a domestic, foreign, or military court:
(i) During the seven-year period immediately preceding the
date of application for exemption, any felony or a misdemeanor
involving theft or any felony;
(ii) At any time prior to the date of application for
exemption, a felony involving an act of fraud, dishonesty, a
breach of trust, theft, or money laundering.
(c) That, with respect to financing residential mortgage
loans, the organization conducts business with residents of this
state or secures its loans with property located in this state.
(4) The names of all mortgage loan originators or licensees
under the organization's control and direction;
(5) An acknowledgment of understanding that the organization
is subject to the regulatory authority of the division of
financial institutions;
(6) Any further information that the superintendent may
require.
(B)(1) If the superintendent determines that the credit union
service organization honestly made the attestation required under
division (A)(3) of this section and otherwise qualifies for
exemption, the superintendent shall issue a letter of exemption.
Additional certified copies of a letter of exemption shall be
provided upon request and the payment of seventy-five dollars per
copy.
(2) If the superintendent determines that the organization
does not qualify for exemption, the superintendent shall issue a
notice of denial, and the organization may request a hearing in
accordance with Chapter 119. of the Revised Code.
(C) All of the following conditions apply to any credit union
service organization holding a valid letter of exemption:
(1) The organization shall be subject to examination in the
same manner as a registrant with respect to the conduct of the
organization's mortgage loan originators. In conducting any
out-of-state examination, the organization shall be responsible
for paying the costs of the division in the same manner as a
registrant.
(2) The organization shall have an affirmative duty to
supervise the conduct of its mortgage loan originators, and to
cooperate with investigations by the division with respect to that
conduct, in the same manner as is required of registrants.
(3) The organization shall keep and maintain records of all
transactions relating to the conduct of its mortgage loan
originators in the same manner as is required of registrants.
(4) The organization may provide the surety bond for its
mortgage loan originators in the same manner as is permitted for
registrants.
(D) A letter of exemption expires annually on the
thirty-first day of December and may be renewed on or before that
date by submitting an application that meets the requirements of
division (A) of this section and a nonrefundable renewal fee of
three hundred fifty dollars for each location of an office to be
maintained by the credit union service organization.
(E) The superintendent may issue a notice to revoke or
suspend a letter of exemption if the superintendent finds that the
letter was obtained through a false or fraudulent representation
of a material fact, or the omission of a material fact, required
by law, or that a condition for exemption is no longer being met.
Prior to issuing an order of revocation or suspension, the credit
union service organization shall be given an opportunity for a
hearing in accordance with Chapter 119. of the Revised Code.
(F) All information obtained by the division pursuant to an
examination or investigation under this section shall be subject
to the confidentiality requirements set forth in section 1321.55
of the Revised Code.
(G) All money collected under this section shall be deposited
into the state treasury to the credit of the consumer finance fund
created in section 1321.21 of the Revised Code.
Sec. 1321.53. (A)(1) An application for a certificate of
registration under sections 1321.51 to 1321.60 of the Revised Code
shall contain an undertaking by the applicant to abide by those
sections. The application shall be in writing, under oath, and in
the form prescribed by the division of financial institutions, and
shall contain any information that the division may require.
Applicants that are foreign corporations shall obtain and maintain
a license pursuant to Chapter 1703. of the Revised Code before a
certificate is issued or renewed.
(2) Upon the filing of the application and the payment by the
applicant of a nonrefundable two hundred dollar investigation fee,
a nonrefundable three hundred dollar annual registration fee, and
any additional fee required by the nationwide mortgage licensing
system and registry, the division shall investigate the relevant
facts. If the application involves investigation outside this
state, the applicant may be required by the division to advance
sufficient funds to pay any of the actual expenses of such
investigation, when it appears that these expenses will exceed two
hundred dollars. An itemized statement of any of these expenses
which the applicant is required to pay shall be furnished to the
applicant by the division. No certificate shall be issued unless
all the required fees have been submitted to the division.
(3) All applicants making loans secured by an interest in
real estate shall designate an employee or owner of the applicant
as the applicant's primary point of contact. While acting as the
primary point of contact, the employee or owner shall not be
employed by any other registrant or mortgage broker.
(4) The investigation undertaken upon application shall
include both a civil and criminal records check of the applicant
including any individual whose identity is required to be
disclosed in the application. Where the applicant is a business
entity the superintendent shall have the authority to require a
civil and criminal background check of those persons that in the
determination of the superintendent have the authority to direct
and control the operations of the applicant.
(5)(a) Notwithstanding division (K) of section 121.08 of the
Revised Code, the superintendent of financial institutions shall
obtain a criminal history records check and, as part of that
records check, request that criminal record information from the
federal bureau of investigation be obtained. To fulfill this
requirement, the superintendent shall do either of the following:
(i) Request the superintendent of the bureau of criminal
identification and investigation, or a vendor approved by the
bureau, to conduct a criminal records check based on the
applicant's fingerprints or, if the fingerprints are unreadable,
based on the applicant's social security number, in accordance
with division (A)(12) of section 109.572 of the Revised Code;
(ii) Authorize the nationwide mortgage licensing system and
registry to request a criminal history background check as set
forth in division (C) of section 1321.531 of the Revised Code.
(b) Any fee required under division (C)(3) of section 109.572
of the Revised Code or by the nationwide mortgage licensing system
and registry shall be paid by the applicant.
(6) If an application for a certificate of registration does
not contain all of the information required under division (A) of
this section, and if such information is not submitted to the
division or to the nationwide mortgage licensing system and
registry within ninety days after the superintendent or the
nationwide mortgage licensing system and registry requests the
information in writing, including by electronic transmission or
facsimile, the superintendent may consider the application
withdrawn.
(7) If the division finds that the financial responsibility,
experience, character, and general fitness of the applicant
command the confidence of the public and warrant the belief that
the business will be operated honestly and fairly in compliance
with the purposes of sections 1321.51 to 1321.60 of the Revised
Code and the rules adopted thereunder, and that the applicant has
the requisite bond or applicable net worth and assets required by
division (B) of this section, the division shall thereupon issue a
certificate of registration to the applicant. The superintendent
shall not use a credit score as the sole basis for a registration
denial.
(a)(i) Certificates of registration issued on or after July
1, 2010, shall annually expire on the thirty-first day of
December, unless renewed by the filing of a renewal application
and payment of a three hundred dollar nonrefundable annual
registration fee, any assessment as determined by the
superintendent pursuant to division (A)(7)(a)(ii) of this section,
and any additional fee required by the nationwide mortgage
licensing system and registry, on or before the last day of
December of each year. No other fee or assessment shall be
required of a registrant by the state or any political subdivision
of this state.
(ii) If the renewal fees billed by the superintendent
pursuant to division (A)(7)(a)(i) of this section are less than
the estimated expenditures of the consumer finance section of the
division of financial institutions, as determined by the
superintendent, for the following fiscal year, the superintendent
may assess each registrant at a rate sufficient to equal in the
aggregate the difference between the renewal fees billed and the
estimated expenditures. Each registrant shall pay the assessed
amount to the superintendent prior to the last day of June. In no
case shall the assessment exceed ten cents per each one hundred
dollars of interest (excluding charge-off recoveries), points,
loan origination charges, and credit line charges collected by
that registrant during the previous calendar year. If such an
assessment is imposed, it shall not be less than two hundred fifty
dollars per registrant and shall not exceed thirty thousand
dollars less the total renewal fees paid pursuant to division
(A)(7)(a)(i) of this section by each registrant.
(b) Registrants shall timely file renewal applications on
forms prescribed by the division and provide any further
information that the division may require. If a renewal
application does not contain all of the information required under
this section, and if that information is not submitted to the
division or to the nationwide mortgage licensing system and
registry within ninety days after the superintendent or the
nationwide mortgage licensing system and registry requests the
information in writing, including by electronic transmission or
facsimile, the superintendent may consider the application
withdrawn.
(c) Renewal shall not be granted if the applicant's
certificate of registration is subject to an order of suspension,
revocation, or an unpaid and past due fine imposed by the
superintendent.
(d) If the division finds the applicant does not meet the
conditions set forth in this section, it shall issue a notice of
intent to deny the application, and forthwith notify the applicant
of the denial, the grounds for the denial, and the applicant's
reasonable opportunity to be heard on the action in accordance
with Chapter 119. of the Revised Code.
(8) If there is a change of five per cent or more in the
ownership of a registrant, the division may make any investigation
necessary to determine whether any fact or condition exists that,
if it had existed at the time of the original application for a
certificate of registration, the fact or condition would have
warranted the division to deny the application under division
(A)(7) of this section. If such a fact or condition is found, the
division may, in accordance with Chapter 119. of the Revised Code,
revoke the registrant's certificate.
(B) Each registrant that engages in lending under sections
1321.51 to 1321.60 of the Revised Code shall, if not otherwise
required to be bonded pursuant to section 1321.533 of the Revised
Code, maintain both of the following:
(1) A net worth of at least fifty thousand dollars;
(2) For each certificate of registration, assets of at least
fifty thousand dollars either in use or readily available for use
in the conduct of the business.
(C) Not more than one place of business shall be maintained
under the same certificate, but the division may issue additional
certificates to the same registrant upon compliance with sections
1321.51 to 1321.60 of the Revised Code, governing the issuance of
a single certificate. No change in the place of business of a
registrant to a location outside the original municipal
corporation shall be permitted under the same certificate without
the approval of a new application, the payment of the registration
fee and, if required by the superintendent, the payment of an
investigation fee of two hundred dollars. When a registrant wishes
to change its place of business within the same municipal
corporation, it shall give written notice of the change in advance
to the division, which shall provide a certificate for the new
address without cost. If a registrant changes its name, prior to
making loans under the new name it shall give written notice of
the change to the division, which shall provide a certificate in
the new name without cost. Sections 1321.51 to 1321.60 of the
Revised Code do not limit the loans of any registrant to residents
of the community in which the registrant's place of business is
situated. Each certificate shall be kept conspicuously posted in
the place of business of the registrant and is not transferable or
assignable.
(D) Sections 1321.51 to 1321.60 of the Revised Code do not
apply to any of the following:
(1) Entities chartered and lawfully doing business under the
authority of any law of this state, another state, or the United
States as a bank, savings bank, trust company, savings and loan
association, or credit union, or a subsidiary of any such entity,
which subsidiary is regulated by a federal banking agency and is
owned and controlled by such a depository institution;
(2) Life, property, or casualty insurance companies licensed
to do business in this state;
(3) Any person that is a lender making a loan pursuant to
sections 1321.01 to 1321.19 of the Revised Code or a business loan
as described in division (B)(6) of section 1343.01 of the Revised
Code;
(4) Any political subdivision, or any governmental or other
public entity, corporation, instrumentality, or agency, in or of
the United States or any state of the United States, or any entity
described in division (B)(3) of section 1343.01 of the Revised
Code;
(5) A college or university, or controlled entity of a
college or university, as those terms are defined in section
1713.05 of the Revised Code;
(6) A credit union service organization, provided the
organization utilizes services provided by registered mortgage
loan originators or the organization complies with section
1321.522 of the Revised Code and holds a valid letter of exemption
issued by the superintendent.
(E) No person engaged in the business of selling tangible
goods or services related to tangible goods may receive or retain
a certificate under sections 1321.51 to 1321.60 of the Revised
Code for such place of business.
Sec. 1321.531. (A) An application for a mortgage loan
originator license shall be in writing, under oath, and in the
form prescribed by the superintendent of financial institutions.
The application shall be accompanied by a nonrefundable
application fee of one hundred fifty dollars and all other
required fees, including any fees required by the nationwide
mortgage licensing system and registry.
(B) The superintendent may establish relationships or enter
into contracts with the nationwide mortgage licensing system and
registry, or any entities designated by it, to collect and
maintain records and process transaction fees or other fees
related to mortgage loan originator licensees or other persons
subject to or involved in their licensure.
(C) In connection with applying for a mortgage loan
originator license, the applicant shall furnish to the nationwide
mortgage licensing system and registry the following information
concerning the applicant's identity:
(1) The applicant's fingerprints for submission to the
federal bureau of investigation, and any other governmental agency
or entity authorized to receive such information, for purposes of
a state, national, and international criminal history background
check;
(2) Personal history and experience in a form prescribed by
the nationwide mortgage licensing system and registry, along with
authorization for the superintendent and the nationwide mortgage
licensing system and registry to obtain the following:
(a) An independent credit report from a consumer reporting
agency;
(b) Information related to any administrative, civil, or
criminal findings by any governmental jurisdiction.
(D) In order to effectuate the purposes of divisions (C)(1)
and (C)(2)(b) of this section, the superintendent may use the
conference of state bank supervisors, or a wholly owned
subsidiary, as a channeling agent for requesting information from
and distributing information to the United States department of
justice or any other governmental agency. The superintendent may
also use the nationwide mortgage licensing system and registry as
a channeling agent for requesting information from and
distributing information to any source related to matters subject
to divisions (C)(2)(a) and (b) of this section.
(E) Upon the filing of the application, payment of the
application fee, and payment of any additional fee, including any
fee required by the nationwide mortgage licensing system and
registry, the superintendent shall investigate the applicant as
set forth in division (E) of this section.
(1)(a) Notwithstanding division (K) of section 121.08 of the
Revised Code, the superintendent shall obtain a criminal history
records check and, as part of that records check, request that
criminal record information from the federal bureau of
investigation be obtained. To fulfill this requirement, the
superintendent shall do either of the following:
(i) Request the superintendent of the bureau of criminal
identification and investigation, or a vendor approved by the
bureau, to conduct a criminal records check based on the
applicant's fingerprints or, if the fingerprints are unreadable,
based on the applicant's social security number in accordance with
division (A)(12) of section 109.572 of the Revised Code;
(ii) Authorize the nationwide mortgage licensing system and
registry to request a criminal history background check as set
forth in division (C) of this section.
(b) Any fee required under division (C)(3) of section 109.572
of the Revised Code or by the nationwide mortgage licensing system
and registry shall be paid by the applicant.
(2) The superintendent of financial institutions shall
conduct a civil records check.
(3) If, in order to issue a license to an applicant,
additional investigation by the superintendent outside this state
is necessary, the superintendent may require the applicant to
advance sufficient funds to pay the actual expenses of the
investigation, if it appears that these expenses will exceed one
hundred dollars. The superintendent shall provide the applicant
with an itemized statement of the actual expenses that the
applicant is required to pay.
(F) If an application for a mortgage loan originator license
does not contain all of the information required under this
section, and if that information is not submitted to the
superintendent or to the nationwide mortgage licensing system and
registry within ninety days after the superintendent or the
nationwide mortgage licensing system and registry requests the
information in writing, including by electronic transmission or
facsimile, the superintendent may consider the application
withdrawn.
Sec. 1321.532. (A) Upon the conclusion of the investigation
required under division (E) of section 1321.531 of the Revised
Code, the superintendent of financial institutions shall issue a
mortgage loan originator license to the applicant if the
superintendent finds that all of the following conditions are met:
(1) The application is accompanied by the application fee and
any additional fee required by the nationwide mortgage licensing
system and registry.
If a check or other draft instrument is returned to the
superintendent for insufficient funds, the superintendent shall
notify the licensee by certified mail, return receipt requested,
that the license issued in reliance on the check or other draft
instrument will be canceled unless the licensee, within thirty
days after receipt of the notice, submits the application fee and
a one-hundred-dollar penalty to the superintendent. If the
licensee does not submit the application fee and penalty within
that time period, or if any check or other draft instrument used
to pay the fee or penalty is returned to the superintendent for
insufficient funds, the license shall be canceled immediately
without a hearing, and the licensee shall cease activity as a
mortgage loan originator.
(2) The applicant complies with sections 1321.51 to 1321.60
of the Revised Code.
(3) The applicant has not had a mortgage loan originator
license, or comparable authority, revoked in any governmental
jurisdiction.
(4) The applicant has not been convicted of, or pleaded
guilty or nolo contendere to, any of the following in a domestic,
foreign, or military court:
(a) During the seven-year period immediately preceding the
date of application for licensure, any felony or a misdemeanor
involving theft or any felony;
(b) At any time prior to the date of application for
licensure, a felony involving an act of fraud, dishonesty, a
breach of trust, theft, or money laundering.
(5) Based on the totality of the circumstances and
information submitted in the application, the applicant has proven
to the division of financial institutions, by a preponderance of
the evidence, that the applicant is of good business repute,
appears qualified to act as a mortgage loan originator, and has
fully complied with sections 1321.51 to 1321.60 of the Revised
Code and rules adopted thereunder, and that the applicant meets
all of the conditions for issuing a mortgage loan originator
license.
(6) The applicant successfully completed the written test
required under section 1321.535 of the Revised Code and the
education requirements set forth in section 1321.534 of the
Revised Code.
(7) The applicant is covered under a valid bond in compliance
with section 1321.533 of the Revised Code.
(8) The applicant's financial responsibility, character, and
general fitness command the confidence of the public and warrant
the belief that the mortgage loan originator will operate honestly
and fairly in compliance with the purposes of sections 1321.51 to
1321.60 of the Revised Code. The superintendent shall not use a
credit score as the sole basis for a license denial.
(B) The license issued under division (A) of this section may
be renewed annually on or before the thirty-first day of December
if the superintendent finds that all of the following conditions
are met:
(1) The renewal application is accompanied by a nonrefundable
renewal fee of one hundred fifty dollars, and any additional fee
required by the nationwide mortgage licensing system and registry.
If a check or other draft instrument is returned to the
superintendent for insufficient funds, the superintendent shall
notify the licensee by certified mail, return receipt requested,
that the license renewed in reliance on the check or other draft
instrument will be canceled unless the licensee, within thirty
days after receipt of the notice, submits the renewal fee and a
one-hundred-dollar penalty to the superintendent. If the licensee
does not submit the renewal fee and penalty within that time
period, or if any check or other draft instrument used to pay the
fee or penalty is returned to the superintendent for insufficient
funds, the license shall be canceled immediately without a
hearing, and the licensee shall cease activity as a mortgage loan
originator.
(2) The applicant has completed at least eight hours of
continuing education as required under section 1321.536 of the
Revised Code.
(3) The applicant meets the conditions set forth in divisions
(A)(2) to (8) of this section.
(4) The applicant's license is not subject to an order of
suspension or an unpaid and past due fine imposed by the
superintendent.
(C)(1) Subject to division (C)(2) of this section, if a
license renewal application or fee, including any additional fee
required by nationwide mortgage licensing system and registry, is
received by the superintendent after the thirty-first day of
December, the license shall not be considered renewed, and the
applicant shall cease activity as a mortgage loan originator.
(2) Division (C)(1) of this section shall not apply if the
applicant, no later than the thirty-first day of January, submits
the renewal application and fee, including any additional fee
required by nationwide mortgage licensing system and registry, and
a one-hundred-dollar penalty to the superintendent.
(D) Mortgage loan originator licenses issued on or after July
1, 2010, shall annually expire on the thirty-first day of
December.
(E) If a renewal application does not contain all of the
information required under this section, and if that information
is not submitted to the superintendent or to the nationwide
mortgage licensing system and registry within ninety days after
the superintendent or the nationwide mortgage licensing system and
registry requests the information in writing, including by
electronic transmission or facsimile, the superintendent may
consider the application withdrawn.
Sec. 1321.533. (A)(1) A registrant engaged in residential
mortgage loan activity shall not conduct business in this state,
unless the registrant maintains the net worth and assets required
under division (B) of section 1321.53 of the Revised Code or has
obtained and maintains in effect at all times a corporate surety
bond issued by a bonding company or insurance company authorized
to do business in this state.
(a) The bond shall be in favor of the superintendent of
financial institutions.
(b) The bond shall be in the penal sum of one-half per cent
of the aggregate loan amount of residential mortgage loans
originated in the immediately preceding calendar year, but not
exceeding one hundred fifty thousand dollars. Under no
circumstances, however, shall the bond be less than fifty thousand
dollars and an additional penal sum of ten thousand dollars for
each location, in excess of one, at which the registrant conducts
business.
(c) The term of the bond shall coincide with the term of
registration.
(d) A copy of the bond shall be filed with the
superintendent.
(e) The bond shall be for the exclusive benefit of any
borrower injured by a violation by an employee, licensee, or
registrant of any provision of sections 1321.51 to 1321.60 of the
Revised Code or the rules adopted thereunder.
(f) The aggregate liability of the corporate surety for any
and all breaches of the conditions of the bond shall not exceed
the penal sum of the bond.
(2) An individual licensed as a mortgage loan originator and
employed or associated with an exempt entity as set forth in
division (D) of section 1321.53 of the Revised Code shall not
conduct business in this state, unless either the licensee or the
exempt entity on the licensee's behalf has obtained and maintains
in effect at all times a corporate surety bond issued by a bonding
company or insurance company authorized to do business in this
state.
(a) The bond shall be in favor of the superintendent.
(b) The bond shall be in the penal sum of one-half per cent
of the aggregate loan amount of residential mortgage loans
originated in the immediately preceding calendar year, but not
exceeding one hundred thousand dollars. Under no circumstances,
however, shall the bond be less than fifty thousand dollars.
(c) The term of the bond shall coincide with the term of
licensure.
(d) A copy of the bond shall be filed with the
superintendent.
(e) The bond shall be for the exclusive benefit of any
borrower injured by a violation by the licensee of any provision
of sections 1321.51 to 1321.60 of the Revised Code or the rules
adopted thereunder.
(f) The aggregate liability of the corporate surety for any
and all breaches of the conditions of the bond shall not exceed
the penal sum of the bond.
(g) Licensees covered by a corporate surety bond obtained by
a registrant or exempt entity they are employed by or associated
with shall not be required to obtain an individual bond.
(B)(1) The registrant or licensee shall give notice to the
superintendent by certified mail of any action that is brought by
a borrower against the licensee, registrant, or any mortgage loan
originator of the registrant alleging injury by a violation of any
provision of sections 1321.51 to 1321.60 of the Revised Code, and
of any judgment that is entered against the licensee, registrant,
or mortgage loan originator of the registrant by a borrower
injured by a violation of any provision of sections 1321.51 to
1321.60 of the Revised Code. The notice shall provide details
sufficient to identify the action or judgment, and shall be filed
with the superintendent within ten days after the commencement of
the action or notice to the registrant or licensee of entry of a
judgment. An exempt entity securing bonding for the licensees in
their employ shall report those actions by a borrower in the same
manner as is required of registrants.
(2) A corporate surety, within ten days after it pays any
claim or judgment, shall give notice to the superintendent by
certified mail of the payment, with details sufficient to identify
the person and the claim or judgment paid.
(C) Whenever the penal sum of the corporate surety bond is
reduced by one or more recoveries or payments, the registrant or
separately bonded licensee shall furnish a new or additional bond
under this section, so that the total or aggregate penal sum of
the bond or bonds equals the sum required by this section, or
shall furnish an endorsement executed by the corporate surety
reinstating the bond to the required penal sum of it.
(D) The liability of the corporate surety on the bond to the
superintendent and to any borrower injured by a violation of any
provision of sections 1321.51 to 1321.60 of the Revised Code shall
not be affected in any way by any misrepresentation, breach of
warranty, or failure to pay the premium, by any act or omission
upon the part of the registrant or licensee, by the insolvency or
bankruptcy of the registrant or licensee, or by the insolvency of
the registrant's or licensee's estate. The liability for any act
or omission that occurs during the term of the corporate surety
bond shall be maintained and in effect for at least two years
after the date on which the corporate surety bond is terminated or
canceled.
(E) The corporate surety bond shall not be canceled by the
registrant, the licensee, or the corporate surety except upon
notice to the superintendent by certified mail, return receipt
requested. The cancellation shall not be effective prior to thirty
days after the superintendent receives the notice.
(F) No registrant or licensee shall fail to comply with this
section. Any registrant or licensee that fails to comply with this
section shall cease all mortgage lender or mortgage loan
originator activity in this state until the registrant or licensee
has complied with this section.
Sec. 1321.535. (A) Each applicant for a mortgage loan
originator license shall submit to a written test that is
developed and approved by the nationwide mortgage licensing system
and registry and administered by a test provider approved by the
nationwide mortgage licensing system and registry based upon
reasonable standards.
(1) The test shall adequately measure the applicant's
knowledge and comprehension in appropriate subject matters,
including ethics and federal and state law related to mortgage
origination, fraud, consumer protection, the nontraditional
mortgage marketplace, and fair lending issues.
(2) An individual shall not be considered to have passed the
test unless the individual achieves a test score of at least
seventy-five per cent correct answers on all questions and at
least seventy-five per cent correct answers on all questions
relating to Ohio mortgage lending laws and the Ohio consumer sales
practices act, Chapter 1345. of the Revised Code, as it applies to
registrants and licensees.
(3) An individual may retake the test three consecutive times
provided the period between taking the tests is at least thirty
days.
(4) After failing three consecutive tests, an individual
shall be required to wait at least six months before taking the
test again.
(5) If a mortgage loan originator fails to maintain a valid
license for a period of five years or longer, the individual shall
be required to retake the test. For this purpose, any time during
which the individual is a registered mortgage loan originator
shall not be taken into account.
(B) Notwithstanding division (A) of this section, if the
nationwide mortgage licensing system and registry fails to have in
place a testing process that meets the criteria set forth in that
division, the superintendent shall require, until that process is
in place, evidence that the mortgage loan originator applicant
passed a written test acceptable to the superintendent.
Sec. 1321.54. (A) The division of financial institutions may
adopt, in accordance with Chapter 119. of the Revised Code, rules
that are necessary for the enforcement or administration of
sections 1321.51 to 1321.60 of the Revised Code and that are
consistent with those sections and rules to carry out the purposes
of those sections.
(B)(1) The division may, upon written notice to the
registrant or licensee stating the contemplated action, the
grounds for the action, and the registrant's or licensee's
reasonable opportunity to be heard on the action in accordance
with Chapter 119. of the Revised Code, revoke, suspend, or refuse
to renew any certificate or license issued under sections 1321.51
to 1321.60 of the Revised Code if it finds any of the following:
(a) A violation of or failure to comply with any provision of
sections 1321.51 to 1321.60 of the Revised Code or the rules
adopted thereunder, any federal lending law, or any other law
applicable to the business conducted under a certificate of
registration or license;
(b) The person has been convicted of or pleaded guilty or
nolo contendere to any criminal felony offense in a domestic,
foreign, or military court;
(c) The person has been convicted of or pleaded guilty or
nolo contendere 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, in a domestic, foreign, or military court;
(d) The person's mortgage lender certificate of registration
or mortgage loan originator license, or comparable authority, has
been revoked in any governmental jurisdiction.
(2) In addition to, or in lieu of, any revocation,
suspension, or denial, the division may impose a monetary fine
after administrative hearing or in settlement of matters subject
to claims under division (B)(1)(a) of this section.
(3) Subject to division (D)(3) of section 1321.52 of the
Revised Code, the revocation, suspension, or refusal to renew
shall not impair the obligation of any pre-existing lawful
contract made under sections 1321.51 to 1321.60 of the Revised
Code; provided, however, that a prior registrant shall make good
faith efforts to promptly transfer the registrant's collection
rights to another registrant or person exempt from registration,
or be subject to additional monetary fines and legal or
administrative action by the division. Nothing in division (B)(3)
of this section shall limit a court's ability to impose a cease
and desist order preventing any further business or servicing
activity.
(C)(1) The superintendent of financial institutions may
impose a fine for a violation of sections 1321.51 to 1321.60 of
the Revised Code or any rule adopted thereunder. 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 imposed pursuant to this section, the superintendent
may consider all of the following to the extent it is known to the
division of financial institutions:
(a) The seriousness of the violation;
(b) The registrant's or licensee's good faith efforts to
prevent the violation;
(c) The registrant's or licensee's history regarding
violations and compliance with division orders;
(d) The registrant's or licensee's financial resources;
(e) Any other matters the superintendent considers
appropriate in enforcing sections 1321.51 to 1321.60 of the
Revised Code.
(2) Monetary fines imposed under this division shall not
exceed twenty-five thousand dollars and do not preclude any
criminal fine imposed pursuant to section 1321.99 of the Revised
Code.
(D) The superintendent may investigate alleged violations of
sections 1321.51 to 1321.60 of the Revised Code, or the rules
adopted thereunder, or complaints concerning any such violation.
The superintendent may make application to the court of common
pleas for an order enjoining any violation and, upon a showing by
the superintendent that a person has committed, or is about to
commit, a violation, the court shall grant an injunction,
restraining order, or other appropriate relief. The
superintendent, in making application to the court of common pleas
for an order enjoining a person from acting as a registrant or
mortgage loan originator in violation of division (A) or (E) of
section 1321.52 of the Revised Code, may also seek and obtain
civil penalties for that unregistered or unlicensed conduct in an
amount not to exceed five thousand dollars per violation.
(E) In conducting an investigation pursuant to this section,
the superintendent may compel, by subpoena, witnesses to testify
in relation to any matter over which the superintendent has
jurisdiction, and may require the production or photocopying of
any book, record, or other document pertaining to such matter. If
a person fails to file any statement or report, obey any subpoena,
give testimony, produce any book, record, or other document as
required by such a subpoena, or permit photocopying of any book,
record, or other document subpoenaed, the court of common pleas of
any county in this state, upon application made to it by the
superintendent, shall compel obedience by attachment proceedings
for contempt, as in the case of disobedience of the requirements
of a subpoena issued from the court, or a refusal to testify
therein.
(F) If the superintendent determines that a person is engaged
in, or is believed to be engaged in, activities that may
constitute a violation of sections 1321.51 to 1321.60 of the
Revised Code or the rules adopted thereunder, the superintendent
may, after notice and a hearing conducted in accordance with
Chapter 119. of the Revised Code, issue a cease and desist order.
The superintendent, in taking administrative action to enjoin a
person from acting as a registrant or mortgage loan originator in
violation of division (A) or (E) of section 1321.52 of the Revised
Code, may also seek and impose fines for those violations in an
amount not to exceed five thousand dollars per violation. Such an
order shall be enforceable in the court of common pleas.
(G) The superintendent shall regularly report violations of
sections 1321.51 to 1321.60 of the Revised Code, as well as
enforcement actions and other relevant information, to the
nationwide mortgage licensing system and registry pursuant to
division (E) of section 1321.55 of the Revised Code.
(H)(1) To protect the public interest, the superintendent
may, without a prior hearing, do any of the following:
(a) Suspend the certificate of registration or license of a
person who is convicted of or pleads guilty or nolo contendere to
a criminal violation of sections 1321.51 to 1321.60 of the Revised
Code or any criminal offense described in division (B)(1)(b) or
(c) of this section;
(b) Suspend the certificate of registration or license of a
person who violates division (F) of section 1321.533 of the
Revised Code;
(c) Suspend the certificate of registration or license of a
person who fails to comply with a request made by the
superintendent under this section or section 1321.55 of the
Revised Code to inspect qualifying education transcripts located
at the registrant's or licensee's place of business.
(2) The superintendent may, in accordance with Chapter 119.
of the Revised Code, subsequently revoke any registration or
license suspended under division (H)(1) of this section.
(3) The superintendent shall, in accordance with Chapter 119.
of the Revised Code, adopt rules establishing the maximum amount
of time a suspension under division (H)(1) of this section may
continue before a hearing is conducted.
Sec. 1321.55. (A) Every registrant shall keep records
pertaining to loans made under sections 1321.51 to 1321.60 of the
Revised Code. Such records shall be segregated from records
pertaining to transactions that are not subject to these sections
of the Revised Code. Every registrant shall preserve records
pertaining to loans made under sections 1321.51 to 1321.60 of the
Revised Code for at least two years after making the final entry
on such records. Accounting systems maintained in whole or in part
by mechanical or electronic data processing methods that provide
information equivalent to that otherwise required are acceptable
for this purpose. At least once each eighteen-month cycle, the
division of financial institutions shall make or cause to be made
an examination of records pertaining to loans made under sections
1321.51 to 1321.60 of the Revised Code, for the purpose of
determining whether the registrant is complying with these
sections and of verifying the registrant's annual report.
(B)(1) As required by the superintendent of financial
institutions, each registrant shall file with the division each
year a report under oath or affirmation, on forms supplied by the
division, concerning the business and operations for the preceding
calendar year. Whenever a registrant operates two or more
registered offices or whenever two or more affiliated registrants
operate registered offices, then a composite report of the group
of registered offices may be filed in lieu of individual reports.
(2) The division shall publish annually an analysis of the
information required under division (B)(1) of this section, but
the individual reports shall not be public records and shall not
be open to public inspection.
(3) Each mortgage licensee shall submit to the nationwide
mortgage licensing system and registry call reports or other
reports of condition, which shall be in such form and shall
contain such information as the nationwide mortgage licensing
system and registry may require.
(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 division (C)(1) of this
section shall remain confidential for all purposes except when it
is necessary for the superintendent to take official action
regarding the affairs of a registrant or licensee, or in
connection with criminal or civil proceedings to be initiated by a
prosecuting attorney or the attorney general. This information may
also be introduced into evidence or disclosed when and in the
manner authorized by section 1181.25 of the Revised Code.
(D) All application information, except social security
numbers, employer identification numbers, financial account
numbers, the identity of the institution where financial accounts
are maintained, personal financial information, fingerprint cards
and the information contained on such cards, and criminal
background information, is a public record as defined in section
149.43 of the Revised Code.
(E) This section does not prevent the division of financial
institutions from releasing to or exchanging with other financial
institution regulatory authorities information relating to
registrants and licensees. For this purpose, a "financial
institution regulatory authority" includes a regulator of a
business activity in which a registrant or licensee is engaged, or
has applied to engage in, to the extent that the regulator has
jurisdiction over a registrant or licensee engaged in that
business activity. A registrant or licensee is engaged in a
business activity, and a regulator of that business activity has
jurisdiction over the registrant or licensee, whether the
registrant or licensee conducts the activity directly or a
subsidiary or affiliate of the registrant or licensee conducts the
activity.
(1) Any confidentiality or privilege arising under federal or
state law with respect to any information or material provided to
the nationwide mortgage licensing system and registry shall
continue to apply to the information or material after the
information or material has been provided to the nationwide
mortgage licensing system and registry. The information and
material so provided may be shared with all state and federal
regulatory officials with mortgage industry oversight authority
without the loss of confidentiality or privilege protections
provided by federal law or the law of any state. Information or
material described in division (E)(1) of this section to which
confidentiality or privilege applies shall not be subject to any
of the following:
(a) Disclosure under any federal or state law governing
disclosure to the public of information held by an officer or an
agency of the federal government or of the respective state;
(b) Subpoena or discovery, or admission into evidence, in any
private civil action or administrative process, unless the person
to whom such information or material pertains waives, in whole or
in part and at the discretion of the person, any privilege held by
the nationwide mortgage licensing system and registry with respect
to that information or material.
(2) The superintendent, in order to promote more effective
regulation and reduce regulatory burden through supervisory
information sharing, may enter into sharing arrangements with
other governmental agencies, the conference of state bank
supervisors, and the American association of residential mortgage
regulators.
(3) Any state law, including section 149.43 of the Revised
Code, relating to the disclosure of confidential supervisory
information or any information or material described in division
(C)(1) or (E)(1) of this section that is inconsistent with this
section shall be superseded by the requirements of this section.
(F) This section shall not apply with respect to information
or material relating to the employment history of, and publicly
adjudicated disciplinary and enforcement actions against, mortgage
loan originators that is included in the nationwide mortgage
licensing system and registry for access by the public.
(G) This section does not prevent the division from releasing
information relating to registrants and licensees to the attorney
general, to the superintendent of real estate and professional
licensing for purposes relating to the administration of Chapters
4735. and 4763. of the Revised Code, to the superintendent of
insurance for purposes relating to the administration of Chapter
3953. of the Revised Code, to the commissioner of securities for
purposes relating to the administration of Chapter 1707. of the
Revised Code, or to local law enforcement agencies and local
prosecutors. Information the division releases pursuant to this
section remains confidential.
(H) The superintendent of financial institutions shall, by
rule adopted in accordance with Chapter 119. of the Revised Code,
establish a process by which mortgage loan originators may
challenge information provided to the nationwide mortgage
licensing system and registry by the superintendent.
(I) No person, in connection with any examination or
investigation conducted by the superintendent under sections
1321.51 to 1321.60 of the Revised Code, shall knowingly do any of
the following:
(1) 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;
(2) Withhold, abstract, remove, mutilate, destroy, or secrete
any books, records, computer records, or other information;
(3) Tamper with, alter, or manufacture any evidence.
Sec. 1321.59. (A) No registrant under sections 1321.51 to
1321.60 of the Revised Code shall permit any borrower to be
indebted for a loan made under sections 1321.51 to 1321.60 of the
Revised Code at any time while the borrower is also indebted to an
affiliate or agent of the registrant for a loan made under
sections 1321.01 to 1321.19 of the Revised Code for the purpose or
with the result of obtaining greater charges than otherwise would
be permitted by sections 1321.51 to 1321.60 of the Revised Code.
(B) No registrant shall induce or permit any person to become
obligated to the registrant under sections 1321.51 to 1321.60 of
the Revised Code, directly or contingently, or both, under more
than one contract of loan at the same time for the purpose or with
the result of obtaining greater charges than would otherwise be
permitted by sections 1321.51 to 1321.60 of the Revised Code.
(C) No registrant shall refuse to provide information
regarding the amount required to pay in full a loan under sections
1321.51 to 1321.60 of the Revised Code when requested by the
borrower or by another person designated in writing by the
borrower.
(D) On any loan or application for a loan under sections
1321.51 to 1321.60 of the Revised Code secured by a mortgage on a
borrower's real estate which is other than a first lien on the
real estate, no person shall pay or receive, directly or
indirectly, fees or any other type of compensation for services of
a mortgage broker that, in the aggregate, exceed the lesser of one
thousand dollars or one per cent of the principal amount of the
loan.
(E) No registrant or licensee shall obtain a certificate of
registration or license through any false or fraudulent
representation of a material fact or any omission of a material
fact required by state or federal law, or make any substantial
misrepresentation in the registration or license application, to
engage in lending secured by real estate.
(F) No registrant or licensee, in connection with the
business of making or offering to make residential mortgage loans,
shall knowingly 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.
(G) No registrant, licensee, or person making loans without a
certificate of registration in violation of division (A) of
section 1321.52 of the Revised Code, shall knowingly engage in
conduct, in connection with the business of making or offering to
make residential mortgage loans, that constitutes improper,
fraudulent, or dishonest dealings.
(H) No registrant, licensee, or applicant involved in the
business of making or offering to make residential mortgage loans
shall fail to notify the division of financial institutions within
thirty days after knowing any of the following:
(1) That the registrant, licensee, or applicant has been
convicted of or pleaded guilty or nolo contendere to a felony
offense in a domestic, foreign, or military court;
(2) That the registrant, licensee, or applicant has been
convicted of or pleaded guilty or nolo contendere 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, in a domestic, foreign, or military
court;
(3) That the registrant, licensee, or applicant has had a
mortgage lender registration or mortgage loan originator license,
or comparable authority, revoked in any governmental jurisdiction.
(I) No registrant or licensee shall knowingly make, propose,
or solicit fraudulent, false, or misleading statements on any
mortgage document or on any document related to a mortgage loan,
including a mortgage application, real estate appraisal, or real
estate settlement or closing document. For purposes of this
division, "fraudulent, false, or misleading statements" does not
include mathematical errors, inadvertent transposition of numbers,
typographical errors, or any other bona fide error.
(J) No registrant or licensee shall knowingly instruct,
solicit, propose, or otherwise cause a borrower to sign in blank a
loan related document in connection with a residential mortgage
loan.
(K) No registrant or licensee shall knowingly compensate,
instruct, induce, coerce, or intimidate, or attempt to compensate,
instruct, induce, coerce, or intimidate, a person licensed or
certified as an appraiser under Chapter 4763. of the Revised Code
for the purpose of corrupting or improperly influencing the
independent judgment of the person with respect to the value of
the dwelling offered as security for repayment of a mortgage loan.
(L) No registrant or licensee shall willfully retain original
documents provided to the registrant or licensee by the borrower
in connection with the residential mortgage loan application,
including income tax returns, account statements, or other
financial related documents.
(M) No registrant or licensee shall, in connection with
making residential mortgage loans, receive, directly or
indirectly, a premium on the fees charged for services performed
by a bona fide third party.
(N) No registrant or licensee shall, in connection with
making residential mortgage loans, pay or receive, directly or
indirectly, a referral fee or kickback of any kind to or from a
bona fide third party or other party with a related interest in
the transaction, including a home improvement builder, real estate
developer, or real estate broker or agent, for the referral of
business. Nothing in this division shall prevent remuneration to a
registrant or licensee for the licensed sale of any insurance
product that is permitted under section 1321.57 of the Revised
Code, provided there is no additional fee or premium added to the
cost for the insurance and paid directly or indirectly by the
borrower.
(O) No registrant, licensee, or person making loans without a
certificate of registration in violation of division (A) of
section 1321.52 of the Revised Code shall, in connection with
making or offering to make residential mortgage loans, engage in
any unfair, deceptive, or unconscionable act or practice
prohibited under sections 1345.01 to 1345.13 of the Revised Code.
Sec. 1322.01. As used in sections 1322.01 to 1322.12 of the
Revised Code:
(A) "Buyer" means an individual who is solicited to purchase
or who purchases the services of a mortgage broker for purposes of
obtaining a residential mortgage loan.
(B) "Consumer reporting agency" has the same meaning as in
the "Fair Credit Reporting Act," 84 Stat. 1128, 15 U.S.C.A. 1681a,
as amended.
(C) "Employee" means an individual for whom a mortgage
broker, in addition to providing a wage or salary, pays social
security and unemployment taxes, provides workers' compensation
coverage, and withholds local, state, and federal income taxes.
"Employee" also includes any individual who acts as a loan
originator or operations manager of a registrant, but for whom the
registrant is prevented by law from making income tax
withholdings.
(D) "Licensee" means any individual who has been issued a
loan originator license under sections 1322.01 to 1322.12 of the
Revised Code.
(E)(1) "Loan originator" means an individual who for
compensation or gain, or in anticipation of compensation or gain,
does any of the following:
(a) Takes or offers to take a residential mortgage loan
application;
(b) Assists or offers to assist a buyer in obtaining or
applying to obtain a residential mortgage loan by, among other
things, advising on loan terms, including rates, fees, and other
costs;
(c) Offers or negotiates terms of a residential mortgage
loan;
(d) Issues or offers to issue a commitment for a residential
mortgage loan to a buyer.
(2) "Loan originator" does not include any of the following:
(a) An individual who performs purely administrative or
clerical tasks on behalf of a loan originator;
(b) A person licensed under Chapter 4735. of the Revised
Code, or under the similar law of another state, who performs only
real estate brokerage activities permitted by that license,
provided the person is not compensated by a mortgage lender,
mortgage broker, loan originator, or by any agent thereof;
(c) A person solely involved in extensions of credit relating
to timeshare plans, as that term is defined in 11 U.S.C. 101 in
effect on January 1, 2009;
(d) An employee of a registrant who acts solely as a loan
processor or underwriter and who does not represent to the public,
through advertising or other means of communicating, including the
use of business cards, stationery, brochures, signs, rate lists,
or other promotional items, that the employee can or will perform
any of the activities of a loan originator;
(e) A mortgage loan originator licensed under sections
1321.51 to 1321.60 of the Revised Code, when acting solely under
that authority;
(f) A licensed attorney who negotiates the terms of a
residential mortgage loan on behalf of a client as an ancillary
matter to the attorney's representation of the client, unless the
attorney is compensated by a lender, a mortgage broker, or another
loan originator, or by any agent thereof;
(g) Any person engaged in the retail sale of manufactured
homes, mobile homes, or industrialized units if, in connection
with financing those retail sales, the person only assists the
borrower by providing or transmitting the loan application and
does not do any of the following:
(i) Offer or negotiate the residential mortgage loan rates or
terms;
(ii) Provide any counseling with borrowers about residential
mortgage loan rates or terms;
(iii) Receive any payment or fee from any company or
individual for assisting the borrower obtain or apply for
financing to purchase the manufactured home, mobile home, or
industrialized unit;
(iv) Assist the borrower in completing a residential mortgage
loan application.
(h) An individual employed by a nonprofit organization that
is recognized as tax exempt under 26 U.S.C. 501(c)(3) and whose
primary activity is the construction, remodeling, or
rehabilitation of homes for use by low-income families, provided
that the nonprofit organization makes no-profit mortgage loans or
mortgage loans at zero per cent interest to low-income families
and no fees accrue directly to the nonprofit organization or
individual employed by the nonprofit organization from those
mortgage loans and that the United States department of housing
and urban development does not deny this exemption.
(F) "Mortgage" means any indebtedness secured by a deed of
trust, security deed, or other lien on real property.
(G)(1) "Mortgage broker" means any of the following:
(a) A person that holds that person out as being able to
assist a buyer in obtaining a mortgage and charges or receives
from either the buyer or lender money or other valuable
consideration readily convertible into money for providing this
assistance;
(b) A person that solicits financial and mortgage information
from the public, provides that information to a mortgage broker or
a person that makes residential mortgage loans, and charges or
receives from either of them money or other valuable consideration
readily convertible into money for providing the information;
(c) A person engaged in table-funding or warehouse-lending
mortgage loans that are first lien residential mortgage loans.
(2) "Mortgage broker" does not include any of the following
persons only with respect to business engaged in or authorized by
the person's charter, license, authority, approval, or
certificate, or as otherwise authorized by division (G)(2)(h) of
this section:
(a) A person that makes residential mortgage loans and
receives a scheduled payment on each of those mortgage loans;
(b) Any entity chartered and lawfully doing business under
the authority of any law of this state, another state, or the
United States as a bank, savings bank, trust company, savings and
loan association, or credit union, or a subsidiary of any such
entity, which subsidiary is regulated by a federal banking agency
and is owned and controlled by a depository institution;
(c) A consumer reporting agency that is in substantial
compliance with the "Fair Credit Reporting Act," 84 Stat. 1128, 15
U.S.C.A. 1681a, as amended;
(d) Any political subdivision, or any governmental or other
public entity, corporation, instrumentality, or agency, in or of
the United States or any state;
(e) A college or university, or controlled entity of a
college or university, as those terms are defined in section
1713.05 of the Revised Code;
(f) Any entity created solely for the purpose of securitizing
loans secured by an interest in real estate, provided the entity
does not service the loans. For purposes of division (G)(2)(f) of
this section, "securitizing" means the packaging and sale of
mortgage loans as a unit for sale as investment securities, but
only to the extent of those activities.
(g) Any person engaged in the retail sale of manufactured
homes, mobile homes, or industrialized units if, in connection
with obtaining financing by others for those retail sales, the
person only assists the borrower by providing or transmitting the
loan application and does not do any of the following:
(i) Offer or negotiate the residential mortgage loan rates or
terms;
(ii) Provide any counseling with borrowers about residential
mortgage loan rates or terms;
(iii) Receive any payment or fee from any company or
individual for assisting the borrower obtain or apply for
financing to purchase the manufactured home, mobile home, or
industrialized unit;
(iv) Assist the borrower in completing the residential
mortgage loan application.
(h) A mortgage banker, provided it complies with section
1322.022 of the Revised Code and holds a valid letter of exemption
issued by the superintendent. For purposes of this section,
"mortgage banker" means any person that makes, services, buys, or
sells residential mortgage loans secured by a first lien, that
underwrites the loans, and that meets at least one of the
following criteria:
(i) The person has been directly approved by the United
States department of housing and urban development as a
nonsupervised mortgagee with participation in the direct
endorsement program. Division (G)(2)(h)(i) of this section
includes a person that has been directly approved by the United
States department of housing and urban development as a
nonsupervised mortgagee with participation in the direct
endorsement program and that makes loans in excess of the
applicable loan limit set by the federal national mortgage
association, provided that the loans in all respects, except loan
amounts, comply with the underwriting and documentation
requirements of the United States department of housing and urban
development. Division (G)(2)(h)(i) of this section does not
include a mortgagee approved as a loan correspondent.
(ii) The person has been directly approved by the federal
national mortgage association as a seller/servicer. Division
(G)(2)(h)(ii) of this section includes a person that has been
directly approved by the federal national mortgage association as
a seller/servicer and that makes loans in excess of the applicable
loan limit set by the federal national mortgage association,
provided that the loans in all respects, except loan amounts,
comply with the underwriting and documentation requirements of the
federal national mortgage association.
(iii) The person has been directly approved by the federal
home loan mortgage corporation as a seller/servicer. Division
(G)(2)(h)(iii) of this section includes a person that has been
directly approved by the federal home loan mortgage corporation as
a seller/servicer and that makes loans in excess of the applicable
loan limit set by the federal home loan mortgage corporation,
provided that the loans in all respects, except loan amounts,
comply with the underwriting and documentation requirements of the
federal home loan mortgage corporation.
(iv) The person has been directly approved by the United
States department of veterans affairs as a nonsupervised automatic
lender. Division (G)(2)(h)(iv) of this section does not include a
person directly approved by the United States department of
veterans affairs as a nonsupervised lender, an agent of a
nonsupervised automatic lender, or an agent of a nonsupervised
lender.
(i) A nonprofit organization that is recognized as tax exempt
under 26 U.S.C. 501(c)(3) and whose primary activity is the
construction, remodeling, or rehabilitation of homes for use by
low-income families, provided that the nonprofit organization
makes no-profit mortgage loans or mortgage loans at zero per cent
interest to low-income families and no fees accrue directly to the
nonprofit organization from those mortgage loans and that the
United States department of housing and urban development does not
deny this exemption.
(j) A credit union service organization, provided that the
organization utilizes services provided by registered loan
originators or that it holds a valid letter of exemption issued by
the superintendent under section 1322.023 of the Revised Code and
complies with that section.
(H) "Operations manager" means the employee or owner
responsible for the everyday operations, compliance requirements,
and management of a mortgage broker business.
(I) "Registered loan originator" means an individual to whom
both of the following apply:
(1) The individual is a loan originator and an employee of a
depository institution, a subsidiary that is owned and controlled
by a depository institution and regulated by a federal banking
agency, or an institution regulated by the farm credit
administration.
(2) The individual is registered with, and maintains a unique
identifier through, the nationwide mortgage licensing system and
registry.
(J) "Registrant" means any person that has been issued a
mortgage broker certificate of registration under sections 1322.01
to 1322.12 of the Revised Code.
(K) "Superintendent of financial institutions" includes the
deputy superintendent for consumer finance as provided in section
1181.21 of the Revised Code.
(L) "Table-funding mortgage loan" means a residential
mortgage loan transaction in which the residential mortgage loan
is initially payable to the mortgage broker, the mortgage broker
does not use the mortgage broker's own funds to fund the
transaction, and, by the terms of the mortgage or other agreement,
the mortgage is simultaneously assigned to another person.
(M) "Warehouse-lending mortgage loan" means a residential
mortgage loan transaction in which the residential mortgage loan
is initially payable to the mortgage broker, the mortgage broker
uses the mortgage broker's own funds to fund the transaction, and
the mortgage is sold or assigned before the mortgage broker
receives a scheduled payment on the residential mortgage loan.
(N) "Administrative or clerical tasks" means the receipt,
collection, and distribution of information common for the
processing or underwriting of a loan in the mortgage industry, and
communication with a consumer to obtain information necessary for
the processing or underwriting of a residential mortgage loan.
(O) "Appraisal company" means a sole proprietorship,
partnership, corporation, limited liability company, or any other
business entity or association, that employs or retains the
services of a person licensed or certified under Chapter 4763. of
the Revised Code for purposes of performing residential real
estate appraisals for mortgage loans.
(P) "Depository institution" has the same meaning as in
section 3 of the "Federal Deposit Insurance Act," 64 Stat. 873, 12
U.S.C. 1813, and includes any credit union.
(Q) "Federal banking agency" means the board of governors of
the federal reserve system, the comptroller of the currency, the
director of the office of thrift supervision, the national credit
union administration, and the federal deposit insurance
corporation.
(R) "Immediate family" means an individual's spouse, child,
stepchild, parent, stepparent, grandparent, grandchild, brother,
sister, parent-in-law, brother-in-law, or sister-in-law.
(S) "Individual" means a natural person.
(T) "Loan processor or underwriter" means an individual who
performs clerical or support duties at the direction of and
subject to the supervision and instruction of a licensed loan
originator or registered loan originator. For purposes of this
division, to "perform clerical or support duties" includes means
to do all of the following activities:
(1) The receipt Receiving, collection collecting,
distribution distributing, and analysis of analyzing information
common for the processing or underwriting of a residential
mortgage loan;
(2) Communicating with a buyer to obtain the information
necessary for the processing or underwriting of a loan, to the
extent the communication does not include offering or negotiating
loan rates or terms or counseling buyers about residential
mortgage loan rates or terms.
(U) "Nationwide mortgage licensing system and registry" means
a mortgage licensing system developed and maintained by the
conference of state bank supervisors and the American association
of residential mortgage regulators, or their successor entities,
for the licensing and registration of loan originators, or any
system established by the secretary of housing and urban
development pursuant to the "Secure and Fair Enforcement for
Mortgage Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.
(V) "Nontraditional mortgage product" means any mortgage
product other than a thirty-year fixed rate mortgage.
(W) "Real estate brokerage activity" means any activity that
involves offering or providing real estate brokerage services to
the public, including all of the following:
(1) Acting as a real estate agent or real estate broker for a
buyer, seller, lessor, or lessee of real property;
(2) Bringing together parties interested in the sale,
purchase, lease, rental, or exchange of real property, other than
in connection with providing financing for any such transaction;
(3) Negotiating, on behalf of any party, any portion of a
contract relating to the sale, purchase, lease, rental, or
exchange of real property, other than in connection with providing
financing for any such transaction;
(4) Engaging in any activity for which a person engaged in
that activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law;
(5) Offering to engage in any activity, or to act in any
capacity, described in division (W) of this section.
(X) "Residential mortgage loan" means any loan primarily for
personal, family, or household use that is secured by a mortgage
or other equivalent consensual security interest on a dwelling or
on residential real estate upon which is constructed or intended
to be constructed a dwelling. For purposes of this division,
"dwelling" has the same meaning as in section 103 of the "Truth in
Lending Act," 82 Stat. 146, 15 U.S.C 1602.
(Y) "State," in the context of referring to states in
addition to Ohio, means any state of the United States, the
district of Columbia, any territory of the United States, Puerto
Rico, Guam, American Samoa, the trust territory of the Pacific
islands, the virgin islands, and the northern Mariana islands;.
(Z) "Unique identifier" means a number or other identifier
that permanently identifies a loan originator and is assigned by
protocols established by the nationwide mortgage licensing system
and registry or federal banking agencies to facilitate electronic
tracking of loan originators and uniform identification of, and
public access to, the employment history of and the publicly
adjudicated disciplinary and enforcement actions against loan
originators.
Sec. 1322.02. (A)(1) No person, on the person's own behalf
or on behalf of any other person, shall act as a mortgage broker
without first having obtained a certificate of registration from
the superintendent of financial institutions for every office to
be maintained by the person for the transaction of business as a
mortgage broker in this state. A registrant shall maintain an
office location in this state for the transaction of business as a
mortgage broker in this state.
(2) No person shall act or hold that person's self out as a
mortgage broker under the authority or name of a registrant or
person exempt from sections 1322.01 to 1322.12 of the Revised Code
without first having obtained a certificate of registration from
the superintendent for every office to be maintained by the person
for the transaction of business as a mortgage broker in this
state.
(B)(1) No individual shall act as a loan originator without
first having obtained a license from the superintendent. A loan
originator shall be employed by or associated with a mortgage
broker or any person or entity listed in division (G)(2) of
section 1322.01 of the Revised Code, but shall not be employed by
or associated with more than one mortgage broker or person or
entity at any one time.
(2) An individual acting under the individual's authority as
a registered loan originator shall not be required to be licensed
under division (B)(1) of this section.
(C)(1) Each licensee No person acting as a mortgage broker or
loan originator shall fail to register with, and maintain a valid
unique identifier issued by, the nationwide mortgage licensing
system and registry.
(2) No person shall use a licensee's mortgage broker's or
loan originator's unique identifier for any purpose other than as
set forth in the "Secure and Fair Enforcement for Mortgage
Licensing Act of 2008," 122 Stat. 2810, 12 U.S.C. 5101.
Sec. 1322.022. (A) A mortgage banker seeking exemption from
registration pursuant to division (G)(2)(h) of section 1322.01 of
the Revised Code shall submit an application to the superintendent
of financial institutions along with a nonrefundable fee of three
hundred fifty dollars for each location of an office to be
maintained by the mortgage banker. The application shall be in a
form prescribed by the superintendent and shall include all of the
following:
(1) The mortgage banker's business name and state of
incorporation or business registration;
(2) The names of the owners, officers, or partners having
control of the business;
(3) An attestation to all of the following:
(a) That the mortgage banker and its owners, officers, or
partners identified in division (A)(2) of this section have not
had a mortgage banker license, mortgage broker certificate of
registration, or loan originator license, or any comparable
authority, revoked in any governmental jurisdiction;
(b) That the mortgage banker and its owners, officers, or
partners identified in division (A)(2) of this section have not
been convicted of, or pleaded guilty or nolo contendere to, any of
the following in a domestic, foreign, or military court:
(i) During the seven-year period immediately preceding the
date of application for exemption, any felony or a misdemeanor
involving theft or any felony;
(ii) At any time prior to the date the application for
exemption is approved, a felony involving an act of fraud,
dishonesty, a breach of trust, theft, or money laundering.
(c) That, with respect to financing residential mortgage
loans, the mortgage banker conducts business with residents of
this state, or secures its loans with property located in this
state, under authority of an approval described in division
(G)(2)(h) of section 1322.01 of the Revised Code.
(4) The names of all loan originators or licensees under the
mortgage banker's control and direction;
(5) An acknowledgment of understanding that the mortgage
banker is subject to the regulatory authority of the division of
financial institutions as provided in this section;
(6) Any further reasonable information that the
superintendent may require.
(B)(1) If the superintendent determines that the mortgage
banker honestly made the attestation required under division
(A)(3) of this section and otherwise qualifies for exemption, the
superintendent shall issue a letter of exemption. Additional
certified copies of a letter of exemption shall be provided upon
request and the payment of seventy-five dollars per copy.
(2) If the superintendent determines that the mortgage banker
does not qualify for exemption, the superintendent shall issue a
notice of denial, and the mortgage banker may request a hearing in
accordance with Chapter 119. of the Revised Code.
(C) All of the following conditions apply to any mortgage
banker holding a valid letter of exemption:
(1) The mortgage banker shall be subject to examination in
the same manner as a registrant with respect to the conduct of the
mortgage banker's loan originators. In conducting any out-of-state
examination, a mortgage banker shall be responsible for paying the
costs of the division in the same manner as a registrant.
(2) The mortgage banker shall have an affirmative duty to
supervise the conduct of its loan originators, and to cooperate
with investigations by the division with respect to that conduct,
in the same manner as is required of registrants.
(3) The mortgage banker shall keep and maintain records of
all transactions relating to the conduct of its loan originators
in the same manner as is required of registrants.
(4) The mortgage banker may provide the surety bond for its
licensees in the same manner as is permitted for registrants.
(D) A letter of exemption expires annually on the
thirty-first day of December and may be renewed on or before that
date by submitting an application that meets the requirements of
division (A) of this section and a nonrefundable renewal fee of
three hundred fifty dollars for each location of an office to be
maintained by the mortgage banker.
(E) The superintendent may issue a notice to revoke or
suspend a letter of exemption if the superintendent finds that the
letter was obtained through a false or fraudulent representation
of a material fact, or the omission of a material fact, required
by law, or that a condition for exemption is no longer being met.
Prior to issuing an order of revocation or suspension, the
mortgage banker shall be given an opportunity for a hearing in
accordance with Chapter 119. of the Revised Code.
(F) All information obtained by the division pursuant to an
examination or investigation under this section shall be subject
to the confidentiality requirements set forth in section 1322.061
of the Revised Code.
(G) All money collected under this section shall be deposited
into the state treasury to the credit of the consumer finance fund
created in section 1321.21 of the Revised Code.
(H) A mortgage banker that holds a valid letter of exemption,
and any licensee employed by the mortgage banker, shall not be
required to comply with section 1322.062 of the Revised Code with
respect to any transaction covered under the authority of an
approval described in division (G)(2)(h) of section 1322.01 of the
Revised Code. Compliance shall be required, however, with respect
to transactions not covered under the authority of an approval
described in that division.
Sec. 1322.023. (A) A credit union service organization
seeking exemption from registration pursuant to division (G)(2)(j)
of section 1322.01 of the Revised Code shall submit an application
to the superintendent of financial institutions along with a
nonrefundable fee of three hundred fifty dollars for each location
of an office to be maintained by the organization. The application
shall be in a form prescribed by the superintendent and shall
include all of the following:
(1) The organization's business name and state of
incorporation;
(2) The names of the owners, officers, or partners having
control of the organization;
(3) An attestation to all of the following:
(a) That the organization and its owners, officers, or
partners identified in division (A)(2) of this section have not
had a mortgage broker certificate of registration or loan
originator license, or any comparable authority, revoked in any
governmental jurisdiction;
(b) That the organization and its owners, officers, or
partners identified in division (A)(2) of this section have not
been convicted of, or pleaded guilty or nolo contendere to, any of
the following in a domestic, foreign, or military court:
(i) During the seven-year period immediately preceding the
date of application for exemption, any felony or a misdemeanor
involving theft or any felony;
(ii) At any time prior to the date the application for
exemption is approved, a felony involving an act of fraud,
dishonesty, a breach of trust, theft, or money laundering.
(c) That, with respect to financing residential mortgage
loans, the organization conducts business with residents of this
state or secures its loans with property located in this state.
(4) The names of all loan originators or licensees under the
organization's control and direction;
(5) An acknowledgment of understanding that the organization
is subject to the regulatory authority of the division of
financial institutions;
(6) Any further information that the superintendent may
require.
(B)(1) If the superintendent determines that the credit union
service organization honestly made the attestation required under
division (A)(3) of this section and otherwise qualifies for
exemption, the superintendent shall issue a letter of exemption.
Additional certified copies of a letter of exemption shall be
provided upon request and the payment of seventy-five dollars per
copy.
(2) If the superintendent determines that the organization
does not qualify for exemption, the superintendent shall issue a
notice of denial, and the organization may request a hearing in
accordance with Chapter 119. of the Revised Code.
(C) All of the following conditions apply to any credit union
service organization holding a valid letter of exemption:
(1) The organization shall be subject to examination in the
same manner as a registrant with respect to the conduct of the
organization's loan originators. In conducting any out-of-state
examination, the organization shall be responsible for paying the
costs of the division in the same manner as a registrant.
(2) The organization shall have an affirmative duty to
supervise the conduct of its loan originators, and to cooperate
with investigations by the division with respect to that conduct,
in the same manner as is required of registrants.
(3) The organization shall keep and maintain records of all
transactions relating to the conduct of its loan originators in
the same manner as is required of registrants.
(4) The organization may provide the surety bond for its
licensees in the same manner as is permitted for registrants.
(D) A letter of exemption expires annually on the
thirty-first day of December and may be renewed on or before that
date by submitting an application that meets the requirements of
division (A) of this section and a nonrefundable renewal fee of
three hundred fifty dollars for each location of an office to be
maintained by the credit union service organization.
(E) The superintendent may issue a notice to revoke or
suspend a letter of exemption if the superintendent finds that the
letter was obtained though a false or fraudulent representation of
a material fact, or the omission of a material fact, required by
law, or that a condition for exemption is no longer being met.
Prior to issuing an order of revocation or suspension, the credit
union service organization shall be given an opportunity for a
hearing in accordance with Chapter 119. of the Revised Code.
(F) All information obtained by the division pursuant to an
examination or investigation under this section shall be subject
to the confidentiality requirements set forth in section 1322.061
of the Revised Code.
(G) All money collected under this section shall be deposited
into the state treasury to the credit of the consumer finance fund
created in section 1321.21 of the Revised Code.
Sec. 1322.03. (A) An application for a certificate of
registration as a mortgage broker shall be in writing, under oath,
and in the form prescribed by the superintendent of financial
institutions. The application shall be accompanied by a
nonrefundable application fee of five hundred dollars for each
location of an office to be maintained by the applicant in
accordance with division (A) of section 1322.02 of the Revised
Code and any additional fee required by the nationwide mortgage
licensing system and registry. The application shall provide all
of the following:
(1) The location or locations where the business is to be
transacted and whether any location is a residence. If any
location where the business is to be transacted is a residence,
the superintendent may require that the application be accompanied
by a copy of a zoning permit authorizing the use of the residence
for commercial purposes, or by a written opinion or other document
issued by the county or political subdivision where the residence
is located certifying that the use of the residence to transact
business as a mortgage broker is not prohibited by the county or
political subdivision.
(2)(a) In the case of a sole proprietor, the name and address
of the sole proprietor;
(b) In the case of a partnership, the name and address of
each partner;
(c) In the case of a corporation, the name and address of
each shareholder owning five per cent or more of the corporation;
(d) In the case of any other entity, the name and address of
any person that owns five per cent or more of the entity that will
transact business as a mortgage broker.
(3) Each applicant shall designate an employee or owner of
the applicant as the applicant's operations manager. While acting
as the operations manager, the employee or owner shall be licensed
as a loan originator under sections 1322.01 to 1322.12 of the
Revised Code and shall not be employed by any other mortgage
broker.
(4) Evidence that the person designated on the application
pursuant to division (A)(3) of this section possesses at least
three years of experience in the residential mortgage and lending
field, which experience may include employment with or as a
mortgage broker or with a depository institution, mortgage lending
institution, or other lending institution, or possesses at least
three years of other experience related specifically to the
business of residential mortgage loans that the superintendent
determines meets the requirements of division (A)(4) of this
section;
(5) Evidence that the person designated on the application
pursuant to division (A)(3) of this section has successfully
completed the pre-licensing instruction requirements set forth in
section 1322.031 of the Revised Code.;
(6) Evidence of compliance with the surety bond requirements
of section 1322.05 of the Revised Code and with sections 1322.01
to 1322.12 of the Revised Code;
(7) In the case of a foreign business entity, evidence that
it maintains a license or registration pursuant to Chapter 1703.,
1705., 1775., 1776., 1777., 1782., or 1783. of the Revised Code to
transact business in this state;
(8) Evidence that the applicant's operations manager has
successfully completed the written test required under division
(A) of section 1322.051 of the Revised Code;
(9) Any further information that the superintendent requires.
(B) Upon the filing of the application and payment of the
nonrefundable application fee and any fee required by the
nationwide mortgage licensing system and registry, the
superintendent of financial institutions shall investigate the
applicant, and any individual whose identity is required to be
disclosed in the application, as set forth in division (B) of this
section.
(1)(a) Notwithstanding division (K) of section 121.08 of the
Revised Code, the superintendent shall obtain a criminal history
records check and, as part of that records check, request that
criminal record information from the federal bureau of
investigation be obtained. To fulfill this requirement, the
superintendent shall do either of the following:
(i) Request the superintendent of the bureau of criminal
identification and investigation, or a vendor approved by the
bureau, to conduct a criminal records check based on the
applicant's fingerprints or, if the fingerprints are unreadable,
based on the applicant's social security number, in accordance
with division (A)(12) of section 109.572 of the Revised Code;
(ii) Authorize the nationwide mortgage licensing system and
registry to request a criminal history background check.
(b) Any fee required under division (C)(3) of section 109.572
of the Revised Code or by the nationwide mortgage licensing system
and registry shall be paid by the applicant.
(2) The superintendent shall conduct a civil records check.
(3) If, in order to issue a certificate of registration to an
applicant, additional investigation by the superintendent outside
this state is necessary, the superintendent may require the
applicant to advance sufficient funds to pay the actual expenses
of the investigation, if it appears that these expenses will
exceed five hundred dollars. The superintendent shall provide the
applicant with an itemized statement of the actual expenses that
the applicant is required to pay.
(C) The superintendent shall pay all funds advanced and
application and renewal fees and penalties the superintendent
receives pursuant to this section and section 1322.04 of the
Revised Code to the treasurer of state to the credit of the
consumer finance fund created in section 1321.21 of the Revised
Code.
(D) If an application for a mortgage broker certificate of
registration does not contain all of the information required
under division (A) of this section, and if that information is not
submitted to the superintendent or to the nationwide mortgage
licensing system and registry within ninety days after the
superintendent or the nationwide mortgage licensing system and
registry requests the information in writing, including by
electronic transmission or facsimile, the superintendent may
consider the application withdrawn.
(E) A mortgage broker certificate of registration and the
authority granted under that certificate is not transferable or
assignable and cannot be franchised by contract or any other
means.
(F) The registration requirements of this chapter apply to
any person acting as a mortgage broker, and no person is exempt
from the requirements of this chapter on the basis of prior work
or employment as a mortgage broker.
(G) The superintendent may establish relationships or enter
into contracts with the nationwide mortgage licensing system and
registry, or any entities designated by it, to collect and
maintain records and process transaction fees or other fees
related to mortgage broker certificates of registration or the
persons associated with a mortgage broker.
Sec. 1322.031. (A) An application for a license as a loan
originator shall be in writing, under oath, and in the form
prescribed by the superintendent of financial institutions. The
application shall be accompanied by a nonrefundable application
fee of one hundred fifty dollars and any additional fee required
by the nationwide mortgage licensing system and registry.
(B)(1) The application shall provide evidence, acceptable to
the superintendent, that the applicant has successfully completed
at least twenty-four hours of pre-licensing instruction consisting
of all of the following:
(a) Twenty hours of instruction in a course or program of
study reviewed and approved by the nationwide mortgage licensing
system and registry;
(b) Four hours of instruction in a course or program of study
reviewed and approved by the superintendent concerning state
lending laws and the Ohio consumer sales practices act, Chapter
1345. of the Revised Code, as it applies to registrants and
licensees.
(2) Notwithstanding division (B)(1) of this section, until
the nationwide mortgage licensing system and registry implements a
review and approval program, the application shall provide
evidence, as determined by the superintendent, that the applicant
has successfully completed at least twenty-four hours of
instruction in a course or program of study approved by the
superintendent that consists of at least all of the following:
(a) Four hours of instruction concerning state and federal
mortgage lending laws, which shall include no less than two hours
on this chapter;
(b) Four hours of instruction concerning the Ohio consumer
sales practices act, Chapter 1345. of the Revised Code, as it
applies to registrants and licensees;
(c) Four hours of instruction concerning the loan application
process;
(d) Two hours of instruction concerning the underwriting
process;
(e) Two hours of instruction concerning the secondary market
for mortgage loans;
(f) Four hours of instruction concerning the loan closing
process;
(g) Two hours of instruction covering basic mortgage
financing concepts and terms;
(h) Two hours of instruction concerning the ethical
responsibilities of a registrant and a licensee, including with
respect to confidentiality, consumer counseling, and the duties
and standards of care created in section 1322.081 of the Revised
Code.
(3) For purposes of division (B)(1)(a) of this section, the
review and approval of a course or program of study includes the
review and approval of the provider of the course or program of
study.
(4) If an applicant held a valid loan originator license
issued by this state at any time during the immediately preceding
five-year period, the applicant shall not be required to complete
any additional pre-licensing instruction. For this purpose, any
time during which the individual is a registered loan originator
shall not be taken into account.
(5) A person having successfully completed the pre-licensing
education requirement reviewed and approved by the nationwide
mortgage licensing system and registry for any state within the
previous five years shall be granted credit toward completion of
the pre-licensing education requirement of this state.
(C) In addition to the information required under division
(B) of this section, the application shall provide both of the
following:
(1) Evidence that the applicant passed a written test that
meets the requirements described in division (B) of section
1322.051 of the Revised Code;
(2) Any further information that the superintendent requires.
(D) Upon the filing of the application and payment of the
application fee and any fee required by the nationwide mortgage
licensing system and registry, the superintendent of financial
institutions shall investigate the applicant as set forth in
division (D) of this section.
(1)(a) Notwithstanding division (K) of section 121.08 of the
Revised Code, the superintendent shall obtain a criminal history
records check and, as part of the records check, request that
criminal record information from the federal bureau of
investigation be obtained. To fulfill this requirement, the
superintendent shall do either of the following:
(i) Request the superintendent of the bureau of criminal
identification and investigation, or a vendor approved by the
bureau, to conduct a criminal records check based on the
applicant's fingerprints or, if the fingerprints are unreadable,
based on the applicant's social security number, in accordance
with division (A)(12) of section 109.572 of the Revised Code;
(ii) Authorize the nationwide mortgage licensing system and
registry to request a criminal history background check.
(b) Any fee required under division (C)(3) of section 109.572
of the Revised Code or by the nationwide mortgage licensing system
and registry shall be paid by the applicant.
(2) The superintendent shall conduct a civil records check.
(3) If, in order to issue a license to an applicant,
additional investigation by the superintendent outside this state
is necessary, the superintendent may require the applicant to
advance sufficient funds to pay the actual expenses of the
investigation, if it appears that these expenses will exceed one
hundred fifty dollars. The superintendent shall provide the
applicant with an itemized statement of the actual expenses that
the applicant is required to pay.
(E)(1) In connection with applying for a loan originator
license, the applicant shall furnish to the nationwide mortgage
licensing system and registry the following information concerning
the applicant's identity:
(a) The applicant's fingerprints for submission to the
federal bureau of investigation, and any other governmental agency
or entity authorized to receive such information, for purposes of
a state, national, and international criminal history background
check;
(b) Personal history and experience in a form prescribed by
the nationwide mortgage licensing system and registry, along with
authorization for the superintendent and the nationwide mortgage
licensing system and registry to obtain the following:
(i) An independent credit report from a consumer reporting
agency;
(ii) Information related to any administrative, civil, or
criminal findings by any governmental jurisdiction.
(2) In order to effectuate the purposes of divisions
(E)(1)(a) and (E)(1)(b)(ii) of this section, the superintendent
may use the conference of state bank supervisors, or a wholly
owned subsidiary, as a channeling agent for requesting information
from and distributing information to the United States department
of justice or any other governmental agency. The superintendent
may also use the nationwide mortgage licensing system and registry
as a channeling agent for requesting information from and
distributing information to any source related to matters subject
to those divisions of this section.
(F) The superintendent shall pay all funds advanced and
application and renewal fees and penalties the superintendent
receives pursuant to this section and section 1322.041 of the
Revised Code to the treasurer of state to the credit of the
consumer finance fund created in section 1321.21 of the Revised
Code.
(G) If an application for a loan originator license does not
contain all of the information required under this section, and if
that information is not submitted to the superintendent or to the
nationwide mortgage licensing system and registry within ninety
days after the superintendent or the nationwide mortgage licensing
system and registry requests the information in writing, including
by electronic transmission or facsimile, the superintendent may
consider the application withdrawn.
(H)(1) The business of a loan originator shall principally be
transacted at an office of the mortgage broker with whom the
licensee is employed or associated, which office is registered in
accordance with division (A) of section 1322.02 of the Revised
Code. Each original loan originator license shall be deposited
with and maintained by the mortgage broker at the mortgage
broker's main office. A copy of the license shall be maintained
and displayed at the office where the loan originator principally
transacts business.
(2) If a loan originator's employment or association is
terminated for any reason, the mortgage broker shall return the
original loan originator license to the superintendent within five
business days after the termination. The licensee may request the
transfer of the license to another mortgage broker by submitting a
transfer application, along with a fifteen dollar fee and any fee
required by the national mortgage licensing system and registry,
to the superintendent or may request the superintendent in writing
to hold the license in escrow. Any licensee whose license is held
in escrow shall cease activity as a loan originator. A licensee
whose license is held in escrow shall be required to apply for
renewal annually and to comply with the annual continuing
education requirement.
(3) A mortgage broker may employ or be associated with a loan
originator on a temporary basis pending the transfer of the loan
originator's license to the mortgage broker, if the mortgage
broker receives written confirmation from the superintendent that
the loan originator is licensed under sections 1322.01 to 1322.12
of the Revised Code.
(4) Notwithstanding divisions (H)(1) to (3) of this section,
if a licensee is employed by or associated with a person or entity
listed in division (G)(2) of section 1322.01 of the Revised Code,
all of the following apply:
(a) The licensee shall maintain and display the original loan
originator license at the office where the licensee principally
transacts business;
(b) If the loan originator's employment or association is
terminated, the loan originator shall return the original loan
originator license to the superintendent within five business days
after termination. The licensee may request the transfer of the
license to a mortgage broker or another person or entity listed in
division (G)(2) of section 1322.01 of the Revised Code by
submitting a transfer application, along with a fifteen-dollar fee
and any fee required by the national mortgage licensing system and
registry, to the superintendent or may request the superintendent
in writing to hold the license in escrow. A licensee whose license
is held in escrow shall cease activity as a loan originator. A
licensee whose license is held in escrow shall be required to
apply for renewal annually and to comply with the annual
continuing education requirement.
(c) The licensee may seek to be employed or associated with a
mortgage broker or person or entity listed in division (G)(2) of
section 1322.01 of the Revised Code if the mortgage broker or
person or entity receives written confirmation from the
superintendent that the loan originator is licensed under sections
1322.01 to 1322.12 of the Revised Code.
(I) The superintendent may establish relationships or enter
into contracts with the nationwide mortgage licensing system and
registry, or any entities designated by it, to collect and
maintain records and process transaction fees or other fees
related to loan originator licenses or the persons associated with
a licensee.
(J) A loan originator license, or the authority granted under
that license, is not assignable and cannot be franchised by
contract or any other means.
Sec. 1322.04. (A) Upon the conclusion of the investigation
required under division (B) of section 1322.03 of the Revised
Code, the superintendent of financial institutions shall issue a
certificate of registration to the applicant if the superintendent
finds that the following conditions are met:
(1) The application is accompanied by the application fee and
any fee required by the nationwide mortgage licensing system and
registry.
(a) If a check or other draft instrument is returned to the
superintendent for insufficient funds, the superintendent shall
notify the applicant by certified mail, return receipt requested,
that the application will be withdrawn unless the applicant,
within thirty days after receipt of the notice, submits the
application fee and a one-hundred-dollar penalty to the
superintendent. If the applicant does not submit the application
fee and penalty within that time period, or if any check or other
draft instrument used to pay the fee or penalty is returned to the
superintendent for insufficient funds, the application shall be
withdrawn.
(b) If a check or other draft instrument is returned to the
superintendent for insufficient funds after the certificate of
registration has been issued, the superintendent shall notify the
registrant by certified mail, return receipt requested, that the
certificate of registration issued in reliance on the check or
other draft instrument will be canceled unless the registrant,
within thirty days after receipt of the notice, submits the
application fee and a one-hundred-dollar penalty to the
superintendent. If the registrant does not submit the application
fee and penalty within that time period, or if any check or other
draft instrument used to pay the fee or penalty is returned to the
superintendent for insufficient funds, the certificate of
registration shall be canceled immediately without a hearing, and
the registrant shall cease activity as a mortgage broker.
(2) If the application is for a location that is a residence,
evidence that the use of the residence to transact business as a
mortgage broker is not prohibited.
(3) The person designated on the application pursuant to
division (A)(3) of section 1322.03 of the Revised Code meets the
experience requirements provided in division (A)(4) of section
1322.03 of the Revised Code and the education requirements set
forth in division (A)(5) of section 1322.03 of the Revised Code.
(4) The applicant maintains all necessary filings and
approvals required by the secretary of state.
(5) The applicant complies with the surety bond requirements
of section 1322.05 of the Revised Code.
(6) The applicant complies with sections 1322.01 to 1322.12
of the Revised Code and the rules adopted thereunder.
(7) Neither the applicant nor any person whose identity is
required to be disclosed on an application for a mortgage broker
certificate of registration has had a mortgage broker certificate
of registration or loan originator license, or any comparable
authority, revoked in any governmental jurisdiction or has pleaded
guilty or nolo contendere to or been convicted of any of the
following in a domestic, foreign, or military court:
(a) During the seven-year period immediately preceding the
date of application for the certificate of registration, any
felony or a misdemeanor involving theft or any felony;
(b) At any time prior to the date the application for the
certificate of registration is approved, a felony involving an act
of fraud, dishonesty, a breach of trust, theft, or money
laundering.
(8) Based on the totality of the circumstances and
information submitted in the application, the applicant has proven
to the superintendent, by a preponderance of the evidence, that
the applicant is of good business repute, appears qualified to act
as a mortgage broker, has fully complied with sections 1322.01 to
1322.12 of the Revised Code and the rules adopted thereunder, and
meets all of the conditions for issuing a mortgage broker
certificate of registration.
(9) The applicant's operations manager successfully completed
the examination required under division (A) of section 1322.051 of
the Revised Code.
(10) The applicant's financial responsibility, experience,
character, and general fitness command the confidence of the
public and warrant the belief that the business will be operated
honestly and fairly in compliance with the purposes of sections
1322.01 to 1322.12 of the Revised Code and the rules adopted
thereunder. The superintendent shall not use a credit score as the
sole basis for registration denial.
(B) For purposes of determining whether an applicant that is
a partnership, corporation, or other business entity or
association has met the conditions set forth in divisions (A)(7),
(A)(8), and (A)(10) of this section, the superintendent shall
determine which partners, shareholders, or persons named in the
application pursuant to division (A)(2) of section 1322.03 of the
Revised Code must meet the conditions set forth in divisions
(A)(7), (A)(8), and (A)(10) of this section. This determination
shall be based on the extent and nature of the partner's,
shareholder's, or person's ownership interest in the partnership,
corporation, or other business entity or association that is the
applicant and on whether the person is in a position to direct,
control, or adversely influence the operations of the applicant.
(C) The certificate of registration issued pursuant to
division (A) of this section may be renewed annually on or before
the thirty-first day of December if the superintendent finds that
all of the following conditions are met:
(1) The renewal application is accompanied by a nonrefundable
renewal fee of five hundred dollars for each location of an office
to be maintained by the applicant in accordance with division (A)
of section 1322.02 of the Revised Code and any fee required by the
nationwide mortgage licensing system and registry. If a check or
other draft instrument is returned to the superintendent for
insufficient funds, the superintendent shall notify the registrant
by certified mail, return receipt requested, that the certificate
of registration renewed in reliance on the check or other draft
instrument will be canceled unless the registrant, within thirty
days after receipt of the notice, submits the renewal fee and a
one-hundred-dollar penalty to the superintendent. If the
registrant does not submit the renewal fee and penalty within that
time period, or if any check or other draft instrument used to pay
the fee or penalty is returned to the superintendent for
insufficient funds, the certificate of registration shall be
canceled immediately without a hearing and the registrant shall
cease activity as a mortgage broker.
(2) The operations manager designated under division (A)(3)
of section 1322.03 of the Revised Code has completed, at least
eight hours of continuing education as required under section
1322.052 of the Revised Code.
(3) The applicant meets the conditions set forth in divisions
(A)(2) to (10) of this section.
(4) The applicant's mortgage broker certificate of
registration is not subject to an order of suspension or an unpaid
and past due fine imposed by the superintendent.
(D)(1) Subject to division (D)(2) of this section, if a
renewal fee or additional fee required by the nationwide mortgage
licensing system and registry is received by the superintendent
after the thirty-first day of December, the mortgage broker
certificate of registration shall not be considered renewed, and
the applicant shall cease activity as a mortgage broker.
(2) Division (D)(1) of this section shall not apply if the
applicant, no later than the thirty-first day of January, submits
the renewal fee or additional fee and a one-hundred-dollar penalty
to the superintendent.
(E) If the person designated as the operations manager
pursuant to division (A)(3) of section 1322.03 of the Revised Code
is no longer the operations manager, the registrant shall do all
of the following:
(1) Within ninety days after the departure of the designated
operations manager, designate another person as the operations
manager;
(2) Within ten days after the designation described in
division (E)(1) of this section, notify the superintendent in
writing of the designation;
(3) Submit any additional information that the superintendent
requires to establish that the newly designated operations manager
complies with the requirements set forth in section 1322.03 of the
Revised Code.
(F) The registrant shall cease operations if it is without an
operations manager approved by the superintendent for more than
one hundred eighty days unless otherwise authorized in writing by
the superintendent due to exigent circumstances.
(G) Mortgage broker certificates of registration issued on or
after May 1, 2010, annually expire on the thirty-first day of
December.
Sec. 1322.041. (A) Upon the conclusion of the investigation
required under division (D) of section 1322.031 of the Revised
Code, the superintendent of financial institutions shall issue a
loan originator license to the applicant if the superintendent
finds that the following conditions are met:
(1) The application is accompanied by the application fee and
any fee required by the nationwide mortgage licensing system and
registry.
(a) If a check or other draft instrument is returned to the
superintendent for insufficient funds, the superintendent shall
notify the applicant by certified mail, return receipt requested,
that the application will be withdrawn unless the applicant,
within thirty days after receipt of the notice, submits the
application fee and a one-hundred-dollar penalty to the
superintendent. If the applicant does not submit the application
fee and penalty within that time period, or if any check or other
draft instrument used to pay the fee or penalty is returned to the
superintendent for insufficient funds, the application shall be
withdrawn.
(b) If a check or other draft instrument is returned to the
superintendent for insufficient funds after the license has been
issued, the superintendent shall notify the licensee by certified
mail, return receipt requested, that the license issued in
reliance on the check or other draft instrument will be canceled
unless the licensee, within thirty days after receipt of the
notice, submits the application fee and a one-hundred-dollar
penalty to the superintendent. If the licensee does not submit the
application fee and penalty within that time period, or if any
check or other draft instrument used to pay the fee or penalty is
returned to the superintendent for insufficient funds, the license
shall be canceled immediately without a hearing, and the licensee
shall cease activity as a loan originator.
(2) The applicant complies with sections 1322.01 to 1322.12
of the Revised Code and the rules adopted thereunder.
(3)(a) During the seven-year period immediately preceding the
date of application for the license, the The applicant has not
been convicted of or pleaded guilty or nolo contendere to any
felony or a misdemeanor involving theft of the following in a
domestic, foreign, or military court.:
(a) During the seven-year period immediately preceding the
date of application for the license, a misdemeanor involving theft
or any felony;
(b) At any time prior to the date the application for the
license is approved,
the applicant has not been convicted of or
pleaded guilty to a felony involving an act of fraud, dishonesty,
a breach of trust, theft, or money laundering in a domestic,
foreign, or military court.
(4) Based on the totality of the circumstances and
information submitted in the application, the applicant has proven
to the superintendent, by a preponderance of the evidence, that
the applicant is of good business repute, appears qualified to act
as a loan originator, has fully complied with sections 1322.01 to
1322.12 of the Revised Code and the rules adopted thereunder, and
meets all of the conditions for issuing a loan originator license.
(5) The applicant successfully completed the written test
required under division (B) of section 1322.051 of the Revised
Code and completed the prelicensing instruction set forth in
division (B) of section 1322.031 of the Revised Code.
(6) The applicant's financial responsibility, character, and
general fitness command the confidence of the public and warrant
the belief that the business will be operated honestly and fairly
in compliance with the purposes of sections 1322.01 to 1322.12 of
the Revised Code. The superintendent shall not use a credit score
as the sole basis for a license denial.
(7) The applicant is in compliance with the surety bond
requirements of section 1322.05 of the Revised Code.
(8) The applicant has not had a loan originator license, or
comparable authority, revoked in any governmental jurisdiction.
(B) The license issued under division (A) of this section may
be renewed annually on or before the thirty-first day of December
if the superintendent finds that all of the following conditions
are met:
(1) The renewal application is accompanied by a nonrefundable
renewal fee of one hundred fifty dollars and any fee required by
the nationwide mortgage licensing system and registry. If a check
or other draft instrument is returned to the superintendent for
insufficient funds, the superintendent shall notify the licensee
by certified mail, return receipt requested, that the license
renewed in reliance on the check or other draft instrument will be
canceled unless the licensee, within thirty days after receipt of
the notice, submits the renewal fee and a one-hundred-dollar
penalty to the superintendent. If the licensee does not submit the
renewal fee and penalty within that time period, or if any check
or other draft instrument used to pay the fee or penalty is
returned to the superintendent for insufficient funds, the license
shall be canceled immediately without a hearing, and the licensee
shall cease activity as a loan originator.
(2) The applicant has completed at least eight hours of
continuing education as required under section 1322.052 of the
Revised Code.
(3) The applicant meets the conditions set forth in divisions
(A)(2) to (8) of this section; provided, however, that an
applicant who was issued a loan officer license prior to January
1, 2010, and has continuously maintained that license shall not be
required to meet the condition described in division (B)(1)(b) of
section 1322.031 of the Revised Code.
(4) The applicant's license is not subject to an order of
suspension or an unpaid and past due fine imposed by the
superintendent.
(C)(1) Subject to division (C)(2) of this section, if a
license renewal application or renewal fee, including any fee
required by the nationwide mortgage licensing system and registry,
is received by the superintendent after the thirty-first day of
December, the license shall not be considered renewed, and the
applicant shall cease activity as a loan originator.
(2) Division (C)(1) of this section shall not apply if the
applicant, no later than the thirty-first day of January, submits
the renewal application and fees and a one-hundred-dollar penalty
to the superintendent.
(D) Loan originator licenses issued on or after May 1, 2010,
annually expire on the thirty-first day of December.
Sec. 1322.062. (A)(1) Within three business days after taking
an application for a residential mortgage loan from a buyer, a
registrant or licensee shall deliver to the buyer a residential
mortgage loan origination disclosure statement that contains all
of the following:
(a) The name, address, and telephone number of the buyer;
(b) The typewritten name of the loan originator and the
number designated on the loan originator's license;
(c) The street address, telephone number, and facsimile
number of the registrant and the number designated on the
registrant's certificate of registration;
(d) The signature of the loan originator or registrant;
(e) A statement indicating whether the buyer is to pay for
the services of a bona fide third party if the registrant is
unable to assist the buyer in obtaining a mortgage;
(f) A statement that describes the method by which the fee to
be paid by the buyer to the registrant will be calculated and a
good faith estimate of the total amount of that fee;
(g) A statement that the lender may pay compensation to the
registrant;
(h) A description of all the services the registrant has
agreed to perform for the buyer;
(i) A statement that the buyer has not entered into an
exclusive agreement for brokerage services;
(j) If the residential mortgage loan applied for will exceed
ninety per cent of the value of the real property, a statement,
printed in boldface type of the minimum size of sixteen points, as
follows: "You are applying for a loan that is more than 90% of
your home's value. It will be hard for you to refinance this loan.
If you sell your home, you might owe more money on the loan than
you get from the sale."
(k) To acknowledge receipt, the signature of the buyer.
(2) If the loan is a covered loan as defined in section
1349.25 of the Revised Code, the registrant shall also deliver a
copy of the residential mortgage loan origination disclosure
statement to the lender.
(B) If there is any change in the information provided under
division (A)(1) of this section, the registrant or licensee shall
provide the buyer with the revised residential mortgage loan
origination disclosure statement and a written explanation of why
the change occurred no later than twenty-four hours after the
change occurs, or twenty-four hours before the loan is closed,
whichever is earlier.
(C) A registrant or licensee shall deliver to the buyer,
immediately upon receipt, a copy of any nonproprietary or publicly
available credit score and report obtained regarding the buyer by
the registrant or licensee for the purpose of the residential
mortgage loan application;.
If the loan originator or registrant uses an automated
valuation model to determine an appraisal report, the registrant
or licensee also shall include a copy of the automated valuation
model report.
(D) A registrant or licensee shall deliver to the buyer, at
the same time that the registrant or licensee delivers the
residential mortgage loan origination disclosure statement
pursuant to division (A) of this section, a both of the following
documents:
(1) A good faith estimate statement that discloses the amount
of or range of charges for the specific settlement services the
buyer is likely to incur in connection with the residential
mortgage loan. The good faith estimate statement shall meet the
requirements of the "Real Estate Settlement Procedures Act," 88
Stat. 1724 (1974), 12 U.S.C.A. 2601 et seq., and shall include the
following
(2) An underlined notice in at least ten-point type, new
roman style, as follows:
"Nature of Relationship: In connection with this residential
mortgage loan, you, the borrower(s), has/have requested assistance
from ............ (company name) in arranging credit. We do not
distribute all products in the marketplace and cannot guarantee
the lowest rate.
Termination: This agreement will continue until one of the
following events occur:
2. The request is denied.
3. The borrower withdraws the request.
4. The borrower decides to use another source for
origination.
5. The borrower is provided a revised good faith estimate
statement.
Notice to borrower(s): Signing this document does not obligate you
to obtain a residential mortgage loan through this mortgage
originator nor is this a loan commitment or an approval; nor is
your interest rate locked at this time unless otherwise disclosed
on a separate Rate Lock Disclosure Form. Do not sign this document
until you have read and understood the information in it. You will
receive a redisclosure of any increase in interest rate or if the
total sum of disclosed settlement/closing costs increases by 10%
or more of the original estimate. Should any such increase occur,
mandatory redisclosure must occur prior to the settlement or close
of escrow."
(E) No registrant or licensee shall fail to comply with this
section.
Sec. 1322.07. No registrant, licensee, person required to be
registered or licensed under sections 1322.01 to 1322.12 of the
Revised Code, or individual disclosed in an application as
required by division (A)(2) of section 1322.03 of the Revised Code
shall do any of the following:
(A) Obtain a mortgage broker certificate of registration or
loan originator license through any false or fraudulent
representation of a material fact or any omission of a material
fact required by state law, or make any substantial
misrepresentation in any registration or license application;
(B) Make false or misleading statements of a material fact,
omissions of statements required by state or federal law, or false
promises regarding a material fact, through advertising or other
means, or engage in a continued course of misrepresentations;
(C) Engage in conduct that constitutes improper, fraudulent,
or dishonest dealings;
(D) Fail to notify the division of financial institutions
within thirty days after any of the following:
(1) Being convicted of or pleading guilty or nolo contendere
to a felony in a domestic, foreign, or military court;
(2) Being convicted of or pleading guilty or nolo contendere
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, in a domestic,
foreign, or military court;
(3) Having a mortgage broker certificate of registration or
loan originator license, or any comparable authority, revoked in
any governmental jurisdiction.
(E) Knowingly make, propose, or solicit fraudulent, false, or
misleading statements on any mortgage loan document or on any
document related to a mortgage loan, including a mortgage
application, real estate appraisal, or real estate settlement or
closing document. For purposes of this division, "fraudulent,
false, or misleading statements" does not include mathematical
errors, inadvertent transposition of numbers, typographical
errors, or any other bona fide error.
(F) Knowingly instruct, solicit, propose, or otherwise cause
a buyer to sign in blank a mortgage related document;
(G) Knowingly compensate, instruct, induce, coerce, or
intimidate, or attempt to compensate, instruct, induce, coerce, or
intimidate, a person licensed or certified under Chapter 4763. of
the Revised Code for the purpose of corrupting or improperly
influencing the independent judgment of the person with respect to
the value of the dwelling offered as security for repayment of a
mortgage loan;
(H) Promise to refinance a loan in the future at a lower
interest rate or with more favorable terms, unless the promise is
set forth in writing and is initialed by the buyer;
(I) Engage in any unfair, deceptive, or unconscionable act or
practice prohibited under sections 1345.01 to 1345.13 of the
Revised Code.
Sec. 1322.074. (A) Except as otherwise provided in division
(B) of this section, no registrant, or any member of the immediate
family of an owner of a registrant, shall own or control a
majority interest in an appraisal company.
(B) Division (A) of this section shall not apply to any
registrant, or any member of the immediate family of an owner of a
registrant, who, on the effective date of this amendment
January
1, 2010, directly or indirectly owns or controls a majority
interest in an appraisal company. However, such ownership or
control is subject to the following conditions:
(1) The registrant and members of the immediate family of an
owner of a registrant shall not increase their interest in the
company.
(2) The interest is not transferable to a member of the
immediate family of an owner of a registrant.
(3) If the registrant is convicted of or pleads guilty or
nolo contendere to a criminal violation of sections 1322.01 to
1322.12 of the Revised Code or any criminal offense described in
division (A)(1)(b) of section 1322.10 of the Revised Code, the
superintendent of financial institutions may, in addition to any
of the actions authorized under section 1322.10 of the Revised
Code, order the registrant or members of the immediate family of
an owner of a registrant to divest their interest in the company.
Sec. 1322.10. (A) After notice and opportunity for a hearing
conducted in accordance with Chapter 119. of the Revised Code, the
superintendent of financial institutions may do the following:
(1) Suspend, revoke, or refuse to issue or renew a
certificate of registration or license if the superintendent finds
any of the following:
(a) A violation of or failure to comply with any provision of
sections 1322.01 to 1322.12 of the Revised Code or the rules
adopted under those sections, federal lending law, or any other
law applicable to the business conducted under a certificate of
registration or license;
(b) A conviction of or guilty or nolo contendere plea to a
felony in a domestic, foreign, or military court;
(c) A conviction of or guilty or nolo contendere plea 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, in a domestic,
foreign, or military court;
(d) The revocation of a mortgage broker certificate of
registration or loan originator license, or any comparable
authority, in any governmental jurisdiction.
(2) Impose a fine of not more than one thousand dollars, for
each day a violation of a law or rule is committed, repeated, or
continued. If the registrant or licensee engages in a pattern of
repeated violations of a law or rule, the superintendent may
impose a fine of not more than two thousand dollars for each day
the violation is committed, repeated, or continued. All fines
collected pursuant to this division shall be paid to the treasurer
of state to the credit of the consumer finance fund created in
section 1321.21 of the Revised Code. In determining the amount of
a fine to be imposed pursuant to this division, the superintendent
may consider all of the following, to the extent known by the
division of financial institutions:
(a) The seriousness of the violation;
(b) The registrant's or licensee's good faith efforts to
prevent the violation;
(c) The registrant's or licensee's history regarding
violations and compliance with division orders;
(d) The registrant's or licensee's financial resources;
(e) Any other matters the superintendent considers
appropriate in enforcing sections 1322.01 to 1322.12 of the
Revised Code.
(B) The superintendent may investigate alleged violations of
sections 1322.01 to 1322.12 of the Revised Code or the rules
adopted under those sections or complaints concerning any
violation.
(1) The superintendent may make application to the court of
common pleas for an order enjoining any violation and, upon a
showing by the superintendent that a person has committed or is
about to commit that violation, the court shall grant an
injunction, restraining order, or other appropriate relief.
(2) The superintendent may make application to the court of
common pleas for an order enjoining any person from acting as a
mortgage broker, registrant, loan originator, or licensee in
violation of division (A) or (B) of section 1322.02 of the Revised
Code, and may seek and obtain civil penalties for unregistered or
unlicensed conduct of not more than five thousand dollars per
violation.
(C) In conducting any investigation pursuant to this section,
the superintendent may compel, by subpoena, witnesses to testify
in relation to any matter over which the superintendent has
jurisdiction and may require the production of any book, record,
or other document pertaining to that matter. If a person fails to
file any statement or report, obey any subpoena, give testimony,
produce any book, record, or other document as required by a
subpoena, or permit photocopying of any book, record, or other
document subpoenaed, the court of common pleas of any county in
this state, upon application made to it by the superintendent,
shall compel obedience by attachment proceedings for contempt, as
in the case of disobedience of the requirements of a subpoena
issued from the court or a refusal to testify therein.
(D) If the superintendent determines that a person is engaged
in or is believed to be engaged in activities that may constitute
a violation of sections 1322.01 to 1322.12 of the Revised Code or
any rule 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. If the administrative
action is to enjoin a person from acting as a mortgage broker or
loan originator in violation of division (A) or (B) of section
1322.02 of the Revised Code, the superintendent may seek and
impose fines for that conduct in an amount not to exceed five
thousand dollars per violation. Such an order shall be enforceable
in the court of common pleas.
(E) If the superintendent revokes a mortgage broker
certificate of registration or loan originator license, the
revocation shall be permanent and with prejudice.
(F)(1) To protect the public interest, the superintendent
may, without a prior hearing, do any of the following:
(a) Suspend the mortgage broker certificate of registration
or loan originator license of a registrant or licensee who is
convicted of or pleads guilty or nolo contendere to a criminal
violation of any provision of sections 1322.01 to 1322.12 of the
Revised Code or any criminal offense described in division
(A)(1)(b) or (c) of this section;
(b) Suspend the mortgage broker certificate of registration
of a registrant who violates division (F) of section 1322.05 of
the Revised Code;
(c) Suspend the mortgage broker certificate of registration
or loan originator license of a registrant or licensee who fails
to comply with a request made by the superintendent under section
1322.03 or 1322.031 of the Revised Code to inspect qualifying
education transcripts located at the registrant's or licensee's
place of business.
(2) The superintendent may, in accordance with Chapter 119.
of the Revised Code, subsequently revoke any registration or
license suspended under division (F)(1) of this section.
(3) The superintendent shall, in accordance with Chapter 119.
of the Revised Code, adopt rules establishing the maximum amount
of time a suspension under division (F)(1) of this section may
continue before a hearing is conducted.
(G) The imposition of fines under this section does not
preclude any penalty imposed under section 1322.99 of the Revised
Code.
Sec. 1322.99. (A) Whoever violates division (A)(1) or (2) of
section 1322.02, division (E), (F), or (G) of section 1322.07,
division (B)(1) or (2) of section 1322.071, or section 1322.08 of
the Revised Code is guilty of a felony of the fifth degree.
(B) Whoever violates division (B)(3) of section 1322.071 of
the Revised Code is guilty of a felony of the fourth degree.
(C) Whoever violates division (B) or (C)(1) or (2) of section
1322.02 of the Revised Code is guilty of a misdemeanor of the
first degree.
Sec. 1343.011. (A) As used in this section:
(1) "Discount points" means any charges, whether or not
actually denominated as "discount points," that are paid by the
seller or the buyer of residential real property to a residential
mortgage lender or that are deducted and retained by a residential
mortgage lender from the proceeds of the residential mortgage.
"Discount points" does not include the costs associated with
settlement services as defined in the "Real Estate Settlement
Procedures Act of 1974," 88 Stat. 1724, 12 U.S.C. 2601, amendments
thereto, reenactments thereof, enactments parallel thereto, or in
substitution therefor, or regulations issued thereunder.
(2) "Residential mortgage" means an obligation to pay a sum
of money evidenced by a note and secured by a lien upon real
property located within this state containing two or fewer
residential units or on which two or fewer residential units are
to be constructed and includes such an obligation on a residential
condominium or cooperative unit.
(3) "Residential mortgage lender" means any person, bank, or
savings and loan association that lends money or extends or grants
credit and obtains a residential mortgage to assure payment of the
debt. The term also includes the holder at any time of a
residential mortgage obligation.
(B) Except residential mortgage loans described in division
(B)(3) of section 1343.01 of the Revised Code, no residential
mortgage lender shall receive either directly or indirectly from a
seller or buyer of real estate any discount points in excess of
two per cent of the original principal amount of the residential
mortgage. This division is not a limitation on discount points or
other charges for purposes of section 501(b)(4) of the "Depository
Institutions Deregulation and Monetary Control Act of 1980," 94
Stat. 161, 12 U.S.C.A. 1735f-7a.
(C)(1) Except as provided in division (C)(2) of this section,
residential mortgage obligations may be prepaid or refinanced
without penalty at any time after five years from the execution
date of the mortgage. Prior to such time a prepayment or
refinancing penalty may be provided not in excess of one per cent
of the original principal amount of the residential mortgage.
(2)(a) No penalty may be charged for the prepayment or
refinancing of a residential mortgage obligation of less than
seventy-five thousand dollars that is made or arranged by a
mortgage broker, loan originator officer, or nonbank mortgage
lender, as those terms are defined in section 1345.01 of the
Revised Code, and that is secured by a mortgage on a borrower's
real estate that is a first lien on the real estate.
(b) The amount specified in division (C)(2)(a) of this
section shall be adjusted annually on the first day of January by
the annual percentage change in the consumer price index for all
urban consumers, midwest region, all items, as determined by the
bureau of labor statistics of the United States department of
labor or, if that index is no longer published, a generally
available comparable index, as reported on the first day of June
of the year preceding the adjustment. The department of commerce
shall publish the adjusted amounts on its official web site.
Sec. 1345.01. As used in sections 1345.01 to 1345.13 of the
Revised Code:
(A) "Consumer transaction" means a sale, lease, assignment,
award by chance, or other transfer of an item of goods, a service,
a franchise, or an intangible, to an individual for purposes that
are primarily personal, family, or household, or solicitation to
supply any of these things. "Consumer transaction" does not
include transactions between persons, defined in sections 4905.03
and 5725.01 of the Revised Code, and their customers, except for
transactions involving a loan made pursuant to sections 1321.35 to
1321.48 of the Revised Code and transactions in connection with
residential mortgages between loan originators officers, mortgage
brokers, or nonbank mortgage lenders and their customers;
transactions between certified public accountants or public
accountants and their clients; transactions between attorneys,
physicians, or dentists and their clients or patients; and
transactions between veterinarians and their patients that pertain
to medical treatment but not ancillary services.
(B) "Person" includes an individual, corporation, government,
governmental subdivision or agency, business trust, estate, trust,
partnership, association, cooperative, or other legal entity.
(C) "Supplier" means a seller, lessor, assignor, franchisor,
or other person engaged in the business of effecting or soliciting
consumer transactions, whether or not the person deals directly
with the consumer. If the consumer transaction is in connection
with a residential mortgage, "supplier" does not include an
assignee or purchaser of the loan for value, except as otherwise
provided in section 1345.091 of the Revised Code. For purposes of
this division, in a consumer transaction in connection with a
residential mortgage, "seller" means a loan originator officer,
mortgage broker, or nonbank mortgage lender.
(D) "Consumer" means a person who engages in a consumer
transaction with a supplier.
(E) "Knowledge" means actual awareness, but such actual
awareness may be inferred where objective manifestations indicate
that the individual involved acted with such awareness.
(F) "Natural gas service" means the sale of natural gas,
exclusive of any distribution or ancillary service.
(G) "Public telecommunications service" means the
transmission by electromagnetic or other means, other than by a
telephone company as defined in section 4927.01 of the Revised
Code, of signs, signals, writings, images, sounds, messages, or
data originating in this state regardless of actual call routing.
"Public telecommunications service" excludes a system, including
its construction, maintenance, or operation, for the provision of
telecommunications service, or any portion of such service, by any
entity for the sole and exclusive use of that entity, its parent,
a subsidiary, or an affiliated entity, and not for resale,
directly or indirectly; the provision of terminal equipment used
to originate telecommunications service; broadcast transmission by
radio, television, or satellite broadcast stations regulated by
the federal government; or cable television service.
(H)(1) "Loan originator officer" has the same meaning means
an individual who for compensation or gain, or in anticipation of
compensation or gain, takes or offers to take a residential
mortgage loan application; assists or offers to assist a buyer in
obtaining or applying to obtain a residential mortgage loan by,
among other things, advising on loan terms, including rates, fees,
and other costs; offers or negotiates terms of a residential
mortgage loan; or issues or offers to issue a commitment for a
residential mortgage loan. "Loan officer" also includes a loan
originator as defined in division (E)(1) of section 1322.01 of the
Revised Code, and includes a "mortgage loan originator" as defined
in section 1321.51 of the Revised Code, except that it.
(2) "Loan officer" does not include an employee of a bank,
savings bank, savings and loan association, credit union, or
credit union service organization organized under the laws of this
state, another state, or the United States; an employee of a
subsidiary of such a bank, savings bank, savings and loan
association, or credit union; or an employee of an affiliate that
(1)(a) controls, is controlled by, or is under common control
with, such a bank, savings bank, savings and loan association, or
credit union and (2)(b) is subject to examination, supervision,
and regulation, including with respect to the affiliate's
compliance with applicable consumer protection requirements, by
the board of governors of the federal reserve system, the
comptroller of the currency, the office of thrift supervision, the
federal deposit insurance corporation, or the national credit
union administration.
(I) "Residential mortgage" or "mortgage" means an obligation
to pay a sum of money evidenced by a note and secured by a lien
upon real property located within this state containing two or
fewer residential units or on which two or fewer residential units
are to be constructed and includes such an obligation on a
residential condominium or cooperative unit.
(J)(1) "Mortgage broker" has the same meaning as in section
1322.01 of the Revised Code, except that it means any of the
following:
(a) A person that holds that person out as being able to
assist a buyer in obtaining a mortgage and charges or receives
from either the buyer or lender money or other valuable
consideration readily convertible into money for providing this
assistance;
(b) A person that solicits financial and mortgage information
from the public, provides that information to a mortgage broker or
a person that makes residential mortgage loans, and charges or
receives from either of them money or other valuable consideration
readily convertible into money for providing the information;
(c) A person engaged in table-funding or warehouse-lending
mortgage loans that are residential mortgage loans.
(2) "Mortgage broker" does not include a bank, savings bank,
savings and loan association, credit union, or credit union
service organization organized under the laws of this state,
another state, or the United States; a subsidiary of such a bank,
savings bank, savings and loan association, or credit union; an
affiliate that (1)(a) controls, is controlled by, or is under
common control with, such a bank, savings bank, savings and loan
association, or credit union and (2)(b) is subject to examination,
supervision, and regulation, including with respect to the
affiliate's compliance with applicable consumer protection
requirements, by the board of governors of the federal reserve
system, the comptroller of the currency, the office of thrift
supervision, the federal deposit insurance corporation, or the
national credit union administration; or an employee of any such
entity.
(K) "Nonbank mortgage lender" means any person that engages
in a consumer transaction in connection with a residential
mortgage, except for a bank, savings bank, savings and loan
association, credit union, or credit union service organization
organized under the laws of this state, another state, or the
United States; a subsidiary of such a bank, savings bank, savings
and loan association, or credit union; or an affiliate that (1)
controls, is controlled by, or is under common control with, such
a bank, savings bank, savings and loan association, or credit
union and (2) is subject to examination, supervision, and
regulation, including with respect to the affiliate's compliance
with applicable consumer protection requirements, by the board of
governors of the federal reserve system, the comptroller of the
currency, the office of thrift supervision, the federal deposit
insurance corporation, or the national credit union
administration.
(L) For purposes of divisions (H), (J), and (K) of this
section:
(1) "Control" of another entity means ownership, control, or
power to vote twenty-five per cent or more of the outstanding
shares of any class of voting securities of the other entity,
directly or indirectly or acting through one or more other
persons.
(2) "Credit union service organization" means a CUSO as
defined in 12 C.F.R. 702.2.
Sec. 1345.05. (A) The attorney general shall:
(1) Adopt, amend, and repeal procedural rules;
(2) Adopt as a rule a description of the organization of the
attorney general's office, stating the general courses and methods
of operation of the section of the office of the attorney general,
which is to administer Chapter 1345. of the Revised Code and
methods whereby the public may obtain information or make
submissions or requests, including a description of all forms and
instructions used by that office;
(3) Make available for public inspection all rules and all
other written statements of policy or interpretations adopted or
used by the attorney general in the discharge of the attorney
general's functions, together with all judgments, including
supporting opinions, by courts of this state that determine the
rights of the parties and concerning which appellate remedies have
been exhausted, or lost by the expiration of the time for appeal,
determining that specific acts or practices violate section
1345.02, 1345.03, or 1345.031 of the Revised Code;
(4) Inform consumers and suppliers on a continuing basis of
acts or practices that violate Chapter 1345. of the Revised Code
by, among other things, publishing an informational document
describing acts and practices in connection with residential
mortgages that are unfair, deceptive, or unconscionable, and by
making that information available on the attorney general's
official web site;
(5) Cooperate with state and local officials, officials of
other states, and officials of the federal government in the
administration of comparable statutes;
(6) Report annually on or before the first day of January to
the governor and the general assembly on the operations of the
attorney general in respect to Chapter 1345. of the Revised Code,
and on the acts or practices occurring in this state that violate
such chapter. The report shall include a statement of
investigatory and enforcement procedures and policies, of the
number of investigations and enforcement proceedings instituted
and of their disposition, and of other activities of the state and
of other persons to promote the purposes of Chapter 1345. of the
Revised Code.
(7) In carrying out official duties, the attorney general
shall not disclose publicly the identity of suppliers investigated
or the facts developed in investigations unless these matters have
become a matter of public record in enforcement proceedings, in
public hearings conducted pursuant to division (B)(1) of this
section, or the suppliers investigated have consented in writing
to public disclosure.
(B) The attorney general may:
(1) Conduct research, make inquiries, hold public hearings,
and publish studies relating to consumer transactions;
(2) Adopt, amend, and repeal substantive rules defining with
reasonable specificity acts or practices that violate sections
1345.02, 1345.03, and 1345.031 of the Revised Code. In adopting,
amending, or repealing substantive rules defining acts or
practices that violate section 1345.02 of the Revised Code, due
consideration and great weight shall be given to federal trade
commission orders, trade regulation rules and guides, and the
federal courts' interpretations of subsection 45(a)(1) of the
"Federal Trade Commission Act," 38 Stat. 717 (1914), 15 U.S.C.A.
41, as amended.
In adopting, amending, or repealing such rules concerning a
consumer transaction in connection with a residential mortgage,
the attorney general shall consult with the superintendent of
financial institutions and shall give due consideration to state
and federal statutes, regulations, administrative agency
interpretations, and case law.
(C) In the conduct of public hearings authorized by this
section, the attorney general may administer oaths, subpoena
witnesses, adduce evidence, and require the production of relevant
material. Upon failure of a person without lawful excuse to obey a
subpoena or to produce relevant matter, the attorney general may
apply to a court of common pleas for an order compelling
compliance.
(D) The attorney general may request that an individual who
refuses to testify or to produce relevant material on the ground
that the testimony or matter may incriminate the individual be
ordered by the court to provide the testimony or matter. With the
exception of a prosecution for perjury and an action for damages
under section 1345.07 or 1345.09 of the Revised Code, an
individual who complies with a court order to provide testimony or
matter, after asserting a privilege against self incrimination to
which the individual is entitled by law, shall not be subjected to
a criminal proceeding on the basis of the testimony or matter
discovered through that testimony or matter.
(E) Any person may petition the attorney general requesting
the adoption, amendment, or repeal of a rule. The attorney general
shall prescribe by rule the form for such petitions and the
procedure for their submission, consideration, and disposition.
Within sixty days of submission of a petition, the attorney
general shall either deny the petition in writing, stating the
reasons for the denial, or initiate rule-making proceedings. There
is no right to appeal from such denial of a petition.
(F) All rules shall be adopted subject to Chapter 119. of the
Revised Code.
(G) The informational document published in accordance with
division (A)(4) of this section shall be made available for
distribution to consumers who are applying for a mortgage loan. An
acknowledgement of receipt shall be retained by the lender,
mortgage broker, and loan originator officer, as applicable,
subject to review by the attorney general and the department of
commerce.
Sec. 1345.09. For a violation of Chapter 1345. of the
Revised Code, a consumer has a cause of action and is entitled to
relief as follows:
(A) Where the violation was an act prohibited by section
1345.02, 1345.03, or 1345.031 of the Revised Code, the consumer
may, in an individual action, rescind the transaction or recover
the consumer's actual economic damages plus an amount not
exceeding five thousand dollars in noneconomic damages.
(B) Where the violation was an act or practice declared to be
deceptive or unconscionable by rule adopted under division (B)(2)
of section 1345.05 of the Revised Code before the consumer
transaction on which the action is based, or an act or practice
determined by a court of this state to violate section 1345.02,
1345.03, or 1345.031 of the Revised Code and committed after the
decision containing the determination has been made available for
public inspection under division (A)(3) of section 1345.05 of the
Revised Code, the consumer may rescind the transaction or recover,
but not in a class action, three times the amount of the
consumer's actual economic damages or two hundred dollars,
whichever is greater, plus an amount not exceeding five thousand
dollars in noneconomic damages or recover damages or other
appropriate relief in a class action under Civil Rule 23, as
amended.
(C)(1) Except as otherwise provided in division (C)(2) of
this section, in any action for rescission, revocation of the
consumer transaction must occur within a reasonable time after the
consumer discovers or should have discovered the ground for it and
before any substantial change in condition of the subject of the
consumer transaction.
(2) If a consumer transaction between a loan
originator
officer, mortgage broker, or nonbank mortgage lender and a
customer is in connection with a residential mortgage, revocation
of the consumer transaction in an action for rescission is only
available to a consumer in an individual action, and shall occur
for no reason other than one or more of the reasons set forth in
the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C. 1635,
not later than the time limit within which the right of rescission
under section 125(f) of the "Truth in Lending Act" expires.
(D) Any consumer may seek a declaratory judgment, an
injunction, or other appropriate relief against an act or practice
that violates this chapter.
(E) When a consumer commences an individual action for a
declaratory judgment or an injunction or a class action under this
section, the clerk of court shall immediately mail a copy of the
complaint to the attorney general. Upon timely application, the
attorney general may be permitted to intervene in any private
action or appeal pending under this section. When a judgment under
this section becomes final, the clerk of court shall mail a copy
of the judgment including supporting opinions to the attorney
general for inclusion in the public file maintained under division
(A)(3) of section 1345.05 of the Revised Code.
(F) The court may award to the prevailing party a reasonable
attorney's fee limited to the work reasonably performed, if either
of the following apply:
(1) The consumer complaining of the act or practice that
violated this chapter has brought or maintained an action that is
groundless, and the consumer filed or maintained the action in bad
faith;
(2) The supplier has knowingly committed an act or practice
that violates this chapter.
(G) As used in this section, "actual economic damages" means
damages for direct, incidental, or consequential pecuniary losses
resulting from a violation of Chapter 1345. of the Revised Code
and does not include damages for noneconomic loss as defined in
section 2315.18 of the Revised Code.
(H) Nothing in this section shall preclude a consumer from
also proceeding with a cause of action under any other theory of
law.
Sec. 1349.31. (A)(1) No creditor shall willfully and
knowingly fail to comply with section 1349.26 or 1349.27 of the
Revised Code. For purposes of division (A)(1) of this section,
"willfully and knowingly" has the same meaning as in section 112
of the "Truth in Lending Act," 82 Stat. 146 (1968), 15 U.S.C.A.
1611, as amended.
(2) Whoever violates division (A)(1) of this section is
guilty of a felony of the fifth degree.
(B) The superintendent of financial institutions may directly
bring an action to enjoin a violation of this section. The
attorney general may directly bring an action against a mortgage
broker, loan originator officer, or nonbank mortgage lender to
enjoin a violation of this section with the same rights,
privileges, and powers as those described in section 1345.06 of
the Revised Code. The prosecuting attorney of the county in which
the action may be brought may bring an action against a mortgage
broker, loan
originator officer, or nonbank mortgage lender to
enjoin a violation of this section only if the prosecuting
attorney first presents any evidence of the violation to the
attorney general and, within a reasonable period of time, the
attorney general has not agreed to bring the action.
For purposes of this division, "loan originator officer,"
"mortgage broker," and "nonbank mortgage lender" have the same
meanings as in section 1345.01 of the Revised Code.
(C)(1) The superintendent of financial institutions may
initiate criminal proceedings under this section by presenting any
evidence of criminal violations to the prosecuting attorney of the
county in which the offense may be prosecuted. If the prosecuting
attorney does not prosecute the violations, or at the request of
the prosecuting attorney, the superintendent shall present any
evidence of criminal violations to the attorney general, who may
proceed in the prosecution with all the rights, privileges, and
powers conferred by law on prosecuting attorneys, including the
power to appear before grand juries and to interrogate witnesses
before such grand juries. These powers of the attorney general
shall be in addition to any other applicable powers of the
attorney general.
(2) The prosecuting attorney of the county in which an
alleged offense may be prosecuted may initiate criminal
proceedings under this section.
(3) In order to initiate criminal proceedings under this
section, the attorney general shall first present any evidence of
criminal violations to the prosecuting attorney of the county in
which the alleged offense may be prosecuted. If, within a
reasonable period of time, the prosecuting attorney has not agreed
to prosecute the violations, the attorney general may proceed in
the prosecution with all the rights, privileges, and powers
described in division (C)(1) of this section.
Sec. 1349.43. (A) As used in this section, "loan
originator
officer," "mortgage broker," and "nonbank mortgage lender" have
the same meanings as in section 1345.01 of the Revised Code.
(B) The department of commerce shall establish and maintain
an electronic database accessible through the internet that
contains information on all of the following:
(1) The enforcement actions taken by the superintendent of
financial institutions for each violation of or failure to comply
with any provision of sections 1322.01 to 1322.12 of the Revised
Code, upon final disposition of the action;
(2) The enforcement actions taken by the attorney general
under Chapter 1345. of the Revised Code against loan
originators
officers, mortgage brokers, and nonbank mortgage lenders, upon
final disposition of each action;
(3) All judgments by courts of this state, concerning which
appellate remedies have been exhausted or lost by the expiration
of the time for appeal, finding either of the following:
(a) A violation of any provision of sections 1322.01 to
1322.12 of the Revised Code;
(b) That specific acts or practices by a loan
originator
officer, mortgage broker, or nonbank mortgage lender violate
section 1345.02, 1345.03, or 1345.031 of the Revised Code.
(C) The attorney general shall submit to the department, on
the first day of each January, April, July, and October, a list of
all enforcement actions and judgments described in divisions
(B)(2) and (3)(b) of this section.
(D) The department may adopt rules in accordance with Chapter
119. of the Revised Code that are necessary to implement this
section.
(E) The electronic database maintained by the department in
accordance with this section shall not include information that,
pursuant to section 1322.061 of the Revised Code, is confidential.
Sec. 1541.083. The chief of the division of parks and
recreation, with the approval of the director of natural
resources, the attorney general, and the governor, may make leases
to parties making application therefor for leases granting
permission to take and remove halite from beneath the surface of
Headlands state park in Lake county, and coal by underground
mining methods from beneath the surface of Jefferson state park in
Jefferson county and from beneath the surface of Burr Oak state
park in Athens and Morgan counties pursuant to lease agreements
and real estate transactions that have been entered into not later
than January 1, 2011, if
he the chief finds that such taking and
removal will in no way affect the surface of the land or the use
thereof of the land as a public park. As the chief deems in the
best interest of the state,
such those leases may be made either
upon a royalty or rental basis, and may be either for a term of
years or until the economic extraction of the mineral covered
thereby by the lease has been completed. Upon request from the
lessee of any such lease, the chief may consent to its
cancellation, but any equipment or improvement thereon owned by
the lessee may be held as security by the chief for payment of all
rentals, royalties, and damages due the state at the time of
cancellation.
Sec. 1733.252. (A) As used in this section, "nationwide
mortgage licensing system and registry" has the same meaning as in
section 1322.01 of the Revised Code.
(B) Subject to division (C) of this section, each credit
union, the subsidiaries of the credit union, and the loan
originators employed by the credit union, shall comply with the
"Secure and Fair Enforcement for Mortgage Licensing Act of 2008,"
122 Stat. 2810, 12 U.S.C. 5101, and register with the nationwide
mortgage licensing system and registry.
(C) Compliance Unless otherwise preempted by federal law,
compliance by a credit union insured by a credit union share
guaranty corporation established under Chapter 1761. of the
Revised Code, the subsidiaries of the credit union, and the loan
originators employed by the credit union shall be determined by
rules adopted by the superintendent of financial institutions in
accordance with Chapter 119. of the Revised Code. At a minimum,
the rules shall require loan originators to furnish to the
nationwide mortgage licensing system and registry information
concerning the loan originator's identity and be consistent with
the requirements for federally insured credit unions adopted by
the national credit union administration pursuant to the "Secure
and Fair Enforcement for Mortgage Licensing Act of 2008.
Sec. 5302.01. The forms set forth in sections 5302.05,
5302.07, 5302.09, 5302.11, 5302.12, 5302.14, and 5302.17, and
5302.22 of the Revised Code may be used and shall be sufficient
for their respective purposes. They shall be known as "Statutory
Forms" and may be referred to as such. They may be altered as
circumstances require, and the authorization of such those forms
shall not prevent the use of other forms. Wherever the phrases
defined in sections 5302.06, 5302.08, 5302.10, and 5302.13 of the
Revised Code are to be incorporated in instruments by reference,
the method of incorporation as indicated in the statutory forms
shall be sufficient, but shall not preclude other methods.
Sec. 5302.02. The rules and definitions contained in
sections 5302.03, 5302.04, 5302.06, 5302.08, 5302.10, 5302.13,
5302.17, 5302.18, 5302.19, 5302.20, and 5302.21, and 5302.22 of
the Revised Code apply to all deeds or other instruments relating
to real estate, whether the statutory forms or other forms are
used, where the instruments are executed on or after October 1,
1965, or, in relation to the. The rules and definitions contained
in section 5302.22 of the Revised Code, as it existed prior to the
effective date of this amendment, apply to instruments executed on
or after August 29, 2000, and prior to the effective date of this
amendment. The rules and definitions contained in section 5302.22
of the Revised Code apply to instruments executed on or after the
effective date of this amendment.
Sec. 5302.22. (A) A deed conveying any interest in real
property, and in substance following the form set forth in this
division, when duly executed in accordance with Chapter 5301. of
the Revised Code and recorded in the office of the county
recorder, creates a present interest as sole owner or as a tenant
in common in the grantee and creates a transfer on death interest
in the beneficiary or beneficiaries. Upon the death of the
grantee, the deed vests the interest of the decedent in the
beneficiary or beneficiaries. The deed described in this division
shall in substance conform to the following form:
"Transfer on Death Deed
.................... (marital status), of ........... County,
.................... (for valuable consideration paid, if any),
grant(s) (with covenants, if any), to .................... whose
tax mailing address is ...................., transfer on death to
...................., beneficiary(s), the following real property:
(Description of land or interest in land and encumbrances,
reservations, and exceptions, if any.)
Prior Instrument Reference: .............................
...................., wife (husband) of the grantor, releases all
rights of dower therein.
Executed this ............... day of ................
|
............................... |
|
(Signature of Grantor) |
(Execution in accordance with Chapter 5301. of the Revised
Code)" As used in sections 5302.22, 5302.222, 5302.23, and 5302.24
of the Revised Code:
(1) "Affidavit of confirmation" means an affidavit executed
under division (A) of section 5302.222 of the Revised Code.
(2) "Survivorship tenancy" means an ownership of real
property or any interest in real property by two or more persons
that is created by executing a deed pursuant to section 5302.17 of
the Revised Code.
(3) "Survivorship tenant" means one of the owners of real
property or any interest in real property in a survivorship
tenancy.
(4) "Tenants by the entireties" mean only those persons who
are vested as tenants in an estate by the entireties with
survivorship pursuant to any deed recorded between February 9,
1972, and April 3, 1985, under section 5302.17 of the Revised Code
as it existed during that period of time. Nothing in sections
5302.22, 5302.222, 5302.23, and 5302.24 of the Revised Code
authorizes the creation of a tenancy by the entireties or
recognizes a tenancy by the entireties created outside that period
of time.
(5) "Transfer on death designation affidavit" means an
affidavit executed under this section.
(6) "Transfer on death beneficiary or beneficiaries" means
the beneficiary or beneficiaries designated in a transfer on death
designation affidavit.
(B) Any person individual who, under the Revised Code or the
common law of this state, owns real property or any interest in
real property as a sole owner or, as a tenant in common, or as a
survivorship tenant, or together with the individual's spouse owns
an indivisible interest in real property as tenants by the
entireties, may create an designate the entire interest, or any
specified part that is less than the entire interest, in
the that
real property as transferable on death to a designated beneficiary
or beneficiaries by executing and recording a deed, together with
the individual's spouse, if any, a transfer on death designation
affidavit as provided in this section conveying the person's
entire, separate interest in the real property to one or more
individuals, including the grantor, and designating one or more
other persons, identified in the deed by name, as transfer on
death beneficiaries.
A deed conveying an interest in real property that includes a
transfer on death beneficiary designation need not be supported by
consideration and need not be delivered to the transfer on death
beneficiary to be effective. If the affidavit is executed by an
individual together with the individual's spouse, if any, the
dower rights of the spouse are subordinate to the vesting of title
to the interest in the real property in the transfer on death
beneficiary or beneficiaries designated under this section. The
affidavit shall be recorded in the office of the county recorder
in the county in which the real property is located, and, when so
recorded, the affidavit or a certified copy of the affidavit shall
be evidence of the transfer on death beneficiary or beneficiaries
so designated in the affidavit insofar as the affidavit affects
title to the real property.
(C) Upon (1) If an individual who owns real property or an
interest in real property as a sole owner or as a tenant in common
executes a transfer on death designation affidavit, upon the death
of that individual, title to the real property or interest in the
real property specified in the affidavit vests in the transfer on
death beneficiary or beneficiaries designated in the affidavit.
(2) If an individual who owns real property or an interest in
real property as a survivorship tenant executes a transfer on
death designation affidavit, upon the death of that individual or
of one but not all of the surviving survivorship tenants, title to
the real property or interest in the real property specified in
the affidavit vests in the surviving survivorship tenant or
tenants. Upon the death of the last surviving survivorship tenant,
title to the real property or interest in the real property vests
in the transfer on death beneficiary or beneficiaries designated
in the affidavit, subject to division (B)(7) of section 5302.23 of
the Revised Code.
(3) If an individual who together with the individual's
spouse owns an indivisible interest in real property as tenants by
the entireties executes a transfer on death designation affidavit,
upon the death of that individual, title to the real property or
interest in the real property vests in the remaining tenant by the
entireties. Upon the death of the remaining tenant by the
entireties, title to the real property or interest in the real
property vests in the transfer on death beneficiary or
beneficiaries designated in the affidavit, subject to division
(B)(7) of section 5302.23 of the Revised Code.
(D) A transfer on death designation affidavit shall be
verified before any person authorized to administer oaths and
shall include all of the following:
(1) A description of the real property the title to which is
affected by the affidavit and a reference to an instrument of
record containing that description;
(2) If less than the entire interest in the real property is
to be transferred on death under the affidavit, a statement of the
specific interest or part of the interest in the real property
that is to be so transferred;
(3) A statement by the individual executing the affidavit
that the individual is the person appearing on the record of the
real property as the owner of the real property or interest in the
real property at the time of the recording of the affidavit and
the marital status of that owner. If the owner is married, the
affidavit shall include a statement by the owner's spouse stating
that the spouse's dower rights are subordinate to the vesting of
title to the real property or interest in the real property in the
transfer on death beneficiary or beneficiaries designated in the
affidavit.
(4) A statement designating one or more persons, identified
by name, as transfer on death beneficiary or beneficiaries.
(E) The county recorder of the county in which a transfer on
death designation affidavit is offered for recording shall receive
the affidavit and cause it to be recorded in the same manner as
deeds are recorded. The county recorder shall collect a fee for
recording the affidavit in the same amount as the fee for
recording deeds. The county recorder shall index the affidavit in
the name of the owner of record of the real property or interest
in the real property who executed the affidavit.
(F) A transfer on death designation affidavit need not be
supported by consideration and need not be delivered to the
transfer on death beneficiary or beneficiaries designated in the
affidavit to be effective. However, in order to be effective, that
affidavit shall be recorded with the county recorder as described
in this section prior to the death of the individual who executed
the affidavit.
(G) Subject to division (C) of this section, upon the death
of any individual who owns real property or an interest in real
property that is subject to a transfer on death beneficiary
designation made under a transfer on death deed designation
affidavit as provided in this section,
the deceased owner's that
real property or interest in real property of the deceased owner
shall be transferred only to the transfer on death beneficiary or
beneficiaries who are identified in the deed affidavit by name and
who survive the deceased owner or that are in existence on the
date of death of the deceased owner. The transfer of the deceased
owner's interest shall be recorded by presenting to the county
auditor and filing with the county recorder an affidavit,
accompanied by a certified copy of a death certificate for the
deceased owner. The affidavit shall recite the name and address of
each designated transfer on death beneficiary who survived the
deceased owner or that is in existence on the date of the deceased
owner's death, the date of the deceased owner's death, a
description of the subject real property or interest in real
property, and the names of each designated transfer on death
beneficiary who has not survived the deceased owner or that is not
in existence on the date of the deceased owner's death. The
affidavit shall be accompanied by a certified copy of a death
certificate for each designated transfer on death beneficiary who
has not survived the deceased owner. The county recorder shall
make an index reference to any affidavit so filed in the record of
deeds.
Upon the death of any individual holding real property or an
interest in real property that is subject to a transfer on death
beneficiary designation made under a transfer on death deed as
provided in this section, if the title to the real property is
registered pursuant to Chapter 5309. of the Revised Code, the
procedure for the transfer of the interest of the deceased owner
shall be pursuant to section 5309.081 of the Revised Code For
purposes of this division, if a natural or legal person designated
by name in the affidavit as a transfer on death beneficiary or as
a contingent transfer on death beneficiary as provided in division
(B)(2) of section 5302.23 of the Revised Code solely in that
person's capacity as a trustee of a trust has died, has resigned,
or otherwise has been replaced by a successor trustee of the trust
on the date of death of the deceased owner, the successor trustee
of the trust shall be considered the transfer on death beneficiary
or contingent transfer on death beneficiary in existence on the
date of death of the deceased owner in full compliance with this
division, notwithstanding that the successor trustee is not named
as a transfer on death beneficiary or contingent transfer on death
beneficiary in the affidavit.
(H) Any person who knowingly makes any false statement in a
transfer on death designation affidavit is guilty of falsification
under division (A)(6) of section 2921.13 of the Revised Code.
Sec. 5302.221. (A) As used in this section:
"Estate" has the same meaning as in section 5111.11 of the
Revised Code.
"Medicaid estate recovery program" means the program
instituted under section 5111.11 of the Revised Code.
(B) The administrator of the medicaid estate recovery program
shall prescribe a form on which a beneficiary of a transfer on
death deed designation affidavit as provided in section 5302.22 of
the Revised Code, who survives the deceased owner of the real
property or an interest in the real property or that is in
existence on the date of death of the deceased owner, or such a
that beneficiary's representative is to indicate both of the
following:
(1) Whether the deceased owner was either of the following:
(a) A decedent subject to the medicaid estate recovery
program;
(b) The spouse of a decedent subject to the medicaid estate
recovery program.
(2) Whether the real property or interest in the real
property was part of the estate of a decedent subject to the
medicaid estate recovery program.
(C) A county recorder shall obtain a properly completed form
prescribed under division (B) of this section from the beneficiary
of a transfer on death deed designation affidavit or the
beneficiary's representative and send a copy of the form to the
administrator of the medicaid estate recovery program before
recording the transfer of the real property or interest in the
real property under division (C) of section 5302.22 5302.222 of
the Revised Code.
Sec. 5302.222. (A) The transfer of a deceased owner's real
property or interest in real property as designated in a transfer
on death designation affidavit provided in section 5302.22 of the
Revised Code shall be recorded by presenting to the county auditor
of the county in which the real property is located and filing
with the county recorder of that county an affidavit of
confirmation executed by any transfer on death beneficiary to whom
the transfer is made. The affidavit of confirmation shall be
verified before a person authorized to administer oaths and shall
be accompanied by a certified copy of the death certificate for
the deceased owner. The affidavit of confirmation shall contain
all of the following information:
(1) The name and address of each transfer on death
beneficiary who survived the deceased owner or that is in
existence on the date of death of the deceased owner. If a named
beneficiary was designated as a transfer on death beneficiary
solely in that person's capacity as a trustee of a trust and that
trustee subsequently has been replaced by a successor trustee, the
affidavit of confirmation shall include the name and address of
the successor trustee and shall be accompanied by a copy of the
recorded successor trustee affidavit described in section 5302.171
of the Revised Code.
(2) The date of death of the deceased owner;
(3) A description of the subject real property or interest in
real property;
(4) The name of each transfer on death beneficiary who has
not survived the deceased owner or that is not in existence on the
date of death of the deceased owner.
(B) The affidavit of confirmation shall be accompanied by a
certified copy of the death certificate for each transfer on death
beneficiary who has not survived the deceased owner.
(C) The county recorder shall make an index reference in the
record of deeds to any affidavit of confirmation filed with the
county recorder under this section.
(D) Upon the death of any individual holding real property or
an interest in real property that is the subject of a transfer on
death designation affidavit as provided in section 5302.22 of the
Revised Code, if the title to the real property is registered
pursuant to Chapter 5309. of the Revised Code, the procedure for
the transfer of the interest of the deceased owner to the transfer
on death beneficiary or beneficiaries designated in the affidavit
shall be pursuant to section 5309.081 of the Revised Code.
(E) Any person who knowingly makes any false statement in an
affidavit of confirmation is guilty of falsification under
division (A)(6) of section 2921.13 of the Revised Code.
Sec. 5302.23. (A) Any deed affidavit containing language
that shows a clear intent to designate a transfer on death
beneficiary shall be liberally construed to do so.
(B) Real property or an interest in real property that is the
subject
to of a transfer on death beneficiary designation
affidavit as provided in section 5302.22 of the Revised Code or as
described in division (A) of this section has all of the following
characteristics and ramifications:
(1) An interest of a deceased owner shall be transferred to
the transfer on death beneficiaries who are identified in the deed
affidavit by name and who survive the deceased owner or that are
in existence on the date of the deceased owner's death. If there
is a designation of more than one transfer on death beneficiary,
the beneficiaries shall take title in to the interest in equal
shares as tenants in common, unless the deceased owner has
specifically designated other than equal shares or has designated
that the beneficiaries take title as survivorship tenants, subject
to division (B)(3) of this section. If a transfer on death
beneficiary does not survive the deceased owner or is not in
existence on the date of the deceased owner's death, and the
deceased owner has designated one or more persons as contingent
transfer on death beneficiaries as provided in division (B)(2) of
this section, the designated contingent transfer on death
beneficiaries shall take the same interest that would have passed
to the transfer on death beneficiary had that transfer on death
beneficiary survived the deceased owner or been in existence on
the date of the deceased owner's death. If none of the designated
transfer on death beneficiaries survives the deceased owner or is
in existence on the date of the deceased owner's death and no
contingent transfer on death beneficiaries have been designated
or, have survived the deceased owner, or are in existence on the
date of death of the deceased owner, the interest of the deceased
owner shall be distributed as part of the probate estate of the
deceased owner of the interest. If there are two or more transfer
on death beneficiaries and the deceased owner has designated that
title to the interest in the real property be taken by those
beneficiaries as survivorship tenants, no designated contingent
transfer on death beneficiaries shall take title to the interest
unless none of the transfer on death beneficiaries survives the
deceased owner on the date of death of the deceased owner.
(2) A transfer on death deed designation affidavit may
contain a designation of one or more persons as contingent
transfer on death beneficiaries, who shall take the interest of
the deceased owner that would otherwise have passed to the
designated transfer on death beneficiary if that named designated
transfer on death beneficiary does not survive the deceased owner
or is not in existence on the date of death of the deceased owner.
Persons designated as contingent transfer on death beneficiaries
shall be identified in the deed affidavit by name.
(3) Any transfer on death beneficiary or contingent transfer
on death beneficiary may be a natural or legal person, including,
but not limited to, a bank as trustee of a trust, except that if
two or more transfer on death beneficiaries are designated as
survivorship tenants, all of those beneficiaries shall be natural
persons and if two or more contingent transfer on death
beneficiaries are designated as survivorship tenants, all of those
contingent beneficiaries shall be natural persons. A natural
person who is designated a transfer on death beneficiary or
contingent transfer on death beneficiary solely in that natural
person's capacity as a trustee of a trust is not considered a
natural person for purposes of designating the transfer on death
beneficiaries or contingent transfer on death beneficiaries as
survivorship tenants under division (B)(3) of this section.
(4) The designation of a transfer on death beneficiary has no
effect on the present ownership of real property, and a person
designated as a transfer on death beneficiary has no interest in
the real property until the death of the owner of the interest.
(4)(5) The designation in a deed transfer on death
designation affidavit of any transfer on death beneficiary may be
revoked or changed at any time, without the consent of that
designated transfer on death beneficiary, by the owner of the
interest, by the surviving survivorship tenants of the interest,
or by the remaining tenant by the entireties of the interest, by
executing in accordance with Chapter 5301. of the Revised Code and
recording, prior to the death of the owner of the interest, of the
surviving survivorship tenants of the interest, or of the
remaining tenant by the entireties of the interest, as the case
may be, a
deed conveying the grantor's entire, separate interest
in the real property to one or more persons, including the
grantor, with or without the designation of another transfer on
death beneficiary new transfer on death designation affidavit
pursuant to section 5302.22 of the Revised Code stating the
revocation or change in that designation. The new transfer on
death designation affidavit shall automatically supersede and
revoke all prior recorded transfer on death designation affidavits
with respect to the real property or the interest in real property
identified in the new affidavit, provided that the prior recorded
affidavit was executed before the later recorded affidavit.
(5)(6) A fee simple title or any fractional interest in a fee
simple title may be subjected to a transfer on death beneficiary
designation.
(6)(7)(a) A designated transfer on death beneficiary takes
only the interest that the deceased owner or owners of the
interest held on the date of death, subject to all encumbrances,
reservations, and exceptions.
(7)(b) If the owners hold title to the interest in a
survivorship tenancy, the death of all except the last
survivorship tenant automatically terminates and nullifies any
transfer on death beneficiary designations made solely by the
deceased survivorship tenant or tenants without joinder by the
last surviving survivorship tenant. The termination or
nullification of any transfer on death beneficiary designations
under division (B)(7)(b) of this section is effective as of the
date of death of a deceased survivorship tenant. No affirmative
act of revocation is required of the last surviving survivorship
tenant for the termination or nullification of the transfer on
death beneficiary designations to occur as described in division
(B)(7)(b) of this section. If the last surviving survivorship
tenant dies with no transfer on death beneficiary designation, the
entire interest of that last surviving survivorship tenant shall
be distributed as part of the tenant's probate estate.
(c) If the owners hold title to the interest in a tenancy by
the entireties, the death of the first tenant by the entireties
automatically terminates and nullifies any transfer on death
beneficiary designations made solely by that deceased first tenant
without joinder by the remaining tenant by the entireties. The
termination or nullification of any transfer on death beneficiary
designations under division (B)(7)(c) of this section is effective
as of the date of death of the first tenant by the entireties. No
affirmative act of revocation is required of the remaining tenant
by the entireties for the termination or nullification of the
transfer on death beneficiary designations to occur as described
in division (B)(7)(c) of this section. If the remaining tenant by
the entireties dies with no transfer on death beneficiary
designation, the entire interest of that remaining tenant shall be
distributed as part of the tenant's probate estate.
(8) No rights of any lienholder, including, but not limited
to, any mortgagee, judgment creditor, or mechanic's lien holder,
shall be affected by the designation of a transfer on death
beneficiary pursuant to this section and section 5302.22 of the
Revised Code. If any lienholder takes action to enforce the lien,
by foreclosure or otherwise through a court proceeding, it is not
necessary to join
the any transfer on death beneficiary as a party
defendant in the action unless the transfer on death beneficiary
has another interest in the real property that is currently
vested.
(8)(9) Any transfer on death of real property or of an
interest in real property that results from a deed transfer on
death designation affidavit designating a transfer on death
beneficiary is not testamentary. That transfer on death shall
supersede any attempted testate or intestate transfer of that real
property or interest in real property.
(10) The execution and recording of a transfer on death
designation affidavit shall be effective to terminate the
designation of a transfer on death beneficiary in a transfer on
death deed involving the same real property or interest in real
property and recorded prior to the effective date of this section.
(11) The execution and recording of a transfer on death
designation affidavit shall be effective to bar the vesting of any
rights of dower in a subsequent spouse of the owner of the real
property who executed that affidavit unless the affidavit is
revoked or changed.
Sec. 5302.24. Sections 5302.22, 5302.222, and 5302.23 of the
Revised Code do not affect any deed that was executed and recorded
prior to the effective date of this section, or any transfer on
death beneficiary designation made, pursuant to section 5302.22 of
the Revised Code as it existed prior to the effective date of this
section. If that deed or designation is valid on the day prior to
the effective date of this section, the deed or designation
continues to be valid on and after the effective date of this
section. A grantee of that deed need not execute a transfer on
death designation affidavit that designates the same transfer on
death beneficiary or beneficiaries as in the deed unless the
grantee chooses to do so.
Sec. 5815.36. (A) As used in this section:
(1) "Disclaimant" means any person, any guardian or personal
representative of a person or estate of a person, or any
attorney-in-fact or agent of a person having a general or specific
authority to act granted in a written instrument, who is any of
the following:
(a) With respect to testamentary instruments and intestate
succession, an heir, next of kin, devisee, legatee, donee, person
succeeding to a disclaimed interest, surviving joint tenant,
surviving tenant by the entireties, surviving tenant of a tenancy
with a right of survivorship, beneficiary under a testamentary
instrument, or person designated to take pursuant to a power of
appointment exercised by a testamentary instrument;
(b) With respect to nontestamentary instruments, a grantee,
donee, person succeeding to a disclaimed interest, surviving joint
tenant, surviving tenant by the entireties, surviving tenant of a
tenancy with a right of survivorship, beneficiary under a
nontestamentary instrument, or person designated to take pursuant
to a power of appointment exercised by a nontestamentary
instrument;
(c) With respect to fiduciary rights, privileges, powers, and
immunities, a fiduciary under a testamentary or nontestamentary
instrument. Division (A)(1)(c) of this section does not authorize
a fiduciary who disclaims fiduciary rights, privileges, powers,
and immunities to cause the rights of any beneficiary to be
disclaimed unless the instrument creating the fiduciary
relationship authorizes the fiduciary to make such a disclaimer.
(d) Any person entitled to take an interest in property upon
the death of a person or upon the occurrence of any other event.
(2) "Personal representative" includes any fiduciary as
defined in section 2109.01 of the Revised Code and any executor,
trustee, guardian, or other person or entity having a fiduciary
relationship with regard to any interest in property passing to
the fiduciary, executor, trustee, guardian, or other person or
entity by reason of a disclaimant's death.
(3) "Property" means all forms of property, real and
personal, tangible and intangible.
(B)(1) A disclaimant, other than a fiduciary under an
instrument who is not authorized by the instrument to disclaim the
interest of a beneficiary, may disclaim, in whole or in part, the
succession to any property by executing and by delivering, filing,
or recording a written disclaimer instrument in the manner
provided in this section.
(2) A disclaimant who is a fiduciary under an instrument may
disclaim, in whole or in part, any right, power, privilege, or
immunity, by executing and by delivering, filing, or recording a
written disclaimer instrument in the manner provided in this
section.
(3) The written instrument of disclaimer shall be signed and
acknowledged by the disclaimant and shall contain all of the
following:
(a) A reference to the donative instrument;
(b) A description of the property, part of property, or
interest disclaimed, and of any fiduciary right, power, privilege,
or immunity disclaimed;
(c) A declaration of the disclaimer and its extent.
(4) The guardian of the estate of a minor or an incompetent,
or the personal representative of a deceased person, whether or
not authorized by the instrument to disclaim, with the consent of
the probate division of the court of common pleas may disclaim, in
whole or in part, the succession to any property, or interest in
property, that the ward, if an adult and competent, or the
deceased, if living, might have disclaimed. The guardian or
personal representative, or any interested person may file an
application with the probate division of the court of common pleas
that has jurisdiction of the estate, asking that the court order
the guardian or personal representative to execute and deliver,
file, or record the disclaimer on behalf of the ward, estate, or
deceased person. The court shall order the guardian or personal
representative to execute and deliver, file, or record the
disclaimer if the court finds, upon hearing after notice to
interested parties and such other persons as the court shall
direct, that:
(a) It is in the best interests of those interested in the
estate of the person and of those who will take the disclaimed
interest;
(b) It would not materially, adversely affect the minor or
incompetent, or the beneficiaries of the estate of the decedent,
taking into consideration other available resources and the age,
probable life expectancy, physical and mental condition, and
present and reasonably anticipated future needs of the minor or
incompetent or the beneficiaries of the estate of the decedent.
A written instrument of disclaimer ordered by the court under
this division shall be executed and be delivered, filed, or
recorded within the time and in the manner in which the person
could have disclaimed if the person were living, an adult, and
competent.
(C) A partial disclaimer of property that is subject to a
burdensome interest created by the donative instrument is not
effective unless the disclaimed property constitutes a gift that
is separate and distinct from undisclaimed gifts.
(D) The disclaimant shall deliver, file, or record the
disclaimer, or cause the same to be done, prior to accepting any
benefits of the disclaimed interest and at any time after the
latest of the following dates:
(1) The effective date of the donative instrument if both the
taker and the taker's interest in the property are finally
ascertained on that date;
(2) The date of the occurrence of the event upon which both
the taker and the taker's interest in the property become finally
ascertainable;
(3) The date on which the disclaimant attains eighteen years
of age or is no longer an incompetent, without tendering or
repaying any benefit received while the disclaimant was under
eighteen years of age or an incompetent, and even if a guardian of
a minor or incompetent had filed an application pursuant to
division (B)(4) of this section and the probate division of the
court of common pleas involved did not consent to the guardian
executing a disclaimer.
(E) No disclaimer instrument is effective under this section
if either of the following applies under the terms of the
disclaimer instrument:
(1) The disclaimant has power to revoke the disclaimer.
(2) The disclaimant may transfer, or direct to be
transferred, to self the entire legal and equitable ownership of
the property subject to the disclaimer instrument.
(F)(1) Subject to division (F)(2) of this section, if the
interest disclaimed is created by a nontestamentary instrument,
including, but not limited to, a transfer on death designation
affidavit pursuant to section 5302.22 of the Revised Code, the
disclaimer instrument shall be delivered personally or by
certified mail to the trustee or other person who has legal title
to, or possession of, the property disclaimed. If the interest
disclaimed is created by a transfer on death designation affidavit
pursuant to section 5302.22 of the Revised Code, the disclaimer
instrument shall be filed with the county recorder of the county
in which the real property that is the subject of that affidavit
is located.
(2) If the interest disclaimed is created by a testamentary
instrument, by intestate succession, by a transfer on death deed
pursuant to section 5302.22 of the Revised Code, or by a
certificate of title to a motor vehicle, watercraft, or outboard
motor that evidences ownership of the motor vehicle, watercraft,
or outboard motor that is transferable on death pursuant to
section 2131.13 of the Revised Code, the disclaimer instrument
shall be filed in the probate division of the court of common
pleas in the county in which proceedings for the administration of
the decedent's estate have been commenced, and an executed copy of
the disclaimer instrument shall be delivered personally or by
certified mail to the personal representative of the decedent's
estate.
(3) If no proceedings for the administration of the
decedent's estate have been commenced, the disclaimer instrument
shall be filed in the probate division of the court of common
pleas in the county in which proceedings for the administration of
the decedent's estate might be commenced according to law. The
disclaimer instrument shall be filed and indexed, and fees
charged, in the same manner as provided by law for an application
to be appointed as personal representative to administer the
decedent's estate. The disclaimer is effective whether or not
proceedings thereafter are commenced to administer the decedent's
estate. If proceedings thereafter are commenced for the
administration of the decedent's estate, they shall be filed
under, or consolidated with, the case number assigned to the
disclaimer instrument.
(4) If an interest in real estate is disclaimed, an executed
copy of the disclaimer instrument also shall be recorded in the
office of the recorder of the county in which the real estate is
located. The disclaimer instrument shall include a description of
the real estate with sufficient certainty to identify it, and
shall contain a reference to the record of the instrument that
created the interest disclaimed. If title to the real estate is
registered under Chapters 5309. and 5310. of the Revised Code, the
disclaimer interest shall be entered as a memorial on the last
certificate of title. A spouse of a disclaimant has no dower or
other interest in the real estate disclaimed.
(G) If a donative instrument expressly provides for the
distribution of property, part of property, or interest in
property if there is a disclaimer, the property, part of property,
or interest disclaimed shall be distributed or disposed of, and
accelerated or not accelerated, in accordance with the donative
instrument. In the absence of express provisions to the contrary
in the donative instrument, the property, part of property, or
interest in property disclaimed, and any future interest that is
to take effect in possession or enjoyment at or after the
termination of the interest disclaimed, shall descend, be
distributed, or otherwise be disposed of, and shall be
accelerated, in the following manner:
(1) If intestate or testate succession is disclaimed, as if
the disclaimant had predeceased the decedent;
(2) If the disclaimant is one designated to take pursuant to
a power of appointment exercised by a testamentary instrument, as
if the disclaimant had predeceased the donee of the power;
(3) If the donative instrument is a nontestamentary
instrument, as if the disclaimant had died before the effective
date of the nontestamentary instrument;
(4) If the disclaimer is of a fiduciary right, power,
privilege, or immunity, as if the right, power, privilege, or
immunity was never in the donative instrument.
(H) A disclaimer pursuant to this section is effective as of,
and relates back for all purposes to, the date upon which the
taker and the taker's interest have been finally ascertained.
(I) A disclaimant who has a present and future interest in
property, and disclaims the disclaimant's present interest in
whole or in part, is considered to have disclaimed the
disclaimant's future interest to the same extent, unless a
contrary intention appears in the disclaimer instrument or the
donative instrument. A disclaimant is not precluded from
receiving, as an alternative taker, a beneficial interest in the
property disclaimed, unless a contrary intention appears in the
disclaimer instrument or in the donative instrument.
(J) The disclaimant's right to disclaim under this section is
barred if the disclaimant does any of the following:
(1) Assigns, conveys, encumbers, pledges, or transfers, or
contracts to assign, convey, encumber, pledge, or transfer, the
property or any interest in it;
(2) Waives in writing the disclaimant's right to disclaim and
executes and delivers, files, or records the waiver in the manner
provided in this section for a disclaimer instrument;
(3) Accepts the property or an interest in it;
(4) Permits or suffers a sale or other disposition of the
property pursuant to judicial action against the disclaimant.
(K) Neither a fiduciary's application for appointment or
assumption of duties as a fiduciary nor a beneficiary's
application for appointment as a personal representative or
fiduciary waives or bars the disclaimant's right to disclaim a
right, power, privilege, or immunity as a personal representative
or fiduciary or the beneficiary's right to disclaim property.
(L) The right to disclaim under this section exists
irrespective of any limitation on the interest of the disclaimant
in the nature of a spendthrift provision or similar restriction.
(M) A disclaimer instrument or written waiver of the right to
disclaim that has been executed and delivered, filed, or recorded
as required by this section is final and binding upon all persons.
(N) The right to disclaim and the procedures for disclaimer
established by this section are in addition to, and do not exclude
or abridge, any other rights or procedures that exist or formerly
existed under any other section of the Revised Code or at common
law to assign, convey, release, refuse to accept, renounce, waive,
or disclaim property.
(O)(1) No person is liable for distributing or disposing of
property in a manner inconsistent with the terms of a valid
disclaimer if the distribution or disposition is otherwise proper
and the person has no actual knowledge of the disclaimer.
(2) No person is liable for distributing or disposing of
property in reliance upon the terms of a disclaimer that is
invalid because the right of disclaimer has been waived or barred
if the distribution or disposition is otherwise proper and the
person has no actual knowledge of the facts that constitute a
waiver or bar to the right to disclaim.
(P)(1) A disclaimant may disclaim pursuant to this section
any interest in property that is in existence on September 27,
1976, if either the interest in the property or the taker of the
interest in the property is not finally ascertained on that date.
(2) No disclaimer executed pursuant to this section destroys
or diminishes an interest in property that exists on September 27,
1976, in any person other than the disclaimant.
(Q) This section may be applied separately to different
interests or powers created in the disclaimant by the same
testamentary or nontestamentary instrument.
Section 2. That existing sections 317.114, 1321.51, 1321.522,
1321.53, 1321.531, 1321.532, 1321.533, 1321.535, 1321.54, 1321.55,
1321.59, 1322.01, 1322.02, 1322.022, 1322.023, 1322.03, 1322.031,
1322.04, 1322.041, 1322.062, 1322.07, 1322.074, 1322.10, 1322.99,
1343.011, 1345.01, 1345.05, 1345.09, 1349.31, 1349.43, 1541.083,
1733.252, 5302.01, 5302.02, 5302.22, 5302.221, 5302.23, and
5815.36 of the Revised Code are hereby repealed.
Section 3. That Section 745.60 of Am. Sub. H.B. 1 of the
128th General Assembly be amended to read as follows:
Sec. 745.60. (A) Sections 1321.20, 1321.51, 1321.52,
1321.521, 1321.522, 1321.53, 1321.531, 1321.532, 1321.533,
1321.534, 1321.535, 1321.536, 1321.54, 1321.55, 1321.551,
1321.552, 1321.57, 1321.59, 1321.591, 1321.592, 1321.593,
1321.594, 1321.60, 1321.99, 1322.01, 1322.02, 1322.022, 1322.023,
1322.024, 1322.025, 1322.03, 1322.031, 1322.04, 1322.041, 1322.05,
1322.051, 1322.052, 1322.06, 1322.061, 1322.062, 1322.063,
1322.064, 1322.065, 1322.07, 1322.071, 1322.072, 1322.074,
1322.075, 1322.08, 1322.081, 1322.09, 1322.10, 1322.11, 1322.99,
1343.011, 1345.01, 1345.05, 1345.09, 1349.31, and 1349.43,
1733.252, and 1733.26 of the Revised Code, as amended or enacted
by this act Am. Sub. H.B. 1 of the 128th General Assembly, shall
apply on and after January 1, 2010, unless otherwise provided in
this section.
(B)(1) The Division of Financial Institutions shall begin
accepting applications for a mortgage loan originator license, and
applications for an exemption from registration under sections
1321.51 to 1321.60 or 1322.01 to 1322.12 of the Revised Code, on
the effective date of this section October 16, 2009.
(2) In order to continue to operate as an exempt entity, any
credit union service organization in operation as of January 1,
2010, that seeks exemption from registration under sections
1321.51 to 1321.60 of the Revised Code shall obtain a valid letter
of exemption issued by the Superintendent of Financial
Institutions not later than July 1, 2010. Any person performing
the duties of a mortgage loan originator as of January 1, 2010,
shall obtain a mortgage loan originator license from the Division
not later than January 1, 2011, in order to continue to perform
those duties.
(3) In order to continue to operate as an exempt entity, any
mortgage banker or credit union service organization in operation
as of January 1, 2010, that seeks exemption from registration
under sections 1322.01 to 1322.12 of the Revised Code shall obtain
a valid letter of exemption issued by the Superintendent not later
than May 1, 2010. Any individual who, as of January 1, 2010,
performs the duties of a loan originator and is employed by or
associated with any person or entity listed in division (G)(2) of
section 1322.01 of the Revised Code shall obtain a loan originator
license from the Superintendent not later than May 1, 2010, in
order to continue to perform those duties.
(C) Individuals holding a valid mortgage lender certificate
of registration, mortgage broker certificate of registration, or
loan officer license as of January 1, 2010, shall not be required
to be in compliance with the sections described in division (A) of
this section until the first renewal of that certificate or
license after that date.
(D) Sections 1733.252 and 1733.26 of the Revised Code, as
amended or enacted by Am. Sub. H.B. 1 of the 128th General
Assembly, shall apply on and after January 1, 2011.
Section 4. That existing Section 745.60 of Am. Sub. H.B. 1 of
the 128th General Assembly is hereby repealed.
Section 5. (A) Sections 1321.51, 1321.522, 1321.53, 1321.531,
1321.532, 1321.533, 1321.535, 1321.54, 1321.55, 1321.59, 1322.01,
1322.02, 1322.022, 1322.023, 1322.03, 1322.031, 1322.04, 1322.041,
1322.062, 1322.07, 1322.074, 1322.10, 1322.99, 1343.011, 1345.01,
1345.05, 1345.09, 1349.31, and 1349.43 of the Revised Code, as
amended by this act, shall apply on and after January 1, 2010.
(B) Section 1733.252 of the Revised Code, as amended by this
act, shall apply on and after January 1, 2011.
Section 6. A prosecuting attorney or treasurer of a county
with a population greater than eight hundred thousand but less
than nine hundred thousand may determine that the amount of money
appropriated to the respective office from the county Delinquent
Tax and Assessment Collection Fund under division (A) of section
321.261 of the Revised Code exceeds the amount required to be used
by that office as prescribed by division (A)(1) of that section.
If a prosecuting attorney or treasurer of a county with that
population makes such a determination, the prosecuting attorney or
treasurer may expend up to fifty per cent of the excess so
determined to pay the expenses of operating the respective office
that otherwise would be payable from appropriations from the
county general fund, notwithstanding section 321.261 of the
Revised Code.
This section expires December 31, 2011.
Section 7. 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 that
this act makes changes to the sections amended or enacted by Am.
Sub. H.B. 1 of the 128th General Assembly in the implementation of
the federal Secure and Fair Enforcement for Mortgage Licensing Act
of 2008 ("S.A.F.E. Act"), and those sections apply on and after
January 1, 2010. Therefore, this act shall go into immediate
effect.
Section 8. The Governor is hereby authorized to execute a
release of reversionary interest in the name of the state
releasing the state's reversionary interest retained in the
Governor's Deed dated August 2, 1978, and authorized by Sub. H.B.
489 of the 108th General Assembly. That deed was recorded on June
29, 1979, at Deed Volume 248, Page 193 in the records of the
Auglaize County Recorder and was a corrective deed to a Governor's
Deed dated November 20, 1969, which was recorded on January 20,
1970, at Deed Volume 207, Page 157 in the records of the Auglaize
County Recorder. The reversionary interest retained by the state
in these deeds provided for the real estate to revert to the state
if the real estate ceased to be used for youth recreation center
purposes or related civic purposes.
The Auditor of State, with the assistance of the Attorney
General, shall prepare a release of reversionary interest to the
real estate described in this section. The release shall be
executed by the Governor in the name of the state, countersigned
by the Secretary of State, sealed with the Great Seal of the
State, presented in the office of the Auditor of State for
recording, and delivered to the Wapakoneta Family Young Men's
Christian Association, Inc. The Wapakoneta Family Young Men's
Christian Association, Inc., shall present the release for
recording in the office of the Auglaize County Recorder.
|
|