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S. B. No. 14 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
To amend sections 109.572, 1181.05, 1181.21, and
1321.52 and to enact sections 1323.01 to 1323.20
and 1323.99 of the Revised Code to require
registration of residential mortgage servicers,
to regulate residential mortgage servicers, and to
adopt civil and criminal penalties for violations
of the bill's provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 109.572, 1181.05, 1181.21, and
1321.52 be amended and sections 1323.01, 1323.02, 1323.03,
1323.04, 1323.05, 1323.06, 1323.07, 1323.08, 1323.09, 1323.10,
1323.11, 1323.12, 1323.13, 1323.14, 1323.15, 1323.16, 1323.17,
1323.18, 1323.19, 1323.20, and 1323.99 of the Revised Code be
enacted to read as follows:
Sec. 109.572. (A)(1) Upon receipt of a request pursuant to
section 121.08, 3301.32, 3301.541, or 3319.39 of the Revised Code,
a completed form prescribed pursuant to division (C)(1) of this
section, and a set of fingerprint impressions obtained in the
manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the
subject of the request previously has been convicted of or pleaded
guilty to any of the following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01,
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,
2925.06, or 3716.11 of the Revised Code, felonious sexual
penetration in violation of former section 2907.12 of the Revised
Code, a violation of section 2905.04 of the Revised Code as it
existed prior to July 1, 1996, a violation of section 2919.23 of
the Revised Code that would have been a violation of section
2905.04 of the Revised Code as it existed prior to July 1, 1996,
had the violation been committed prior to that date, or a
violation of section 2925.11 of the Revised Code that is not a
minor drug possession offense;
(b) A violation of an existing or former law of this state,
any other state, or the United States that is substantially
equivalent to any of the offenses listed in division (A)(1)(a) of
this section.
(2) On receipt of a request pursuant to section 5123.081 of
the Revised Code with respect to an applicant for employment in
any position with the department of developmental disabilities,
pursuant to section 5126.28 of the Revised Code with respect to an
applicant for employment in any position with a county board of
developmental disabilities, or pursuant to section 5126.281 of the
Revised Code with respect to an applicant for employment in a
direct services position with an entity contracting with a county
board for employment, a completed form prescribed pursuant to
division (C)(1) of this section, and a set of fingerprint
impressions obtained in the manner described in division (C)(2) of
this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check. The superintendent shall conduct the criminal records check
in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request has been convicted of or
pleaded guilty to any of the following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,
2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03,
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12,
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12,
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02,
2925.03, or 3716.11 of the Revised Code;
(b) An existing or former municipal ordinance or law of this
state, any other state, or the United States that is substantially
equivalent to any of the offenses listed in division (A)(2)(a) of
this section.
(3) On receipt of a request pursuant to section 173.27,
173.394, 3712.09, 3721.121, or 3722.151 of the Revised Code, a
completed form prescribed pursuant to division (C)(1) of this
section, and a set of fingerprint impressions obtained in the
manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check with respect
to any person who has applied for employment in a position for
which a criminal records check is required by those sections. The
superintendent shall conduct the criminal records check in the
manner described in division (B) of this section to determine
whether any information exists that indicates that the person who
is the subject of the request previously has been convicted of or
pleaded guilty to any of the following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,
2925.22, 2925.23, or 3716.11 of the Revised Code;
(b) An existing or former law of this state, any other state,
or the United States that is substantially equivalent to any of
the offenses listed in division (A)(3)(a) of this section.
(4) On receipt of a request pursuant to section 3701.881 of
the Revised Code with respect to an applicant for employment with
a home health agency as a person responsible for the care,
custody, or control of a child, a completed form prescribed
pursuant to division (C)(1) of this section, and a set of
fingerprint impressions obtained in the manner described in
division (C)(2) of this section, the superintendent of the bureau
of criminal identification and investigation shall conduct a
criminal records check. The superintendent shall conduct the
criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of or pleaded guilty to any of the
following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,
2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04,
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21,
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322,
2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a
violation of section 2925.11 of the Revised Code that is not a
minor drug possession offense;
(b) An existing or former law of this state, any other state,
or the United States that is substantially equivalent to any of
the offenses listed in division (A)(4)(a) of this section.
(5) On receipt of a request pursuant to section 5111.032,
5111.033, or 5111.034 of the Revised Code, a completed form
prescribed pursuant to division (C)(1) of this section, and a set
of fingerprint impressions obtained in the manner described in
division (C)(2) of this section, the superintendent of the bureau
of criminal identification and investigation shall conduct a
criminal records check. The superintendent shall conduct the
criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of, has pleaded guilty to, or has
been found eligible for intervention in lieu of conviction for any
of the following, regardless of the date of the conviction, the
date of entry of the guilty plea, or the date the person was found
eligible for intervention in lieu of conviction:
(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16,
2903.21, 2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05,
2905.11, 2905.12, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06,
2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, 2907.24,
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,
2909.03, 2909.04, 2909.05, 2909.22, 2909.23, 2909.24, 2911.01,
2911.02, 2911.11, 2911.12, 2911.13, 2913.02, 2913.03, 2913.04,
2913.05, 2913.11, 2913.21, 2913.31, 2913.32, 2913.40, 2913.41,
2913.42, 2913.43, 2913.44, 2913.441, 2913.45, 2913.46, 2913.47,
2913.48, 2913.49, 2913.51, 2917.01, 2917.02, 2917.03, 2917.11,
2917.31, 2919.12, 2919.22, 2919.23, 2919.24, 2919.25, 2921.03,
2921.11, 2921.13, 2921.34, 2921.35, 2921.36, 2923.01, 2923.02,
2923.03, 2923.12, 2923.13, 2923.161, 2923.32, 2925.02, 2925.03,
2925.04, 2925.05, 2925.06, 2925.11, 2925.13, 2925.14, 2925.22,
2925.23, 2927.12, or 3716.11 of the Revised Code, felonious sexual
penetration in violation of former section 2907.12 of the Revised
Code, a violation of section 2905.04 of the Revised Code as it
existed prior to July 1, 1996, a violation of section 2919.23 of
the Revised Code that would have been a violation of section
2905.04 of the Revised Code as it existed prior to July 1, 1996,
had the violation been committed prior to that date;
(b) A violation of an existing or former municipal ordinance
or law of this state, any other state, or the United States that
is substantially equivalent to any of the offenses listed in
division (A)(5)(a) of this section.
(6) On receipt of a request pursuant to section 3701.881 of
the Revised Code with respect to an applicant for employment with
a home health agency in a position that involves providing direct
care to an older adult, a completed form prescribed pursuant to
division (C)(1) of this section, and a set of fingerprint
impressions obtained in the manner described in division (C)(2) of
this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check. The superintendent shall conduct the criminal records check
in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty to any of the following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,
2925.22, 2925.23, or 3716.11 of the Revised Code;
(b) An existing or former law of this state, any other state,
or the United States that is substantially equivalent to any of
the offenses listed in division (A)(6)(a) of this section.
(7) When conducting a criminal records check upon a request
pursuant to section 3319.39 of the Revised Code for an applicant
who is a teacher, in addition to the determination made under
division (A)(1) of this section, the superintendent shall
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty to any offense specified in section
3319.31 of the Revised Code.
(8) On receipt of a request pursuant to section 2151.86 of
the Revised Code, a completed form prescribed pursuant to division
(C)(1) of this section, and a set of fingerprint impressions
obtained in the manner described in division (C)(2) of this
section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty to any of the following:
(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21,
2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02,
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,
2907.322, 2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24,
2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02,
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161,
2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, or 3716.11
of the Revised Code, a violation of section 2905.04 of the Revised
Code as it existed prior to July 1, 1996, a violation of section
2919.23 of the Revised Code that would have been a violation of
section 2905.04 of the Revised Code as it existed prior to July 1,
1996, had the violation been committed prior to that date, a
violation of section 2925.11 of the Revised Code that is not a
minor drug possession offense, two or more OVI or OVUAC violations
committed within the three years immediately preceding the
submission of the application or petition that is the basis of the
request, or felonious sexual penetration in violation of former
section 2907.12 of the Revised Code;
(b) A violation of an existing or former law of this state,
any other state, or the United States that is substantially
equivalent to any of the offenses listed in division (A)(8)(a) of
this section.
(9) Upon receipt of a request pursuant to section 5104.012 or
5104.013 of the Revised Code, a completed form prescribed pursuant
to division (C)(1) of this section, and a set of fingerprint
impressions obtained in the manner described in division (C)(2) of
this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request has been convicted of or
pleaded guilty to any of the following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22,
2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22,
2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323,
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04,
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2919.12,
2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 2923.12,
2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or
3716.11 of the Revised Code, felonious sexual penetration in
violation of former section 2907.12 of the Revised Code, a
violation of section 2905.04 of the Revised Code as it existed
prior to July 1, 1996, a violation of section 2919.23 of the
Revised Code that would have been a violation of section 2905.04
of the Revised Code as it existed prior to July 1, 1996, had the
violation been committed prior to that date, a violation of
section 2925.11 of the Revised Code that is not a minor drug
possession offense, a violation of section 2923.02 or 2923.03 of
the Revised Code that relates to a crime specified in this
division, or a second violation of section 4511.19 of the Revised
Code within five years of the date of application for licensure or
certification.
(b) A violation of an existing or former law of this state,
any other state, or the United States that is substantially
equivalent to any of the offenses or violations described in
division (A)(9)(a) of this section.
(10) Upon receipt of a request pursuant to section 5153.111
of the Revised Code, a completed form prescribed pursuant to
division (C)(1) of this section, and a set of fingerprint
impressions obtained in the manner described in division (C)(2) of
this section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty to any of the following:
(a) A violation of section 2903.01, 2903.02, 2903.03,
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code,
felonious sexual penetration in violation of former section
2907.12 of the Revised Code, a violation of section 2905.04 of the
Revised Code as it existed prior to July 1, 1996, a violation of
section 2919.23 of the Revised Code that would have been a
violation of section 2905.04 of the Revised Code as it existed
prior to July 1, 1996, had the violation been committed prior to
that date, or a violation of section 2925.11 of the Revised Code
that is not a minor drug possession offense;
(b) A violation of an existing or former law of this state,
any other state, or the United States that is substantially
equivalent to any of the offenses listed in division (A)(10)(a) of
this section.
(11) On receipt of a request for a criminal records check
from an individual pursuant to section 4749.03 or 4749.06 of the
Revised Code, accompanied by a completed copy of the form
prescribed in division (C)(1) of this section and a set of
fingerprint impressions obtained in a manner described in division
(C)(2) of this section, the superintendent of the bureau of
criminal identification and investigation shall conduct a criminal
records check in the manner described in division (B) of this
section to determine whether any information exists indicating
that the person who is the subject of the request has been
convicted of or pleaded guilty to a felony in this state or in any
other state. If the individual indicates that a firearm will be
carried in the course of business, the superintendent shall
require information from the federal bureau of investigation as
described in division (B)(2) of this section. The superintendent
shall report the findings of the criminal records check and any
information the federal bureau of investigation provides to the
director of public safety.
(12) On receipt of a request pursuant to section 1321.37,
1321.53, 1321.531, 1322.03, 1322.031, 1323.05, or 4763.05 of the
Revised Code, a completed form prescribed pursuant to division
(C)(1) of this section, and a set of fingerprint impressions
obtained in the manner described in division (C)(2) of this
section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check with respect to any person who has applied for a license,
permit, or certification from the department of commerce or a
division in the department. The superintendent shall conduct the
criminal records check in the manner described in division (B) of
this section to determine whether any information exists that
indicates that the person who is the subject of the request
previously has been convicted of or pleaded guilty to any of the
following: a violation of section 2913.02, 2913.11, 2913.31,
2913.51, or 2925.03 of the Revised Code; any other criminal
offense involving theft, receiving stolen property, embezzlement,
forgery, fraud, passing bad checks, money laundering, or drug
trafficking, or any criminal offense involving money or
securities, as set forth in Chapters 2909., 2911., 2913., 2915.,
2921., 2923., and 2925. of the Revised Code; or any existing or
former law of this state, any other state, or the United States
that is substantially equivalent to those offenses.
(13) On receipt of a request for a criminal records check
from the treasurer of state under section 113.041 of the Revised
Code or from an individual under section 4701.08, 4715.101,
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14,
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051,
4762.031, 4762.06, or 4779.091 of the Revised Code, accompanied by
a completed form prescribed under division (C)(1) of this section
and a set of fingerprint impressions obtained in the manner
described in division (C)(2) of this section, the superintendent
of the bureau of criminal identification and investigation shall
conduct a criminal records check in the manner described in
division (B) of this section to determine whether any information
exists that indicates that the person who is the subject of the
request has been convicted of or pleaded guilty to any criminal
offense in this state or any other state. The superintendent shall
send the results of a check requested under section 113.041 of the
Revised Code to the treasurer of state and shall send the results
of a check requested under any of the other listed sections to the
licensing board specified by the individual in the request.
(14) On receipt of a request pursuant to section 1121.23,
1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 of the Revised
Code, a completed form prescribed pursuant to division (C)(1) of
this section, and a set of fingerprint impressions obtained in the
manner described in division (C)(2) of this section, the
superintendent of the bureau of criminal identification and
investigation shall conduct a criminal records check in the manner
described in division (B) of this section to determine whether any
information exists that indicates that the person who is the
subject of the request previously has been convicted of or pleaded
guilty to any criminal offense under any existing or former law of
this state, any other state, or the United States.
(15) On receipt of a request for a criminal records check
from an appointing or licensing authority under section 3772.07 of
the Revised Code, a completed form prescribed under division
(C)(1) of this section, and a set of fingerprint impressions
obtained in the manner prescribed in division (C)(2) of this
section, the superintendent of the bureau of criminal
identification and investigation shall conduct a criminal records
check in the manner described in division (B) of this section to
determine whether any information exists that indicates that the
person who is the subject of the request previously has been
convicted of or pleaded guilty or no contest to any offense under
any existing or former law of this state, any other state, or the
United States that is a disqualifying offense as defined in
section 3772.07 of the Revised Code or substantially equivalent to
such an offense.
(16) Not later than thirty days after the date the
superintendent receives a request of a type described in division
(A)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12),
(14), or (15) of this section, the completed form, and the
fingerprint impressions, the superintendent shall send the person,
board, or entity that made the request any information, other than
information the dissemination of which is prohibited by federal
law, the superintendent determines exists with respect to the
person who is the subject of the request that indicates that the
person previously has been convicted of or pleaded guilty to any
offense listed or described in division (A)(1), (2), (3), (4),
(5), (6), (7), (8), (9), (10), (11), (12), (14), or (15) of this
section, as appropriate. The superintendent shall send the person,
board, or entity that made the request a copy of the list of
offenses specified in division (A)(1), (2), (3), (4), (5), (6),
(7), (8), (9), (10), (11), (12), (14), or (15) of this section, as
appropriate. If the request was made under section 3701.881 of the
Revised Code with regard to an applicant who may be both
responsible for the care, custody, or control of a child and
involved in providing direct care to an older adult, the
superintendent shall provide a list of the offenses specified in
divisions (A)(4) and (6) of this section.
Not later than thirty days after the superintendent receives
a request for a criminal records check pursuant to section 113.041
of the Revised Code, the completed form, and the fingerprint
impressions, the superintendent shall send the treasurer of state
any information, other than information the dissemination of which
is prohibited by federal law, the superintendent determines exist
with respect to the person who is the subject of the request that
indicates that the person previously has been convicted of or
pleaded guilty to any criminal offense in this state or any other
state.
(B) The superintendent shall conduct any criminal records
check requested under section 113.041, 121.08, 173.27, 173.394,
1121.23, 1155.03, 1163.05, 1315.141, 1321.53, 1321.531, 1322.03,
1322.031, 1323.05, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541,
3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 3772.07, 4701.08,
4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101,
4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,
4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06,
4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012,
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,
5126.281, or 5153.111 of the Revised Code as follows:
(1) The superintendent shall review or cause to be reviewed
any relevant information gathered and compiled by the bureau under
division (A) of section 109.57 of the Revised Code that relates to
the person who is the subject of the request, including, if the
criminal records check was requested under section 113.041,
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141,
1321.37, 1321.53, 1321.531, 1322.03, 1322.031, 1323.05, 1733.47,
1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09,
3721.121, 3722.151, 3772.07, 4749.03, 4749.06, 4763.05, 5104.012,
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,
5126.281, or 5153.111 of the Revised Code, any relevant
information contained in records that have been sealed under
section 2953.32 of the Revised Code;
(2) If the request received by the superintendent asks for
information from the federal bureau of investigation, the
superintendent shall request from the federal bureau of
investigation any information it has with respect to the person
who is the subject of the request, including fingerprint-based
checks of national crime information databases as described in 42
U.S.C. 671 if the request is made pursuant to section 2151.86,
5104.012, or 5104.013 of the Revised Code or if any other Revised
Code section requires fingerprint-based checks of that nature, and
shall review or cause to be reviewed any information the
superintendent receives from that bureau. If a request under
section 3319.39 of the Revised Code asks only for information from
the federal bureau of investigation, the superintendent shall not
conduct the review prescribed by division (B)(1) of this section.
(3) The superintendent or the superintendent's designee may
request criminal history records from other states or the federal
government pursuant to the national crime prevention and privacy
compact set forth in section 109.571 of the Revised Code.
(C)(1) The superintendent shall prescribe a form to obtain
the information necessary to conduct a criminal records check from
any person for whom a criminal records check is requested under
section 113.041 of the Revised Code or required by section 121.08,
173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1321.53,
1321.531, 1322.03, 1322.031, 1323.05, 1733.47, 1761.26, 2151.86,
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151,
3772.07, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501,
4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171,
4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202,
4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061,
4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091,
5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081,
5126.28, 5126.281, or 5153.111 of the Revised Code. The form that
the superintendent prescribes pursuant to this division may be in
a tangible format, in an electronic format, or in both tangible
and electronic formats.
(2) The superintendent shall prescribe standard impression
sheets to obtain the fingerprint impressions of any person for
whom a criminal records check is requested under section 113.041
of the Revised Code or required by section 121.08, 173.27,
173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1321.53, 1321.531,
1322.03, 1322.031, 1323.05, 1733.47, 1761.26, 2151.86, 3301.32,
3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 3772.07,
4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071,
4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222,
4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061,
4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032,
4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012,
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,
5126.281, or 5153.111 of the Revised Code. Any person for whom a
records check is requested under or required by any of those
sections shall obtain the fingerprint impressions at a county
sheriff's office, municipal police department, or any other entity
with the ability to make fingerprint impressions on the standard
impression sheets prescribed by the superintendent. The office,
department, or entity may charge the person a reasonable fee for
making the impressions. The standard impression sheets the
superintendent prescribes pursuant to this division may be in a
tangible format, in an electronic format, or in both tangible and
electronic formats.
(3) Subject to division (D) of this section, the
superintendent shall prescribe and charge a reasonable fee for
providing a criminal records check requested under section
113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05,
1315.141, 1321.53, 1321.531, 1322.03, 1322.031, 1323.05, 1733.47,
1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09,
3721.121, 3722.151, 3772.07, 4701.08, 4715.101, 4717.061,
4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28,
4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296,
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, 4749.06,
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051,
4762.031, 4762.06, 4763.05, 4779.091, 5104.012, 5104.013,
5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or
5153.111 of the Revised Code. The person making a criminal records
request under any of those sections shall pay the fee prescribed
pursuant to this division. A person making a request under section
3701.881 of the Revised Code for a criminal records check for an
applicant who may be both responsible for the care, custody, or
control of a child and involved in providing direct care to an
older adult shall pay one fee for the request. In the case of a
request under section 1121.23, 1155.03, 1163.05, 1315.141,
1733.47, 1761.26, or 5111.032 of the Revised Code, the fee shall
be paid in the manner specified in that section.
(4) The superintendent of the bureau of criminal
identification and investigation may prescribe methods of
forwarding fingerprint impressions and information necessary to
conduct a criminal records check, which methods shall include, but
not be limited to, an electronic method.
(D) A determination whether any information exists that
indicates that a person previously has been convicted of or
pleaded guilty to any offense listed or described in division
(A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or
(b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7), (A)(8)(a) or (b),
(A)(9)(a) or (b), (A)(10)(a) or (b), (A)(12), (A)(14), or (A)(15)
of this section, or that indicates that a person previously has
been convicted of or pleaded guilty to any criminal offense in
this state or any other state regarding a criminal records check
of a type described in division (A)(13) of this section, and that
is made by the superintendent with respect to information
considered in a criminal records check in accordance with this
section is valid for the person who is the subject of the criminal
records check for a period of one year from the date upon which
the superintendent makes the determination. During the period in
which the determination in regard to a person is valid, if another
request under this section is made for a criminal records check
for that person, the superintendent shall provide the information
that is the basis for the superintendent's initial determination
at a lower fee than the fee prescribed for the initial criminal
records check.
(E) As used in this section:
(1) "Criminal records check" means any criminal records check
conducted by the superintendent of the bureau of criminal
identification and investigation in accordance with division (B)
of this section.
(2) "Minor drug possession offense" has the same meaning as
in section 2925.01 of the Revised Code.
(3) "Older adult" means a person age sixty or older.
(4) "OVI or OVUAC violation" means a violation of section
4511.19 of the Revised Code or a violation of an existing or
former law of this state, any other state, or the United States
that is substantially equivalent to section 4511.19 of the Revised
Code.
Sec. 1181.05. (A) As used in this section, "consumer finance
company" means any person required to be licensed or registered
under Chapter 1321., 1322., 1323., 4712., 4727., or 4728. or
sections 1315.21 to 1315.30 of the Revised Code.
(B) Neither the superintendent of financial institutions nor
any other employee of the division of financial institutions shall
do any of the following: be interested, directly or indirectly, in
any bank, savings and loan association, savings bank, credit
union, or consumer finance company, that is under the supervision
of the superintendent of financial institutions; directly or
indirectly borrow money from any such financial institution or
company; serve as a director or officer of or be employed by any
such financial institution or company; or own an equity interest
in any such financial institution or company. For purposes of this
section, an equity interest does not include the ownership of an
account in a mutual savings and loan association or in a savings
bank that does not have permanent stock or the ownership of a
share account in a credit union.
(C) Subject to division (G) of this section, an employee of
the division of financial institutions may retain any extension of
credit that otherwise would be prohibited by division (B) of this
section if both of the following apply:
(1) The employee obtained the extension of credit prior to
October 29, 1995, or the commencement of the employee's employment
with the division, or as a result of a change in the employee's
marital status, the consummation of a merger, acquisition,
transfer of assets, or other change in corporate ownership beyond
the employee's control, or the sale of the extension of credit in
the secondary market or other business transaction beyond the
employee's control.
(2) The employee liquidates the extension of credit under its
original terms and without renegotiation.
If the employee chooses to retain the extension of credit,
the employee shall immediately provide written notice of the
retention to the employee's supervisor. Thereafter, the employee
shall be disqualified from participating in any decision,
examination, audit, or other action that may affect that
particular creditor.
(D) Subject to division (G) of this section, an employee of
the division of financial institutions may retain any ownership of
or beneficial interest in the securities of a financial
institution or consumer finance company that is under the
supervision of the division of financial institutions, or of a
holding company or subsidiary of such a financial institution or
company, which ownership or beneficial interest otherwise would be
prohibited by division (B) of this section, if the ownership or
beneficial interest is acquired by the employee through
inheritance or gift, prior to October 29, 1995, or the
commencement of the employee's employment with the division, or as
a result of a change in the employee's marital status or the
consummation of a merger, acquisition, transfer of assets, or
other change in corporate ownership beyond the employee's control.
If the employee chooses to retain the ownership or beneficial
interest, the employee shall immediately provide written notice of
the retention to the employee's supervisor. Thereafter, the
employee shall be disqualified from participating in any decision,
examination, audit, or other action that may affect the issuer of
the securities. However, if the ownership of or beneficial
interest in the securities and the subsequent disqualification
required by this division impair the employee's ability to perform
the employee's duties, the employee may be ordered to divest self
of the ownership of or beneficial interest in the securities.
(E) Notwithstanding division (B) of this section, an employee
of the division of financial institutions may have an indirect
interest in the securities of a financial institution or consumer
finance company that is under the supervision of the division of
financial institutions, which interest arises through ownership of
or beneficial interest in the securities of a publicly held mutual
fund or investment trust, if the employee owns or has a beneficial
interest in less than five per cent of the securities of the
mutual fund or investment trust, and the mutual fund or investment
trust is not advised or sponsored by a financial institution or
consumer finance company that is under the supervision of the
division of financial institutions. If the mutual fund or
investment trust is subsequently advised or sponsored by a
financial institution or consumer finance company that is under
the supervision of the division of financial institutions, the
employee shall immediately provide written notice of the ownership
of or beneficial interest in the securities to the employee's
supervisor. Thereafter, the employee shall be disqualified from
participating in any decision, examination, audit, or other action
that may affect the financial institution or consumer finance
company. However, if the ownership of or beneficial interest in
the securities and the subsequent disqualification required by
this division impair the employee's ability to perform the
employee's duties, the employee may be ordered to divest self of
the ownership of or beneficial interest in the securities.
(F)(1) For purposes of this section, the interests of an
employee's spouse or dependent child arising through the ownership
or control of securities shall be considered the interests of the
employee, unless the interests are solely the financial interest
and responsibility of the spouse or dependent child, the interests
are not in any way derived from the income, assets, or activity of
the employee, and any financial or economic benefit from the
interests is for the personal use of the spouse or dependent
child.
(2) If an employee's spouse or dependent child obtains
interests arising through the ownership or control of securities
and, pursuant to division (F)(1) of this section, the interests
are not considered the interests of the employee, the employee
shall immediately provide written notice of the interests to the
employee's supervisor. Thereafter, the employee shall be
disqualified from participating in any decision, examination,
audit, or other action that may affect the issuer of the
securities.
(G) For purposes of divisions (C) and (D) of this section,
both of the following apply:
(1) With respect to any employee of the former division of
consumer finance who, on the first day of the first pay period
commencing after the effective date of this section, becomes an
employee of the division of financial institutions, the employee's
employment with the division of financial institutions is deemed
to commence on the first day of the first pay period commencing
after the effective date of this section.
(2) With respect to any employee who, on October 29, 1995,
became an employee of the division of financial institutions, the
employee may, notwithstanding divisions (C) and (D) of this
section, retain any extension of credit by a consumer finance
company that was obtained at any time prior to the first day of
the first pay period commencing after the effective date of this
section, or retain any ownership of or beneficial interest in the
securities of a consumer finance company, or of a holding company
or subsidiary of such a company, that was acquired at any time
prior to the first day of the first pay period commencing after
the effective date of this section. If the employee chooses to
retain the extension of credit or the ownership or beneficial
interest, the employee shall comply with divisions (C) and (D) of
this section.
Sec. 1181.21. (A) As used in this section, "consumer finance
company" has the same meaning as in section 1181.05 of the Revised
Code.
(B) The superintendent of financial institutions shall see
that the laws relating to consumer finance companies are executed
and enforced.
(C) The deputy superintendent for consumer finance shall be
the principal supervisor of consumer finance companies. In that
position the deputy superintendent for consumer finance shall,
notwithstanding section 1321.421, division (A) of section
1321.76, and sections 1321.07, 1321.55, 1322.06, 1323.12, 4727.05,
and 4728.05 of the Revised Code, be responsible for conducting
examinations and preparing examination reports under those
sections. In addition, the deputy superintendent for consumer
finance shall, notwithstanding sections 1315.27, 1321.10,
1321.43, 1321.54, 1321.77, 1322.12, 1323.11, 4712.14, 4727.13, and
4728.10 of the Revised Code, have the authority to adopt rules
and standards in accordance with those sections. In performing or
exercising any of the examination, rule-making, or other
regulatory functions, powers, or duties vested by this division in
the deputy superintendent for consumer finance, the deputy
superintendent for consumer finance shall be subject to the
control of the superintendent of financial institutions and the
director of commerce.
Sec. 1321.52. (A)(1) No person, on that person's own behalf
or on behalf of any other person, shall do any of the following
without having first obtained a certificate of registration from
the division of financial institutions:
(a) Advertise, solicit, or hold out that the person is
engaged in the business of making residential mortgage loans
secured by a mortgage on a borrower's real estate which is other
than a first lien on the real estate;
(b) Engage in the business of lending or collecting the
person's own or another person's money, credit, or choses in
action for non-first lien residential mortgage loans;
(c) Employ or compensate mortgage loan originators licensed
or who should be licensed under sections 1321.51 to 1321.60 of the
Revised Code to conduct the business of making residential
mortgage loans;
(d)(c) Make loans in this state of the type set forth in
division (C) of this section that are unsecured or are secured by
other than real property, which loans are for more than five
thousand dollars at a rate of interest greater than permitted by
section 1343.01 or other specific provisions of the Revised Code.
(2) Each person issued a certificate of registration or
license is subject to all the rules prescribed under sections
1321.51 to 1321.60 of the Revised Code.
(B)(1) All loans made to persons who at the time are
residents of this state are considered as made within this state
and subject to the laws of this state, regardless of any statement
in the contract or note to the contrary, except as follows:
(a) If the loan is primarily secured by a lien on real
property in another state and is arranged by a mortgage loan
originator licensed by that state, the borrower may by choice of
law designate that the transaction be governed by the law where
the real property is located if the other state has consumer
protection laws covering the borrower that are applicable to the
transaction.
(b) If the loan is for the purpose of purchasing goods
acquired by the borrower when the borrower is outside of this
state, the loan may be governed by the laws of the other state.
(2) Nothing in division (B)(1) of this section prevents a
choice of law or requires registration or licensure of persons
outside of this state in a transaction involving the solicitation
of residents of this state to obtain non-real estate secured loans
that require the borrowers to physically visit a lender's
out-of-state office to apply for and obtain the disbursement of
loan funds.
(C) A registrant may make unsecured loans, loans secured by a
mortgage on a borrower's real estate which is a first lien or
other than a first lien on the real estate, loans secured by other
than real estate, and loans secured by any combination of
mortgages and security interests, on terms and conditions provided
by sections 1321.51 to 1321.60 of the Revised Code.
(D)(1) If a lender that is subject to sections 1321.51 to
1321.60 of the Revised Code makes a loan in violation of division
(A)(1) of this section, the lender has no right to collect,
receive, or retain any interest or charges on that loan.
(2) If a registrant applies to the division for a renewal of
the registrant's certificate after the date required by division
(A)(7) of section 1321.53 of the Revised Code, but prior to the
first day of February of that year, and the division approves the
application, division (D)(1) of this section does not apply with
respect to any loan made by the registrant while the registrant's
certificate was expired.
(3) If a person's registration under sections 1321.51 to
1321.60 of the Revised Code terminates due to nonrenewal or
otherwise but the person continues to engage in the business of
collecting or servicing non-first lien residential mortgage loans
in violation of division (A)(1) of this section, the
superintendent of financial institutions may take administrative
action, including action on any subsequent application for a
certificate of registration. In addition, no late fee, bad check
charge except as incurred, charge related to default or cost to
realize on its security interest, or prepayment penalty on
non-first lien residential mortgage loans shall be collected or
retained by a person who is in violation of division (A)(1)(b) of
this section for the period of time in which the person was in
violation. Nothing in division (D)(3) of this section prevents or
otherwise precludes any other actions or penalties provided by law
or modifies a defense of holder in due course that a subsequent
purchaser servicing the residential mortgage loan may raise.
(E)(1) No individual shall engage in the business of a
mortgage loan originator without first obtaining and maintaining
annually a license pursuant to section 1321.532 of the Revised
Code from the division of financial institutions. A mortgage loan
originator shall be employed or associated with a registrant or
entity exempt from registration under sections 1321.51 to 1321.60
of the Revised Code, but shall not be employed by or associated
with more than one registrant or exempt entity at any one time.
(2) An individual acting under the individual's authority as
a registered mortgage loan originator shall not be required to be
licensed under division (E)(1) of this section.
(F)(1) Each licensee shall 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 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.
(G)(1) If a person that is subject to sections 1321.51 to
1321.60 of the Revised Code makes a loan in violation of division
(A)(1)(d)(c) of this section and subsequently sells or assigns
that loan, the person is liable to the borrower for any interest
paid on that loan to the holder or assignee in excess of the rate
that would be applicable in the absence of sections 1321.51 to
1321.60 of the Revised Code, in addition to any interest or
charges paid on that loan to the unauthorized lender as provided
by division (D)(1) of this section.
(2) If a person that is subject to sections 1321.51 to
1321.60 of the Revised Code makes a residential mortgage loan in
violation of division (A)(1)(b) or (c) of this section and
subsequently sells or assigns that loan, the lender is liable to
the borrower for any interest paid on that loan to the holder or
assignee in excess of the rate set forth in division (B)(4) of
section 1343.01 of the Revised Code, in addition to any interest
or charges paid on that loan to the unauthorized lender as
provided by division (D)(1) of this section.
Sec. 1323.01. As used in this chapter:
(A) "Mortgage servicer" or "servicer" means a person who
engages directly or indirectly, whether for compensation, gain
for another, or on the person's own behalf, in the business of
receiving scheduled periodic payments from a borrower pursuant to
the terms of a residential mortgage loan, including amounts
received for deposit in an escrow account, and applying those
payments received toward principal, interest, and other
obligations of the borrower including amounts to be paid from an
escrow account.
"Mortgage servicer" includes a person who makes or holds a
loan if that person also services the loan.
"Mortgage servicer" does not include any of the following:
(1) The federal deposit insurance corporation or the
resolution trust corporation, in connection with assets acquired,
assigned, sold, or transferred pursuant to the "Federal Deposit
Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C.
1823(c), or as receiver or conservator of an insured depository
institution;
(2) The government national mortgage association, the federal
national mortgage association, the federal home loan mortgage
corporation, the resolution trust corporation, or the federal
deposit insurance corporation, in any case in which the
assignment, sale, or transfer of the servicing of the mortgage
loan is preceded by:
(a) Termination of the contract for servicing the loan for
cause;
(b) Commencement of proceedings for bankruptcy of the
servicer;
(c) Commencement of proceedings by the federal deposit
insurance corporation or the resolution trust corporation for
conservatorship or receivership of the servicer or an entity by
which the servicer is owned or controlled.
(3) The national credit union administration, in connection
with assets acquired, assigned, sold, or transferred pursuant to
federal law, or as a receiver or conservator of an insured credit
union;
(4) Any political subdivision or any public agency of the
United States or any state.
(B) "Mortgage lender" means a person engaged in the business
of making residential mortgage loans for compensation or gain.
(C) "Residential mortgage" and "residential mortgage loan"
mean an obligation to pay a sum of money evidenced by a note and
secured by a lien upon real property located within this state
containing four or fewer residential units and includes such an
obligation on a residential condominium or cooperative unit.
(D) "Employee" means an individual for whom a person pays a
wage or salary, pays social security and unemployment taxes,
provides workers' compensation coverage, and withholds local,
state, and federal income taxes. "Employee" includes any
individual who acts as an operations manager of a registered
mortgage servicer, but for whom the servicer is prevented by law
from making income tax withholdings.
(E) "Operations manager" means the employee or owner
responsible for the everyday operations, compliance requirements,
and management of a registrant or applicant.
(F) "Superintendent of financial institutions" or
"superintendent" includes the deputy superintendent for consumer
finance as provided in section 1181.21 of the Revised Code.
(G) "Credit union" means an entity chartered under Chapter
1733. of the Revised Code or under similar laws of another state
or the United States. "Credit union" includes a credit union
service organization consisting of multiple credit unions.
Sec. 1323.02. (A) This chapter shall be known as the
"residential mortgage servicers registration act."
(B) This chapter does not apply to any of the following:
(1) Any entity that is chartered and lawfully doing business
as a bank, savings bank, trust company, savings and loan
association, or credit union under the authority of any law of
this state, another state, or the United States;
(2) Life, property, or casualty insurance companies licensed
to do business in this state;
(3) Any attorney or law firm acting on behalf of any mortgage
note holder or mortgage servicer when acting in connection with
the practice of law in this state, except as otherwise provided in
division (D) of this section;
(4) Any political subdivision, or any governmental or other
public agency, corporation, or instrumentality in or of the
United States or any state;
(5) An institution of higher education as defined in section
1713.01 of the Revised Code;
(6) A debt collector acting under the name of, and as agent
for, a mortgage servicer registrant to collect a debt in default.
(C) Mortgage lenders registered under section 1321.52 of the
Revised Code and mortgage brokers registered under section 1322.02
of the Revised Code are exempt from the registration requirements
of section 1323.03 of the Revised Code but shall comply with
divisions (C), (D), (F), and (G) of section 1323.15, and sections
1323.16, 1323.17, and 1323.18 of the Revised Code in connection
with the servicing of residential mortgage loans. Any violation
of these sections is an unfair and deceptive practice in
violation of section 1345.02 of the Revised Code and may result
in administrative action and penalties the superintendent of
financial institutions of the department of commerce imposes
pursuant to sections 1321.54 and 1322.10 of the Revised Code.
(D) Any attorney or law firm primarily engaged in debt
collection shall comply with division (D) of section 1323.15 and
section 1323.18 of the Revised Code when acting as a mortgage
servicer, notwithstanding the general exemption from this chapter.
Any violation by an attorney of division (D) of section 1323.15
or section 1323.18 of the Revised Code, in connection with any
debt collection activity that is not considered the practice of
law, is deemed to be an unfair and deceptive practice in
violation of section 1345.02 of the Revised Code.
Sec. 1323.03. (A) No person, on that person's own behalf or
on behalf of any other person, shall do either of the following
unless that person is registered as a mortgage servicer and has a
certificate of registration from the superintendent of financial
institutions of the department of commerce:
(1) Engage in the business of collecting money, credit, or
choses in action for residential mortgage loans or otherwise act
as a mortgage servicer;
(2) Collect accelerated mortgage payments from a biweekly or
other accelerated payment plan that the person operates, arranges,
or offers to arrange for compensation or gain in connection with
a residential mortgage loan.
(B) Any person who acts in willful violation of division (A)
of this section, after receiving written notice of the violation
from the superintendent or a court, may not collect any amounts
as interest or charges on that loan. Any amounts collected shall
be credited as a principal reduction to the loan.
(C)(1) When a registration expires for any reason and the
former registrant continues to service residential mortgage loans
in violation of division (A) of this section, the superintendent
may take administrative action, including action on any
subsequent application for a certificate of registration.
(2) A servicer with an expired registration may not collect,
charge, or retain any late fee, bad check charge except as
incurred, charge related to default, cost to realize on its
security interest, or prepayment penalty on any residential
mortgage loan unless that servicer applies to the superintendent
for a registration renewal and a certificate of registration
prior to the first day of August of the year the registration
expires and the superintendent approves that application.
(D) No person shall conduct the business of a mortgage
servicer in association with any exempt business if the
superintendent has ordered that exempt business, in writing, to
desist from conduct that the superintendent found to be a mere
conduit for the mortgage servicer and that the association of the
servicer and the exempt business is intended to conceal an evasion
of this chapter or the rules adopted under it. Any determination
made pursuant to this division shall be made in accordance with
Chapter 119. of the Revised Code.
Sec. 1323.04. (A) Any application for registration as a
mortgage servicer shall be in writing, under oath, and in the
form the superintendent of financial institutions of the
department of commerce prescribes. It shall contain an undertaking
by the applicant to abide by this chapter and any other
information that the superintendent requires. Applicants that are
foreign corporations shall obtain and maintain a license pursuant
to Chapter 1703. of the Revised Code before seeking registration
or registration renewal as a mortgage servicer.
(B) Upon an applicant's filing an application and paying a
nonrefundable two-hundred-dollar investigation fee, a
nonrefundable one-thousand-dollar annual registration fee, and any
additional fee required by law, the superintendent shall
investigate the relevant facts. If the application requires
investigation outside this state, the applicant may be required to
advance sufficient funds to pay any of the actual expenses when it
appears that these expenses will exceed two hundred dollars. The
superintendent shall furnish an itemized statement of any
expenses the applicant is required to pay. The superintendent
shall not issue any certificate of registration unless all the
required fees have been paid.
(C) An applicant shall designate an employee or owner who has
at least three years' experience in the mortgage, collections,
servicing, or lending field as the applicant's operations
manager. No operations manager shall be employed by any other
mortgage servicer while acting as an operations manager. Any
operations manager must be acceptable to the superintendent.
(D) The superintendent may consider an application for
registration as a mortgage servicer withdrawn if that application
does not contain all of the information required under division
(A) of this section and the applicant does not submit that
information within ninety days after the superintendent requests
the information in writing.
(E) The superintendent of financial institutions shall
deposit any licensing fee, charge, or fine received pursuant to
this chapter into the consumer finance fund in the state
treasury, created under section 1321.21 of the Revised Code,
unless otherwise specified by law.
Sec. 1323.05. (A)(1) Any investigation the superintendent of
financial institutions of the department of commerce undertakes
with respect to an application for registration as a mortgage
servicer shall include a civil records check of the applicant,
including any individual whose identity is required to be
disclosed in the application, and criminal records check at the
time of the initial application and every five years thereafter,
or upon a change of control of the registrant if the persons
acquiring control have not had a criminal records check submitted
to the superintendent within the past five years.
(2) Where the applicant is a business entity, the
superintendent may require a civil and criminal background check
of those persons that the superintendent determines have the
authority to direct and control the operations of the applicant.
(B) When conducting a criminal background check, the
superintendent shall request the superintendent of the bureau of
criminal identification and investigation, or a vendor the
superintendent approves, to conduct a criminal records check
based on the applicant's fingerprints or if fingerprints are
unreadable, based on the applicant's social security number in
accordance with division (A)(12) of section 109.572 of the Revised
Code. Notwithstanding division (K) of section 121.08 of the
Revised Code, the superintendent of financial institutions shall
request that criminal record information from the federal bureau
of investigation be obtained as part of the criminal records
check.
(C) The applicant shall pay any fee required under division
(C)(3) of section 109.572 of the Revised Code.
Sec. 1323.06. (A) The superintendent of financial
institutions of the department of commerce shall issue a
certificate of registration as a mortgage servicer to an applicant
if the superintendent finds that the applicant's financial
responsibility, experience, character, and general fitness command
the confidence of the public and warrant the belief that the
business will be operated honestly and fairly in compliance with
the purposes of this chapter and the rules adopted under it, and
that the applicant has the requisite bond or applicable net worth
as this chapter requires.
(B) Upon finding an applicant does not meet the conditions
set forth in this chapter, the superintendent shall issue a notice
of intent to deny an application for registration or renewal. The
superintendent shall immediately notify the applicant of the
denial, the grounds for the denial, and the applicant's
opportunity to be heard on the action in accordance with Chapter
119. of the Revised Code.
(C) Any certificate issued pursuant to this section shall
expire on the first day of July next after its issue, and on the
first day of July in each succeeding year unless renewed by filing
a renewal application and payment of an annual fee and any
additional fee required by law, on or before the last day of June
of each year.
Sec. 1323.07. (A) To renew a registration as a mortgage
servicer, a registrant shall timely file a renewal application on
a form the superintendent of financial institutions of the
department of commerce prescribes, along with any additional
information that the superintendent requires.
(B) As a condition of renewal, a registrant must provide
proof that the designated operations manager meets the criteria
for initial approval set forth in section 1323.05 of the Revised
Code and that the mortgage servicer meets the minimum standards
for the issuance of the certificate of registration under
sections 1323.04 to 1323.06 of the Revised Code.
(C) The superintendent shall not grant any renewal if the
applicant's certificate of registration is subject to an order of
suspension, revocation, or an unpaid and past due fine the
superintendent has imposed.
(D) If an application for renewal of a certificate of
registration does not contain all the information this section
requires, and if the registrant does not submit that information
to the superintendent within ninety days after the superintendent
requests the information in writing, the superintendent may
consider the application withdrawn.
Sec. 1323.08. At any time there is a change of five per cent
or more in the ownership of a registrant, the superintendent of
financial institutions of the department of commerce may make any
investigation necessary to determine whether any fact or condition
presently exists that would have warranted the superintendent
denying the original application had the fact or condition
existed at the time of that application. If the superintendent
finds such a fact or condition, the superintendent may revoke the
registrant's registration and certificate pursuant to Chapter
119. of the Revised Code.
Sec. 1323.09. (A) Each place of business to which borrowers
are regularly directed to remit payment shall display its own
certificate of registration. The superintendent of financial
institutions of the department of commerce may issue additional
certificates of registration to the same person for additional
places of business upon compliance with the requirements governing
the issuance of a single certificate.
(B)(1) Any change in the place of business to a location
outside the original municipal corporation requires a new
certificate of registration. A registrant who makes such a change
of location shall submit a new application, pay the registration
fee and, if the superintendent requires, pay an investigation fee
of two hundred dollars. The registrant must have the new
certificate before operating in the new location.
(2) A registrant who wishes to change its place of business
within the same municipal corporation shall give written notice
of the change in advance to the superintendent, who shall provide
a certificate for the new address without cost.
(C) A registrant that changes its name shall give written
notice of the change to the superintendent prior to acting as a
mortgage servicer under the new name. The superintendent shall
provide a certificate in the new name without cost.
(D) A registrant shall keep each certificate conspicuously
posted in each place of business. A certificate of registration
is not transferable or assignable.
Sec. 1323.10. (A) Any person who acts as a mortgage
servicer, if not bonded pursuant to division (B) of this section,
shall maintain at all times both of the following:
(1) A net worth of at least two hundred fifty thousand
dollars;
(2) For each additional certificate of registration beyond
the first, assets of at least fifty thousand dollars either in
use or readily available for use in the conduct of the business.
(B) Any person acting as a mortgage servicer by arranging
biweekly or other accelerated payment plans and collecting those
payments shall obtain and maintain in effect at all times a
corporate surety bond issued by a bonding company or insurance
company authorized to do business in this state. The servicer
shall file a copy of the bond with the superintendent of
financial institutions of the department of commerce. The bond
shall meet all of the following conditions:
(1) Be in favor of the superintendent;
(2) Have a base penal sum of two hundred fifty thousand
dollars for the first location and an additional penal sum of ten
thousand dollars for each additional location that requires a
separate certificate of registration;
(3) Have a term that coincides with the term of
registration;
(4) Be for the exclusive benefit of any individual borrower
injured by any violation of this chapter or the rules adopted
under it by a servicer, its employees, or agent;
(5) Have an aggregate liability of the corporate surety for
any and all breaches of the conditions of the bond not to exceed
the penal sum of the bond.
(C)(1) A mortgage servicer shall give notice to the
superintendent by certified mail of any action that is brought by
a borrower against the servicer alleging injury by a violation of
this chapter and of any judgment that is entered against the
servicer by a borrower injured by that violation. The notice
shall provide details sufficient to identify the action or
judgment. The servicer shall file the notice with the
superintendent within ten days after the commencement of the
action or receipt of the notice of entry of a judgment.
(2) A corporate surety shall give notice of any payment to
the superintendent by certified mail within ten days after it pays
any claim or judgment, with details sufficient to identify the
person and the claim or judgment paid.
(D) Whenever the penal sum of the corporate surety bond is
reduced by one or more recoveries or payments, a servicer shall
furnish a new or additional bond under this section, so that the
total or aggregate penal sum of the bond or bonds equals the sum
required by this section, or shall furnish an endorsement executed
by the corporate surety reinstating the bond to the required penal
sum set forth in division (B) of this section.
(E) The liability of the corporate surety on the bond to the
superintendent and to any borrower injured by a violation of this
chapter is not affected in any way by any misrepresentation,
breach of warranty, or failure to pay the premium, by any act or
omission upon the part of the servicer, by the insolvency or
bankruptcy of the servicer, or by the insolvency of the
servicer's estate. The servicer shall maintain in effect
liability for any act or omission that occurs during the term of
the corporate surety bond for at least two years after the date
on which the corporate surety bond is terminated or canceled.
(F) Neither the servicer nor the corporate surety shall
cancel a corporate surety bond except upon notice to the
superintendent by certified mail, return receipt requested. A
cancellation is not effective until thirty days after the
superintendent receives the notice.
(G) No servicer shall fail to comply with this section. Any
servicer that fails to comply shall cease acting as a mortgage
servicer in this state until that servicer complies with this
section.
Sec. 1323.11. (A) The superintendent of financial
institutions of the department of commerce may adopt, in
accordance with Chapter 119. of the Revised Code, rules to
administer and enforce this chapter and to carry out its purposes.
(B) The superintendent may investigate alleged violations of
this chapter or the rules adopted under it, or complaints
concerning any violation. In conducting an investigation, the
superintendent, by subpoena, may compel witnesses to testify in
relation to any matter over which the superintendent has
jurisdiction, and may require the production or photocopying of
any book, record, or other document pertaining to such matter. If
a person fails to comply with the subpoena, or permit
photocopying of any document subpoenaed, a court of common pleas,
upon the superintendent's application, shall compel obedience by
attachment proceedings for contempt or a refusal to testify.
(C)(1) In accordance with Chapter 119. of the Revised Code,
the superintendent may revoke, suspend, or refuse to renew any
registration issued under this chapter if the superintendent
finds any of the following:
(a) A violation of or failure to comply with any provision of
this chapter or the rules adopted under it, Chapter 1345. of the
Revised Code, federal debt collection laws, or any other law
applicable to the business the registrant conducts under the
registrant's certificate of registration;
(b) The registrant has been convicted of or pleaded guilty or
no contest in a domestic, foreign, or military court to any
felony or any criminal offense involving theft, receiving stolen
property, embezzlement, forgery, fraud, passing bad checks, money
laundering, breach of trust, dishonesty, or drug trafficking, or
any criminal offense involving money or securities;
(c) The registrant's certificate of registration, license,
or comparable authority as a mortgage servicer has been revoked in
any other state.
(2) The superintendent may impose a monetary fine pursuant
to division (F) of this section in addition to, or instead of,
any revocation, suspension, or denial or in settlement of matters
subject to claims under division (C)(1)(a) of this section.
(3) Except as otherwise provided in section 1323.03 of the
Revised Code, the revocation, suspension, or refusal to renew a
registration does not impair the obligation of any pre-existing
lawful contract made under this chapter if a mortgage servicer
makes a good faith effort to promptly transfer its collection
rights to a registrant or person exempt from registration. A
servicer that does not make the requisite good faith effort is
subject to additional monetary fines and legal or administrative
action by the superintendent.
(4) Nothing in division (C) of this section limits a court's
ability to impose a cease and desist order preventing any further
business or servicing activity.
(D) The superintendent may apply to the court of common
pleas for an order enjoining any violation of this chapter. Upon a
showing that a person has committed or is about to commit a
violation of this chapter, the court shall grant an injunction,
restraining order, or other appropriate relief. If the
application to a court is for an order enjoining a person from
acting as a registrant or mortgage servicer in violation of
division (A) of section 1323.03 of the Revised Code, the
superintendent may request, and the court may impose, a civil
penalty for that unregistered or unlicensed conduct in an amount
not to exceed five thousand dollars per violation.
(E) The superintendent may issue a cease and desist order if
the superintendent determines that a person is engaged in or may
be engaged in activities that violate this chapter or the rules
adopted under it, after notice and a hearing conducted in
accordance with Chapter 119. of the Revised Code.
(F)(1) The superintendent may impose a fine of not more than
one thousand dollars for each day a violation of this chapter or
the rules adopted under it is committed, repeated, or continued.
In determining the amount of a fine to impose, the superintendent
may consider all of the following:
(a) The seriousness of the violation;
(b) The servicer's good faith efforts to prevent the
violation;
(c) The servicer's history regarding violations and
compliance with the superintendent's orders;
(d) The servicer's financial resources;
(e) Any other matters the superintendent considers
appropriate in enforcing this chapter.
(2) Monetary fines imposed under this section do not
preclude any criminal fine described in section 1323.99 of the
Revised Code.
(G) 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.
Sec. 1323.12. (A)(1) A mortgage servicer shall keep
separate records pertaining to each loan serviced. The servicer
shall preserve those records for so long as the servicer has
responsibility for the loan and retain copies of those records
for at least four years even if the servicer transfers the
original copies for any reason. At any time responsibility for the
loan is transferred to another servicer, the servicer who is
ceasing responsibility shall transfer all original loan documents
and records to the servicer who is assuming responsibility for
the loan. Any system of electronic imaging of required records
shall be approved by the superintendent of financial institutions
of the department of commerce prior to its use but at no time
shall such a system be a substitute for maintaining original
documents as this section requires.
(2) As often as necessary, the superintendent may make or
cause to be made an examination of records pertaining to loans
serviced for the purpose of determining whether the servicer is
complying with this chapter and of verifying any registrant's
annual report.
(B)(1) The superintendent may require each servicer to file
each year a report under oath or affirmation, on forms the
superintendent supplies, concerning the business and operations
for the preceding calendar year. A servicer that operates two or
more registered offices or who operates registered offices with
one or more affiliated servicers, may file a composite report of
the group of registered offices in lieu of individual reports.
(2) The reports provided under division (B)(1) of this
section are not public records as defined in section 149.43 of the
Revised Code and are not open to public inspection.
(C)(1) The following information is confidential:
(a) Examination information, and any information leading to
or arising from an examination;
(b) Investigation information, and any information arising
from or leading to an investigation.
(2) The information described in division (C) of this section
is confidential for all purposes except when it is necessary for
the superintendent to take official action regarding the affairs
of a servicer or in connection with criminal or civil proceedings
to be initiated by a prosecuting attorney or the attorney
general. This information may be introduced into evidence or
disclosed pursuant to section 1181.25 of the Revised Code.
(D) All application information is a public record as defined
in section 149.43 of the Revised Code, except social security
numbers, employer identification numbers, financial account
numbers, the identity of the institution where financial accounts
are maintained, personal financial information, fingerprint cards
and the information contained on such cards, and criminal
background information.
(E) Nothing in this section prevents the superintendent from
releasing information relating to servicers or exchanging that
information with other financial institution regulatory
authorities. For this purpose, a "financial institution regulatory
authority" includes a regulator of a business activity in which a
servicer is engaged or has applied to engage, to the extent that
the regulator has jurisdiction over a servicer engaged in that
business activity. A servicer is engaged in a business activity,
and a regulator of that business activity has jurisdiction over
the servicer, whether the servicer conducts the activity directly
or a subsidiary or affiliate of the servicer conducts the
activity.
(F) Nothing in this section prevents the superintendent of
financial institutions from releasing information relating to
mortgage servicers to the attorney general, to the superintendent
of real estate and professional licensing of the department of
commerce for purposes relating to the administration of Chapters
4735. and 4763. of the Revised Code, to the superintendent of
insurance for purposes relating to the administration of Chapter
3953. of the Revised Code, to the commissioner of securities of
the department of commerce for purposes relating to the
administration of Chapter 1707. of the Revised Code, or to local
law enforcement agencies and local prosecutors. Information
released pursuant to this section remains confidential. The
superintendent of financial institutions, by rule, may designate
additional state agencies and regulatory authorities as entities
with which to share this confidential information.
Sec. 1323.13. No person, in connection with any examination
or investigation conducted by the superintendent of financial
institutions of the department of commerce under this chapter,
shall knowingly do any of the following:
(A) Circumvent, interfere with, obstruct, or fail to
cooperate, including making a false or misleading statement,
failing to produce records, or intimidating or suborning any
witness;
(B) Withhold, abstract, remove, mutilate, destroy, or secrete
any books, records, computer records, or other information;
(C) Tamper with, alter, or manufacture any evidence.
Sec. 1323.14. (A) No mortgage servicer, through its
operations manager or otherwise, shall fail to reasonably
supervise persons the servicer employs or associates with, or to
establish reasonable procedures to avoid violations of this
chapter or the rules adopted under it, violations of applicable
state and federal consumer and lending laws or rules by persons
the servicer employs or associates with.
(B) Within ten business days of any change in a mortgage
servicer's statutory agent designation or address, the servicer
shall file with the superintendent of financial institutions of
the department of commerce evidence that the servicer has filed
such changes with the secretary of state.
(C)(1) At least thirty days prior to the closure of a
registered office location, a mortgage servicer shall notify the
superintendent by filing a notice of closure on a form approved by
the superintendent. The notice shall indicate the custodian of the
records and where the records will be maintained. Within five
business days after the closure, the servicer shall surrender the
certificate of registration issued to that location by returning
it to the superintendent.
(2) The closure of an office and the surrender of a
certificate does not affect a mortgage servicer's civil or
criminal liability for acts committed before the surrender.
(D) A mortgage servicer shall maintain books and records in
compliance with this chapter and make them available to the
superintendent of financial institutions of the department of
commerce. After any closure, records remain subject to examination
and or investigation. The servicer shall send the superintendent
written notice of any change in the location of the records or
the custodian of those records.
Sec. 1323.15. (A) No mortgage servicer shall refuse to
provide information regarding the amount required to pay in full
a residential mortgage loan when the borrower or a person the
borrower designates makes that request in writing. The servicer
shall provide the requested payoff statement without charge one
time during any twelve-month period. If additional payoff
statements are requested, the servicer may charge an amount not
in excess of three dollars for each additional statement. The
servicer shall provide any payoff statement within five business
days of the request.
(B) No mortgage servicer shall obtain a certificate of
registration through any false or fraudulent representation of a
material fact or any omission of a material fact required by
state or federal law, or make any substantial misrepresentation
in the registration application.
(C) No mortgage servicer shall make false or misleading
statements of a material fact, omissions of statements required
by state or federal law, or false promises regarding a material
fact, through advertising or other means, or engage in a
continued course of misrepresentations.
(D) No mortgage servicer shall engage in conduct that
constitutes improper, fraudulent, or dishonest dealings.
(E) No mortgage servicer or applicant for registration shall
fail to notify the superintendent of financial institutions of
the department of commerce within thirty days after the servicer
or applicant has:
(1) Been convicted of or pleaded guilty or no contest in a
domestic, foreign, or military court to any felony;
(2) Been convicted of or pleaded guilty or no contest in a
domestic, foreign, or military court to any criminal offense
involving theft, receiving stolen property, embezzlement, forgery,
fraud, passing bad checks, money laundering, breach of trust,
dishonesty, or drug trafficking, or any criminal offense involving
money or securities;
(3) Had a mortgage servicer registration, license, or
comparable authority revoked in any other state.
(F) No mortgage servicer shall knowingly make, propose, or
solicit fraudulent, false, or misleading statements on any
mortgage servicing document or on any document related to an
accounting of payments remitted or disbursed. For purposes of
this division, "fraudulent, false, or misleading statements" does
not include mathematical errors, inadvertent transposition of
numbers, typographical errors, or any other bona fide error.
(G) No mortgage servicer shall knowingly instruct, solicit,
propose, or otherwise cause a borrower to sign in blank a
document.
Sec. 1323.16. (A) In addition to the duties imposed by common
law or state or federal law, in the course of servicing
residential mortgage loans in this state, a mortgage servicer
shall do all of the following:
(1) Act with good faith and fair dealing in any transaction,
practice, or course of business associated with servicing;
(2) Act with reasonable skill, care, and diligence;
(3) Act in good faith to provide the borrower with the facts
relating to the nature and extent of any delinquency or default
and the amounts owed or necessary to reinstate the loan or cure
the default;
(4) Subject to the servicer's duties and obligations under
its mortgage servicing contract, attempt a resolution,
modification, or workout to the delinquency of a borrower who
requests assistance;
(5) Make a good faith effort to correct any erroneous
information it has provided to any credit reporting agency;
(6) Provide information regarding the amount required to pay
in full a residential mortgage loan within five business days
when requested by the borrower or by another person designated in
writing by the borrower. The servicer shall provide the requested
payoff statement without charge once during any twelve-month
period. If additional payoff statements are requested, the
servicer may charge an amount not in excess of three dollars for
each additional statement.
(7) Make all payments from any escrow account in a timely
manner, so as to avoid the assessment of late fees, penalties, or
consequential damages, notwithstanding any loan delinquency,
unless there are insufficient funds in the escrow account to cover
the payments;
(8) Accept and credit each residential mortgage loan payment
received on the date received;
(9) Take all steps necessary to terminate a foreclosure
action when the condition giving rise to action has been fully
cured. Upon cure of a default, the servicer shall reinstate the
borrower to the same position as if the default had not occurred,
and nullify, as of the date of the cure, any acceleration of any
obligation under the residential mortgage loan or note arising
from the default.
(10) In addition to the duties enumerated in this chapter,
any mortgage servicer for a government-insured loan shall comply
with the loss mitigation standards and guidelines as required by
the insuring entity.
(B) When establishing a loan modification solution for a
borrower, a mortgage servicer shall seek to achieve long-term
sustainability for the borrower.
Sec. 1323.17. No mortgage servicer shall do any of the
following in connection with a residential mortgage loan:
(A) Collect, charge, or retain any fee from the borrower
unless the fee is reasonable, for a bona fide service rendered,
and specifically authorized by the residential mortgage loan and
permitted by law;
(B) Initiate a foreclosure action without proof of ownership
as evidenced by a declaration signed under penalty of perjury,
stating that the party in interest has reviewed the original note
and all subsequent assignments and has concluded that the party
in interest owns the note or mortgage;
(C) Fail to provide written notice to the borrower before
acquiring and placing hazard, homeowner's, or flood insurance on a
property or acquiring and placing such insurance if the mortgage
servicer knows, or has reason to know, that a policy for such
insurance is in effect;
(D) Acquire and place hazard, homeowner's, or flood insurance
on a property for an amount that exceeds the greater of the
insurable improvements to the property, the last known coverage
amount that was sufficient to meet the borrower's insurance
obligations, or the unpaid balance owed by the borrower;
(E) Fail to refund unearned premiums for insurance the
mortgage servicer or its agents placed upon the borrower,
providing there is reasonable evidence that the needed coverage
had been obtained, the forced placement is not necessary, and the
property is properly insured in accordance with the loan or note.
Sec. 1323.18. (A) No mortgage servicer shall use unfair,
deceptive or unconscionable means to collect or attempt to
collect any claim in connection with a residential mortgage loan.
Without limiting the general application of the foregoing, the
following actions violate this section:
(1) The collection or the attempt to collect any interest or
other charge, fee, or expense that is incidental to the principal
obligation, unless expressly authorized by the agreement creating
the obligation and by law, including division (A) of section
1323.17 of the Revised Code;
(2) Any communication with a borrower if the mortgage
servicer knows that the borrower is represented by an attorney and
the attorney's name and address are known or could be easily
ascertained. This prohibition does not apply if the borrower's
attorney fails to respond within thirty days to answer
correspondence, return phone calls, or discuss the obligation in
question, or the attorney consents to the servicer having direct
communication with the borrower;
(3) Placing a telephone call or otherwise communicating by
telephone with a borrower or third party, at any place including
a place of employment, and falsely stating that the call is
"urgent" or an "emergency";
(4) Using profane or obscene language or language that is
intended to unreasonably abuse the listener or reader;
(5) Placing telephone calls without disclosure of the
caller's identity and with the intent to annoy, harass, or
threaten any person at the number called;
(6) Causing expense to any person in the form of long
distance telephone tolls, text messaging fees, or other charges
the servicer causes by concealing the true purpose of the
communication;
(7) Causing a telephone to ring or engaging any person in a
telephone conversation repeatedly or continuously, or at unusual
times or times known to be inconvenient, with the intent to
annoy, abuse, oppress, or threaten any person at the called
number.
(B) The requirements set forth in this section are in
addition to any other requirement set forth in federal or state
law regulating the conduct of collection activities, including the
Federal Fair Debt Collection Practices Act, 91 Stat. 874 (1977),
15 U.S.C. 1692 et seq.
Sec. 1323.19. (A) No mortgage servicer, in conducting a
mortgage servicer business, shall engage in any unfair, deceptive
or unconscionable act in violation of Chapter 1345. of the Revised
Code. Any violation of the sections set forth in division (C),
(D), (F), or (G) of section 1323.15 or section 1323.16, 1323.17,
or 1323.18 of the Revised Code is an unfair and deceptive act or
practice in violation of section 1345.02 of the Revised Code. The
attorney general may take enforcement action and a borrower may
seek recovery under Chapter 1345. of the Revised Code for the
violations set forth in this division.
(B) A borrower injured by a violation of division (A) of this
section may not recover damages, attorney's fees, and costs under
Chapter 1345. of the Revised Code if the borrower has recovered
damages in a cause of action initiated under section 1323.20 of
the Revised Code and the damages sought under Chapter 1345. of
the Revised Code are based on the same acts or circumstances as
the damages awarded under section 1323.20 of the Revised Code.
Sec. 1323.20. (A) A borrower injured by a violation of this
chapter may recover damages in an amount not less than all
improper charges or fees paid to the mortgage servicer, plus
reasonable attorney's fees and court costs, and also may be
awarded punitive damages.
(B) Nothing in this section prevents recovery under division
(B) or (C)(2) of section 1323.03 of the Revised Code.
(C) A borrower may not recover damages, attorney's fees, or
costs under this section if the borrower also recovered damages
in an action initiated under any section of Chapter 1321. or
1345. of the Revised Code and the damages so awarded were based
on the same acts or circumstances as the damages sought under this
section.
Sec. 1323.99. (A) Whoever violates division (A)(1) or (2) of
section 1323.03, or division (F) or (G) of section 1323.15 of the
Revised Code is guilty of a felony of the fifth degree.
(B) Whoever violates section 1323.13 of the Revised Code with
the intent to interfere or obstruct an examination or
investigation is guilty of a felony of the fourth degree.
Section 2. That existing sections 109.572, 1181.05, 1181.21,
and 1321.52 of the Revised Code are hereby repealed.
Section 3. Section 1323.03 of the Revised Code takes effect
six months after the effective date of this act. During that
six-month period, the Superintendent of Financial Institutions of
the Department of Commerce may take applications for registration
as a mortgage servicer, process the applications, and issue
certificates of registration as the Superintendent is able. During
that time, no mortgage servicer is required to have a certificate
of registration and the Superintendent is not obligated to issue
certificates until the Superintendent is able.
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