MORTGAGE BROKERS

Forms	Policies & Information	Attorney General - Predatory Lending

 

Registration/Licensing and Testing	Continuing Education Providers and Classes	Pre-Licensing Education Providers

 

SB 185 Effective January 1, 2007

 

The Division of Financial Institutions regulates mortgage brokers pursuant to Chapter 1322 of the Ohio Revised Code.

MORTGAGE BROKER REGISTRATION

 

  Any person or organization that holds itself out as able to assist consumers in

obtaining mortgage loans, or acts as a table funder or warehouse lender, or develops and sells mortgage leads to other organizations must register under the Ohio

Mortgage Broker Act (OMBA), Chapter 1322 of the Ohio Revised Code. Mortgage brokers registered under the OMBA must also comply with the Ohio Homeowners Equity Protection Act, sections 1349.25 to 1349.44 of the Ohio Revised Code, which

is administered by the Division's Office of Consumer Affairs, and the Ohio Consumer Sales Practices Act, Chapter 1345 of the Ohio Revised Code, which is administered

by the Consumer Protection Section of the Ohio Attorney General's office.

 

  Mortgage brokers must submit applications for each office conducting business in Ohio and at least one office must be in the state of Ohio . The principal owners and officers of each applicant must submit to electronic, nationwide criminal background checks and the employee or officer of the applicant proposed as the operations manager must provide proof that he or she has at least three years' experience

in mortgage lending.

 

The registration fee for each office is $350 and the applicant must also obtain a

surety bond in the amount of $50,000 for the first office and $10,000 for each

additional office to be registered. The Division also requires photographs of each location to be registered and, if applicable, proof that the locations have local zoning approval as a business location.

 

Beginning January 1, 2007, applicants must also provide evidence that their

proposed operations managers have completed twenty-four hours of pre-licensing education provided by a vendor approved by the Division. OMBA certificates of registration are valid from May 1 through April 30 of the following year and may be renewed annually at a cost of $350 per certificate. If an office is relocated, a

registrant must submit a $15 fee and submit a relocation application prior to

conducting business at the new location.

 

LOAN OFFICER LICENSING

 

Every employee of a mortgage broker registered under the OMBA who originates residential mortgage loans or who handles consumers' personal financial

information must be individually licensed as a loan officer. Applicants for loan officer licenses must pay a nonrefundable $100 application fee, provide verification of employment, and submit to nationwide, criminal background checks.

 

Beginning January 1, 2007, applicants must also provide evidence that they

have completed twenty-four hours of pre-licensing education provided by a vendor approved by the Division.

 

Persons designated as operations managers by OMBA registrants must obtain

loan officer licenses and licensed loan officers may not work for more than one

OMBA registrant at the same time.

 

Loan officer licenses are valid from May 1 through April 30 of the following year

and may be renewed annually by paying a $100 license fee and submitting proof

that the applicant for renewal has completed six hours of continuing education conducted by a Division-approved vendor.

 

COMPLIANCE

 

Registrants must comply with specific recordkeeping, advertising, disclosure and business practice regulations contained in the OMBA and the Administrative Rules promulgated under the Act. For example, all mortgage broker offices must be registered, fees that may be collected prior to loan closing are limited, all fees

collected by registrants from consumers on behalf of third-party service providers

must be processed through the registrant's special account, advertisements must disclose the registrant's name, address and registration number, and required

records must be maintained for four years.

 

The Division will periodically examine registrants for compliance with Ohio law and

has the power to issue subpoenas in the process of conducting examinations and investigations. In addition, the Division may deny applications for registration,

revoke, suspend, or refuse to renew certificates of registration, or impose fines

against registrants pursuant to the Ohio Administrative Procedures Act,

Chapter 119 of the Ohio Revised Code.

 

LOAN OFFICER APPLICANTS: Failure to have your fingerprints taken and a criminal background check conducted by a provider authorized by the Division of Financial Institutions will delay the processing of your application. The Division will NOT process your application without the results of the background check or other components of the application.