MORTGAGE LOAN COMPANIES

Forms

Mortgage Brokers & Lenders Letter 2008-2

 

2007 Annual Report

 

The Division of Financial Institutions regulates second mortgage lenders and non-depository lenders who make other types of loans in amounts of more than five thousand dollars in Ohio under Sections 1321.20, 1321.51 to 1321.60 and 1321.99 of the Ohio Revised Code.

REGISTRATION

A person wishing to register under the Ohio Mortgage Loan Act must submit an application, a fingerprint card, a registration fee and a nonrefundable investigation fee. The Division must investigate the financial condition, responsibility, experience character and general fitness of the applicant, including requesting a criminal background check. The applicant must have assets of at least fifty thousand dollars per branch office readily available for use in the business and a net worth of fifty thousand dollars.

Certificates of registration may be renewed annually by filing a renewal application, paying an annual registration fee and, if the Division determines it is necessary, paying an annual assessment based on the amount of interest and other finance charges collected by the registrant. If an office is to be relocated, the registrant must obtain a new certificate of registration from the Division prior to conducting business at the new location.


COMPLIANCE

Registrants must comply with specific recordkeeping, advertising and business practices as outlined by statute or rule. For example, all loan office locations must be registered, certificates of registration must be conspicuously posted, the interest rates and fees that may be charged on loans are limited and certain records must be maintained for two years.

The Division can investigate registrants and anyone who appears to be operating without a certificate of registration, and has the power to issue subpoenas as part of the investigative process. The Division may also issue cease and desist orders, impose monetary fines, or revoke or suspend a certificate of registration, subject to the Administrative Procedures Act.