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|
Commerce News Release FOR IMMEDIATE
RELEASE |
Contact: Bill
Teets at (614) 644-7187 |
STATE SEEKING TO DENY LICENSES
FOR 57 LOAN OFFICER APPLICANTSDUE
TO
CONVICTIONS UNCOVERED DURING CRIMINAL
BACKGROUND CHECK
The Ohio Department of
Commerce’s Division of Financial Institutions issued orders today placing 57
mortgage loan officer applicants on notice that the Division intends to deny
their loan officer applications. (See
attached chart.) The Division alleges
in the orders that each of the individuals have been convicted of crimes that
prohibit them from receiving a loan officer license.
“The Division of Financial
Institutions is committed to ensuring that only qualified and law abiding
citizens are serving as loan officers,” Superintendent of Financial
Institutions F. Scott O’Donnell said.
“When seeking a loan through a mortgage broker, borrowers are entitled
to work with loan officers who understand and obey the law.”
The regulation of Ohio’s
mortgage broker industry was strengthened with the enactment of Senate Bill
76. The law, which was unanimously
passed by the Ohio General Assembly and signed into law by Governor Bob Taft,
went into effect on May 2, 2002.
On that date, Senate Bill 76
required the licensure of loan officers who work for mortgage brokers. Under Ohio law, mortgage brokers generally
bring borrowers and lenders together and charge a fee for their services. The new law prohibits an individual who has
been convicted of theft, forgery or other financial crimes from obtaining a
loan officer license, unless the Superintendent of Financial Institutions
believes that the person will not commit such a crime again. In addition, the law requires the Division
to consider whether the applicant’s character and general fitness command the
public’s confidence. Prior law only
required the company’s owners and operations manager undergo a criminal
background check.
“This is the first round of
notice orders being issued against applicants due to their criminal history,”
Superintendent O’Donnell said.
Additional orders will likely be issued following the review of the
criminal background checks of the other pending applicants.
If an individual receiving a
notice order wishes to challenge the Division’s decision, he or she will have
30 days in which to request an administrative hearing.
The Division has licensed
approximately 5,250 loan officers and 2,000 applications are currently
pending.
“BORROW SMART” CAMPAIGN
In addition to enforcing
Ohio’s mortgage broker law, the Division of Financial Institutions opened its
Office of Consumer Affairs in May. Ohio
legislators created the office to reduce the growing number of consumers
falling victim to abusive lending practices.
The office is working to educate Ohioans on how to protect themselves in
the mortgage lending process, to receive complaints from those who have been
victimized, and to act as a referral service to organizations that can assist
the borrower. When lending laws are
violated, the office can refer criminal cases for prosecution.
