OHIO DIVISION OF FINANCIAL INSTITUTION FILES PROPOSED RULES REGARDING MORTGAGE LENDING

The Ohio Division of Financial Institution filed rules regarding mortgage lending under new provisions of Ohio law enacted earlier this year as part of S.B. No. 185. Effective January 1, 2007, S.B. No. 185 was enacted after much debate and modifies various provisions of the Ohio Mortgage Loan Act, the Ohio Mortgage Broker Act and other provisions of Ohio law relating to mortgage lending.

The proposed rules clarify the restrictions on prepayment penalties, implement new requirements in the Ohio Mortgage Broker Act and address other new requirements imposed on mortgage lending. The proposed rules are available on the Division’s web site at www.com.state.oh.us/difi/documents/185rules112006.pdf. A public hearing on the proposed rules is scheduled for December 19, 2006.

Elizabeth Anstaett and Michael Tomkies