GOVERNOR SIGNS PREEMPTIVE PREDATORY LENDING BILL

by Darrell L. Dreher, Elizabeth L. Anstaett and Jean M. McCarthy*

Ohio House Bill 386 was signed by the Governor and will become effective May 24, 2002. The Bill was carefully crafted to preempt local predatory lending ordinances without violating Ohio’s local government home rule provisions.

The Bill:

  • Adopts substantive federal HOEPA protections into state law;

  • Grants the Ohio Department of Commerce new enforcement powers; and

  • Creates a study committee to consider further regulation of lending.

As previously reported, the measure passed by the Senate differed from the version passed by the Ohio House. The House concurrenced in the Senate changes and the Governor signed the bill February 22, 2002.

If we can be of any assistance with predatory lending issues or if you would like a copy of the Ohio bill, please do not hesitate to call us.

*The Firm has represented a broad coalition of industry groups with respect to this legislation. Darrell Dreher and Elizabeth Anstaett are the Firm’s primary counsel with respect to Ohio legislative matters. Jean McCarthy is the Managing Editor of the Firm’s Residential Mortgage Loan Digest and tracks predatory lending initiatives on a nationwide basis. They can be reached at 614-628-8000.