OHIO GENERAL ASSEMBLY PASSES MORTGAGE LENDING BILL
After much debate, the Ohio General Assembly passed a mortgage lending bill on May 24, 2006 designed to deal with predatory lending. The bill now goes to the governor for his signature and will take effect January 1, 2007.
The Ohio Senate passed the bill on February 22, 2006. The House of representatives substantially amended the bill in response to concerns raised by the mortgage lending industry and passed the amended version on March 24, 2006. The Senate did not concur in the House amendments and the bill was sent to conference committee.
The bill modifies the application of the Consumer Sales Practices Act and the Consumer Credit Mortgage Loan Law; prohibits the appraisal of real estate for a mortgage loan without state certification or licensure; requires that a national criminal background check be conducted on all applicants for a mortgage broker certificate or registration, loan officers license, or real estate appraiser certificate or license; modifies the mortgage broker/loan officer law with respect to disclosure of information, duties and standards of care, prohibited acts, record keeping, educational requirements, and pre-licensure examination; modifies the Title Insurance Agent Law; establishes the Consumer Education Finance Board; and makes other changes relative to mortgage lending.
Mike Tomkies and Elizabeth Anstaett