H.B.199. Enact Ohio Residential Mortgage Lending Act

Ohio House of Representatives
Last action 3 months ago
Polls (open):

Sponsors

Louis Blessing, Robert Sprague, Stephen Hambley, Adam Miller, Thomas Patton, Tim Schaffer, Bill Coley

Summary

                    - Limits the application of the "Mortgage Loan Law" to unsecured loans, and loans secured by other than residential real estate or a dwelling.

- Creates the Ohio Residential Mortgage Lending Act (RMLA) to regulate all nondepository lending secured by residential real estate.

- Modifies an exemption from the Consumer Installment Loan Act.

Modification of the "Mortgage Loan Law"

What was previously referred to as the "Mortgage Loan Law," R.C. 1321.51 to 1321.60, governed nondepository lenders that made (1) loans secured by a mortgage on a borrower's real estate that was a first lien or other than a first lien on the real estate, (2) loans secured by other than real estate, (3) loans secured by any combination of mortgages and security interests, and (4) unsecured loans. Persons making the loans had to obtain a certificate of registration from the Division of Financial Institutions.

Individuals employed or compensated by those lenders to conduct the business of making loans had to be licensed by the Division as mortgage loan originators.

The act limits the application of the "Mortgage Loan Law" to unsecured loans, and loans secured by other than residential real estate or a dwelling. (For purposes of this analysis, this new law is referred to as the "General Loan Law.") Under the act, nondepository lenders that make loans secured by real estate are instead governed by the newly enacted Ohio Residential Mortgage Lending Act.

Ohio Residential Mortgage Lending Act (RMLA) This portion of the act, enacted as a new R.C. Chapter 1322., establishes the Ohio Residential Mortgage Lending Act (RMLA) to regulate all nondepository lending secured by residential real estate. It provides for the registration of mortgage lenders and mortgage brokers and the licensure of mortgage loan originators.

The RMLA is based on prior Chapter 1322., which regulated mortgage brokers and loan originators. Following an analysis of the RMLA's major provisions, a table beginning on page 27 indicates the sections of prior law that have been renumbered and modified, as well as the organization of the RMLA.

Ohio Consumer Installment Loan Act The Ohio Consumer Installment Loan Act (CILA),81 which took effect September 12, 2017, generally does not apply to any credit transaction that does not require equal monthly payments. CILA does apply, however, if the unequal monthly payments are due to (1) a variable rate loan or (2) interest being charged to extend the first monthly installment period on an interest-bearing loan. Under the act, CILA also applies when, with respect to a precomputed loan, the first installment period is extended and the first installment payment is larger than the remaining payments by the amount of interest charged for the extra days.
                

In an effort to be an unbiased source of information, all text in this summary comes directly from government resources.

Actions

  • Concurred in Senate amendments

    Wed, Nov 29th 2017
  • Passed

    Wed, Nov 15th 2017
  • Reported

    Tue, Nov 14th 2017
  • Refer to Committee

    Wed, Jun 28th 2017
  • Introduced

    Thu, Jun 22nd 2017
  • Reported

    Tue, Jun 20th 2017
  • Passed

    Tue, Jun 20th 2017
  • Refer to Committee

    Tue, May 9th 2017
  • Introduced

    Mon, May 1st 2017