Does the state require a physical location within the state?
Yes (under the mortgage broker act).

Is there individual loan officer licensing?
Yes.

What are lenders, brokers and loan officers called?
Ohio uses the terms mortgage brokers and loan officers

What is the cost of a license? Surety bond? Are there net worth requirements?
A certificate of registration must be obtained under the Ohio Mortgage Broker Act to broker Ohio residential mortgage loans. The definition of mortgage broker is very comprehensive; lenders should be sure that they fall under one of the exemptions. The registration fee is $350. A surety bond in the amount of $50,000 is required, along with an additional $10,000 for each additional branch office. An operations manager who has a minimum of three years' experience in the mortgage and lending field must be designated. Registration certificates must be renewed annually. The renewal fee is $350 per location. A mortgage loan officer applicant must submit a completed application, must undergo a criminal and civil records background check, and must pass the Ohio mortgage loan officer examination. The application fee is $100. The loan officer must be employed full-time by a registered mortgage broker. The individual's loan officer license must be displayed at the registered location where the loan officer is employed.

Is there a pre-licensing education requirement? Is there a test?
Yes. The designated operations manager of a mortgage broker applicant must pass the Ohio mortgage broker operations manager examination as a part of the licensing process. A mortgage loan officer applicant must pass the Ohio mortgage loan officer examination. As of January 1, 2007, any applicant for a mortgage broker registration must show that the person designated on the application as the operations manager has completed either 24 hours of live classroom instruction or other postsecondary education related specifically to the business of mortgage loans and that the superintendent determines meets the requirements. Also, as of January 1, 2007, an application for a loan officer license must include proof that the applicant has successfully completed at least 24 hours of live classroom instruction in an approved program.

Is there a CE requirement?
Yes. The operations manager of a mortgage broker licensee must complete six hours of continuing education in each calendar year. Licensed loan officers must also complete six hours of continuing education in each calendar year.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
There is no separate lenders license on Ohio for first lien mortgage loans. Lenders should be cautious that their activities do not fall under the coverage of the Ohio Mortgage Broker Act.

Are there any state specific high cost loan provisions?
The Ohio Predatory Lending Act became effective January 1, 2007. The act defines a “covered loan” as a consumer credit mortgage loan transaction that exceeds either of the following thresholds:

APR test - If the APR at the time of loan closing exceeds the amount established under Section 152(a) of HOEPA.

Points and fees test - If the total loan amount is $25,000 or more, the total points and fees payable by the borrower at or before closing exceed 5 percent of the total loan amount. If the total loan amount is less than $25,000, the total points and fees exceed 8 percent of the total loan amount. The term "points and fees" has the same meaning as in Section 152(a) of HOEPA.

The act places certain prohibitions on covered loans and provides for the application of Ohio's consumer sales practices law to residential mortgage loans and mortgage brokers, loan officers, and nonbank mortgage lenders. It also subjects mortgage brokers and loan officers to the prohibition on unfair or deceptive acts or practices in Ohio law and adds numerous additional disclosure requirements.

Are there any state specific predatory lending laws?
See the high cost loan provisions.

Closing practices – attorney or title state? Wet or dry settlement?
Ohio is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
A certificate of registration under the Ohio Mortgage Loan Act must be obtained to originate and/or service second lien Ohio residential mortgage loans. This is a separate registration from the Ohio Mortgage Broker Act.

Who is the regulator and what is their contact information?
Department of Commerce
Division of Financial Institutions
77 South High Street
21st Floor
Columbus, Ohio 43266-0121
Phone: (614) 466-2221
Fax: (614) 644-1631
www.com.state.oh.us/dfi


DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


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