Ohio Code 1322.04 – Applicability of RMLA
This chapter does not apply to any of the following:
Terms Used In Ohio Code 1322.04
- Another: when used to designate the owner of property which is the subject of an offense, includes not only natural persons but also every other owner of property. See Ohio Code 1.02
- Bona fide nonprofit organization: means an organization that meets all of the following:
(1) Has the status of a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended;
(2) Promotes affordable housing or provides homeownership education or similar services;
(3) Conducts its activities in a manner that serves public or charitable purposes, rather than commercial purposes;
(4) Receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients;
(5) Compensates its employees in a manner that does not incentivize employees to act other than in the best interests of its clients;
(6) Provides, or identifies for the borrower, residential mortgage loans with terms favorable to the borrower and comparable to mortgage loans and housing assistance provided under government housing assistance programs;
(7) Has obtained a valid letter of exemption from the superintendent of financial institutions. See Ohio Code 1322.01
- Borrower: means a person seeking a residential mortgage loan or an obligor on a residential mortgage loan. See Ohio Code 1322.01
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Entity: means a business organization, including a sole proprietorship. See Ohio Code 1322.01
- Federal banking agency: means the board of governors of the federal reserve system, the comptroller of the currency, the national credit union administration, or the federal deposit insurance corporation. See Ohio Code 1322.01
- Individual: means a natural person. See Ohio Code 1322.01
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage: means the consensual interest in real property located in this state, including improvements to that property, securing a debt evidence by a mortgage, trust indenture, deed of trust, or other lien on real property. See Ohio Code 1322.01
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Nationwide mortgage licensing system and registry: means a licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators, or their successor entities, for the licensing and registration of persons providing non-depository financial services. See Ohio Code 1322.01
- Person: means an individual, sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, or association. See Ohio Code 1322.01
- state: means the state of Ohio. See Ohio Code 1.59
- Superintendent of financial institutions: includes the deputy superintendent for consumer finance as provided in section 1181. See Ohio Code 1322.01
- United States: includes all the states. See Ohio Code 1.59
(A) Any entity chartered and lawfully doing business under the authority of any law of this state, another state, or the United States as a bank, savings bank, trust company, savings and loan association, or credit union, or a subsidiary of any such entity, which subsidiary is regulated by a federal banking agency and is owned and controlled by a depository institution;
(B) A consumer reporting agency that is in substantial compliance with the “Fair Credit Reporting Act,” 84 Stat. 1128, 15 U.S.C. § 1681a, as amended;
(C) Any political subdivision, or any governmental or other public entity, corporation, instrumentality, or agency, in or of the United States or any state;
(D) A college or university, or controlled entity of a college or university, as those terms are defined in section 1713.05 of the Revised Code;
(E) Any entity created solely for the purpose of securitizing loans secured by an interest in real estate, provided the entity does not service the loans. As used in this division, “securitizing” means the packaging and sale of mortgage loans as a unit for sale as investment securities, but only to the extent of those activities.
(F) Any person engaged in the retail sale of manufactured homes, mobile homes, or industrialized units, including a manufactured home park operator, as defined in section 4781.01 of the Revised Code, if, in connection with obtaining financing by others for those retail sales, the person does not do any of the following:
(1) Offer or negotiate the residential mortgage loan rates or terms;
(2) Fail to give a borrower written disclosure of any corporate affiliation the person has with any lender, or fail to refer a borrower to at least one unaffiliated lender if the person recommends a lender with which the person has a corporate affiliation;
(3) Receive any compensation or gain from any company or individual for assisting the borrower to obtain or apply for financing to purchase the manufactured home, mobile home, or industrialized unit.
(G) A bona fide nonprofit organization;
(H) A credit union service organization, provided that the organization utilizes services provided by registered mortgage loan originators or that it holds a valid letter of exemption issued by the superintendent of financial institutions under division (B)(1) of section 1322.05 of the Revised Code.
(I) A depository institution not otherwise required to be licensed under this chapter that voluntarily makes a filing on the nationwide mortgage licensing system and registry as an exempt entity for the purpose of licensing loan originators exclusively associated with the institution and that holds a valid letter of exemption issued by the superintendent pursuant to division (B)(1) of section 1322.05 of the Revised Code.
Last updated June 22, 2021 at 1:08 PM