Ohio Code 1322.12 – Designation of operations manager; eligibility
(A) Each registrant or entity holding a valid letter of exemption under division (B)(1) of section 1322.05 of the Revised Code shall designate an employee or owner of that registrant’s business as the operations manager. The operations manager shall be responsible for the management, supervision, and control of a particular registrant.
Terms Used In Ohio Code 1322.12
- 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
- Control: means the power, directly or indirectly, to direct the management or policies of an entity, whether through ownership of securities, by contract, or otherwise. See Ohio Code 1322.01
- Employee: means an individual for whom a mortgage broker, mortgage lender, or mortgage servicer, in addition to providing a wage or salary, pays social security and unemployment taxes, provides workers' compensation coverage, and withholds local, state, and federal income taxes. See Ohio Code 1322.01
- Entity: means a business organization, including a sole proprietorship. See Ohio Code 1322.01
- in writing: includes any representation of words, letters, symbols, or figures; this provision does not affect any law relating to signatures. See Ohio Code 1.59
- 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 broker: means an entity that for compensation or gain, or in the expectation of compensation or gain, obtains, attempts to obtain, or assists in obtaining a residential mortgage loan for a borrower from a mortgage lender. See Ohio Code 1322.01
- Mortgage lender: means an entity that for compensation or gain, or in the expectation of compensation or gain consummates a residential mortgage loan, advances funds, offers to advance funds, or commits to advancing funds for a borrower. See Ohio Code 1322.01
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan originator: means an individual who for compensation or gain, or in the expectation of compensation or gain, does any of the following:
(a) Takes a residential mortgage loan application;
(b) Assists or offers to assist a buyer in obtaining or applying to obtain a residential mortgage loan by, among other things, advising on loan terms, including rates, fees, and other costs;
(c) Offers or negotiates terms of a residential mortgage loan;
(d) Issues or offers to issue a commitment for a residential mortgage loan to a buyer. See Ohio Code 1322.01
- Mortgage servicer: means a person that, for compensation or gain for itself or on behalf of the holder of a residential mortgage loan, holds the servicing rights for more than five residential mortgage loans, records mortgage payments on its books for more than five residential mortgage loans, or performs other functions to carry out the residential mortgage holder's obligations or rights under the mortgage agreement for more than five residential mortgage loans including, when applicable, the receipt of funds from the mortgagor to be held in escrow for payment of real estate taxes and insurance premiums and the distribution of such funds to the taxing authority and insurance company. 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
- Registrant: means any person that has been issued a certificate of registration under this chapter. See Ohio Code 1322.01
(B) To be eligible for such a designation, an employee or owner shall have at least three years of experience in the residential mortgage and lending field including experience as a mortgage loan originator, registered mortgage loan originator, or other experience related to the business of residential mortgage lending that the superintendent determines is sufficient. While acting as the operations manager, the employee or owner shall be licensed as a mortgage loan originator under this chapter and shall not be employed by any other mortgage lender, mortgage broker, or mortgage servicer.
(C) If the person designated as the operations manager pursuant to this section ceases to be the operations manager, the registrant shall do all of the following:
(1) Within ninety days after the person ceases to be the operations manager, designate another person as the operations manager;
(2) Within ten days after the designation described in division (C)(1) of this section, notify the superintendent in writing of the new designation;
(3) Submit any additional information that the superintendent requires to establish that the newly designated operations manager meets the requirements set forth in this section.
(D) The registrant shall cease operations if it is without an operations manager approved by the superintendent for more than one hundred eighty days unless otherwise authorized in writing by the superintendent due to exigent circumstances.
Last updated June 22, 2021 at 1:12 PM