Ohio Adm.Code 1301:8 | Ohio Administrative Code 1301:8 — Department of Commerce | Division of Financial Institutions: Consumer Finance

Chapter 1301:8-1 General Provisions

Ohio Adm.Code 1301:8-1-02 Reimbursement to small loan licensees and second mortgage registrants for assembling or providing financial records.

This rule is issued by the superintendent of financial institutions pursuant to division (C) of section 9.02 of the Revised Code. It establishes the rates and conditions for reimbursement of actual and necessary costs directly incurred by licensees, as defined in section 1321.01 of the Revised Code, registrants, as defined in section 1321.51 of the Revised Code, and mortgage lenders registered under Chapter 1322. of the Revised Code, in assembling or providing customer financial records to any party.

(A) Except as provided in this rule or in section 9.02 of the Revised Code, any party, including a governmental authority, that requires or requests a licensee or registrant to assemble or provide a customer's financial records shall pay the licensee or registrant for all actual and necessary costs directly incurred in searching for, reproducing, or transporting these records according to the following schedule:

(1) Search and processing costs. Reimbursement of search and processing costs shall be the total amount of personnel direct time incurred in locating and retrieving, reproducing, packaging, and preparing financial records for shipment. The rate for search and processing costs is twenty-seven dollars per hour per person, computed on the basis of six dollars and seventy-five cents per quarter hour or fraction thereof, and thirty-seven dollars per hour per person for managerial or supervisory personnel, computed on the basis of nine dollars and twenty-five cents per quarter or fraction thereof, and is limited to the total amount of personnel time spent in locating and retrieving documents or information or reproducing or packaging and preparing documents for shipment where required or requested by a party. Specific salaries of such persons shall not be included in search costs. In addition, search and processing costs do not include salaries, fees, or similar costs for analysis of material or for managerial or legal advice, expertise, research, or time spent for any of these activities. If itemized separately, search and processing costs may include the actual cost of extracting information stored by computer in the format in which it is normally produced, based on computer time and necessary supplies; however, personnel time for computer search may be paid for only at the rate specified in this paragraph.

(2) Reproduction costs. Reimbursement for reproduction costs shall be for costs incurred in making copies of documents required or requested. The rate for reproduction costs for making copies of required or requested documents is as follows:

(a) Twenty-five cents per page for photocopies;

(b) Twenty-five cents per page for paper copies of microfiche;

(d) Actual cost for each computer diskette or compact disk, or other storage media.

(3) Transportation costs. Reimbursement for transportation costs shall be for necessary costs, directly incurred, to transport personnel to locate and retrieve the information required or requested; and necessary costs, directly incurred solely by the need to convey the required or requested material to the place of examination.

(B) A licensee or registrant is not entitled to reimbursement under this rule for costs incurred in assembling or providing the following records or information:

(1) Security interest, bankruptcy claims, debt collection. Any financial records provided as an incident to perfecting a security interest, proving a claim in bankruptcy, or otherwise collecting on a debt owing to the licensee or registrant.

(2) Nonidentifiable information. Financial records that are not identified with or identifiable as being derived from the financial records of a particular customer.

(3) Financial institution regulatory authorities. Financial records disclosed to a financial institution regulatory authority in the exercise of its supervisory or regulatory functions with respect to the financial institution.

(C) Payment shall be limited to material required or requested. Payment shall be made only for costs that are directly incurred, actual, and necessary. No payment must be made until the licensee or registrant satisfactorily complies with the request or requirement, except that in the case where the request or requirement is withdrawn or revoked, the licensee or registrant shall be reimbursed for the actual and necessary costs directly incurred in assembling financial records required or requested to be produced prior to the time the party notifies the licensee or registrant that the request or requirement is withdrawn or revoked. No payment must be made unless the licensee or registrant submits an itemized bill or invoice showing specific details concerning search and processing, reproduction, and transportation costs.

(D) For the purposes of this rule, the term "costs directly incurred" means costs incurred solely and necessarily as a consequence of searching for, reproducing, or transporting books, papers, records, or other data, in order to comply with a request or requirement to produce a customer's financial records. The term does not include any allocation of fixed costs (overhead, equipment, depreciation, etc.). If a licensee or registrant has financial records that are stored at an independent storage facility that charges a fee to search for, reproduce, or transport particular records requested, these costs are considered to be directly incurred by the licensee or registrant.

(E) Where terms used in this rule are defined in section 9.02 of the Revised Code, they shall have the meaning set forth in that section.

Last updated November 5, 2025 at 9:23 AM

History

Effective: November 4, 2025
Promulgated Under: 119.03

Chapter 1301:8-2 Small Loan Act

Ohio Adm.Code 1301:8-2-01 Definitions.

(A) "Current assets," as used in section 1321.05 of the Revised Code, means cash on hand and in depository institutions, readily marketable securities, accounts receivable less allowances for uncollectible accounts, and real estate less liens and depreciation. "Current assets" shall not include office premises, leasehold improvements, office furniture, fixtures, equipment or intangible assets.

(B) "Direct mail," as used in this chapter, means a loan arranged via an application through the mail or internet and the loan proceeds delivered through the mail or electronic transmission to the benefit of a borrower. A loan is not made by "direct mail" if it is facilitated by face to face, personal contact.

(C) "Affiliation" or "affiliated with" as used in sections 1321.01 to 1321.19 of the Revised Code and this chapter means controlled by or under common control with another person or enterprise.

(D) "Control" means the authority to direct or cause the direction of the management and policies through ownership, by contract, or otherwise.

(E) "Final entry," as used in this chapter, means, as to that lender, the latter of the date the loan is:

(1) Paid in full,

(2) Deemed uncollectible,

(3) Assigned to another registrant or exempt entity and all records are transferred to the new lender, or

(4) Discharged or otherwise settled by an order terminating litigation governing the loan transaction.

Last updated November 28, 2022 at 8:41 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-2-04 Recordkeeping requirements.

(A) All small loan records required to be maintained by this rule shall be kept current and shall be available at all times during normal business hours for review by the division of financial institutions. Records shall be legible and maintained in a type size that is clearly readable without magnification, and in conformity with any specific typeface or font size that may be required by state or federal law. Except where otherwise provided by federal or state law, records shall be maintained in English. When records are allowed to be in a language other than English, the small loan licensee, at its expense, shall be responsible for providing the division with a full and accurate translation. For purposes of recordkeeping, "current" means within thirty business days from the date of the occurrence of the event required to be recorded. Pursuant to section 1321.09 of the Revised Code, each small loan licensee shall maintain the following paper or electronic records for all loans made pursuant to sections 1321.01 to 1321.19 of the Revised Code for at least a period of two years after making the final entry at either the licensed office or any other location approved in writing in advance by the superintendent of financial institutions.

(1) A ledger record shall be kept for each outstanding loan paid in full within the last two years upon which a chronological entry of all credits, debits, payments and charges received, assessed or disbursed in connection with the loan shall be recorded in an identifiable manner, in order to show the actual date of receipt, assessment or disbursement and the balance due on the account after each entry.

(2) A loan statement kept in chronological order shall be maintained in one file for at least two years after making the final entry for each loan made by the licensee. The loan statement shall disclose the following information if applicable:

(a) Account number;

(b) Principal borrower's name and residence address;

(d) Date finance charges begin to accrue;

(e) Contractual rate of loan interest;

(f) Federal annual percentage rate;

(g) Loan origination charge;

(h) Original principal amount;

(i) Scheduled or precomputed interest;

(j) Total of payments;

(k) Type of security;

(l) Terms of repayment;

(m) Names of all comakers, guarantors, or other obligors;

(n) Types and amount of credit-related insurance;

(o) Unit default charge;

(p) Credit bureau fee;

(q) Where and to whom hypothecated;

(r) An indication as to whether or not the loan is a "refinancing," as that term is defined in division (A)(11) of section 1321.01 of the Revised Code.

(3) All loan agreements, notes, disclosure forms, closing statements, security agreements and other documents signed by the obligors and taken in connection with loans made, shall be identified by the loan number and maintained in a separate file for each borrower.

(4) An alphabetical index of all borrowers, comakers, guarantors, and other obligors identified by account number shall be maintained with respect to all persons obligated for interest in excess of the current usury rate.

(5) A record of all loans in litigation shall be maintained in a litigation record. The litigation record shall be maintained for at least two years after the final entry, be kept current, and include the following information:

(a) Loan number and name of principal borrower;

(b) Date litigation proceedings were initiated, the date and amount of the judgment and the judgment rate of interest;

(c) All original litigation records and documents, including pleadings, court orders, judgments, and documentation of all court costs paid by the borrower to or through the licensee, or copies thereof shall be maintained in the file of original papers; and

(d) In cases of garnishment or attachment, all notices served on employers or copies thereof and the amounts collected shall be maintained in the file of original loan papers.

(6) A record of all loans in repossession shall be maintained in a repossession record. The repossession record shall be maintained for at least two years after the final entry has been made on the loan, be kept current, and include the following information:

(a) Loan number and name of principal borrower;

(b) Type of security attached, replevined, repossessed, or surrendered;

(c) Date of repossession, date of sale of the security, the gross amount received from the sale of the security, expenses deducted from the sale of the security and the amount of money applied to the outstanding loan balance;

(d) All original repossession legal documents and other records, including bills for all expenses or copies thereof shall be maintained in the file of original loan papers; and

(e) In instances where the security is offered for private sale, there must be in the borrower's file not less than three bona fide written bids or appraisals in order to establish that the terms of sale were fair to the borrower. Where the security is offered for private or public sale, the sale must be consummated in compliance with the provisions of sections 1309.610, 1309.611, 1309.615, 1309.617, and 1309.624 of the Revised Code.

(7) A credit life claim record shall be maintained for all loans upon which a credit life claim has been paid by the insurer. The credit life claims record shall be maintained for at least two years after the final entry has been made on the loan, be kept current, and include the following information:

(a) Loan number and name of principal borrower;

(b) Date of death and a certified copy of the death certificate or a copy thereof;

(d) Copies of all checks received or paid pertaining to a credit life claim.

(8) Histories of nonpublished indices used to establish interest rates for variable rate loans shall be maintained for two years from date of usage, and shall be available for review by the division of financial institutions.

(9) A log for business conducted with brokers that is maintained in chronological order and contains the following information:

(a) Amounts of fees paid to brokers;

(b) Names and addresses of brokers; and

(B) Due bills, receipts, invoices or other evidence shall be maintained in the file of original loan papers for any amount in excess of twenty dollars paid by the borrower to or through the small loan licensee for any dishonored check, negotiable order of withdrawal, share draft or any other negotiable instrument.

(C) A small loan licensee may, for any business purpose, retain a document, paper, or other instrument or record by use of a process to record, copy, photograph, or store a representation of the original document, paper, or other instrument or record, if all of the following apply:

(1) The process correctly and accurately copies or reproduces, or provides a means for correctly and accurately copying or reproducing, the original document, paper, or other instrument or record with regard to both its substance and appearance, except the copy or reproduction need not reflect the original paper or other medium, size, or color unless the medium, size or color is necessary to establish the authenticity of the original.

(2) The process does not permit the recording, copy, photographic image, or stored representation of the original document, paper, or other instrument or record to be altered or manipulated.

(3) Any medium the process uses to record, copy, photograph, or store a representation of the original document, paper, or other instrument or record is a durable medium for retaining and reproducing records.

(4) The process is used in the small loan licensee's regular course of business.

(5) Written printouts or hard copies of the required data are readily available.

(6) The superintendent has given written authorization in advance to the small loan licensee to use the process.

(D) Other methods of recording data, keeping records and keeping books, such as electronic or computerized methods, may be used in lieu of the methods described in this rule, provided written printouts or hard copies of the required data are readily available at each licensed location in a form approved, in advance, by the superintendent.

(E) In order to reduce the risk of consumer fraud and related harms, including identity theft, small loan licensees shall be required to comply with section 216 of the "Fair and Accurate Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010), 15 U.S.C. 1681w as in effect on January 1, 2022, the "Gramm Leach Bliley Act," 113 Stat. 1338 (1999)(amended 2010), 15 U.S.C. 6801 as in effect on January 1, 2022, and the rules promulgated pursuant to those federal acts, including 16 C.F.R. Part 314 and 16 C.F.R. Part 682, as in effect on January 1, 2022, pertaining to the maintenance, security, and disposal of consumer information and records.

(F) Before ceasing to conduct or discontinuing business as a small loan licensee, the small loan licensee shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this rule for the remainder of the period specified in this rule, and shall notify the division in writing by paper mail or electronically of the exact address where the books and records will be maintained and made available to the division during the required period.

(G) In the event electronic records, books, records, data, and documents of a licensee are located outside of this state and the superintendent determines that an in-person examination is necessary, the licensee shall, upon the request of the superintendent, pay in advance the estimated costs of the examination of the licensee outside this state, including the proportionate cost of the salaries of division of financial institutions employees who conduct the examination. The estimated costs of an out-of-state examination, as determined by the superintendent, shall be deposited with the division of financial institutions upon demand. After the actual costs of the out-of-state examination have been determined, any funds in the deposit account in excess of costs as itemized by the division of financial institutions shall be returned to the licensee. In the alternative, the superintendent may choose to bill the licensee after the exam has been completed. In this situation, the cost shall be calculated as above, however all billing will be done post exam through NMLS.

Last updated November 28, 2022 at 8:41 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-2-05 Advertising.

(A) The following advertising requirements shall be observed by all small loan licensees:

(1) The words "advertisement" and "advertising," as used in sections 1321.01 to 1321.19 of the Revised Code and this chapter, shall include all material printed, published, displayed, distributed or broadcast for the purpose of obtaining applications for loans. Materials displayed or distributed over the internet, telephone, facsimile, or other electronic transmission for the purposes of obtaining applications for loans are considered advertising for purposes of this rule.

(2) A small loan licensee shall not advertise that loans will be made at any place other than that named in the small loan license. Every advertisement shall state and clearly indicate the identity of the small loan licensee and shall do so in a manner that prevents confusion with the name of any other unrelated small loan licensee.

(3) A small loan licensee shall not use loan advertisements that provide only telephone number, email address, or facsimile number, that does not clearly indicate the identity of the small loan licensee. A licensee who clearly displays their NMLS licensee number on their advertisement shall be in compliance with this paragraph.

(4) A small loan licensee shall not advertise that loans shall be made within a specified time after the loan application is received, unless it is the general practice of the small loan licensee to make loans within the specified time.

(5) A small loan licensee shall not advertise special terms, reduced rates, reduced payments, or any other special feature of a loan within a specified limited time, unless the advertisement clearly states any limitations that apply to the offer.

(6) A small loan licensee shall not advertise by the use of unqualified superlatives, including but not limited to "lowest rates," "lowest costs," "lowest payment plan," or "cheapest loans," or by making offers which cannot be reasonably fulfilled.

(7) A small loan licensee shall not advertise the words "new" or "reduced," or words of similar import, in connection with rates, costs, payments or plans, for more than ninety days after the rates, costs, payments or plans shall have become effective.

(8) Any small loan licensee specifying in any advertisement charges on loans in dollars shall also state the length of time required to repay the loans as well as the method of repayment, and shall, when the rate of interest is stated, do so in a manner to prevent misunderstanding.

(9) Any small loan licensee advertising flat or average payments on loans which include principal and interest shall specify the number and frequency of payments required to repay the loans. Whenever the amounts of periodic payments are advertised, the amounts must include all interest to the borrower, as well as principal. However, the principal payments alone may be shown separately, provided the interest charges are also clearly stated with equal prominence.

(10) A small loan licensee shall not advertise rebates, rates, or charges below the maximum lawful rate of interest which are conditioned upon prompt payment unless the condition is clearly indicated.

(11) A small loan licensee shall not advertise:

(a) Waiver of payments in the event of sickness or disability or other contingency, without advertising that the interest and other charges, if assessed, continue during the waiver period.

(b) That the first payment on any loan may be made more than thirty days after the date of loan closing, without advertising that the interest and other charges, if assessed, will accrue from the date of disbursement of the loan funds until the first payment is due.

(12) A small loan licensee shall not advertise loans for illegal purposes.

(13) A small loan licensee shall not advertise specific amounts of loans to be made on designated makes and models of automobiles unless it is also stated that the amounts so specified are only the average loan values and are subject to the actual condition of the automobiles.

(14) A small loan licensee shall not give, or advertise an offer to give, any article or merchandise or anything of value, other than a reduction in interest, as an inducement to a borrower to make a loan.

(15) A small loan licensee shall not advertise the availability of credit-related insurance without disclosing the charge, if any, for the insurance.

(B) Every small loan licensee shall maintain in each licensed office or in a central location, approved by the superintendent of financial institutions, a record or file of all advertising, including newspaper, magazine, direct mailing, facsimile advertising and solicitations, roadside advertising, internet and scripts of radio and television commercials, for a period of two years from the date disseminated. A record or other file shall be readily available for inspection by the division of financial institutions at all times. Every small loan licensee shall notify the division of financial institutions in writing of the location of the record or file. This notification may be made electronically. Upon request of the superintendent, all small loan licensees shall provide the division with copies of any printed or electronic advertising used regarding any business conducted under sections 1321.01 to 1321.19 of the Revised Code. Text of advertising shall be maintained by the small loan licensee for two years from the date of usage.

Last updated November 28, 2022 at 8:42 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-2-07 General provisions for small loan licensees.

(A) Except in the cases of loans made by direct mail, loans where the additional signature of a spouse, co-signor or guarantor is necessary or loans where one or more of the obligors is ill or disabled, no loan agreements, security agreements or other documents or papers involved with the making or renewing of a loan shall be signed by any obligor anywhere other than the licensed premises. In the instances when the additional signature of a spouse, co-signor or guarantor is necessary or when one or more of the obligors is ill or disabled, the signature may be obtained at an address other than that licensed, but in no case may the signature be obtained by any person other than an obligor or an employee of the licensee.

(B) For purposes of sections 1321.01 to 1321.19 of the Revised Code, a loan is considered closed upon the signature of the obligor or obligors unless the loan contract is not executed by signature, in which case the loan is considered closed upon disbursement of loan funds.

(C) All loans made pursuant to sections 1321.01 to 1321.19 of the Revised Code, if made by direct mail as defined in this chapter, shall be made from a duly licensed location.

(D) Small loan licensees have an ongoing duty to notify the division of financial institutions of material changes in the information contained in the application and exhibits, schedules and other documentation submitted in conjunction with the application, and to report all changes or additions to information in the application within thirty days of the change. Material changes in the information include changes in affiliations, controlling interest, officers, directors, criminal record, and net worth. This notice may be delivered electronically.

(E) The small loan licensee shall notify the borrower:

(1) In writing of any interest rate change at least thirty but not more than one hundred twenty days prior to the effective date of the changes, provided that if the interest rate is tied to a published and verifiable index and the contractual rate of interest is adjusted within forty five days of change in the published index rate, the small loan licensee shall notify the borrower in writing of any interest rate change at least thirty days prior to the effective date of the change.

(2) In the instance of a non-amortized or partially amortized interest-bearing loan, of maturity at least ninety but not more than one hundred twenty days prior to the expected maturity date.

(F) The small loan licensee shall obtain written consent of the borrower for any purchase of insurance on property other than that which is used as security for the loan.

(G) Small loan licensees shall clearly indicate by prominently disclosing on, or in, the loan documents, the federal or state statutory authority pursuant to which a loan is made. For purposes of this chapter, small loan licensees shall be required to provide this prominent disclosure on loans made:

(1) Solely in reliance on the provisions of sections 1321.01 to 1321.19 of the Revised Code;

(2) Partially in reliance on the provisions of sections 1321.01 to 1321.19 of the Revised Code; or

(3) In reliance on any combination of federal or state provisions that do not include sections 1321.01 to 1321.19 of the Revised Code.

(H) A small loan licensee is not prohibited from holding other licenses or registrations issued by the division of financial institutions as long as the small loan licensee is in compliance with sections 1321.12 and 1321.59 of the Revised Code and other applicable provisions of state and federal law.

Last updated November 28, 2022 at 8:42 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-2-12 Prohibitions.

(A) No small loan licensee shall take any note or other promise to pay that does not set forth the entire agreement made with the borrower.

(B) No small loan licensee shall charge or collect interest prior to the date of disbursement of the loan funds to the borrower.

(C) A new loan shall not be made for the purpose of paying any part of the interest or principal due on an existing loan with the same small loan licensee unless the interest and principal balance of the existing loan is paid in full from the proceeds of the new loan.

(D) A small loan licensee shall not collect more than one default charge per unpaid installment regardless of the number of months the installment remains fully unpaid.

(E) No lender regulated or licensed in another state under a loan law similar to sections 1321.01 to 1321.19 of the Revised Code operating under the provision of section 1321.17 of the Revised Code shall close loans in Ohio, without first obtaining a license to conduct business under sections 1321.01 to 1321.19 of the Revised Code.

(F) Loans made pursuant to sections 1321.01 to 1321.19 of the Revised Code shall not be sold, transferred or assigned to or collected by persons other than a small loan licensee pursuant to sections 1321.01 to 1321.19 of the Revised Code or an exempt entity described in section 1321.02 of the Revised Code that is properly conducting business under and as permitted by any law or authority referred to in that section. The small loan licensee is liable for payment of the annual assessment described in section 1321.20 of the Revised Code on any loan made by the small loan licensee which has been sold, transferred, or assigned to another person if servicing rights have been retained by the small loan licensee.

Last updated November 28, 2022 at 8:42 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-2-16 Policy or certificate of insurance; disclosure of credit life and credit accident and health insurance cancellation rights; Ohio insurance law.

(A) When, in connection with a loan, a small loan licensee furnishes or places insurance written on behalf of the borrower at the borrower's expense, a policy or certificate of insurance properly executed shall be furnished to the borrower within thirty days of the closing date of the loan. The policy or certificate shall state the name of the insurance company, the nature of the insurance, the extent of the coverage, the amount of the premium, and the effective and expiration dates of the policy.

(B) If a small loan licensee furnishes or places credit life insurance, or credit accident and health insurance, or unemployment insurance on behalf of the borrower at the borrower's expense, the small loan licensee shall give written notice to the borrower at the time the loan is made. The notice shall disclose the borrower's right to cancel the insurance within twenty-five days of the purchase of insurance with a full refund of the premium or identifiable charge for the insurance. The notice shall further disclose that the cancellation will be effective upon the written request of the borrower together with the return of the policy or certificate of insurance to the small loan licensee.

(C) All insurance sold or obtained in connection with the making of a loan shall be governed by Title 39 of the Revised Code.

(D) In any transaction in which the small loan licensee furnishes or places insurance on behalf of the borrower at the borrower's expense, the small loan licensee shall, prior to furnishing or placing insurance, provide written disclosure to the borrower of the business relationship, beneficial ownership or affiliation, whether direct or indirect, between the small loan licensee and the insurer.

Last updated November 28, 2022 at 8:42 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-2-20 Interpretation.

(A) The language contained in division (G) of section 1321.13 of the Revised Code does not limit the rights of small loan licensees to engage in other transactions with borrowers, provided the transactions are not a condition of the loan.

(B) The division of financial institutions will not interpret or construe any act or omission of a small loan licensee to be in violation of sections 1321.01 to 1321.19 of the Revised Code if the act was taken or omission was made in reliance on an official examination report from the division.

(C) The language contained in division (G) of section 1321.13 of the Revised Code permits small loan licensees to use funds received from borrowers in amounts authorized by law to record, file or release security interest on a loan for purposes either of purchasing insurance to insure the small loan licensee against losses for failure to record or file or creating a self-insurance fund to reimburse the small loan licensee against losses for failure to record or file.

Last updated November 28, 2022 at 8:42 AM

History

Effective: November 28, 2022
Promulgated Under: 119.03

Chapter 1301:8-3 General Loan Law

Ohio Adm.Code 1301:8-3-03 Definitions.

(A) "Assets," as used in division (B)(2) of section 1321.53 of the Revised Code, shall mean properties of value that are owned by the applicant or registrant. Therefore, assets include cash on hand and in depository institutions, readily marketable securities, accounts receivable (less allowances for uncollectible accounts) and real estate (less liens and depreciation). However, the term "assets" as used in this section shall not include: office premises, leasehold improvements, office furniture, fixtures, and equipment, or intangible assets.

(B) "Net worth," as used in division (B)(1) of section 1321.53 of the Revised Code shall mean the amount by which the business assets exceed the business liabilities.

(C) "Direct mail," as used in this chapter, shall mean a loan arranged via an application through the mail or internet where the loan proceeds are delivered through the mail or electronic transmission to the benefit of a borrower. A loan is not made by "direct mail" if it is facilitated by face to face, personal contact in this state between the lender, lender's employee or agent, or lender's attorney and the borrower or borrower's agent. For purposes of this rule, a bona fide third party title agency, notary, insured depository, or attorney which is suggested as part of a list of three or more recommended but not required closing providers, shall not be considered an agent of the lender. Nothing in this rule shall prohibit a registrant from creating a list of disapproved vendors, nor shall persons selected by the borrower only to witness the borrower's signature in compliance with a list be considered an agent of the lender.

(D) The phrase "refuse to provide information" as used in division (C) of section 1321.59 of the Revised Code shall mean the failure of a registrant to provide a borrower with information regarding the amount required to pay the borrower's loan in full within five business days after the receipt of a written request from a borrower or the borrower's designee.

(E) The term "prepayment penalty" as used in sections 1321.51 to 1321.60 of the Revised Code and this chapter shall mean a charge incurred for early payment of a loan in full prior to the loan's repayment due date.

(F) "Affiliation" or "affiliated with" as used in sections 1321.51 to 1321.60 of the Revised Code and this chapter shall mean directly or indirectly through one or more intermediaries controlled by or under common control with another person or enterprise. "Control" shall mean the authority to direct or cause the direction of the management and policies through ownership, by contract, or otherwise.

(G) "Final entry on a loan," as used in this chapter, means, as to that lender, the latter of the date the loan is:

(1) Paid in full,

(2) Deemed uncollectible,

(3) Assigned to another registrant or exempt entity and all records are transferred to the new lender, or

(4) Discharged or otherwise settled by an order terminating litigation governing the loan transaction.

Last updated December 20, 2022 at 8:21 AM

History

Effective: December 20, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-3-04 Recordkeeping requirements.

(A) Records must be kept current and be available at a registered location at all times during normal business hours for review by the superintendent. Records must be legible and maintained in a type size that is clearly readable without magnification and in conformity with any specific typeface or font size that may be required by state or federal law. Except when otherwise provided by federal or state law, records must be maintained in English. When records are allowed to be in a language other than English, the registrant or qualified exempt entity, at its expense, shall be responsible for providing the superintendent with a full and accurate translation. For purposes of this rule, "current" means within thirty days from the date of the occurrence of the event required to be recorded. A registrant shall keep and preserve the following records:

(1) A sortable electronic spreadsheet which discloses the following fields of information:

(a) Principal borrower's name;

(b) Principal borrower's address;

(d) Type of the security for the loan;

(e) Date of loan;

(f) Amount financed;

(g) Date finance charges begin to accrue;

(h) Loan origination charge;

(i) Itemization of all additional fees or charges;

(j) Principal amount of the loan;

(k) Scheduled or precomputed interest;

(l) Number of payments;

(m) Contractual rate of interest;

(n) Payment amount;

(o) Types and amounts of credit related insurance;

(p) Default charge

(q) Check collection charge;

(r) Any points charged to the borrower;

(s) Any charges for prepayment of the loan;

(t) The NMLS number of the registrant/exempt entity, if applicable;

(2) Payment histories for each outstanding loan and each loan paid in full. The payment history shall disclose the following information:

(a) Principal borrower's name

(b) Loan or account number; and

(c) A chronological entry of all debits, credits, payments and charges received, assessed or disbursed in connection with the loan, recorded thereon in an identifiable manner in order to show the actual date of receipt, assessment or disbursement and the balance due on the loan or account.

(3) A file for each principal borrower which contains copies of all documents related to the loan transaction from origination through the final entry on the record. If there are multiple loan transactions with the same borrower, every loan transaction in the file must have a unique loan or account number.

(4) A sortable electronic spreadsheet of all loans in collection litigation which shall include the following fields of information:

(a) Principal borrower's name;

(b) Loan or account number;

(d) Name of court where proceedings were initiated;

(e) Indicate whether a final judgment has been entered, and if so include the following:

(i) Date of judgment;

(ii) Amount of judgment; and

(iii) The judgment rate of interest.

(f) In addition to the spreadsheet of litigation, copies of the complaints, court orders, settlements and judgments must be maintained in the principal borrower's file. In cases of garnishment or attachment, copies of all notices served on employers and amounts collected must be maintained in the principal borrower's file. The registrant must provide any additional court documents upon the request of the superintendent.

(5) A sortable electronic spreadsheet of all loans in repossession and foreclosure which shall include the following fields of information:

(a) Principal borrower's name;

(b) Loan or account number;

(d) Date of repossession or foreclosure;

(e) Date of sale of the security;

(f) Gross amount received from the sale of the security;

(g) The amount of money applied to the outstanding loan balance; and

(h) In addition to the spreadsheet of loans in repossession and foreclosure, copies of all repossession and foreclosure legal documents and other records, including bills for all expenses shall be maintained in the principal borrower's loan file. In instances where the security is offered for private sale, there must be in the principal borrower's file not less than three bona fide written bids or appraisals in order to establish that the terms of the sale were commercially reasonable to the borrower. Where the security is offered for private or public sale, the sale must be consummated in compliance with the provisions of sections 1309.610, 1309.611, 1309.615, 1309.617, and 1309.624 of the Revised Code.

(6) A sortable electronic spreadsheet of all loans upon which a credit life claim has been paid by the insurer which shall include the following fields of information:

(a) Principal borrower's name;

(b) Loan or account number;

(d) Total amount paid by the insurance claim;

(e) Amount applied to the principal borrower's account; and

(f) In addition to the spreadsheet of loans upon which a credit life claim has been paid, a copy of the death certificate and documentation of all funds received or paid pursuant to the credit life claim shall be maintained in the principal borrower's file.

(7) Each registrant conducting business as a lender shall maintain a log for business conducted with brokers. This log shall be kept in chronological order and shall contain the following information:

(a) Amounts of fees paid to brokers;

(b) Names and addresses of brokers; and

(8) To the extent such records have been created in the course of the registrant's operations, any contracts with third party vendors relating to lending services, any policy or procedures manuals relating to lending services, and any training materials pertaining to loans made under sections 1321.51 to 1321.60 of the Revised Code.

(9) A file of all advertisements.

(10) Histories of nonpublished indices used to establish interest rates for variable rate loans maintained for two years from date of usage.

(B) Where electronic records are required, a licensee may retain paper records as well. Where electronic records are required, the superintendent may, for good cause, allow a licensee to retain paper records in lieu of the electronic records required by this rule.

(C) In accordance with division (A) of section 1321.55 of the Revised Code, a registrant shall keep and preserve records pertaining to loans made under division (A)(1) of section 1321.52 of the Revised Code for at least two years after the final entry on the record. The final entry on the record occurs when the loan is paid in full, charged off as uncollectable, sold, transferred or assigned to another, or discharged or otherwise settled by a final order issued in litigation governing the loan transaction. Notwithstanding the third sentence in division (A) of section 1321.55 of the Revised Code, a registrant shall keep and preserve records pertaining to residential mortgage loans in accordance with 12 C.F.R. 1026.25(c)(3) as in effect on November 30, 2016. The retention period for advertisements commences from the date the advertisements are published, broadcast, or disseminated.

(D) A registrant shall segregate the records pertaining to business conducted pursuant to sections 1321.51 to 1321.60 of the Revised Code from all other business records.

(E) A registrant shall notify the superintendent of a change of location of its records pertaining to business conducted pursuant to sections 1321.51 to 1321.60 of the Revised Code no later than five business days after the change.

(F) Where a registrant maintains electronic records in compliance with this rule, and those records are located outside of the state of Ohio, the registrant shall make the electronic records available to the division of financial institutions upon request, within the time frame provided by the division. The electronic records may be uploaded to a secure server for the purpose of the division conducting an examination of the registrant.

(G) In the event electronic records, books, records, data or documents of a registrant are located outside Ohio, and the superintendent determines that an in person examination is necessary, the registrant shall be required to pay the costs of the examination of the registrant outside the state of Ohio, including the proportionate cost of the salaries of division of financial institutions employees who conduct the examination. If the superintendent requests, the registrant shall advance to the superintendent the superintendent's estimate of the cost of the examination, with any unconsumed portion to be returned to the registrant. The registrant shall pay the cost of its examination, or any balance of the cost of its examination in the case of a registrant that advanced the estimated cost of its examination, within fourteen days after receiving an invoice for payment.

(H) Any records maintained on an electronic storage media or system shall meet all of the following requirements:

(1) The electronic storage media or system must preserve the records in a non-rewritable, non-erasable format;

(2) The electronic storage media or system must verify automatically the quality and accuracy of the storage media recording process;

(3) The electronic storage media or system must have the capacity to readily download indices and records preserved on the electronic storage media or system to any medium acceptable to the superintendent;

(4) Acceptable facilities and appropriate equipment shall, at all times during normal business hours, be available to the superintendent for immediate, easily readable projection or production of electronic storage media or system images and for producing easily readable images;

(5) Immediate facsimile enlargement shall be available upon the superintendent's request;

(6) A duplicate copy of the electronic record stored on any electronic media or system for the time required must be stored separately from the "original" electronic record;

(7) The electronic storage media or system must organize and index accurately all information maintained on both the original and duplicate storage media or system. At all times, a registrant must be able to have indices of the electronic records being stored available for examination by the superintendent. Each index must also be duplicated and the duplicate copies must be stored separately from the original copy of each index. Original and duplicate indices shall be preserved for the time required for the indexed records;

(8) A registrant must have in place providing for accountability regarding inputting of records and inputting any changes made to every original and duplicate record maintained and preserved. At all times, a registrant shall have the results of the audit system available for examination by the superintendent. The audit results shall be preserved for the time required for the audited records;

(9) All information necessary to access records and indices stored on the electronic storage media or system, a copy of the physical and logical file format of the electronic storage media or system, the field format of all different information types written on the electronic storage media or system, together with the appropriate documentation and information necessary to access records and indices will be maintained, kept current and provided promptly to the superintendent upon request;

(10) No paper documents produced or reproduced by means of an electronic storage media or system shall be destroyed until the conditions of this paragraph have been met with regard to each paper document that is to be destroyed; and

(11) At the request of the division, the records shall be printed on paper for inspection or examination without cost to the division within forty-eight hours of the request. The superintendent may grant additional time for good cause shown upon receipt of a request for additional time from the registrant.

(I) In order to reduce the risk of consumer fraud and related harms, including identity theft, registrants and qualified exempt entities shall be required to comply with section 216 of the "Fair and Accurate Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010), 15 U.S.C. 1681w as in effect on November 30, 2016, section 501 of the "Gramm Leach Bliley Act," 113 Stat. 1338 (1999) (amended 2010), 15 U.S.C. 6801 as in effect on January 12, 2014, and the rules promulgated pursuant to those federal acts, including 16 C.F.R. Part 313 and 16 C.F.R. Part 682, as in effect November 30, 2016, pertaining to the maintenance, security, and disposal of consumer information and records.

(J) Before ceasing to conduct or discontinuing business as a registrant, the registrant shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this rule for the remainder of the period of time specified in this rule, and shall notify the division in writing of the exact address where the books and records will be maintained during the required period. If there is a change in location of the records any time withing the time the former registrant is required to preserve the records under this rule, the former registrant shall notify the superintendent of the change in location.

Last updated December 20, 2022 at 8:21 AM

History

Effective: December 20, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-3-05 Advertising.

(A) The following advertising requirements shall be observed by all registrants:

(1) The words "advertisement" and "advertising," as used in section 1321.51 to 1321.60 of the Revised Code and this chapter, shall include all material printed, published, displayed, distributed or broadcast for the purpose of obtaining applications for loans. Materials displayed or distributed over the internet, telephone, facsimile, or other electronic transmission for the purposes of obtaining applications for loans are considered advertising for purposes of this rule.

(2) A registrant shall not advertise that loans will be made at any place other than that named in the certificate of registration. Every advertisement shall state and clearly indicate the identity of the registrant and shall do so in a manner that prevents confusion with the name of any other unrelated registrant. Registrants shall be identified by means of tradenames, service marks or business names which are filed with the division of financial institutions and Ohio secretary of state.

(3) A registrant shall not use loan advertisements which provide only telephone or facsimile numbers or newspaper box addresses and do not clearly indicate the identity of the registrant.

(4) A registrant shall not advertise that loans shall be made within a specified time after the loan application is received, unless it is the general practice of the registrant to make loans within the specified time.

(5) A registrant shall not advertise special terms, reduced rates, reduced payments, or any other special feature of a loan within a specified limited time, unless the advertisement clearly states any limitations that apply to the offer.

(6) A registrant shall not advertise by the use of unqualified superlatives, including but not limited to "lowest rates," "lowest costs," "lowest payment plan," or "cheapest loans," or by making offers which cannot be reasonably fulfilled.

(7) A registrant shall not advertise the words "new" or "reduced," or words of similar import, in connection with rates, costs, payments or plans, for more than ninety days after the rates, costs, payments or plans shall have become effective.

(8) Any registrant specifying in any advertisement charges on loans in dollars shall also state the length of time required to repay the loans as well as the method of repayment, and shall, when the rate of interest is stated, do so in a manner to prevent misunderstanding.

(9) Any registrant advertising flat or average payments on loans which include principal and interest shall specify the number and frequency of payments required to repay the loans. Whenever the amounts of periodic payments are advertised, the amounts must include all interest to the borrower, as well as principal. The principal payments alone may be shown separately provided the interest charges are also clearly stated with equal prominence.

(10) A registrant shall not advertise rebates, rates, or charges below the maximum lawful rate of interest which are conditioned upon prompt payment unless the condition is clearly indicated.

(11) A registrant shall not advertise:

(a) Waiver of payments in the event of sickness or disability or other contingency, without advertising that the interest and other charges, if assessed, continue during the waiver period.

(12) A registrant shall not advertise loans for illegal purposes.

(13) A registrant shall not advertise specific amounts of loans to be made on designated makes and models of automobiles unless it is also stated that the amounts so specified are only the average loan values and are subject to the actual condition of the automobiles.

(14) A registrant shall not give, or advertise an offer to give any article or merchandise or anything of value, other than a reduction in interest, as an inducement to a borrower to make a loan.

(15) A registrant shall not advertise the availability of credit-related insurance without disclosing the charge, if any, for the insurance.

(B) Every registrant shall maintain in each registered office or in a central location, approved by the superintendent of financial institutions, a records file of all advertising, including newspaper, magazine, direct mailing, facsimile advertising and solicitations, roadside advertising, internet and scripts of radio and television commercials, for a period of two years from the date disseminated. A record or other file shall be readily available for inspection by the division of financial institutions at all times. Every registrant shall notify the division of financial institutions in writing of the location of the record or file. All registrants shall, upon the request of the superintendent, provide to the division of financial institutions any printed or electronic advertising done regarding any business conducted under sections 1321.51 to 1321.60 of the Revised Code. Text of advertising shall be maintained by the registrant for two years from the date of usage.

Last updated June 3, 2025 at 11:14 AM

History

Effective: July 1, 2008
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-3-07 General provisions for registrants.

(A) Except in the cases of loans made by direct mail as defined in this chapter, loans where the additional signature of a spouse, co-signor or guarantor is necessary or loans where one or more of the obligors is ill or disabled, no loan agreements, security agreements or other documents or papers involved with the making or renewing of a loan shall be signed by any obligor anywhere other than on the registrant's registered premises. In the instances when the additional signature of a spouse, co-signor or guarantor is necessary or when one or more of the obligors is ill or disabled, the signature may be obtained at an address other than that registered, but in no case may the signature be obtained by any person other than an obligor, an employee of the registrant, or authorized agent of the registrant.

(B) For purposes of sections 1321.51 to 1321.60 of the Revised Code, a loan is considered closed upon the signature of the obligor or obligors unless the loan contract is not executed by signature, in which case the loan is considered closed upon disbursement of loan funds.

(C) All loans made pursuant to sections 1321.51 to 1321.60 of the Revised Code, if made by direct mail as defined in this chapter, shall be made from a place of business for which the registrant holds a valid certificate of registration pursuant to section 1321.52 of the Revised Code.

(D) Registrants have an ongoing duty to notify the division of financial institutions of material changes in the information contained in the application and exhibits, schedules and other documentation submitted in conjunction with the application, and to report all changes or additions to information in the application within thirty days of the change. Material changes in the information include changes in affiliations, controlling interest, officers, directors, criminal record, and any change in net worth below the requirements in section 1321.53 of the Revised Code and Chapter 1301:8-3 of the Administrative Code.

(E) The registrant shall obtain written consent of the borrower for any purchase of insurance on property other than that which is used as security for the loan.

(F) A registrant under sections 1321.51 to 1321.60 of the Revised Code shall permit payment to be made in advance in any amount on any contract at any time, but the registrant may apply the payment first to interest and charges due up to the date of payment.

(G) The registrant shall notify the borrower in the instance of a non-amortized or partially amortized interest-bearing loan, the registrant shall provide the borrower with written notice of maturity at least ninety but not more than one hundred twenty days prior to the expected maturity date.

(H) Registrants shall clearly indicate by prominently disclosing on, or in, the loan documents, the federal or state statutory authority pursuant to which a loan is made. For purposes of this chapter, registrants shall be required to provide this prominent disclosure on loans made:

(1) Solely in reliance on the provisions of sections 1321.51 to 1321.60 of the Revised Code;

(2) Partially in reliance on the provisions of sections 1321.51 to 1321.60 of the Revised Code; or

(3) In reliance on any combination of federal or state provisions that do not include sections 1321.51 to 1321.60 of the Revised Code.

(I) A registrant is not prohibited from holding other licenses or registrations issued by the division of financial institutions as long as the registrant is in compliance with section 1321.551 of the Revised Code and other applicable provisions of state and federal laws.

(J) In providing any payment history requested by the borrower or by the division, the registrant shall provide a clear and accurate payment statement in a manner a reasonable borrower should understand that sets forth the dates and amounts due and owing and the dates and amounts received and paid.

(K) The registrant is liable for payment of the annual assessment described in section 1321.20 of the Revised Code on any loan made by the registrant which has been sold, transferred, or assigned to another person if servicing rights have been retained by the registrant.

(L) The registrant may in addition to, or as part of, its loan modification process offer the borrower the option to have the matters under dispute submitted for mediation before an unbiased private third party.

Last updated December 20, 2022 at 8:21 AM

History

Effective: December 20, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-3-12 Prohibitions.

(A) No registrant shall take any note or other promise to pay that does not set forth the entire agreement made with the borrower.

(B) No registrant shall take any note or promise to pay in which blanks are left to be filled in after execution.

(D) A new loan shall not be made for the purpose of paying any part of the interest or principal due on an existing loan with the same registrant unless the interest and principal balance of the existing loan is paid in full from the proceeds of the new loan.

Last updated December 20, 2022 at 8:22 AM

History

Effective: December 20, 2022
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-3-13 Cancellation and return of original loan documents; receipt upon payment.

(A) Upon repayment of the loan in full, the original note signed by any obligor or copy, photograph, or stored representation of the original note as retained in accordance with rule 1301:8-3-04 of the Administrative Code shall be plainly marked "paid" or "canceled" and the note or the reproduction of the note shall be returned to the obligor or, if there are two or more obligors, to one of them.

(B) If requested, the registrant shall give to the borrower a receipt for each payment made on account of any interest-bearing or precomputed loan.

Last updated June 3, 2025 at 11:15 AM

History

Effective: July 1, 2008
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-3-17 Policy or certificate of insurance; disclosure of credit life, credit accident and health, and unemployment insurance cancellation rights; Ohio insurance law.

(A) When, in connection with a loan, a registrant furnishes or places insurance written on behalf of the borrower at the borrower's expense, a policy or certificate of insurance properly executed shall be furnished to the borrower within fifteen days of the closing date of the loan. The policy or certificate shall state the name of the insurance company, the nature of the insurance, the extent of the coverage, the amount of the premium, and the effective and expiration dates of the policy.

(B) If a registrant furnishes or places credit life insurance, credit accident and health insurance or unemployment insurance on behalf of the borrower at the borrower's expense, the registrant shall give written notice to the borrower at the time the loan is made. The notice shall disclose the borrower's right to cancel the insurance within twenty-five days of the purchase of the insurance with a full refund of the premium or identifiable charge for the insurance. The notice shall further disclose that the cancellation may be effected upon the written request of the borrower together with the return of the policy or certificate of insurance to the registrant.

(C) All insurance sold or obtained in connection with the making of a loan shall be governed by Title 39 of the Revised Code.

(D) In any transaction in which the registrant furnishes or places insurance on behalf of the borrower at the borrower's expense, the registrant shall, prior to furnishing or placing insurance, provide written disclosure to the borrower of the business relationship, beneficial ownership or affiliation, whether direct or indirect, between the registrant and the insurer.

Last updated June 3, 2025 at 11:15 AM

History

Effective: July 1, 2008
Promulgated Under: 119.03

Chapter 1301:8-4 Insurance Premium Finance Companies

Ohio Adm.Code 1301:8-4-01 Definitions and general provisions.

(A) "Finance charge" as used in sections 1321.71 to 1321.84 of the Revised Code and Chapter 1301:8-4 of the Administrative Code means the finance charge rate authorized in such sections, and shall not have the meaning set forth for that term in the bureau of consumer financial protection regulation Z on truth in lending, 12 C.F.R. 1026.4 as in effect on April 1, 2014. The acquisition charge permitted in division (C) of section 1321.79 of the Revised Code is a finance charge. Where the acquisition charge is nonrefundable it shall be treated as a finance charge for purposes of division (D) of section 1321.79 of the Revised Code.

(B) For purposes of sections 1321.71 to 1321.84 of the Revised Code and Chapter 1301:8-4 of the Administrative Code, "date of cancellation" shall mean the date specified in the notice of cancellation mailed by the licensee to the insurer. The licensee may assess a cancellation charge on or after the date of cancellation. In the event of the reinstatement of a canceled insurance policy, the licensee may assess a cancellation charge on each additional occasion that it mails a notice to the insurer.

(C)

(1) As used in sections 1321.73 and 1321.74 of the Revised Code and Chapter 1301:8-4 of the Administrative Code, "net worth" shall mean the difference between total assets and total indebtedness, as determined by generally accepted accounting principles.

(2) The division may by written notice require an audited financial statement by an independent certified public accountant, the cost of which shall be paid by the licensee or applicant.

Last updated July 16, 2026 at 7:48 AM

History

Effective: February 13, 2015
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-4-02 Licensing.

(A) No licensee shall transact or solicit business under sections 1321.71 to 1321.84 of the Revised Code under any other name than that set forth on its license.

(B) At least fifteen days prior to the effective date of an address change, each licensee shall notify the division of financial institutions of a change in the address shown on its license by filing a relocation application on a form approved by the division. A new license must be obtained prior to conducting business at the new location. If the licensee is relocating its place of business to a location outside the municipal corporation in which it is currently located, the licensee must also file a license application fee.

(C) If a completed renewal application together with the proper fee is not received by the division by the thirtieth day of June, the license shall expire and shall not be considered renewed, and the applicant shall cease activity as an insurance premium finance lender. Provided, however, that nothing herein shall impair the ability of a person to collect on accounts lawfully entered into prior to the expiration of its license.

(D) If an application for a new or renewal license is incomplete, and if the information is not submitted to the division within thirty days after the the date of the last letter of deficiency, the division may consider the application withdrawn. If the application is withdrawn and the person later decides to re-apply, a new application shall be required.

(E) In connection with division (C) of section 1321.74 of the Revised Code, no active licensee may establish or maintain a branch office for purposes of making loans or accepting payments without first obtaining a license for that location from the division.

(F) An application for approval of such a branch office shall state the proposed location, the function to be performed there and such other information which the division may require, and shall be accompanied by a license fee and, if required by the division, an investigation fee of two hundred dollars.

Last updated July 16, 2026 at 7:48 AM

History

Effective: February 13, 2015
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-4-03 Record keeping requirements.

(A) In connection with section 1321.76 of the Revised Code, each active licensee shall maintain required records for all premium finance agreements made pursuant to sections 1321.71 to 1321.83 of the Revised Code at either the licensed office or any other location approved in writing by the division of financial institutions.

(B) Required records shall be maintained current and shall be available at regular business hours and promptly upon demand for review by the division. The required records shall be maintained for at least two years from the final entry date on the loan account. For purposes of recordkeeping, "current" means within thirty days from the date of the occurrence of the event required to be recorded. Required records include:

(1) A copy of each premium finance agreement entered into by the licensee which shall be kept in one file by consecutive account number or contract number.

(2) A ledger record or payment history which shall be kept for each open, canceled and prepaid premium finance agreement. The ledger record or payment history shall disclose the following information:

(a) Account or contract number;

(b) Insured's name and address;

(d) Date finance charges begin to accrue;

(e) Annual percentage rate calculated pursuant to division (A) of section 1321.71 of the Revised Code;

(f) The disclosed federal annual percentage rate as disclosed to the insured or potential insured;

(g) Acquisition charge;

(h) Amount financed;

(i) Dollar amount of finance charge;

(j) Total of payments;

(k) Terms of repayment;

(l) Delinquency charge;

(m) Cancellation charge;

(n) Check collection charge;

(o) A chronological entry of all credits, debits, payments and charges received or assessed in connection with the premium finance agreement, recorded thereon in an identifiable manner, in order to show the actual date of receipt, assessment or disbursement and the running balance due on the account after each payment.

(3) All premium finance agreements, intent notices, cancellation notices, and other notices or documents given or used in connection with such agreements, shall be identified by the account or contract number.

(4) A daily cash receipt and disbursement record, which shall include the account or contract number and the name of the insured parties, and shall document all transactions involving either the receipt or disbursement of money on the account of insured parties, as well as the actual date of any such transaction.

(5) An alphabetical index of all insured parties identified by account or contract number.

(6) A copy of due bills, receipts, invoices or other evidence relating to any check collection charge incurred during the past two years in excess of ten dollars paid by or on behalf of the insured to or through the licensee for any dishonored check, negotiable order of withdrawal, share draft or any other negotiable instrument.

(C) Other methods of recording data, keeping records and keeping books, such as electronic or computerized methods, may be used in lieu of the methods described in this rule, provided written printouts or hard copies of the required data are readily available at each licensed location in a form approved, in advance, by the division.

(D) In order to reduce the risk of consumer fraud and related harms, including identity theft, licensees shall be required to comply with section 216 of the "Fair and Accurate Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010), 15 U.S.C. 1681w as in effect on April 1, 2014, section 501 of the "Gramm-Leach-Bliley Act," 113 Stat. 1338 (1999) (amended 2010), 15 U.S.C. 6801 as in effect on April 1, 2014, and the rules promulgated pursuant to those federal acts, including 16 C.F.R. Part 314 and 16 C.F.R. Part 682, as in effect on April 1, 2014, pertaining to the maintenance, security, and disposal of consumer information and records.

(E) Before ceasing to conduct or discontinuing business as a licensee, the licensee shall arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this rule for the remainder of the period specified by law or in this rule, and shall notify the division in writing of the exact address where the books and records will be maintained during the required period.

(F) The division of financial institutions may suspend, revoke, or refuse to renew any license issued by the division or bring any other authorized administrative enforcement action against any person for failure to maintain records in accordance with section 1321.76 of the Revised Code or this rule.

Last updated July 16, 2026 at 7:48 AM

History

Effective: February 13, 2015
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-4-04 Advertising.

(A) Any advertising for business subject to sections 1321.71 to 1321.84 of the Revised Code shall not be false, misleading, or deceptive.

(B) In connection with section 1321.76 of the Revised Code, every licensee shall maintain either at each licensed office or in a central location, approved by the division of financial institutions, a records file of all advertising, including newspaper, magazine, direct mailing, facsimile advertising and solicitations, roadside advertising, internet and scripts of radio and television commercials, for a period of two years from the date last disseminated. A record or other file shall be readily available for inspection by the division of financial institutions during regular business hours. Every licensee shall notify the division of financial institutions in writing of the location of the record or file.

Last updated July 16, 2026 at 7:48 AM

History

Effective: February 13, 2015
Promulgated Under: 119.03

Chapter 1301:8-5 Pawnbrokers

Ohio Adm.Code 1301:8-5-01 Definitions.

(A) As used in Chapter 4727. of the Revised Code, "liquid assets" means assets that are expected to be realized in cash, sold, or consumed during the next business year including:

(1) Cash, including money in any form, such as cash on deposit, cash awaiting deposit, and cash funds available for use;

(2) Cash equivalents, such as short-term investments that are readily convertible to known amounts of cash, or are so near their maturities that they present insignificant risk of changes in value because of changes in interest rates;

(3) Receivables, including accounts receivable, notes receivable, and receivables from officers and employees;

(4) Inventories, including merchandise held for sale by a licensee or merchandise acquired by an applicant that is to be held for sale upon licensure;

(5) Prepaid expenses, including prepaid insurance, interest, rents, taxes, advertising, and operating supplies. Prepaid expenses, unlike other current assets, are not expected to be converted into cash.

(B) As used in division (B) of section 4727.08 of the Revised Code, "each pawn or purchase" includes all items brought in by a person to be pledged or purchased at the same time or on the same date unless the person requests in writing that certain items are to be pledged or purchased separately and acknowledges in writing that they understand additional fees may be incurred as a result of the separate pledges or purchases.

(C) As used in Chapter 4727. of the Revised Code and this chapter, "redeem" or "redemption" means payment in full of a pawn loan coupled with the return of the pledged property to the original pledgor or other person redeeming the pledge.

(D) As used in section 4727.11 of the Revised Code and in connection with redemptions by persons other than the original pledgors, "verify" means that the redeemer's name recorded by the licensee on the licensee's copy of the pawn statement is the same as the name displayed on picture identification shown to the licensee by the redeemer. Picture identification, as used in this rule, means:

(1) A driver's license;

(2) Military identification; or

(3) Other government-issued identification.

(E) As used in this chapter, "pawn date" means the date the pledge was made.

(F) As used in this chapter, "superintendent" means the superintendent of financial institutions or the deputy superintendent for consumer finance as provided in section 1181.21 of the Revised Code.

Last updated March 21, 2024 at 8:39 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-02 Advertising.

(A) The word "advertisements" as used in section 4727.16 of the Revised Code includes all printed, published, displayed, distributed, broadcast, or internet advertising or promotion, including all websites and social media posts. Advertisements does not include storefront signs, business cards, team jerseys, or any de minimis promotional materials, such as pens, pencils, balloons, or clothing.

(B) Every licensee shall maintain in each licensed location or in a central location, approved by the superintendent of financial institutions, a records file of all advertising, including newspaper, magazine, direct mailing, facsimile advertising and solicitations, roadside advertising, internet, and scripts of radio and television commercials, for a period of two years from the date last disseminated. A record or other file shall be readily available for inspection by the division of financial institutions at all times. Every licensee shall notify the division of financial institutions in writing of the location of the record or file. All licensees shall, upon the request of the superintendent, provide to the division of financial institutions any printed or electronic advertising done regarding any business conducted under Chapter 4727. of the Revised Code.

Last updated March 21, 2024 at 8:40 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-03 Notifications.

(A) All notifications referenced in Chapter 4727. of the Revised Code shall be delivered to the superintendent of financial institutions in writing. Notifications may be delivered by postal mail, delivery service, or in person to "Division of Financial Insitutions, 77 South High St., 21st Floor, Columbus, OH 43215," or via electronic mail to "webdfi-cf@com.ohio.gov."

(B) The notification referenced in division (H) of section 4727.03 of the Revised Code concerning the surrender or non-renewal shall state whether the licensee intends to dispose of active loans or reduce the rate of interest on such loans. If the licensee intends to dispose of the loans, the notice shall state the name and address of the licensee to whom the loans will be sold, transferred or assigned. The notice shall indicate whether the licensee intends to continue to operate another business from the current pawnbroker location and the nature of that business.

(C) If a licensee intends to dispose of an active loan, the licensee shall notify the pledgor or seller in writing of the name and address of the licensee to whom the loan will be sold, transferred, or assigned. This notice must be delivered to the pledgor or seller at least ten business days prior to the sale, transfer, or assignment of the loan. Licensees must be able to provide documentation satisfactory to the superintendent of financial institutions that this notice was provided to the pledgor or seller.

(D) For each place of business at which a licensee transacts pawnbroker business, a licensee shall notify the division, at the time of an original application or renewal application, of the name of the employee, as defined in paragraph (E) of rule 1301:8-5-08 of the Administrative Code, who is designated to comply with the continuing education requirements set forth in division (A) of section 4727.19 of the Revised Code. If the licensee determines that the designated employee is unable to meet those requirements, the licensee shall designate a new employee for that place of business and shall, within thirty days of the licensee's determination that the originally designated employee is unable to meet the continuing education requirements, notify the division of financial institutions in writing of the change. A designated employee shall be considered unable to meet the continuing education requirements for any of the following reasons:

(1) The employee is no longer employed by the licensee;

(2) The employee is prevented from complying with this rule due to active duty in the armed forces as defined in section 5903.01 of the Revised Code;

(3) The employee is prevented from complying due to serious illness or the serious illness of an immediate family member; or

(4) The superintendent approves the designation of a new employee for reasons not listed in this rule, under the following circumstances:

(a) The request is submitted in writing by the licensee within thirty days of the licensee's determination that circumstances warrant the designation of a new employee to meet the education requirements; and

(b) The request demonstrates good cause for the change in the designated employee.

(E) Unless otherwise provided, an applicant or licensee shall be responsible for correcting, within fourteen days, any information that is or becomes inaccurate for any material reason and that was previously provided to the superintendent or contained in an advertisement. Inaccurate information previously provided to the superintendent may be corrected by providing notification consistent with paragraph (A) of this rule.

Last updated March 21, 2024 at 8:41 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-08

(A) Application for course approvals.

(1) Any person seeking to offer live classroom or online continuing education courses to licensees and designated employees shall request approval from the superintendent. In order for a course to be considered for approval the following information and documentation shall be submitted to the superintendent in writing at least fifteen days prior to the initial date of the proposed course.

(a) The name, address and telephone number of the person proposing to offer the course, and the names and duties of all persons affiliated in an official capacity with the course;

(b) The names and addresses of the owners of the entity or association if the applicant is an entity or association;

(d) A summary of the course, including:

(i) A description of the type of training (e.g. seminar, conference, course, other);

(ii) The time, date, and location of the course. If the course will be offered more than once, the time, date, and location for each course shall be provided;

(iii) The proposed initial date of the continuing education course;

(iv) Any prerequisite for admission to or participation in the course;

(v) The duration of the course;

(vi) The form of attendance certificate;

(vii) Methods of record maintenance;

(viii) Textbooks and student materials prescribed;

(ix) An outline or syllabus;

(x) Attendance or participation fees;

(xi) A sample of any intended advertising;

(xii) The number of credit hours offered to course participants. Each course shall be a minimum of one credit hour. A credit hour must provide for no less than fifty minutes of instruction. One credit hour consists of fifty minutes of a sixty-minute hour. Breaks, introductions, lunches, announcements, and other non-instruction time are to be excluded in calculating the credit hours requested.

(xiii) The title of the continuing education course.

(e) The names and qualifications of the course instructors; and

(f) Any other information required by the superintendent to determine whether the proposed continuing education course will maintain or increase a licensee's or designated employee's skill, knowledge, or competency in the pawnbroker business.

(2) Whenever there is a material change in an approved continuing education course, the course provider shall promptly notify the superintendent of the change in writing. The course provider shall notify the superintendent in writing, at least ten days in advance of the addition of an offering date for an approved course, or change in an offering date for an approved course, and notify the superintendent in writing at least three days in advance of all course changes including locations, times, instructors, or changes in course content.

(3) Each course provider shall submit to the division of financial institutions, within fifteen days after completion of each continuing education course, a list of licensees or employees who successfully completed the course. The list shall include:

(a) Course title;

(b) Date conducted;

(d) Names of licensees or employees who successfully completed the course; and

(e) Pawnbroker license numbers of the licensees.

(B) Course approval criteria.

(1) The superintendent, when considering approval of a continuing education course, shall apply the following criteria:

(a) Courses will not be approved in segments of less than one credit hour. No continuing education course shall be approved in which classroom or online instruction exceeds eight credit hours in any one day;

(b) Course instructors must meet at least one of the following qualifications:

(i) Possession of a bachelor's degree in a field related to that in which the person is to teach, from a school listed as an institution of higher learning by the United States department of education, or from a comparable school of a foreign country;

(ii) Possession of a valid teaching credential or certificate from this state or another state authorizing the holder to teach in the field of instruction in which the person is to teach;

(iii) Five years full-time experience in a profession, trade, or technical occupation in the applicable field; or

(iv) Any combination of at least five years of full-time experience relevant to the applicable field and college level education.

(i) Colleges or universities;

(ii) Community or junior colleges;

(iii) Pawnbrokers or pawnbroker-related organizations;

(iv) Proprietary schools;

(v) Individuals;

(vi) Other providers approved by the division; or

(vii) State or federal agencies or commissions.

(d) Passage of an examination by a licensed pawnbroker or designated employee shall not be a requirement for successful completion of a continuing education course.

(e) The superintendent shall approve courses for continuing education which maintain and increase the skill, knowledge and competency of state licensed pawnbrokers and their designated employees and which fall within the following areas:

(i) Retail and safety and security;

(ii) Appraisal of precious stones and precious metals;

(iii) Copyright and trademark laws;

(iv) Use of the internet as it relates to the pawnbroker business;

(v) Compliance with federal laws applicable to the pawnbroker business such as firearms, bankruptcy, search and seizure, and lending laws;

(vi) Compliance with state laws applicable to the pawnbroker business such as second hand dealers law, search and seizure, and the pawnbroker act;

(vii) Computer software application and training relating to the pawnbroker business;

(viii) Courses that address issues related to human trafficking; and

(ix) Any other training which the superintendent deems to be relevant to the efficient and lawful operation of a pawnbroker business.

(f) The following courses will not be considered by the superintendent to meet the continuing education requirements for licensed pawnbrokers and their designated employees:

(i) Courses in mechanical and business skills such as typing, speed reading, memory improvement or language;

(ii) Sales promotion or other meetings held in conjunction with the general business of the attendee or his business associates;

(iii) Meetings which are a normal part of in-house staff training;

(iv) That portion of any course devoted to breakfast, lunch, and dinner or other refreshment; or

(v) Courses consisting entirely of videotaped information.

(vi) A concealed carry course shall not be counted toward the continuing education requirements under section 4727.19 of the Revised Code more than once every other licensing cycle.

(g) The superintendent shall approve an online course for continuing education credit based upon a satisfactory review of the following criteria:

The application materials shall be submitted in writing pursuant to this rule and must demonstrate the following:

(i) The course is designed to ensure that students actively participate in the instructional process while completing the course by utilizing techniques that require substantial student interaction with the computer program;

(ii) If in each unit of instruction there is no activity from the student after fifty minutes of instruction time, the course will shut down and the student will have to begin from the beginning of the unit;

(iii) The provider utilizes procedures that provide reasonable assurance of student identity and that the student receiving the continuing education credit for completing the course actually performed all of the work required to complete the course; and

(iv) The provider utilizes a clock or timer on each screen to control navigation through the course to ensure that course completion time equals the amount of continuing education credit hours received.

(2) Paragraph (B) of this rule does not limit the superintendent's authority to disapprove any application that fails to meet the standards of this rule.

(3) If the superintendent approves an online course pursuant to paragraph (B)(1)(g) of this rule, the superintendent shall designate the number of credit hours to be assigned to the course.

(1) The superintendent may, upon the request of a person licensed under Chapter 4727. of the Revised Code, approve any course that meets the criteria set forth in paragraph (B) of this rule. Licensees seeking approval of a course under this paragraph shall submit the request for approval in writing, and shall provide sufficient information about the course to demonstrate that the course meets the requirements of paragraph (B) of this rule, and demonstrate that a designated employee has completed the training.

(2) The superintendent may, sua sponte, approve any course after making a determination that the course meets the criteria set forth in paragraph (B) of this rule.

(3) The superintendent shall retain the right to refuse to approve any course that fails to meet the criteria set forth in paragraph (B) of this rule, or if insufficient information is provided to support approval of the course.

(4) If the superintendent approves a course pursuant to this paragraph, the superintendent shall designate the number number of credit hours to be assigned to the course.

(5) This paragraph shall not apply to the approval of online courses.

(D) Continuing education credit may be granted for participation, other than as a student, in continuing education courses approved by the superintendent or in other processes or programs approved by the superintendent which relate to pawnbroker practices or techniques. Participants receiving such credit may include, but are not limited to:

(1) Instructors of approved continuing education courses may receive continuing education for the number of unduplicated subject matter hours taught for each different course;

(2) An individual who has authored pawnbroker articles or textbooks may receive continuing education credit for the published article or textbook upon the submission of the following:

(a) A copy of the published article or textbook;

(b) A summary of the article or textbook, with date of publication;

(d) An explanation of how the material published meets the criteria set forth in paragraph (B) of this rule.

(E) For purposes of determining compliance with division (A) of section 4727.16 of the Revised Code, the term "employee" means any individual, including a licensee, who has direct contact with customers, whether on a full time-part time, or seasonal basis, such as an individual or licensee that sells or purchases merchandise, or makes a loan on behalf of a pawnbroker.

(F) In the event that the licensee, pursuant to paragraph (E) of rule 1301:8-5-03 of the Administrative Code, designates a new employee for purposes of completing the continuing education requirements referenced in division (A) of section 4727.19 of the Revised Code, the continuing education credit hours completed within the required period by both the former and new employee may be combined for purposes of determining compliance with division (A) of section 4727.19 of the Revised Code.

Last updated March 21, 2024 at 8:42 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-04 Obstruction of inspection; statement to pledgor; authorized fees.

(A) No licensee or any other person shall inhibit, obstruct, or refuse to permit an inspection, examination, or investigation conducted pursuant to Chapter 4727. of the Revised Code during each location's posted business hours.

(B) The forfeiture warning notice fee, the lost pawn statement fee, the storage fee, fees incurred by the licensee in order to comply with the Brady Handgun Violence Protection Act of 1993, 107 Stat. 1536, 18 U.S.C. 922, shipping fees, interest, and principal reduction payments shall be recorded separately upon the licensee's copy of the pawn statement, form or computer software so as to be separately identifiable. Licensees must be able to provide documentation satisfactory to the superintendent of financial institutions supporting all third-party fees incurred by the licensee and passed on to the consumer.

(C) No licensee shall charge, demand, or receive fees other than those authorized by section 4727.06 of the Revised Code.

Last updated March 21, 2024 at 8:41 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-05 Unlicensed pawnbrokers.

If a person makes a pawn loan in violation of section 4727.02 of the Revised Code, the person has no right to collect, receive, or retain any interest or charges on the loan in violation of Chapter 4727. of the Revised Code, and the person has no right to possess the personal property pledged as security for the loan.

Last updated February 6, 2024 at 10:02 AM

History

Effective: June 16, 2005
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-06 Purchases; list of property held for sale.

(A) No owner, officer, member, partner, stockholder, agent, or employee of a licensee may purchase personal property in such a way as to circumvent the record-keeping requirements of Chapter 4727. of the Revised Code.

(B) A licensee shall document the acquisition of all property held for sale on the licensed premises through a pawn ticket, purchase ticket, sales receipt, bill of sale, consignment agreement, or barter agreement. Consignment or barter agreements shall include the information listed in division (B) of section 4727.08 of the Revised Code.

(C) All completed pawn ticket, purchase tickets, sales receipt, bill of sale, consignment agreement, or barter agreements shall be signed by the pledgor and retained in accordance with section 4727.08 of the Revised Code.

(D) The name of the person redeeming the pawn, along with the date and time that the pawn was redeemed shall be retained in accordance with section 4727.08 of the Revised Code.

Last updated March 21, 2024 at 8:41 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-5-07 Payments on a pawn loan.

(A) A licensee shall not accept an interest or storage payment for any month other than the current month, except when the pledgor redeems the pledged property. Prepayment of interest and storage charges may not occur at the time the loan is originated. The pawnbroker may, however, assess a full month's interest and storage charge for any fraction of a month that exists at the time the loan is redeemed.

(B) A pawn loan shall not be refinanced. A licensee shall not redeem a pawn loan on behalf of a pledgor. A licensee shall not require or accept a pro-rata payment on any interest or any other charges.

(C) A licensee shall not establish a new pawn date for a pawn loan when any payment on the loan is made but no redemption occurs.

(D) For purposes of calculating thirty day notice period pursuant to division (A) of section 4727.11 of the Revised Code, the day of the mailing shall not be counted. If the thirtieth day falls on a day that the licensee is not open for business, the thirtieth day shall be deemed to be the first subsequent full day that the licensee is open for business.

Last updated March 21, 2024 at 8:41 AM

History

Effective: March 21, 2024
Promulgated Under: 119.03

Chapter 1301:8-6 Precious Metals Dealers

Ohio Adm.Code 1301:8-6-01 Definitions.

As used in this chapter:

(A) "Division" means the division of financial institutions.

(B) "Licensee" means any person licensed under Chapter 4728. of the Revised Code.

(C) "Permit holder" means any licensee who has been issued a temporary exhibition permit by the superintendent under division (C) of section 4728.04 of the Revised Code.

Last updated July 31, 2024 at 11:40 AM

History

Effective: February 2, 2007
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-6-02 Licenses.

(A) No licensee shall transact or solicit business under any other name than that contained in the license or at any location other than the address stated in the license.

(B) Licenses issued under Chapter 4728. of the Revised Code are not transferable or assignable.

(C) No licensee may change business locations without prior notification to the superintendent. If the new location is outside the municipal corporation or county in which the licensee was originally licensed, the licensee shall pay an additional license fee in accordance with section 4728.03 of the Revised Code.

Last updated October 15, 2024 at 10:33 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-6-03 Books and records.

(A) Each licensee shall keep and use an intelligible set of books and records in the English language in complying with section 4728.06 of the Revised Code with respect to recording the details of each purchase. All information required to be recorded by section 4728.06 of the Revised Code shall be entered in a bound book or on loose-leaf, permanent forms used exclusively for that purpose. Forms shall be identical and consecutively numbered, each of which shall be of two or more pages. One part of each form shall be detachable and, when completed, shall serve as the statement to be given by the licensee to the seller as provided by section 4728.06 of the Revised Code. The remaining part of the form shall be retained in the licensee's permanent records. All forms shall be accounted for. A licensee may use other methods of recording data, keeping records, and keeping books, such as electronic or computerized methods acceptable to the superintendent, in lieu of the methods described in this paragraph, provided written printouts or hard copies of the required data are readily available.

(B) Each licensee shall preserve the licensee's books, forms, accounts, and records for at least two years after making the final entry regarding any purchase of property recorded therein.

(C) All purchased items shall be kept at the licensed location for seventy-two hours from the time of purchase. All books, records, forms, and other documentation, shall be kept at the licensed location.

(D) All purchase forms and receipt forms shall reflect the name under which the licensee is registered with the division and the complete address of the licensee's place of business.

Last updated October 15, 2024 at 10:33 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-6-04 Stolen property.

A licensee shall post a conspicuous notice in the main lobby of the licensee's place of business. Such notice shall be in printed letters no less than one-half inch in height, shall be visible to all patrons, and shall read: "The licensee at this establishment has no right to retain property stolen from the true owner and the owner may recover any such property or its value from the licensee in an action at law."

Last updated October 15, 2024 at 10:33 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-6-05 Posting business hours.

A licensee shall post at the main door of the licensee's place of business the hours or time when the licensee's establishment is and will be open for business. A licensee shall notify the division of any change of the licensee's posted hours of operations. A licensee does not violate this rule if the licensee's failure to keep posted hours was the result of an act of God, unforeseen emergency, or other event beyond the control of the licensee.

Last updated October 15, 2024 at 10:34 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-6-06 Temporary permit.

(A) A licensee who wishes to be issued a temporary exhibition permit under the provisions of division (C) of section 4728.04 of the Revised Code shall apply to the superintendent. The application shall contain the licensee's name, permanent business address, license number, and the location of the auction, convention, exhibition, fair, or show.

(B) Upon issuance of a temporary exhibition permit, the permit holder shall conspicuously display the permit at the place where the permit holder transacts business at the auction, convention, exhibition, fair, or show for a period not exceeding seven days for any one event.

Last updated October 15, 2024 at 10:34 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Chapter 1301:8-7 Residential Mortgage Lending Act

Ohio Adm.Code 1301:8-7-01 Definitions.

Unless otherwise specified, as used in Chapter 1322. of the Revised Code and in this chapter of the Administrative Code:

(A) "Advertisement" and "advertising" means any written or oral statement, illustration, or depiction, whether in English or any other language, that is designed to effect a sale or create interest in purchasing goods or services, whether it appears on or in a label, package, package insert, radio, television, cable television, brochure, newspaper, magazine, pamphlet, leaflet, circular, mailer, book insert, free standing insert, letter, catalogue, poster, chart, billboard, public transit card, point of purchase display, film, slide, audio program transmitted over a telephone system, telemarketing script, on-hold script, upsell script, training materials provided to telemarketing firms, program-length commercial ("infomercial"), the internet, cellular network, or any other medium. The term advertisement and advertising includes web pages and social media posts, but does not include de minimis promotional items such as pens, pencils, balloons, and coffee mugs.

(B) "At the time that the request for the mortgage is refused or denied" means no later than five business days from the day that the residential mortgage loan application has been refused or denied.

(C) "Borrower" means an individual who is assisted by a mortgage loan originator in applying for or obtaining a residential mortgage loan and includes a buyer.

(D) "Clerical or support duties" has the same meaning as "administrative or clerical tasks" as defined in division (A) of section 1322.01 of the Revised Code.

(E) "Credit union service organization" means an entity that a credit union, chartered and lawfully doing business under the laws of this state, another state, or the United States, invests in or loans to and that primarily provides products or services to credit unions or their members.

(F) "Financial and mortgage information" means information about a borrower or potential borrower that is customary or necessary to include in a residential mortgage loan application.

(G) "For compensation or gain" means receives or expects to receive payment of money or anything of value in connection with the activities described in paragraph (I)(1) of this rule or as a result of any residential mortgage loan terms entered into as a result of such activities.

(H) "Leads" means financial and mortgage information about potential residential mortgage loan borrowers, including information submitted by potential borrowers who fill out online questionnaires, contests, or surveys.

(I)

(1) "Mortgage loan originator," in accordance with section 1322.02 of the Revised Code, includes an individual who for compensation or gain, or in anticipation of compensation or gain, does any of the following:

(a) Takes or offers to take a residential mortgage loan application;

(b) Performs the clerical or support duties of a loan processor or underwriter as an independent contractor.

(2) "Mortgage loan originator" does not include:, :

(a) Individuals listed in division (AA)(2) of section 1322.01 of the Revised Code;

(b) An employee of a federal, state, or local government agency or housing finance agency and who acts as a mortgage loan originator only pursuant to his or her official duties as an employee of the federal, state, or local government agency or housing finance agency;

(c) An employee of a qualified exempt entity who acts solely as a loan processor or underwriter and who does not represent to the public, through advertising or other means of communicating, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the employee can or will perform any of the activities of a mortgage loan originator.

(J) "Mortgage broker" includes, in addition to those persons listed in division (Y) of section 1322.01 of the Revised Code, a person who is physically located in this state but who regularly provides or offers to provide mortgage broker services only to borrowers or for property located in other states.

(K) "NMLS" means the "nationwide mortgage licensing system and registry" or "nationwide multi-state licensing system" or any subsequent name for the registry adopted by "Conference of State Bank Supervisors" and the "American Association of Residential Mortgage Regulators."

(L) "Originate," "originating," "origination," and "act as a mortgage loan originator" mean to do any of the acts set forth in paragraph (I)(1) of this rule or in division (AA)(1) of section 1322.01 of the Revised Code.

(M) "Other equivalent consensual security interest" includes a retail installment sale as that term is defined in division (A) of section 1317.01 of the Revised Code and a land installment contract as defined in division (A) of section 5313.01 of the Revised Code.

(N) "Person" includes, without limitation, a natural person, corporation, limited liability company, partnership, association, or other entity listed in division (EE) of section 1701.01 of the Revised Code.

(O) "Principally" means more than fifty per cent of the total time worked in a calendar month, or in a longer period as determined by the superintendent for good cause shown.

(P) "Qualified exempt entity" means a person holding a valid letter of exemption issued pursuant to section 1322.05 of the Revised Code.

(Q) "Resident of this state" does not include an individual who is purchasing a primary residence in another state.

(R) "Residential mortgage loan application" or "loan application" means a request, in any form, for an offer (or a response to a solicitation of an offer) of residential mortgage loan terms, and the information about the borrower or prospective borrower that is customary or necessary in a decision on whether to make such an offer.

(S) "Settlement service provider" means a person who provides settlement services as that term is defined in 12 C.F.R. 1024.2, as in effect on May 1, 2024.

(T) "Takes or offers to take a residential mortgage loan application" means receives a residential mortgage loan application for the purpose of facilitating a decision whether to extend an offer of residential mortgage loan terms to a borrower or prospective borrower (or to accept the terms offered by a borrower or prospective borrower in response to a solicitation), whether the application is received directly or indirectly from the borrower or prospective borrower.

(U) "Transaction of business as a mortgage broker in this state" means the origination of a residential mortgage loan in any of the following circumstances:

(1) For any resident of this state;

(2) For any property in this state;

(3) By a person who is physically located in this state but who regularly provides or offers to provide mortgage broker services only to borrowers or for property located in other states.

Last updated September 3, 2024 at 8:45 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-02 Registration, letters of exemption for qualified exempt entities, office requirements and restrictions.

(A) A registrant shall register every office where any of the following activities occur or conditions exist:

(1) Leads are solicited or received, directly or indirectly, from residents of this state, for property in this state, or from a location physically in this state;

(2) Records pertaining to business conducted pursuant to Chapter 1322. of the Revised Code are maintained in paper form;

(3) The registrant's licensees originate residential mortgage loans for residents of this state, property in this state, or from a location physically in this state regardless of the location of the borrower or property;

(4) The registrant transacts business as a mortgage servicer.

(B) A qualified exempt entity shall seek and obtain an approved letter of exemption for every office where any of the following activities occur or conditions exist:

(1) Records pertaining to business conducted pursuant to Chapter 1322. of the Revised Code are maintained in paper form;

(2) The qualified exempt entity's licensees originate residential mortgage loans for residents of this state or property in this state;

(3) The qualified exempt entity transacts business as a mortgage servicer.

(1) The physical arrangement does not confuse or mislead borrowers;

(2) Access to borrower files, financial and mortgage information of borrowers or potential borrowers, and all records required to be maintained by Chapter 1322. of the Revised Code, whether in electronic or paper form, is restricted to only the registrant's or qualified exempt entity's employees or licensees, and is maintained in compliance with applicable state and federal privacy laws.

(3) Notwithstanding paragraph (C)(2) of this rule, a registrant or qualified exempt entity may allow an independent contractor licensed pursuant to Chapter 1322. of the Revised Code or employees of a loan processing or underwriting company holding a valid letter of exemption issued pursuant to rule 1301:8-7-32 to access borrower files, financial and mortgage information of borrowers or potential borrowers, and all records required to be maintained by Chapter 1322. of the Revised Code, whether in electronic or paper form, for the purpose of conducting the clerical or support duties of loan processing or underwriting for the same registrant or qualified exempt entity.

(D) The following restrictions and requirements apply to each additional office location maintained by the registrant, also referred to herein as branch offices:

(1) A branch office shall not be a separate business entity;

(2) A branch office shall not pay its own operating expenses for the transaction of business as a mortgage broker in this state. Operating expenses include compensation of branch office employees, and payments for equipment, furniture, office rent, utilities, advertising and other similar expenses incurred in operating a mortgage broker business. All assets and liabilities of the branch are assets and liabilities of the registrant and all income and expenses of the branch are income and expenses of the registrant and shall be properly accounted for in the financial records and state and federal tax returns of the registrant. Compensation of a branch manager may be based on the income of the branch minus the operating expenses of the branch as long as the ultimate responsibility and payment of those operating expenses remains the responsibility of the registrant;

(3) A branch office shall not indemnify, hold harmless, or defend a registrant against damages, losses, injury, or liability arising out of acts or omissions of the branch or employees or licensees working from the branch.

(4) A branch office shall not maintain a bank account for the payment of expenses that is separate from the bank accounts of the registrant. All operating expenses shall be paid from an account of the registrant, and may not be paid through or from any employee's personal account or any non-registrant account;

(5) A branch office shall not maintain its own lines of credit, warehouse agreements, or other investor agreements that are independent from those of the registrant;

(6) All practices, policies, and procedures, including those relating to employment and operations, shall be established by the registrant and shall be applied consistently to the main office and all branch offices.

(E) Any arrangement where a registrant allows another person to transact business as a mortgage broker in this state under the registrant's certificate of registration at a location that does not comply with paragraph (D) of this rule, sometimes referred to as "net branching," is not permissible.

(F) A residential mortgage loan is primarily for personal, family, or household use if more than one half of the total loan amount is used for consumer purposes and not for business purposes. In assessing the purpose (or purposes, if the loan is a hybrid used for both consumer and business purposes), the superintendent may consider the totality of the circumstances surrounding the loan and not merely the purpose of cash-out proceeds. If more than one half of the total loan amount is for business purposes, then the requirements of Chapter 1322. of the Revised Code do not apply.

(G) Notwithstanding paragraph (F) of this rule, a residential mortgage loan made to a borrower for purposes of investing in a dwelling to either lease, rent, or resell for profit is considered a business purpose loan and is not subject to the requirements of Chapter 1322. of the Revised Code unless the dwelling, or at least one unit of the dwelling in the case of a two to four family housing unit, will be occupied by the borrower or any immediate family member of the borrower. For the purposes of this paragraph, "immediate family" has the same meaning as set forth in division (R) of section 1322.01 of the Revised Code.

(H) Nothing in division (AA)(2)(b) of section 1322.01 of the Revised Code prevents a person licensed under Chapter 4735. of the Revised Code or similar law of another state from receiving compensation for real estate brokerage activities performed for a mortgage lender or agent thereof who is also the owner of the property provided that the person does not act as a mortgage loan originator in the transaction.

(I) A registrant or qualified exempt entity shall not hold a certificate of registration issued pursuant to Chapter 4712. of the Revised Code.

Last updated September 19, 2025 at 7:25 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-32

(A) For purposes of division (AA)(2)(h) of section 1322.01 of the Revised Code, "loan processing or underwriting company" means an entity that performs only clerical or support duties for one or more unaffiliated registrants or qualified exempt entities.

(B) For purposes of division (AA)(2)(h) of section 1322.01 of the Revised Code, "employee" means an individual for whom the loan processing or underwriting company, 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. Nothing herein prohibits a loan processing or underwriting company from entering into an agreement with a professional employer organization as that term is defined in division (D) of section 4125.01 of the Revised Code, provided the loan processing or underwriting company retains all direction and control over its shared employees' performance of clerical or support duties.

(C) A loan processing or underwriting company seeking a letter of exemption pursuant to division (AA)(2)(h) of section 1322.01 of the Revised Code shall be responsible for paying any applicable fees and submitting an application for a letter of exemption via the NMLS for its main office location before engaging in the activities of a loan processor or underwriter for residential mortgage loans involving property in this state.

(D) The application shall be in a form prescribed by the superintendent and shall include all of the following:

(1) The loan processing or underwriting company's business name and state of incorporation or business registration;

(2) The names of the owners, officers, members, or partners having control of the loan processing or underwriting company;

(3) The names of all licensees employed by the the loan processing or underwriting company;

(4) An attestation stating all of the following:

(a) All employees who perform clerical or support duties are either licensees or perform only clerical or support duties at the direction of and subject to the supervision and instruction of a licensee employed by the same loan processing or underwriting company.

(b) The licensees assign, authorize, and monitor every loan processor or underwriter employee's performance of clerical or support duties.

(c) The licensees exercise traditional supervisory responsibilities, including training, mentoring, and evaluation of every loan processor or underwriter employee.

(d) The loan processing or underwriting company always performs clerical or support duties for others pursuant to a written contract.

(e) No licensee or employee of the loan processing or underwriting company is also a licensee or employee of any entity for whom it performs clerical or support duties.

(5) A surety bond for all licensees which may be issued in the same manner as is permitted for registrants;

(6) An acknowledgment of understanding that the loan processing or underwriting company is subject to the regulatory authority of the division of financial institutions;

(7) Any further reasonable information that the superintendent may require.

(E) If the superintendent determines that the loan processing or underwriting company fully and honestly completed the application process and otherwise qualifies for exemption, the superintendent shall issue a letter of exemption which shall expire on the thirty-first day of December and may be renewed on or before that date by submitting an application that meets the requirements of paragraph (D) of this rule.

(F) The burden of proving the exemption is on the loan processing or underwriting company.

(G) The loan processing or underwriting company shall keep and maintain records of all residential mortgage loan transactions for the portion of the transaction it conducts in the same manner as is required of registrants, as provided in division (B) of section 1322.34 of the Revised Code and rule 1301:8-7-06 of the Administrative Code.

(H) The superintendent may, in accordance with rule 1301:8-7-13 of the Administrative Code, examine the books and records of the loan processing or underwriting company as often as the superintendent deems necessary for the purpose of substantiating the loan processing or underwriting company's exempt status.

(I) An employee of a loan processing or underwriting company that holds a valid letter of exemption may perform clerical or support duties from any location provided a licensee of the same loan processing or underwriting company maintains adequate supervision of the loan processor's or underwriter's performance, including training, mentoring, and evaluation of the loan processor or underwriter.

(J) An employee of loan processing or underwriting company that holds a valid letter of exemption is exempt from having to obtain a mortgage loan originator license only with respect to the clerical or support duties performed for such loan processing or underwriting company.

(K) An employee of a loan processing or underwriting company shall not also be employed by or associated with any entity for whom the loan processing or underwriting company performs clerical or support duties.

(L) A loan processing or underwriting company performing clerical or support duties shall comply with rules promulgated under 15 U.S.C. 1681w and 15 U.S.C. 6801, including 16 C.F.R. Part 313 and 16 C.F.R. Part 682, as those rules are in effect May 1, 2024.

Last updated September 3, 2024 at 8:49 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-03 Standards for applications, certificates of registration, letters of exemption, and licenses.

(A) Submitting an application for a certificate of registration, letter of exemption or license via the NMLS does not authorize the applicant to begin acting as a registrant, qualified exempt entity, or licensee.

(B) Each question and answer on the NMLS, including any exhibit or attachment, is material to the application process. Submitting false or fraudulent information or omitting information is grounds to refuse to issue the certificate of registration, letter of exemption, or license and may subject the applicant and individuals who signed and attested to the application to administrative, civil, or criminal actions.

(C) Engaging in mortgage broker, mortgage servicer, or loan origination activity on or after the first day of January by a person who fails to submit a renewal application via the NMLS by the thirty-first day of the preceding December constitutes activity without a certificate of registration or license in violation of Chapter 1322. of the Revised Code, and the person engaged in the violation may be subject to administrative, civil, or criminal actions. In accordance with division (D)(2) of section 1322.10 of the Revised Code, this paragraph does not apply if the applicant, not later than forty-five days after the renewal deadline, submits the renewal fee or additional fee and a one hundred fifty dollar penalty to the superintendent.

(D) Registrants, qualified exempt entities, licensees, and applicants are responsible for ensuring that all information maintained on the NMLS is current and accurate. If information on the NMLS becomes out-of-date or inaccurate for any reason, the registrant, qualified exempt entity, licensee, or applicant shall correct the information within ten business days of the change unless a different time frame is specified in Chapter 1322. of the Revised Code or rule 1301:8-7-19 of the Administrative Code.

(E) Having a sponsorship submitted via the NMLS is not sufficient to activate a license. To be authorized to originate residential mortgage loans for a registrant or qualified exempt entity, a current sponsorship request must be approved by the superintendent and the mortgage loan originator must receive an active license from the superintendent.

(F) An individual or registered loan originator may obtain or maintain a license in escrow without having a sponsorship submitted via the NMLS on his or her behalf by a registrant or qualified exempt entity.

(G) An applicant may request the withdrawal of an application for a certificate of registration, letter of exemption, or license prior to a determination on the application being made by the superintendent by submitting a request via the NMLS. The application may only be withdrawn with the permission of the superintendent. An application withdrawn at the request of the applicant may only be re-activated within seven calendar days of the withdrawal for good cause shown and at the discretion of the superintendent. An applicant may reapply following a withdrawn application.

(H) An escrowed or suspended license is subject to all of the following:

(1) Placing a license in escrow or having a license suspended does not extend or toll the time for completion of the licensee's continuing education requirements under section 1322.28 of the Revised Code;

(2) An escrowed or suspended license may be renewed pursuant to division (B) of section 1322.21 of the Revised Code;

(3) An escrowed or suspended license is subject to suspension, refusal, revocation, or any other administrative, civil, or criminal actions for conduct occurring before, during, or after the license was placed in escrow or suspended status.

(I) A suspended certificate of registration or letter of exemption is subject to all of the following:

(1) A suspended certificate of registration or letter of exemption may be renewed pursuant to division (C) of section 1322.10 or division (D) of section 1322.05 of the Revised Code, respectively;

(2) A suspended certificate of registration or letter of exemption is subject to refusal, revocation, or any other administrative, civil, or criminal actions for conduct occurring before, during, or after the suspension.

(J) A suspended certificate of registration, letter of exemption, or license may be returned to active status if it meets all of the following:

(1) The superintendent believes that all conditions which led to the suspension have been remedied;

(2) The registrant, qualified exempt entity, or licensee is otherwise eligible to hold an active certificate of registration, letter of exemption, or license.

(K) A certificate of registration, letter of exemption, or license may be surrendered in accordance with the following:

(1) A person may voluntarily surrender a certificate of registration, letter of exemption, or license unless the person is being investigated by the superintendent or another financial institution regulatory authority as defined in division (C) of section 1322.36 of the Revised Code, or a notice of opportunity for a hearing has been issued by the superintendent in accordance with Chapter 119. of the Revised Code. A person may surrender by submitting a request via the NMLS. The certificate of registration, letter of exemption, or license may only be surrendered with the permission of the superintendent;

(2) A surrendered certificate of registration, letter of exemption, or license is subject to administrative, civil, or criminal actions for conduct occurring before, during, or after the surrender and does not impair or affect the obligation of a pre-existing lawful contract between the registrant, qualified exempt entity, or licensee and any person, including a borrower.

Last updated September 19, 2025 at 7:25 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-19

The notification requirements in this administrative rule shall be made via the NMLS unless otherwise indicated. If notice of a change is required to be made before its effective date, the registrant or qualified exempt entity shall submit an "advance change notice" via the NMLS.

(A) A registrant or qualified exempt entity shall notify the superintendent at least fifteen days before the sale, transfer, or hypothecation of more than five per cent of the registrant's or qualified exempt entity's membership, partnership, or other equitable, beneficial, or ownership interest.

(B) A registrant or qualified exempt entity shall notify the superintendent at least fifteen days before changing any officers, control persons, or five per cent or more direct owners. New officers, control persons or five per cent or more direct owners that are individuals must be fingerprinted for the compilation of a criminal history background report by the federal bureau of investigation.

(C) A registrant or qualified exempt entity shall notify the superintendent at least fifteen days before changing its name, trade name, or fictitious name.

(D) A registrant or qualified exempt entity shall notify the superintendent at least fifteen days before changing the name or address of its statutory agent on file with the Ohio secretary of state.

(E) A registrant or qualified exempt entity shall notify the superintendent of a change of any office location listed on any of its certificates of registration or letters of exemption at least fifteen days before such change, and shall submit all of the following to the superintendent by uploading the documentation into its NMLS account or sending it directly to the division via mail:

(1) A copy of the lease or rental agreement for the new location or proof that the registrant or qualified exempt entity owns the new location;

(2) An updated surety bond, rider or endorsement reflecting the new address if its main office location has changed;

(F) A registrant or qualified exempt entity shall notify the superintendent of the termination of a licensee by removing its sponsorship of the licensee via the NMLS no later than five business days after the licensee's employment or association has been terminated.

(G) A registrant or qualified exempt entity shall notify the superintendent of the closure of any office location listed on a certificate of registration or letter of exemption no later than fifteen days after the closure. The registrant or qualified exempt entity shall identify the custodian of the records and the location where the records will be maintained in compliance with rule 1301:8-7-06 of the Administrative Code.

(H) A licensee shall notify the superintendent of a legal name change no later than fifteen days after such change and shall provide to the superintendent a copy of the name change order. Once the superintendent has issued a new license with the licensee's new name, the licensee shall not originate loans using the prior name.

(I) A person notifying the superintendent of a criminal conviction, guilty or nolo contendere plea, or revocation of the authority to act as a mortgage lender, mortgage servicer, mortgage broker, or mortgage loan originator in accordance with division (D) of section 1322.40 of the Revised Code shall submit a completed "Notification of Guilty Plea, Conviction or Revocation" form located on the division's website. The form shall be accompanied by a certified copy of the final judgment entry and supporting opinion, if any.

Last updated September 3, 2024 at 8:48 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-06 Recordkeeping.

(A) In accordance with division (B) of section 1322.34 of the Revised Code and division (C)(3) of section 1322.05 of the Revised Code, the four-year retention period commences on the date the residential mortgage loan is closed or, if the residential mortgage loan is not closed, the date of the withdrawal or denial of the residential mortgage loan application. If the residential mortgage loan is serviced by a qualified exempt entity, the four-year retention period commences on the date the residential mortgage loan is paid in full or the date the registrant ceases to service the residential mortgage loan. The retention period for advertisements commences from the date the advertisements are published, broadcast, or disseminated.

(B) A registrant or qualified exempt entity shall notify the superintendent via the NMLS of a change of location of its records pertaining to business conducted pursuant to Chapter 1322. of the Revised Code no later than five business days after the change.

(C) As used in division (E) of section 1322.34 of the Revised Code, "estimated costs of the examination" includes, in addition to the proportionate costs of the salaries of division of financial institutions employees who conduct the examination, the division's travel, lodging, and per diem expenses incurred in travel to examine the books and records. At the request of the superintendent, payment of the estimated costs of the examination, as determined by the superintendent, shall be made in advance and placed on deposit with the division. After actual costs are determined, any excess funds shall be refunded to the registrant or qualified exempt entity.

(D) All records shall be kept current and shall be available at all times during normal business hours for review by the superintendent. Records should be legible and maintained in a type size that is clearly readable without magnification and in conformity with state or federal law. Except when otherwise provided by federal or state law, records shall be maintained in English. When records are allowed to be in a language other than English, the registrant or qualified exempt entity, at its expense, shall be responsible for providing the superintendent with a full and accurate translation. For purposes of this rule, "current" means within thirty days from the date of the occurrence of the event required to be recorded.

(E) A registrant or qualified exempt entity shall segregate the records pertaining to business conducted pursuant to Chapter 1322. of the Revised Code from all other business records.

(F) Records pertaining to business conducted pursuant to Chapter 1322. of the Revised Code may be maintained in their original paper form or on an electronic storage media or system. Any records maintained on an electronic storage media or system shall meet all of the following requirements:

(1) The electronic storage media or system must preserve the records in a non-rewriteable, non-erasable format;

(2) The electronic storage media or system must verify automatically the quality and accuracy of the storage media recording process;

(3) The electronic storage media or system must serialize the original and the duplicate units of storage media, and affix a date and time for the required period of retention on both the original and duplicate;

(4) The electronic storage media or system must have the capacity to readily download indices and records preserved on the electronic storage media or system to any medium acceptable to the superintendent;

(5) Acceptable facilities and appropriate equipment must, at all times during normal business hours, be available to the superintendent for immediate, easily readable projection or production of electronic storage media or system images and for producing easily readable images;

(6) Immediate facsimile enlargement must be available upon the superintendent's request;

(7) A duplicate copy of the electronic record stored on any electronic media or system for the time required must be stored separately from the "original" electronic record;

(8) The electronic storage media or system must organize and index accurately all information maintained on both the original and duplicate storage media or system. At all times, a registrant or qualified exempt entity must be able to have indices of the electronic records being stored available for examination by the superintendent. Each index must also be duplicated and the duplicate copies must be stored separately from the original copy of each index. Original and duplicate indices must be preserved for the time required for the indexed records;

(9) An audit system will be in place providing for accountability regarding inputting of records and inputting any changes made to every original and duplicate record maintained and preserved. At all times, a registrant or qualified exempt entity must be able to have the results of the audit system available for examination by the superintendent. The audit results must be preserved for the time required for the audited records;

(10) All information necessary to access records and indices stored on the electronic storage media or system, a copy of the physical and logical file format of the electronic storage media or system, the field format of all different information types written on the electronic storage media or system, together with the appropriate documentation and information necessary to access records and indices will be maintained, kept current, and provided promptly to the superintendent, upon request;

(11) No paper documents produced or reproduced by means of an electronic storage media or system shall be destroyed until the conditions of this paragraph have been met with regard to each paper document that is to be destroyed; and

(12) At the request of the division, the records shall be printed on paper for inspection or examination without cost to the division within forty-eight hours of the request. The superintendent may grant additional time for good cause shown upon receipt of a request for additional time from the registrant or qualified exempt entity.

(G) A registrant or qualified exempt entity shall create, maintain, keep current, and preserve the following books and records:

(1) A searchable electronic spreadsheet of all borrowers for whom the registrant or qualified exempt entity has obtained residential mortgage loans. The spreadsheet shall contain for each borrower the closing date of the residential mortgage loan obtained for the borrower, the amount of the residential mortgage loan, the licensee responsible for originating the residential mortgage loan, the identity of the lender that funded or purchased the residential mortgage loan, the residential mortgage loan application date, the residential mortgage loan program type, the property address, and the identifying loan number;

(2) A borrower file for each application received which shall contain, when applicable, at least the following:

(a) A copy of the initial and final residential mortgage loan applications signed and dated by the borrower and the licensee originating the residential mortgage loan, including any attachments, supplements, or addenda thereto;

(b) Copies of verification documentation, including written authorizations to order credit reports, income verifications, deposit and asset verification, all copies of the credit reports and any supplements to the credit report, and any correspondence to any person regarding credit repair;

(c) Copies of written or electronic communications, including underwriting decisions, opinions, or prequalification correspondence, interest rate lock-ins, residential mortgage loan commitments, and notes in connection with that residential mortgage loan application or its ultimate disposition;

(d) Copies of all state and federal disclosures or forms applicable to the borrower, both initial and any revised versions.

(e) A copy of each appraisal and the corresponding appraisal invoice and order form; and

(f) Receipts or other documentation for any fees collected by the registrant or qualified exempt entity from the borrower for payment to bona fide, third-party service providers.

(3) A file of all advertisements.

(4) General business records, including:

(a) All agreements with lenders to whom residential mortgage loan applications are submitted;

(b) All checkbooks, check registers, bank statements, deposit slips, withdrawal slips, and canceled checks or electronic images;

(c) Copies of checks made payable to a registrant or qualified exempt entity from a borrower or other entity paying a fee for the services of the registrant, qualified exempt entity, or licensee;

(d) Documentation to support the source of and purpose for each receipt and disbursement of funds in order that the receipts may be reconciled to bank deposits and to the books of the registrant or qualified exempt entity. Settlement statements are not acceptable proof of receipt for purposes of this rule;

(e) Copies of all federal tax withholding forms, reports of income for federal taxation, and evidence of payments to all employees, independent contractors and others compensated by the registrant or qualified exempt entity in connection with the conduct of mortgage lending business;

(f) Copies of all contractual arrangements or understandings with employees, independent contractors, and third parties that relate in any way to the providing of residential mortgage broker or mortgage lending services, including any agreements for the pricing of goods or services, any investor contracts, any employment agreements, and any non-compete agreements;

(g) Copies of organizational documents, including articles of incorporation, corporate minutes, and documents evidencing corporate name changes and change of ownership or officers; and

(h) Such other books and records as the superintendent may require.

(H) A registrant or qualified exempt entity shall comply with rules promulgated under 15 U.S.C. 1681w and 15 U.S.C. 6801, including 16 C.F.R. Part 313 and 16 C.F.R. Part 682, as those rules are in effect May 1, 2024.

(I)

(1) A mortgage servicer will retain records that document actions taken with respect to a borrower's residential mortgage loan account until four years after the date a residential mortgage loan is discharged or servicing of a residential mortgage loan is transferred by the mortgage servicer to a transferee mortgage servicer.

(2) A mortgage servicer will maintain the following documents and data on each residential mortgage loan account serviced by the mortgage servicer in a manner that facilitates compiling such documents and data into a servicing file within five days of a borrower's request:

(a) A schedule of all transactions credited or debited to the residential mortgage loan account, including any escrow account as defined in 12 C.F.R. 1024.17(b) as is in effect June 1, 2025, and any suspense account;

(b) A copy of the security instrument that establishes the lien securing the residential mortgage loan;

(c) Any notes created by mortgage servicer personnel reflecting communications with the borrower about the residential mortgage loan account;

(d) To the extent applicable, a report of the data fields relating to the borrower's residential mortgage loan account created by the mortgage servicer's electronic systems in connection with servicing practices;

(e) Copies of any information or documents provided by the borrower to the mortgage servicer in accordance with the procedures set forth in rule 1301:8-7-38 of the Administrative Code and, for a mortgage servicer that is not a small servicer as defined in 12 C.F.R. 1026.41(e)(4) as in effect on June 1, 2025, 12 C.F.R. 1024.41, as in effect on June 1, 2025.

(3) As used in paragraph (I) of this rule, "escrow account" and "transferee mortgage servicer" have the same meanings as in rule 1301:8-7-35 of the Administrative Code.

Last updated September 19, 2025 at 7:25 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-38

(A) A mortgage servicer will comply with this rule for any written notice from the borrower that asserts an error and that includes the name of the borrower, information that enables the mortgage servicer to identify the borrower's residential mortgage loan account, and the error the borrower believes has occurred. A notice on a payment coupon or other payment form supplied by the mortgage servicer need not be treated by the mortgage servicer as a notice of error. A qualified written request that asserts an error relating to the servicing of a residential mortgage loan is a notice of error for purposes of this rule, and a mortgage servicer will comply with all requirements applicable to a notice of error with respect to such qualified written request.

(B) As used in this rule, "error" means any of the following:

(1) Failure to accept a payment that conforms to the mortgage servicer's written requirements for the borrower to follow in making payments;

(2) Failure to apply an accepted payment to principal, interest, escrow, or other charges under the terms of the residential mortgage loan and applicable law;

(3) Failure to credit a payment to a borrower's mortgage loan account as of the date of receipt in violation of paragraph (Q) of rule 1301:8-7-16 of the Administrative Code;

(4) Failure to pay taxes, insurance premiums, or other charges, including charges that the borrower and mortgage servicer have voluntarily agreed that the mortgage servicer should collect and pay, in a timely manner as required by paragraph (A) of rule 1301:8-7-37 of the Administrative Code, or to refund an escrow account balance as required by paragraph (B) of rule 1301:8-7-37 of the Administrative Code;

(5) Imposition of a fee or charge that the mortgage servicer lacks a reasonable basis to impose upon the borrower;

(6) Failure to provide an accurate payoff balance amount not more than seven business days following a borrower's request, or, if unable to do so within seven business days because a residential mortgage loan is in bankruptcy or foreclosure, because the residential mortgage loan is a reverse mortgage, or because of natural disasters or other similar circumstances, then within a reasonable time;

(7) Failure to transfer accurately and timely information relating to the servicing of a borrower's residential mortgage loan account to a transferee mortgage servicer;

(8) Any other error relating to the servicing of a borrower's residential mortgage loan.

(C) A mortgage servicer may, by written notice provided to a borrower, establish an address that a borrower must use to submit a notice of error in accordance with the procedures in this rule. The notice will include a statement that the borrower must use the established address to assert an error. If a mortgage servicer designates a specific address for receiving notices of error, the mortgage servicer will designate the same address for receiving information requests pursuant to paragraph (B) of rule 1301:8-7-39 of the Administrative Code. A mortgage servicer will provide a written notice to a borrower before any change in the address used for receiving a notice of error. A mortgage servicer that designates an address for receipt of notices of error will post the designated address on any web site maintained by the mortgage servicer if the web site lists any contact address for the mortgage servicer.

(D) Within five business days of a mortgage servicer receiving a notice of error from a borrower, the mortgage servicer will provide to the borrower a written response acknowledging receipt of the notice of error.

(E)

(1)

(a) Except as provided in paragraphs (F) and (G) of this rule, a mortgage servicer will respond to a notice of error by doing either of the following:

(i) Correcting the errors identified by the borrower and providing the borrower with a written notification of the correction, the effective date of the correction, and contact information, including a telephone number, for further assistance;

(ii) Conducting a reasonable investigation and providing the borrower with a written notification that includes a statement that the mortgage servicer has determined that no error occurred, a statement of the reason or reasons for this determination, a statement of the borrower's right to request documents relied upon by the mortgage servicer in reaching its determination, information regarding how the borrower can request such documents, and contact information, including a telephone number, for further assistance.

(b) If during a reasonable investigation of a notice of error, a mortgage servicer concludes that errors occurred other than, or in addition to, the error or errors alleged by the borrower, the mortgage servicer will correct all such additional errors and provide the borrower with a written notification that describes the errors the mortgage servicer identified, the action taken to correct the errors, the effective date of the correction, and contact information, including a telephone number, for further assistance.

(2) A mortgage servicer may request supporting documentation from a borrower in connection with the investigation of an asserted error, but will not do either of the following:

(a) Require a borrower to provide such information as a condition of investigating an asserted error;

(b) Determine that no error occurred because the borrower failed to provide any requested information without conducting a reasonable investigation pursuant to paragraph (E)(1)(a)(ii) of this rule.

(3)

(a) A mortgage servicer will comply with paragraph (E)(1) of this rule within the following time periods:

(i) Not later than seven business days after the mortgage servicer receives the notice of error for errors asserted under paragraph (B)(6) of this rule;

(ii) For all other asserted errors, not later than thirty business days after the mortgage servicer receives the applicable notice of error.

(iii) For all other asserted errors, not later than thirty business days after the mortgage servicer receives the applicable notice of error.

(b) For asserted errors governed by the time limit set forth in paragraph (E)(3)(a)(ii) of this rule, a mortgage servicer may extend the time period for responding by an additional fifteen business days if, before the end of the thirty-day period, the mortgage servicer notifies the borrower of the extension and the reasons for the extension in writing. A mortgage servicer will not extend the time period for responding to errors asserted under paragraph (B)(6) of this rule.

(4) A mortgage servicer will provide to the borrower, at no charge, copies of documents and information relied upon by the mortgage servicer in making its determination that no error occurred within fifteen business days of receiving the borrower's request for such documents. A mortgage servicer is not required to provide documents relied upon that constitute confidential, proprietary, or privileged information. If a mortgage servicer withholds documents relied upon because it has determined that such documents constitute confidential, proprietary, or privileged information, the mortgage servicer will notify the borrower of its determination in writing within fifteen business days of receipt of the borrower's request for such documents.

(5) In its response to a request for documentation under paragraph (E)(4) of this rule, a mortgage servicer may omit location and contact information and personal financial information, other than information about the terms, status, and payment history of the residential mortgage loan, if either of the following applies:

(a) The information pertains to a potential or confirmed successor in interest who is not the requester;

(b) The requester is a confirmed successor in interest and the information pertains to any borrower who is not the requester.

(F) A mortgage servicer is not required to comply with paragraphs (D) and (E) of this rule if the mortgage servicer corrects all errors asserted by the borrower and notifies the borrower of that correction in writing within five business days of receiving the notice of error.

(G)

(1) A mortgage servicer is not required to comply with paragraph (D), (E), or (I) of this rule if the mortgage servicer reasonably determines that any of the following apply:

(a) The asserted error is substantially the same as an error previously asserted by the borrower for which the mortgage servicer has previously complied with its obligation to respond pursuant to paragraphs (D) and (E) of this rule, unless the borrower provides new and material information to support the asserted error. As used in this paragraph, "new and material information" means information that was not reviewed by the mortgage servicer in connection with investigating a prior notice of the same error and is reasonably likely to change the mortgage servicer's prior determination about the error.

(b) The notice of error is overbroad. A notice of error is overbroad if the mortgage servicer cannot reasonably determine from the notice of error the specific error that the borrower asserts has occurred on a borrower's account. To the extent a mortgage servicer can reasonably identify a valid assertion of an error in a notice of error that is otherwise overbroad, the mortgage servicer will comply with paragraphs (D), (E) and (I) of this rule with respect to that asserted error.

(i) Servicing for the residential mortgage loan that is the subject of the asserted error was transferred from the mortgage servicer receiving the notice of error to a transferee mortgage servicer;

(ii) The residential mortgage loan is discharged.

(2) If a mortgage servicer determines that, pursuant to this paragraph (G), the mortgage servicer is not required to comply with paragraphs (D), (E), and (I) of this rule, the mortgage servicer will notify the borrower of its determination in writing not later than five business days after making such determination. The notice to the borrower will set forth the basis under paragraph (G)(1) of this rule upon which the mortgage servicer has made such determination.

(H) A mortgage servicer will not charge a fee, or require a borrower to make any payment that may be owed on a borrower's account, as a condition of responding to a notice of error.

(I)

(1) After receipt of a notice of error, a mortgage servicer will not, for sixty days, furnish adverse information to any consumer reporting agency regarding any payment that is the subject of the notice of error.

(2) Nothing in this rule limits or restricts a mortgage lender or mortgage servicer from pursuing any remedy it has under applicable law, including initiating foreclosure or proceeding with a foreclosure sale.

Last updated September 19, 2025 at 7:27 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-35

As used in rules 1301:8-7-35 to 1301:8-7-40 of the Administrative Code:

(A) "Confirmed successor in interest" means a successor in interest once a mortgage servicer has confirmed the successor in interest's identity and ownership interest in a property that secures a residential mortgage loan.

(B) "Dealer" means the following:

(1) In the case of property improvement loans, a seller, contractor, or supplier of goods or services;

(2) In the case of a residential mortgage loan for manufactured housing, one who engages in the business of the sale at retail of manufactured housing. As used in this paragraph, "manufactured housing" and "sale at retail" have the same meanings as in section 4781.01 of the Revised Code.

(C) "Dealer loan" means any arrangement in which a dealer assists the borrower in obtaining a residential mortgage loan from the funding mortgage lender and then assigns the dealer's legal interests to the funding mortgage lender and receives the net proceeds of the loan.

(D) "Escrow account" means any account that a mortgage servicer establishes or controls on behalf of a borrower to pay taxes, insurance premiums including premiums for flood insurance, or other charges with respect to a residential mortgage loan, including charges that the borrower and mortgage servicer have voluntarily agreed that the mortgage servicer should collect and pay. "Escrow account" includes any account established for this purpose, including a trust account, reserve account, impound account, or other similar account. "Escrow account" includes any arrangement in which a mortgage servicer adds a portion of the borrower's payments to principal and subsequently deducts from principal the disbursements for escrow account items. "Escrow account" does not include any account that is under the borrower's total control.

(E) "Federal lending law," as used in section 1322.50 of the Revised Code, includes 12 C.F.R. Part 1024 Subpart C and the following provisions of 12 C.F.R. Part 1026 as they apply to a mortgage servicer, as the regulations are in effect on June 1, 2025:

(1) 12 C.F.R. 1026.29(f)(5);

(2) 12 C.F.R. 1026.20;

(3) 12 C.F.R. 1026.25(c)(1)(ii)(B);

(4) 12 C.F.R. 1026.34(a)(9);

(5) 12 C.F.R. 1026.35(b)(3);

(6) 12 C.F.R. 1026.39;

(7) 12 C.F.R. 1026.41.

(F) "Qualified written request" means a written correspondence from a borrower to a mortgage servicer that includes, or otherwise enables the mortgage servicer to identify, the name and account of the borrower, and does one of the following:

(1) A transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;

(2) A transfer to a relative resulting from the death of a borrower;

(3) A transfer by which the spouse or children of the borrower become an owner of the property;

(4) A transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;

(5) A transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property.

(G) "Residential mortgage loan" does not include an open-end line of credit.

(H) "Table funding" means a settlement at which a residential mortgage loan is funded by a contemporaneous advance of residential mortgage loan funds and an assignment of the residential mortgage loan to the person advancing the funds.

(I) "Transferee mortgage servicer" means a mortgage servicer that obtains or will obtain the right to perform servicing pursuant to an agreement or understanding.

(J) "Transferor mortgage servicer" means a servicer, including a table-funding mortgage broker or dealer on a first-lien dealer loan, that transfers or will transfer the right to perform servicing pursuant to an agreement or understanding.

Last updated September 19, 2025 at 7:26 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-07 Advertising.

(A) Every advertisement placed, or caused to be placed, by a registrant or licensee shall, in manner or form that is reasonably understandable to the average borrower:

(1) State the name of the registrant as printed on its certificate of registration. If a registrant has been approved by the superintendent to conduct business using a trade name or fictitious name, the registrant may use its name, trade name, or fictitious name, or any combination of them, as they appear on its certificate of registration;

(2) State the registrant's certificate of registration number and NMLS unique identifier;

(3) State the full name or other names of the licensee as listed on the NMLS consumer access website, the licensee's license number, and NMLS unique identifier whenever a licensee's name is placed in an advertisement; and

(4) State the registrant's office address as listed on the registrant's certificate of registration.

(B) For purposes of paragraph (A)(2) of this rule, a registrant may opt to state only its NMLS unique identifier in lieu of stating both its certificate of registration number and NMLS unique identifier.

(C) For purposes of paragraph (A)(3) of this rule, a licensee may opt to state only the licensee's NMLS unique identifier in lieu of stating both the licensee's license number and NMLS unique identifier.

(D) It is a violation for a registrant to fail to update its website within thirty calendar days after any information becomes outdated or expired.

(E) It is a violation for a registrant or licensee to place or cause to be placed any advertisement that contains any material misrepresentation regarding any term of a residential mortgage loan, including:

(1) Guaranteeing or implying that residential mortgage loans will be approved or closed in an unreasonably short period of time given market conditions at the time of the advertisement.

(2) Indicating that special terms, reduced rates, guaranteed rates, particular rates or any other special feature of residential mortgage loans are available unless the advertisement clearly states any limitations that apply.

(3) Using unqualified superlatives including "lowest rates," "lowest costs," "lowest payment plan," or "cheapest loans," or that makes offers that cannot be reasonably fulfilled or substantiated.

(4) Using the words "new" or "reduced" or similar words in connection with costs for more than ninety days after the costs become effective.

(5) Indicating that residential mortgage loans are available to borrowers with "previous bankruptcy," "no credit," "bad credit," or the like unless the advertisement clearly explains any limitations that apply, or states that "certain limitations apply, call for details." In any written advertisement, the actual limitations or the warning that "certain limitations apply, call for details" shall be clearly legible.

(6) Using an official government design, format, symbol, logo, or seal unless its use is required or allowed by the governmental entity.

(7) Using the name of a person or entity that confuses or misleads a borrower as to the true identity of the registrant placing or sending the advertisement regardless of any statement elsewhere in the advertisement identifying the true identity of the registrant or licensee.

(F) A violation of 12 C.F.R. 1014.2, 1014.3, or 1014.4, as in effect on May 1, 2024, shall constitute a violation of this rule.

(G) The provisions in this rule apply to licensees employed by or associated with qualified exempt entities.

(H) Written or oral statements that are purely informational and not designed to effect or create interest in purchasing the services of a registrant or licensee are not subject to this rule.

Last updated September 3, 2024 at 8:46 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-12 Operations manager.

(A) A registrant shall grant sufficient authority to its operations manager to carry out the duty of ensuring that the daily operations and management of the registrant's business complies with all state and federal laws, rules, and regulations applicable to the transaction of mortgage broker business.

(B) Only one individual may be designated as operations manager regardless of the number of registered office locations or employees.

(C) No individual shall act as an operations manager without being approved by the superintendent. An individual may be designated to act as an operations manager subject to the superintendent's approval. The registrant shall submit a completed "Application to change Mortgage Broker Operations Manager" form to the superintendent within ten business days of the designation.

(D) To qualify for approval as an operations manager, the superintendent shall find that the individual possesses at least three years of experience in the mortgage and lending field that complies with paragraph (F) of this rule.

(E) For purposes of demonstrating compliance with paragraph (D) of this rule and division (B) of section 1322.12 of the Revised Code, a registrant shall, along with the application referenced in paragraph (C) of this rule, submit satisfactory proof of experience for the individual designated to act as operations manager. Such proof may include the following:

(1) A current resume;

(2) Copies of IRS form W-2s for the tax years covering the experience requirement; and

(3) A completed and signed release and authorization which enables the superintendent to verify the W-2s.

The experience requirement in division (B) of section 1322.12 of the Revised Code may be verified by the division directly with the employer and tax authorities. The superintendent may request any additional documents or information that may be necessary to verify the experience requirement.

(F) For purposes of paragraph (D) of this rule and division (B) of section 1322.12 of the Revised Code, the three years, or thirty-six months, of experience shall have been gained lawfully within the six years preceding request for approval, but does not need to have been gained during consecutive months. The division counts each month toward the three year requirement. A fractional month of experience, at least twenty days long, qualifies as a full month. The experience may have been gained by directly soliciting, processing, placing and negotiating residential mortgage loans for or as a mortgage broker, or with a financial institution, mortgage lending institution, or other lending institution. The individual should have had direct contact and interaction with borrowers during all phases of making or brokering residential mortgage loans, and not compartmentalized experience in one phase of the process. Experience in all phases of processing, underwriting and closing or operations management is acceptable. Other experience related specifically to the business of residential mortgage lending may qualify, but will not include the following types of employment:

(1) Real estate salesperson or broker;

(2) Real estate appraiser;

(3) Real estate developer or contractor;

(4) Real estate owner or investor;

(5) Commercial or consumer lender;

(6) Title or escrow agent, owner or company;

(7) Certified public accountant, public accountant, accountant, controller, comptroller, or fiscal officer;

(8) Certified financial planner or similar designation;

(9) Professor, teacher, or presenter of classes, courses, or seminars regarding mortgage lending;

(10) Board member or senior officer of a financial or mortgage lending institution;

(11) Shareholder, partner, or member of a financial or mortgage lending institution;

(12) Insurance salesperson or broker;

(13) Securities salesperson, broker, or principal;

(14) Department store credit department, including retail and wholesale stores;

(15) School, college, or university credit or student loan department;

(16) Automobile, motorcycle, boat, or recreational vehicle dealer credit department.

(17) Mobile home or manufactured housing lending or credit department, unless acting as a licensed loan originator or mortgage loan originator.

(G) Any individual who wishes to present experience or education which is not in accord with paragraphs (E) and (F) of this rule may petition the superintendent to consider alternative education or experience which the individual reasonably believes would satisfy the experience requirement. Such petition should include documentation of the experience at issue and a detailed explanation of its relationship to residential mortgage lending activities. The determination of whether to accept alternative education or experience is within the sole discretion of the superintendent.

(H) An individual designated as operations manager shall have passed the written test administered to mortgage loan originators. No separate written test for operations managers is required.

Last updated September 3, 2024 at 8:46 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-13 Division examinations and investigations.

(A) The superintendent or authorized division personnel may conduct an examination in accordance with division (A) of section 1322.34 of the Revised Code or an investigation in accordance with division (B) of section 1322.50 of the Revised Code during normal business hours and as often as the superintendent determines appropriate. Examinations and investigations may be scheduled or unscheduled, announced or unannounced.

(B) The superintendent or authorized division personnel shall be given free access to all offices, places of business, computers, books, papers, and records, whether electronic or hardcopy, in the possession, control or ownership of any registrant, qualified exempt entity, and their employees and licensees for the purpose of conducting an examination or investigation in accordance with Chapter 1322. of the Revised Code and this chapter.

(C) As part or in furtherance of any examination or investigation conducted in accordance with Chapter 1322. of the Revised Code or this rule chapter, if the superintendent or authorized division personnel requests a written response, or the submission of books, papers, and records, whether electronic or hardcopy, or any other information, the applicant, registrant, qualified exempt entity, licensee, or person shall deliver a written response and any requested information within the time period specified in the request. If no time period is specified, the written response and any required submissions shall be delivered to the superintendent not later than thirty days after the date of such request. The determination of whether any response is satisfactory is within the sole discretion of the superintendent.

Last updated September 3, 2024 at 8:47 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-14 Surety bonds.

(A) With respect to a bond obtained by a registrant, or by a qualified exempt entity or loan processing or underwriting company in the same manner as a registrant, the following shall apply:

(1) The surety bond required by section 1322.32 of the Revised Code shall be on a form acceptable to the superintendent.

(2) The surety bond must be issued in the name of the registrant, qualified exempt entity, or loan processing or underwriting company and list the main office of the registrant, qualified exempt entity, or loan processing or underwriting company. If a trade or fictitious name is used, the trade or fictitious name shall be included on the bond.

(3) One surety bond in the appropriate aggregate amount shall be required to cover a registrant, qualified exempt entity, or loan processing or underwriting company regardless of the number of registered or exempted office locations. An endorsement rider may be used to increase or decrease the amount of the bond whenever an office location is established or closed.

(4) Whenever the penal sum of the surety bond is reduced below the required amount, the registrant, qualified exempt entity, or loan processing or underwriting company and licensees employed by or associated with them shall immediately cease originating residential mortgage loans until the bond has been restored to the full required value. Failure to restore the bond to the full required value within thirty days of the first date the penal sum of the bond was reduced is grounds for a fine, suspension, refusal to renew or revocation of the registrant's certificate of registration or a qualified exempt entity's or loan processing or underwriting company's approved letter of exemption.

(B) No licensee shall perform the clerical or support duties of a loan processor or underwriter in this state as an employee of a loan processing or underwriting company or as an independent contractor, unless either the licensee, or the loan processing or underwriting company on the licensee's behalf, has obtained and maintains in effect at all times a corporate surety bond issued by a bonding company or insurance company authorized to do business in this state.

(C) With respect to an individual bond obtained by a licensee employed by or associated with a qualified exempt entity, by a licensee employed by a loan processing or underwriting company on a licensee's behalf, or by a licensee acting as an independent contractor performing clerical or support duties of a loan processor or underwriter , the following shall apply:

(1) The surety bond required by section 1322.32 of the Revised Code shall be on a form acceptable to the superintendent;

(2) The surety bond must be issued in the name of the licensee and state the home address of the licensee as listed in the licensee's NMLS account.

(D) The surety bond required by division (A)(1) of section 1322.32 of the Revised Code shall be in the penal sum of one-half per cent of the aggregate loan amount of all residential mortgage loans originated within and outside this state in the immediately preceding calendar year, but not exceeding one hundred fifty thousand dollars.

Last updated September 3, 2024 at 8:47 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-15 Disclosures.

The affiliated business disclosure referenced in division (A)(1) of section 1322.42 of the Revised Code shall comply with 12 C.F.R. 1024.15(b), as in effect May 1, 2024, and be made in conformity with the timing specified in 12 C.F.R. 1024.15(b)(1), as in effect May 1, 2024.

Last updated September 3, 2024 at 8:47 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-16 Prohibited practices.

Conduct that constitutes improper, fraudulent, or dishonest dealings under division (C) of section 1322.40 of the Revised Code includes the following:

(A) Failing to return all original documents provided to the registrant or licensee by the borrower;

(B) Permitting an unlicensed individual to originate residential mortgage loans;

(C) Sharing or splitting any commission, discount, fee, or other compensation for originating a residential mortgage loan with a person who is not licensed or registered under Chapter 1322. of the Revised Code but who should be licensed or registered;

(D) Knowingly aiding, abetting, or conspiring with a person to circumvent the requirements of Chapter 1322. of the Revised Code or this rule chapter;

(E) Recommending or encouraging default or delinquency, or continuation of an existing default or delinquency, by a borrower on any existing indebtedness prior to closing a residential mortgage loan which refinances all or a portion of such existing indebtedness;

(F) Promising to refinance a residential mortgage loan in the future at a lower interest rate or with more favorable terms;

(G) Materially underestimating closing costs;

(H) Depositing any residential mortgage loan disbursement check that is not made payable to the registrant, qualified exempt entity, or licensee;

(I) Abandoning or improperly disposing of loan files containing financial and mortgage information of borrowers;

(J) Refusing or failing to fund a consummated loan, other than when an borrower rescinds the loan in accordance with 12 C.F.R. 1026.15 or 1026.23 (relating to the right of rescission), as in effect on May 1, 2024;

(K) Evading the limits on points and fees for qualified mortgages set forth in 12 C.F.R. 1026.43(e)(3), as in effect on May 1, 2024, by conducting business in conjunction with a person registered or who should be registered pursuant to Chapter 4712. of the Revised Code. Assisting a borrower with improving his or her credit record, history, or rating as well as removing adverse credit information are considered part of the normal activities of a registrant or qualified exempt entity;

(L)

(1) A mortgage servicer assessing on a borrower a premium charge or fee related to force-placed insurance unless both of the following apply:

(a) The mortgage servicer has a reasonable basis to believe that the borrower has failed to comply with the residential mortgage loan contract's requirement to maintain hazard insurance;

(b) The mortgage servicer delivers or mails to the borrower a written notice at least forty-five days before assessing such charge or fee.

(2) As used in this paragraph, "force-placed insurance" means hazard insurance obtained by a mortgage servicer on behalf of the owner or assignee of a mortgage loan that insures the property securing such loan, but does not include any of the following:

(a) Hazard insurance required by the federal Flood Disaster Protection Act of 1973, 87 Stat. 975, 42 U.S.C. 4002 et seq., as in effect on June 1, 2025;

(b) Hazard insurance obtained by a borrower but renewed by the borrower's mortgage servicer as described in 12 C.F.R. 1024.17(k)(1), (2), or (5), as in effect on June 1, 2025;

(c) Hazard insurance obtained by a borrower but renewed by the borrower's mortgage servicer at its discretion, if the borrower agrees.

(3) As used in paragraph (L) of this rule, "hazard insurance" means insurance on the property securing a residential mortgage loan that protects the property against loss caused by fire, wind, flood, earthquake, theft, falling objects, freezing, and other similar hazards for which the owner or assignee of such residential mortgage loan requires insurance.

(M) A mortgage servicer directly or indirectly employing any scheme, device, or artifice to defraud or mislead a borrower or mortgage lender or to defraud any person;

(N) A mortgage servicer misrepresenting or omitting any material information in connection with the servicing of a residential mortgage loan, including misrepresenting the amount, nature, or terms of any fee or payment due or claimed to be due on a residential mortgage loan, the terms and conditions of the servicing agreement, or the borrower's obligations under the residential mortgage loan;

(O) A mortgage servicer failing to apply payments in accordance with a servicing agreement or the terms of a note;

(P) A mortgage servicer making payments in a manner that causes a policy of insurance to be canceled or causes property taxes or similar payments to become delinquent;

(Q)

(1) A mortgage servicer failing to credit a periodic payment to the borrower's account as of the date of receipt, except when a delay in crediting does not result in any charge to the borrower or in the reporting of negative information to a consumer reporting agency, or except as provided in paragraph (Q)(3) of this rule. For purposes of this rule, a periodic payment is an amount sufficient to cover principal, interest, and escrow for a given billing cycle. A payment qualifies as a periodic payment even if it does not include amounts required to cover late fees, other fees, or non-escrow payments a mortgage servicer has advanced on a borrower's behalf.

(2) In the case of a mortgage servicer that retains a partial payment in a suspense or unapplied funds account, upon accumulation of sufficient funds to cover a periodic payment in any suspense or unapplied funds account, failing to treat such funds as a periodic payment received in accordance with paragraph (S)(1) of this rule;

(3) If a mortgage servicer specifies in writing requirements for the borrower to follow in making payments, but accepts a payment that does not conform to the requirements, failing to credit the payment as of five days after receipt.

(4) As used in paragraph (Q) of this rule, "partial payment" means a payment that is less than a periodic payment.

(R) A mortgage servicer requiring any amount of money to be remitted by means which are more costly to the borrower than a bank or certified check or attorney's check from an attorney's account to be paid by the borrower;

(S) A mortgage servicer failing to satisfy a claim, related to activity conducted pursuant to Chapter 1322. of the Revised Code, that has been reduced to a judgment;

(T) A mortgage servicer commingling the money or property of a borrower or mortgage lender with the money or property of the mortgage servicer, or converting the money or property of another person to the mortgage servicer's own use;

(U) A mortgage servicer charging a fee for any of the following:

(1) Handling a borrower dispute;

(2) Facilitating routine borrower collection;

(3) Arranging a repayment or forbearance plan;

(4) Sending a borrower a notice of nonpayment;

(5) Updating records to reinstate a residential mortgage loan.

(V) A mortgage servicer imposing a late fee or delinquency charge for a payment if both of the following apply:

(1) Such a fee or charge is attributable solely to failure of the borrower to pay a late fee or delinquency charge on an earlier payment;

(2) The payment is otherwise a periodic payment received on the due date, or within any applicable courtesy period.

(W) Any other conduct the superintendent determines constitutes improper, fraudulent, or dishonest dealings.

Last updated September 19, 2025 at 7:26 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-18 Continuing education.

(A) In accordance with division (C)(2) of section 1322.28 of the Revised Code, a licensee or applicant to become a licensee shall be permitted to receive credit for a continuing education course in a year other than the year in which the course is taken in order to make up a deficiency in continuing education.

(B) A licensee or applicant to become a licensee shall make up any continuing education deficiency that occurred on or after January 1, 2010, regardless of the number of years that have passed since the violation.

(C) Paragraph (D) of rule 1301-1-04 of the Administrative Code, which permits an extension of the current continuing education reporting requirement for veterans meeting all of the criteria set forth in that rule, applies to the continuing education requirements in section 1322.28 of the Revised Code.

Last updated September 3, 2024 at 8:47 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301-1-04

(A) Definitions.

(1) "Veteran" means for the purpose of this rule anyone who is serving or has served under honorable conditions in any component of the armed forces of the United States including the national guard and reserve.

(2) "Licensure or license" means for the purpose of this rule a license or certification issued in accordance with Chapters 1321., 1322., 4301., 4303., 4712., 4727., 4728., and 4781. of the Revised Code or sections 169.16, 169.17, 1315.21 to 1315.30, 1332.21 to 1332.34, 1707.15, 1707.151, 1707.16, 1707.161, 1707.163, 1707.165, 3703.01, 3703.21, 3737.22, 3737.65, 3737.83, 3737.88, 3737.881, 3743.50, 3743.51, 3743.52, 3743.56, 4104.07, 4104.101, 4104.19, and 4105.02 of the Revised Code.

(3) "Department" means the Ohio department of commerce and its divisions and superintendents.

(B) Eligibility for licensure.

(1) In accordance with section 5903.03 of the Revised Code, there are no military programs of training, military primary specialties, and lengths of service that are substantially equivalent to or exceed the educational and experience requirements for licensure.

(2) A veteran's relevant military experience, education, and training will be considered when determining whether the veteran has met all or part of the requirements for licensure. A veteran shall provide all relevant military documentation demonstrating his or her military experience, education, and training to assist the department in its determination.

(1) In accordance with section 5903.10 of the Revised Code, a veteran, whose license or certificate was not renewed due to his or her military service, shall be eligible for renewal of the expired license if the following conditions are met:

(a) The veteran presents the department with satisfactory evidence that, not more than six months prior to the date the evidence is submitted to the department, the veteran was honorably discharged or separated from the military under honorable conditions;

(b) The veteran is not disqualified because of a mental or physical disability which would preclude the veteran from meeting the license requirements; and

(2) In accordance with section 5903.10 of the Revised Code, a veteran's spouse whose license or certificae was not renewed due to the veteran's military service shall be eligible for renewal of the expired license if the following conditions are met:

(a) The veteran's spouse presents the department with satisfactory evidence that, not more than six months prior to the date the evidence is submitted to the department, the veteran was honorably discharged or separated from the military under honorable conditions and as a result of the veteran's military duty the veteran's spouse was absent from this state;

(b) The veteran's spouse is not disqualified because of a mental or physical disability wich would preclude the veteran's spouse from meeting the license requirements; and

(3) A veteran or veteran's spouse who meets the conditions in paragraph (C)(1) or (C)(2) of this rule shall not be assessed a penalty for submitting a late renewal application and shall not be required to take a re-examination unless all licensees for renewal are required to successfully complete an examination prior to being renewed.

(4) In the case of licenses issued pursuant to section 1707.15, 1707.151, 1707.16, 1707.161, 1707.163, or 1707.165 of the Revised Code, the provisions of this subsection do not relieve the veteran or veteran's spouse from meeting the licensing requirements under applicable federal law or rule, or rules of the "Financial Industry Regulatory Authority."

(D) Continuing education.

(1) A veteran may request an extension of the current continuing education reporting requirement if the following conditions are met:

(a) The veteran served on active duty inside or outside the United States for a period in excess of thirty-one days during the current or prior continuing education reporting period; and

(b) The veteran submitted an application and proper documentation certifying the active duty service and the length of the active duty service.

(2) Upon receiving the completed application and proper documentation, the department shall extend the current continuing education reporting period by an amount of time equal to the total number of months that the veteran spent on active duty during the current continuing education reporting period. Any portion of a month served shall be considered one full month.

(3) The department shall consider relevant education, training, or service completed by the veteran while on active duty in determining whether the veteran has fulfilled the continuing education requirement.

Last updated November 1, 2024 at 1:43 PM

History

Effective: November 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-20 Compensation.

(A) Compensation of any kind paid to a licensee employed by or associated with a registrant or qualified exempt entity shall be:

(1) Paid by check or electronic draft;

(2) Paid from the account of the registrant or qualified exempt entity, or account of a third party payroll administrator acting as the registrant's or qualified exempt entity's agent; and

(3) Paid or made payable to the licensee in the licensee's legal name.

(B) A registrant or qualified exempt entity may compensate a licensee or former licensee in accordance with paragraph (A) of this rule after the expiration, cancellation, surrender, or transfer of the individual's license only for those origination activities performed while the individual was sponsored by the registrant or qualified exempt entity via the NMLS, provided the registrant or qualified exempt entity shall document to the superintendent's satisfaction that such compensation was for origination activities occurring during such sponsorship.

(C) A registrant or qualified exempt entity shall not pay compensation of any kind to a loan processor or to any individual in a manner designed to circumvent the licensing requirement of division (B)(1) of section 1322.02 of the Revised Code.

(D) Registrants, qualified exempt entities, and licensees shall comply with the loan originator compensation regulations set forth in 12 C.F.R. part 1026, as in effect on May 1, 2024.

Last updated September 3, 2024 at 8:48 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-21 Character, general fitness, and financial responsibility.

(A) In determining whether a person has the character and general fitness to command the confidence of the public and warrant the belief that the business will be operated honestly and fairly in compliance with the purposes of Chapter 1322. of the Revised Code and the rules adopted thereunder, the superintendent may consider, among other things, whether the person or an owner, officer or director thereof, has:

(1) Been convicted of, or pled guilty or nolo contendere in any court of competent jurisdiction to any felony;

(2) Been convicted of, or pled guilty or nolo contendere in any court of competent jurisdiction to any misdemeanor within seven years of the date of application;

(3) Been found liable in any court of competent jurisdiction for acts or omissions relating to residential or commercial mortgage lending services, real estate services, or any other financial products or services;

(4) Been refused or denied a professional registration or license by any state or federal agency granted disciplinary or regulatory authority by state or federal law;

(5) Had a professional license or registration suspended or revoked by any state or federal agency granted disciplinary or regulatory authority by state or federal law, including being placed on the HUD limited denials of participation list pursuant to 2 C.F.R. part 2424, as in effect on January 12, 2014;

(6) Been issued a cease and desist order or had a fine imposed by any court of competent jurisdiction or by any state or federal agency granted disciplinary or regulatory authority by state or federal law for conduct relating to a professional license or registration;

(7) Violated any provision of Chapter 1321., 1322., 4712., 4727., or 4728. of the Revised Code or sections 1315.21. to 1315.30, 1345.031, or 1349.25 to section 1349.35 of the Revised Code or any rules promulgated thereto;

(8) Engaged in any conduct which would reflect negatively on the honesty or business repute of the person, including the failure to provide complete and accurate information concerning the person's past; or

(9) A pattern of disregard of the laws of this state, another state, or the United States.

(B) In determining whether a person has the financial responsibility to command the confidence of the public and warrant the belief that the business will be operated honestly and fairly in compliance with the purposes of Chapter 1322. of the Revised Code and the rules adopted thereunder, the superintendent may consider, among other things, whether the person, or an owner, officer or director thereof, has:

(1) Any current outstanding civil or criminal judgments for money, restitution, or damages of any kind;

(2) Any current outstanding tax liens or other government liens;

(3) A foreclosure filed within the past five years whether residential or commercial;

(4) A bankruptcy filed within the past five years;

(5) Any current accounts that are past due, in collection, or charged off, and which in the aggregate exceed five thousand dollars.

(C) In assessing financial responsibility pursuant to paragraph (B) of this rule, the superintendent may consider mitigating factors, including:

(1) Involuntary loss of job or income;

(2) Divorce;

(3) Involuntary medical expenses incurred by the person or the person's spouse or dependent;

(4) Certified copies of satisfactions of judgments, tax liens or other government liens;

(5) Certified copies of bankruptcy discharge orders, schedules, or dismissal documents;

(6) Written evidence of a repayment plan or agreement with creditors; or

(7) Any other information the superintendent believes reflects circumstances beyond the control of the person.

Last updated September 3, 2024 at 8:48 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-22 Trade names, fictitious names and change of names.

(A) A registrant or qualified exempt entity may, with the prior approval of the superintendent, use a trade name or fictitious name, provided:

(1) The trade name or fictitious name complies with division (A)(1) of section 1101.15 of the Revised Code; and

(2) The trade name is registered with or the fictitious name is reported to the Ohio secretary of state in accordance with Chapter 1329. of the Revised Code.

(B) The superintendent may refuse to issue a certificate of registration or letter of exemption to use a name, trade name or fictitious name if the superintendent believes that such name would create a substantial risk of misleading or confusing the public.

(C) In closing documents and in any disclosures made pursuant to Chapter 1322. of the Revised Code or this rule chapter, a registrant or qualified exempt entity shall use the same name, trade name, or fictitious name that it has used during all of its contacts with the borrower involved in the transaction.

(D) A registrant or qualified exempt entity may change its name, trade name, or fictitious name, provided:

(1) It complies with paragraphs (A) and (B) of this rule;

(2) It submits proof that the surety bond has been issued in the new name unless, in the case of a qualified exempt entity, the bond is obtained by individual mortgage loan originators; and

(3) It has given the superintendent prior notice in accordance with paragraph (C) of rule 1301:8-7-19 of the Administrative Code.

Last updated September 3, 2024 at 8:48 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-23 Mortgage broker appraisal misconduct.

(A) A violation of division (G) of section 1322.40 of the Revised Code may include the following:

(1) In the case of any refinance of a residential mortgage loan or non-purchase second residential mortgage loan, a person states on the appraisal order form or communicates, directly or indirectly, to any person licensed or certified under Chapter 4763. of the Revised Code either the loan amount or any other express or implied statement of the anticipated or desired appraisal value;

(2) In the case of any purchase money residential mortgage loan including any second residential mortgage loan connected to a sale transaction, a person states on the appraisal order form or communicates, directly or indirectly, to any person licensed or certified under Chapter 4763. of the Revised Code either the loan amount or any other express or implied statement of the anticipated or desired appraisal value. However, it is not a violation if the sales price of the property is disclosed or a copy of the signed purchase contract is provided to a person licensed or certified under Chapter 4763. of the Revised Code;

(B) If a registrant or licensee becomes aware that a borrower and seller have entered into a previous purchase contract for a property at a lower price within the previous thirty days, the registrant or licensee shall inform the person licensed or certified under Chapter 4763. of the Revised Code of the earlier contract and provide a copy of the contract which shall be appended to any appraisal the registrant or licensee provides to the lender or anticipated purchaser of the note.

(1) Requesting in writing or by electronic transmittal that the person licensed or certified under Chapter 4763. of the Revised Code who prepared the appraisal report consider additional appropriate information when acting upon a good faith belief that the appraisal contains an error or is professionally deficient. Any appraisal review or revision request cannot be based on the grounds that the valuation is not high enough to qualify the borrower for the proposed residential mortgage loan; or

(2) Communicating information to a person licensed or certified under Chapter 4763. of the Revised Code that is required by state or federal law, or by any applicable appraisal standards including, without limitation, a copy of a previously completed appraisal report provided to a person licensed or certified under Chapter 4763. of the Revised Code for the purpose of an appraisal review.

Last updated September 3, 2024 at 8:48 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-26 Challenge to information maintained in the NMLS.

(A) For purposes of division (H) of section 1322.36 of the Revised Code, an individual who has applied for, holds, or held a mortgage loan originator license may challenge information entered into the NMLS by the superintendent. Such challenge shall be in writing and must set forth the specific information being challenged and include supporting evidence. The grounds for a challenge shall be limited to the accuracy of the information entered into the NMLS by the superintendent, controlled by the superintendent, and pertaining to the individual's own license record. An individual shall not challenge substantive allegations, findings of fact or conclusions of law in prior orders issued by the superintendent or other disciplinary actions. Challenges are limited to clerical errors.

(B) The superintendent shall review the information submitted by the individual. If the superintendent determines that the information entered into the NMLS is incorrect, the superintendent shall enter the correct information and notify the individual in writing that the information has been corrected. If the superintendent determines that the information entered into the NMLS is correct, the superintendent shall notify the individual in writing of the reasons for this determination and that the information will not be changed.

(C) The determination of the superintendent is final and not subject to further challenge pursuant to this rule or appeal pursuant to Chapter 119. of the Revised Code.

Last updated September 3, 2024 at 8:48 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-31 Nonprofit organizations exemption.

(A) In addition to the criteria set forth in divisions (F)(1) to (F)(6) of section 1322.01 of the Revised Code, a bona fide nonprofit organization is also required to:

(1) Be registered and maintain current registration status with the charitable law section of the Ohio attorney general's office; or

(2) Possess a valid letter of exemption from the charitable law section of the Ohio attorney general's office.

(B) An organization seeking a letter of exemption as a bona fide nonprofit organization pursuant to division (F)(7) of section 1322.014 of the Revised Code has the burden of establishing entitlement to the letter of exemption.

(C) An organization seeking a letter of exemption shall be responsible for paying any applicable fees and submitting an application for a letter of exemption via the NMLS for each office where residential mortgage loans are originated for Ohio residents, Ohio property, or from a location physically in Ohio regardless of the location of the borrowers or property.

(D) The application shall include books, records, and any additional information the superintendent deems necessary to substantiate that the applicant meets the criteria in division (G)(2)(i) of section 1322.01 of the Revised Code and paragraph (A) of this rule. The applicant shall submit documentation that it has complied with the requirements of 12 C.F.R. 1026.36(f)(3), as in effect on May 1, 2024, for all employees acting as a mortgage loan originator for Ohio residents, Ohio property, or from a location physically in Ohio regardless of the location of the borrowers or property. If the superintendent determines that the nonprofit organization has met the aforementioned criteria and requirements, the superintendent shall issue a letter of exemption to the nonprofit organization which shall expire on the thirty-first day of December and may be renewed on or before that date by submitting a renewal application via the NMLS and providing all of the documentation required by this paragraph.

(E) The nonprofit organization shall keep and maintain records of all residential mortgage loan transactions in the same manner as is required of registrants.

(F) In accordance with rule 1301:8-7-13 of the Administrative Code, the superintendent may examine the books and records of the bona fide nonprofit organization periodically to determine if it continues to meet all of the criteria in division (F) of section 1322.01 of the Revised Code.

(G) An employee of a nonprofit organization that holds a valid letter of exemption is exempt from having to obtain a mortgage loan originator license only with respect to his or her work duties to the nonprofit organization and only with respect to residential mortgage loans with terms that are favorable to the borrower.

Last updated September 3, 2024 at 8:49 AM

History

Effective: September 1, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-40

The revocation, suspension, or failure to obtain and maintain a license does not impair or affect a mortgage servicer's obligations under a preexisting lawful contract with a mortgage lender or borrower.

Last updated September 19, 2025 at 7:27 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-36 Mortgage servicing transfers.

(A) During the sixty-day period beginning on the effective date of transfer of the servicing of any residential mortgage loan, if the transferor mortgage servicer, rather than the transferee mortgage servicer that should properly receive payment on the loan, receives payment on or before the applicable due date, including any grace period allowed under the mortgage loan instruments, a payment will not be treated as late for any purpose.

(B) Beginning on the effective date of transfer of the servicing of any mortgage loan, with respect to payments received incorrectly by the transferor mortgage servicer, rather than the transferee mortgage servicer that should properly receive the payment on the loan, the transferor mortgage servicer will promptly do either of the following:

(1) Transfer the payment to the transferee mortgage servicer for application to a borrower's residential mortgage loan account;

(2) Return the payment to the person that made the payment and notify such person of the proper recipient of the payment.

Last updated September 19, 2025 at 7:26 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-37 Timely escrow payments and treatment of escrow account balances.

(A) If the terms of a residential mortgage loan require the borrower to make payments to the mortgage servicer of the residential mortgage loan for deposit into an escrow account to pay taxes, insurance premiums, and other charges for the mortgaged property, the mortgage servicer will make payments from the escrow account in a timely manner, that is, on or before the deadline to avoid a penalty, so long as the borrower's payment is not more than thirty days overdue.

(B) Except as provided in paragraph (C) of this rule, within twenty business days of a borrower's payment of a residential mortgage loan in full, a mortgage servicer will return to the borrower any amounts remaining in an escrow account that is within the mortgage servicer's control.

(C) If the borrower agrees, a mortgage servicer may credit any amounts remaining in an escrow account that is within the mortgage servicer's control to an escrow account for a new residential mortgage loan as of the date of the settlement of the new residential mortgage loan if the new residential mortgage loan is provided to the borrower by a mortgage lender that meets any of the following criteria:

(1) The mortgage lender was also the lender to whom the prior residential mortgage loan was initially payable;

(2) The mortgage lender is the owner or assignee of the prior residential mortgage loan;

(3) The mortgage lender uses the same mortgage servicer that serviced the prior residential mortgage loan to service the new residential mortgage loan.

Last updated September 19, 2025 at 7:27 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-7-39

(A) A mortgage servicer will comply with this rule for any written request for information from a borrower that includes the name of the borrower, information that enables the mortgage servicer to identify the borrower's residential mortgage loan account, and states the information the borrower is requesting with respect to the borrower's residential mortgage loan. A request on a payment coupon or other payment form supplied by the mortgage servicer need not be treated by the mortgage servicer as a request for information. A request for a payoff balance need not be treated by the mortgage servicer as a request for information. A qualified written request that requests information relating to the servicing of the mortgage loan is a request for information for purposes of this rule, and a mortgage servicer will comply with all requirements applicable to a request for information with respect to such qualified written request.

(B) A mortgage servicer may, by written notice provided to a borrower, establish an address that a borrower must use to request information in accordance with the procedures in this section. The notice will include a statement that the borrower must use the established address to request information. If a mortgage servicer designates a specific address for receiving information requests, a mortgage servicer will designate the same address for receiving notices of error pursuant to paragraph (C) of rule 1301:8-7-38 of the Administrative Code. A mortgage servicer will provide a written notice to a borrower before any change in the address used for receiving an information request. A mortgage servicer that designates an address for receipt of information requests will post the designated address on any web site maintained by the mortgage servicer if the web site lists any contact address for the mortgage servicer.

(C) Within five business days of a mortgage servicer receiving an information request from a borrower, the mortgage servicer will provide to the borrower a written response acknowledging receipt of the information request.

(D)

(1) Except as provided in paragraphs (E) and (F) of this rule, a mortgage servicer will respond to an information request by doing one of the following:

(a) Providing the borrower with the requested information and contact information, including a telephone number, for further assistance in writing;

(b) Conducting a reasonable search for the requested information and providing the borrower with a written notification that states that the mortgage servicer has determined that the requested information is not available to the mortgage servicer, provides the basis for the mortgage servicer's determination, and provides contact information, including a telephone number, for further assistance.

(2)

(a) A mortgage servicer will comply with paragraph (D)(1) of this rule within the following time periods:

(i) Not later than ten business days after the mortgage servicer receives an information request for the identity of, and address or other relevant contact information for, the owner or assignee of a residential mortgage loan;

(ii) For all other requests for information, not later than thirty business days after the mortgage servicer receives the information request.

(b) For requests for information governed by the time limit set forth in paragraph (D)(2)(a)(ii) of this rule, a mortgage servicer may extend the time period for responding by an additional fifteen business days if, before the end of the thirty-day period, the mortgage servicer notifies the borrower of the extension and the reasons for the extension in writing. A mortgage servicer may not extend the time period for requests for information governed by paragraph (D)(2)(a)(i) of this rule.

(3) In its response to a request for information, a mortgage servicer may omit location and contact information and personal financial information, other than information about the terms, status, and payment history of the mortgage loan, if either of the following applies:

(a) The information pertains to a potential or confirmed successor in interest who is not the requester;

(b) The requester is a confirmed successor and the information pertains to any borrower who is not the requester.

(E) A mortgage servicer is not required to comply with paragraphs (C) and (D) of this rule if the mortgage servicer provides the borrower with the information requested and contact information, including a telephone number, for further assistance in writing within five business days of receiving an information request.

(F)

(1) A mortgage servicer is not required to comply with paragraphs (C) and (D) of this rule if the mortgage servicer reasonably determines that any of the following apply:

(a) The information requested is substantially the same as information previously requested by the borrower for which the mortgage servicer has previously complied with its obligation to respond pursuant to paragraphs (C) and (D) of this rule;

(b) The information requested is confidential, proprietary, or privileged;

(d) The information request is overbroad or unduly burdensome. An information request is overbroad if a borrower requests that the mortgage servicer provide an unreasonable volume of documents or information to a borrower. An information request is unduly burdensome if a diligent mortgage servicer could not respond to the information request without either exceeding the maximum time limit permitted by paragraph (D)(2) of this rule or incurring costs or dedicating resources that would be unreasonable in light of the circumstances. To the extent a mortgage servicer can reasonably identify a valid information request in a submission that is otherwise overbroad or unduly burdensome, the mortgage servicer will comply with paragraphs (C) and (D) of this rule with respect to that requested information.

(e) The information request is delivered to a mortgage servicer more than one year after either of the following:

(i) Servicing for the mortgage loan that is the subject of the information request was transferred from the mortgage servicer receiving the request for information to a transferee mortgage servicer;

(ii) The residential mortgage loan is discharged.

(2) If a mortgage servicer determines that, pursuant to paragraph (F)(1) of this rule, the mortgage servicer is not required to comply with paragraphs (C) and (D) of this section, the mortgage servicer will notify the borrower of its determination in writing not later than five business days after making such determination. The notice to the borrower will set forth the basis under paragraph (F)(1) of this rule upon which the mortgage servicer has made such determination.

(G) A mortgage servicer will not charge a fee, or require a borrower to make any payment that may be owed on a borrower's account, as a condition of responding to an information request.

(H) Nothing in this rule prohibits a mortgage servicer from furnishing adverse information to any consumer reporting agency or pursuing any of its remedies, including initiating foreclosure or proceeding with a foreclosure sale, allowed by the underlying residential mortgage loan instruments, during the time period that response to an information request notice is outstanding.

(I)

(1) With respect to any written request from a person that indicates that the person may be a successor in interest and that includes the name of the transferor borrower from whom the person received an ownership interest and information that enables the mortgage servicer to identify the residential mortgage loan account, a mortgage servicer will respond by providing the potential successor in interest with a written description of the documents the mortgage servicer reasonably requires to confirm the person's identity and ownership interest in the property and contact information, including a telephone number, for further assistance. With respect to the written request, a mortgage servicer will treat the potential successor in interest as a borrower for purposes of the requirements of paragraphs (C) to (G) of this rule.

(2) If a written request under paragraph (I)(1) of this rule does not provide sufficient information to enable the mortgage servicer to identify the documents the mortgage servicer reasonably requires to confirm the person's identity and ownership interest in the property, the mortgage servicer may provide a response that includes examples of documents typically accepted to establish identity and ownership interest in a property; indicates that the person may obtain a more individualized description of required documents by providing additional information; specifies what additional information is required to enable the mortgage servicer to identify the required documents; and provides contact information, including a telephone number, for further assistance. A mortgage servicer's response under paragraph (I)(2) of this rule will otherwise comply with paragraph (I)(1) of this rule. Notwithstanding paragraph (F)(1)(a) of this rule, if a potential successor in interest subsequently provides orally or in writing the required information specified by the mortgage servicer pursuant to paragraph (I)(2) of this rule, the mortgage servicer will treat the new information, together with the original request, as a new, non-duplicative request under paragraph (I)(1) of this rule, received as of the date the required information was received, and will respond accordingly.

(3) In responding to a request under paragraph (I)(1) of this rule prior to confirmation, the mortgage servicer is not required to provide any information other than the information specified in paragraphs (I)(1) and (I)(2) of this rule. In responding to a written request under paragraph (I)(1) of this rule that requests other information, the mortgage servicer will indicate that the potential successor in interest may resubmit any request for information once confirmed as a successor in interest.

(4) If a mortgage servicer has established an address that a borrower must use to request information pursuant to paragraph (B) of this rule, a mortgage servicer will comply with the requirements of paragraph (I)(1) of this rule only for requests received at the established address.

Last updated September 19, 2025 at 7:27 AM

History

Effective: September 19, 2025
Promulgated Under: 119.03

Chapter 1301:8-8 Check-Cashing Businesses

Ohio Adm.Code 1301:8-8-01 Definitions.

As used in sections 1315.21 to 1315.30 of the Revised Code and this chapter:

(A) "Advertise," "advertisement," and "advertising" means any written or oral statement, illustration, or depiction designed to create interest in purchasing check-cashing services.

(B) "Cash" means United States currency and does not include a check, draft, traveler's check, money order, or other instrument for the transmission of money.

(C) "Government check" means a check issued by this state, a state agency of this state, a political subdivision of this state, or the United States, including, but not limited to, checks issued by the internal revenue service and the pension benefit guaranty corporation.

(D) "Political subdivision" means a municipal corporation, township, county, school district, or other body corporate and politic responsible for governmental activities in a geographic area smaller than that of the state.

(E) "State agency" means every organized body, office, agency, institution, or other entity established by the laws of this state for the exercise of any function of state government, and includes, but not limited to, checks issued by the bureau of workers' compensation, the industrial commission, any state-supported institution of higher education, the public employees retirement system, the Ohio police and fire pension fund, the state teachers retirement system, the school employees retirement system, the state highway patrol retirement system, and the courts.

(F) "Three per cent of the face amount of the check" means the aggregate total of any and all fees and other charges, including, but not limited to, membership or financial institution processing fees. Fees paid by customers to buy money orders shall not be counted towards the three percent fee limit.

Last updated September 8, 2023 at 11:16 AM

History

Effective: September 19, 2016
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-8-02 Licenses.

(A) In accordance with sections 1315.21 to 1315.30 of the Revised Code each check-cashing business shall obtain a license for its main office. An application, license fee and investigation fee shall also be submitted to the superintendent of financial institutions for authorization for each additional business location where check-cashing activity is to be conducted. Every subsequent application for additional business locations shall be accompanied by an initial investigation fee and an annual license fee.

(B) Pursuant to division (B)(3) of section 1315.22 and division (B) of section 1315.27 of the Revised Code, a licensed check-cashing business or applicant to be a licensed check-cashing business shall provide the superintendent with evidence of its registration as a money services business with the financial crimes enforcement network (FinCEN), of the U.S. department of the treasury as required by 31 C.F.R. 1022.380, as in effect on April 1, 2015. If the licensed check-cashing business or applicant to be a licensed check-cashing business claims to be exempt from registration, it shall provide a written explanation of the basis of the exemption. Evidence of money services business registration or exemption shall be provided to the superintendent on an annual basis in conjunction with the renewal application.

(C) A licensed check-cashing business shall notify the superintendent, in writing, within ten business days if the net worth of the check-cashing business becomes less than twenty-five thousand dollars.

(D) A licensed check-cashing business shall notify the superintendent in writing at least thirty days prior to relocating any of its licensed locations. A check-cashing business shall not cash checks at the new location until it has received a check-cashing business license for that location.

Last updated September 8, 2023 at 11:16 AM

History

Effective: September 19, 2016
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-8-03 Recordkeeping.

(A) A licensed check-cashing business shall maintain its records for at least two years from the date of each check-cashing transaction. The retention period for an advertisement commences from the date the advertisement is published, broadcast, or disseminated.

(B) Records shall be maintained at the licensed location where the check-cashing transaction ocurred or at another location approved in advance in writing by the superintendent. Records shall be legible and maintained in a type size that is clearly readable without magnification. The following records shall be maintained:

(1) A daily cash reconciliation that summarizes daily activity, reconciles cash-on-hand at the opening of business to cash-on-hand at the close of business, and separately reflects cash received from the sale of checks, cash disbursed in cashing checks, redemption of returned items, bank cash deposits and bank cash withdrawals.

(2) A sortable electronic general ledger that contains records of all assets, liabilities, capital, income and expenses. The general ledger must be posted within thirty business days of the close of the month from the original daily record of checks cashed, summary of business, or any other records of original entry. The general ledger may consolidate activity at two or more locations of a licensed check-cashing business provided that the books of original entries are maintained separately for each location.

(3) A sortable electronic spreadsheet for each government check cashed which contains the following fields of information:

(a) The name of each issuer;

(b) The name and address of each payee;

(d) The date each check is cashed;

(e) The last five digits of the preprinted number on each check;

(f) The face amount of each check;

(g) The amount of cash actually given to the person cashing the check;

(h) The amounts of any and all fees charged or received for cashing each check.

(4) A file of all advertisements.

(D) A licensed check-cashing business shall segregate its check-cashing business records from all other business records.

(E) Records pertaining to a licensed check-cashing business may be maintained in their original paper form or on an electronic storage media or system. Any records maintained on an electronic storage media or system shall meet all of the following requirements:

(1) The electronic storage media or system must preserve the records in a non-rewriteable, non-erasable format;

(2) The electronic storage media or system must verify automatically the quality and accuracy of the storage media recording process;

(6) Immediate facsimile enlargement must be available upon the superintendent's request;

(7) A duplicate copy of the electronic record stored on any electronic media or system for the time required must be stored separately from the "original" electronic record;

(8) The electronic storage media or system must organize and index accurately all information maintained on both the original and duplicate storage media or system. At all times, a licensee must be able to have indices of the electronic records being stored available for examination by the superintendent. Each index must also be duplicated and the duplicate copies must be stored separately from the original copy of each index. Original and duplicate indices must be preserved for the time required for the indexed records;

(9) An audit system will be in place providing for accountability regarding inputting of records and inputting any changes made to every original and duplicate record maintained and preserved. At all times, a licensed check-cashing business must be able to have the results of the audit system available for examination by the superintendent. The audit results must be preserved for the time required for the audited records;

(10) All information necessary to access records and indices stored on the electronic storage media or system, a copy of the physical and logical file format of the electronic storage media or system, the field format of all different information types written on the electronic storage media or system, together with the appropriate documentation and information necessary to access records and indices will be maintained, kept current and provided promptly to the superintendent, upon request;

(12) At the request of the superintendent, the records shall be printed on paper for inspection or examination without cost to the superintendent within forty-eight hours of the request. The superintendent may grant additional time for good cause shown upon receipt of a request for additional time from the licensee.

(F) In order to reduce the risk of consumer fraud and related harms, including identity theft, a licensed check-cashing business shall be required to comply with section 216 of the "Fair and Accurate Credit Transactions Act of 2003," 117 Stat. 1952 (amended 2010), 15 U.S.C. 1681w as in effect on April 1, 2015, section 501 of the "Gramm Leach Bliley Act," 113 Stat. 1338 (1999) (amended 2010), 15 U.S.C. 6801 as in effect on April 1, 2015, and the rules promulgated pursuant to those federal acts, including 16 C.F.R. Part 313 and 16 C.F.R. Part 682, as in effect April 1, 2015, pertaining to the maintenance, security, and disposal of consumer information and records.

Last updated September 8, 2023 at 11:16 AM

History

Effective: September 19, 2016
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-8-04 Business practices.

(A) A licensed check-cashing business shall not issue any money order without concurrently receiving the face amount thereof in cash, or by check, less any fees permitted by law for the issuance of the money order.

(B) A licensed check-cashing business shall pay the entire amount of a check, in cash, or by money order or check if requested, to the customer tendering the check to be cashed, less any charges permitted by law. All checks shall be paid on the same date the check is presented. In no event shall a licensed check-cashing business make a partial payment of any check.

(1) Cash any check, nor act as intermediary, agent, or in any way assist in the negotiation of any check, at any place other than the licensed business locations;

(2) Cash any check if the check-cashing business or any of its agents have reason to believe or know that the maker, the payee or any of the endorsers of such check, or the persons presenting it for cashing, are known by any name other than that appearing on the checks, without recording on its books and records the true name or names, as well as the assumed name or names of such person or persons, together with the true addresses. The use of common nicknames or names resulting from legal changes made through the courts or by marriage shall not be deemed a violation of this rule;

(3) Alter or change the date of any check presented for cashing;

(4) Fail to deposit with a financial institution a check presented by a customer for cash within two banking days from the day the customer presented such check to the check-cashing business;.

(D) A licensed check-cashing business shall provide a receipt to each customer for whom a check is cashed. The receipt shall show the face amount of the check which has been cashed and the fee charged for cashing the check. The receipt shall be dated and have the name, address, and license number of the check-cashing business on it. A check-cashing business may provide one receipt to customers for multiple transactions as long as check-cashing fees are clearly disclosed.

(E) A licensed check-cashing business shall not defer depositing or advertise or represent that it can or will defer depositing a customer's check in exchange for money or other valuable consideration unless the check-cashing business is doing so pursuant to a license to engage in the business of lending money, credit, or choses in action in accordance with sections 1321.01 to 1321.19 of the Revised Code or pursuant to a certificate of registration to make loans in accordance with sections 1321.51 to 1321.60 of the Revised Code.

Last updated September 8, 2023 at 11:16 AM

History

Effective: September 19, 2016
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-8-06 Advertising.

(A) Every advertisement placed, or caused to be placed, by a licensed check-cashing business shall:

(1) State the name of the licensed check-cashing business as printed on its license. If a licensed check-cashing business has been approved by the superintendent to conduct business using a trade name or fictitious name, it may use its name, trade name, or fictitious name, or any combination of them, as they appear on its license;

(2) State its license number or the license number of its main office location; and

(3) State the address as listed on its license or the address of its main office location.

(B) When the information required by paragraph (A) of this rule appears in a written advertisement, it shall be clearly legible to a reasonable person.

(C) Paragraph (A) of this rule shall not apply to advertising done on pens, pencils, pocket calendars, balloons, coffee mugs, and similar promotional items.

(D) Website advertising shall comply with paragraph (A) of this rule by placing the required information on every viewable web page of the website. In the alternative, a licensed check-cashing business may place a hyperlink on every viewable web page which links directly to a web page that contains the required information.

(E) A licensed check-cashing business shall keep its website advertising pertaining to its check-cashing business current by updating or having updated its advertising no later than thirty calendar days after any information becomes outdated or expired.

(F) Advertisements shall not contain unqualified superlatives, including, but not limited to, "lowest fees," "lowest charges," or words of similar import.

Last updated September 8, 2023 at 11:17 AM

History

Effective: September 19, 2016
Promulgated Under: 119.03

Chapter 1301:8-10 Credit Counseling Services

Ohio Adm.Code 1301:8-10-01 Criteria for qualifying to provide counseling services.

(A) Counseling services meeting the following criteria are authorized by the superintendent of financial institutions to provide prepurchase counseling to consumers as may be required by section 1349.27 of the Revised Code:

(1) Counseling services certified by the secretary of the United States department of housing and urban development (HUD) pursuant to 12 U.S.C. 1701x(e), as in effect on November 19, 2013, and that appear on the list maintained by HUD or the bureau of consumer financial protection pursuant to 12 CFR 1024.20(a)(1), as in effect on January 10, 2014; or

(2) Any not-for-profit credit counseling service approved by an agency of the federal government to perform housing or credit counseling.

(B) A counseling service that meets the requirements in paragraph (A) of this rule shall not provide prepurchase counseling in the same transaction in which it directly or indirectly makes or brokers a covered loan regardless of whether it does so as a registrant or pursuant to any exemption in Chapters 1321. and 1322. of the Revised Code, including, but not limited to, the nonprofit organization exemption.

(C) All authorized counseling services shall register and maintain registration to conduct business in Ohio with the Ohio secretary of state and shall comply with any applicable requirement of sections 4712.01 to 4712.14 of the Revised Code (the credit services organization act) and sections 4710.01 to 4710.04 of the Revised Code (the debt adjusting act). Notwithstanding the foregoing, nothing herein shall affect the authority of a court in this state from enjoining a person or entity from providing these services where such remedy is appropriate under law or equity.

Last updated March 6, 2025 at 12:55 PM

History

Effective: June 9, 2014
Promulgated Under: 119.03

Chapter 1301:8-11 Short-Term Loan Act

Ohio Adm.Code 1301:8-11-01 Definitions and general provisions.

(A) "Borrower," as used in division (T) of section 1321.41 of the Revised Code, means a person with either an active or inactive loan.

(B) "Net worth," as used in section 1321.37 of the Revised Code and this chapter of the Administrative Code means the difference between total assets and total indebtedness, as determined by generally accepted accounting principles. The division may by written notice require an audited financial statement by an independent certified public accountant, the cost of which shall be paid by the licensee or applicant.

(C) "Payable in substantially equal installments," as used in division (D) of section 1321.39 of the Revised Code, means payable in installments of substantially equal amounts according to a payment schedule in which the first payment is due no later than one month and fifteen days from the date of origination, with subsequent payments due thereafter at substantially consistent time intervals ranging from weekly to monthly.

(D) "Senior officer," as used in sections 1321.37 and 1321.43 of the Revised Code means a person who holds an executive or management position within a company or business that allows such person to control and direct the affairs of the licensee or applicant either on his or her own authority or in conjunction with others requiring his or her consent.

(E) "Theft," as used in section 1321.37 of the Revised Code and this chapter of the Administrative Code, means those offenses set forth as a theft offense in division (K) of section 2913.01 of the Revised Code except for those offenses, other than theft, specifically enumerated in division (B)(4) of section 1321.37 of the Revised Code.

(F) The following apply for purposes of performing any calculation with regard to interest or fees:

(1) One month equals one-twelfth of one year.

(2) Each one-month period ends as described in section 1.45 of the Revised Code.

(3) One day equals one three hundred sixty-fifth of one year when calculation is made for a fraction of a month.

(4) "Year" has the same meaning as in section 1.44 of the Revised Code.

Last updated October 15, 2024 at 10:34 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-11-02 Recordkeeping requirements.

(A) All short-term loan records required to be maintained by section 1321.422 of the Revised Code and this rule shall be kept current and shall be available at all times during normal business hours for review by the division of financial institutions. Records shall be legible and maintained in a type size that is clearly readable without magnification, and in conformity with any specific typeface or font size that may be required by state or federal law. Records shall be maintained in English except where otherwise provided by federal or state law. When records are allowed to be in a language other than English, the licensee, at its expense, shall be responsible for providing the division with a full and accurate translation. For purposes of recordkeeping, "current" means within thirty days from the date of the occurrence of the event required to be recorded. Pursuant to section 1321.422 of the Revised Code, each licensee shall maintain the following records:

(1) A ledger record for each loan issued. The ledger record shall include a chronological entry of all credits, debits, payments, and charges received, assessed, or disbursed in connection with the loan. This information shall be recorded in an identifiable manner and show the actual date of receipt, assessment, or disbursement and the balance due on the account after each entry.

(2) A sortable electronic spreadsheet containing all of the following fields of information:

(a) Account or loan number;

(b) Principal borrower's name;

(d) Whether the borrower or a dependent of the borrower is on active duty in the armed forces of the United States;

(e) Whether the loan is new or a refinance;

(f) For a refinanced loan, the prior loan number;

(g) Origination date of loan;

(h) Date finance charges begin to accrue;

(i) Amount financed;

(j) Loan term;

(k) Total number of payments;

(l) Frequency of payments;

(m) Payment due dates;

(n) Amount due for each payment;

(o) Total scheduled amount of payments due;

(p) Contractual rate of interest;

(q) Total scheduled amount of interest charges;

(r) Federal annual percentage rate;

(s) Origination fee;

(t) Total scheduled amount of maintenance fees;

(u) Total scheduled amount of finance charges;

(v) Nonsufficient funds fee, if any;

(w) Check cashing fee, if any;

(x) Loan status, whether active, paid, rescinded, charged-off, non-accrual, or other status;

(y) Most recent date of payment;

(z) Amount of most recent payment;

(aa) Total amount of payments made;

(bb) Names of all co-makers, guarantors, or other obligors.

(3) All loan agreements, notes, disclosure forms, closing statements and other documents signed by the obligors and taken in connection with loans made, shall be identified by the account or loan number and maintained in a separate file for each borrower.

(4) A sortable electronic spreadsheet of all loans in litigation containing the following fields of information:

(a) Account or loan number;

(b) Principal borrower's name;

(d) Date litigation proceedings were initiated;

(e) Court or jurisdiction in which the litigation was filed;

(f) Case number;

(g) Status of litigation, whether active, settled, dismissed, final judgment entered, or other status;

(h) Date of any final judgment or settlement;

(i) Amount of any final judgment or settlement.

(5) In the event of litigation, copies of any final judgments or settlement agreements, to be maintained in the principal borrower's file.

(6) In the event of garnishment or attachment, copies of all notices served on employers and records of amounts collected, to be maintained in the principal borrower's file.

(B) Due bills, receipts, invoices or other evidence shall be maintained in the file of original loan papers for any amount in excess of twenty dollars paid by the borrower to or through the licensee for any dishonored check, negotiable order of withdrawal, share draft or any other negotiable instrument.

(C) Books, accounts, or records required to be maintained by this rule and section 1321.422 of the Revised Code may be maintained in their original form or other electronic media, provided:

(1) The licensee obtains prior written approval from the superintendent; and

(2) Written printouts or hard copies of the required data are readily available upon the request of the division.

(D) A licensee shall comply with rules promulgated under 15 U.S.C. 1681w and 15 U.S.C. 6801, including 16 C.F.R. 682, as such rules are in effect May 1, 2024.

(E) Before ceasing to conduct or discontinuing business as a licensee, the licensee shall do both of the following:

(1) Arrange for and be responsible for the preservation of the books and records required to be maintained and preserved under this rule for the remainder of the period specified in this rule;

(2) Notify the division in writing of the exact address where the books and records will be maintained during the required period.

(F) The division of financial institutions may suspend or revoke any short-term loan license issued by the division or bring any other authorized administrative enforcement action against any person for failure to maintain records in accordance with division (A) of section 1321.422 of the Revised Code or this rule.

Last updated October 15, 2024 at 10:35 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-11-03 Advertising.

Each advertisement placed, or caused to be placed, by a licensee shall do all of the following:

(A) Clearly identify the licensee by stating the licensee's name as printed on its license, provided that, where a licensee has received the approval of the superintendent of the division of financial institutions to conduct business under a trade or alternative name, the licensee may use the licensee's true, trade, or alternative name, or any combination of them, as they appear on the license issued by the division;

(B) List the licensee's address;

Last updated October 15, 2024 at 10:35 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-11-04 Licensing.

(A) No licensee shall transact or solicit business under sections 1321.35 to 1321.48 of the Revised Code under any other name than that set forth on its license.

(B) At least thirty days prior to the effective date of an address change, each licensee shall notify the division of financial institutions of a change in the address shown on its license by filing a relocation application with the division. If the licensee is relocating its place of business to a location outside the municipal corporation in which it is currently located, the licensee must also pay a license application fee.

Last updated October 15, 2024 at 10:35 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-11-05 Short-term loan license renewal application; issuance of renewal license; expiration.

(A) A license expires on the thirty-first day of December of each year regardless of when the license was issued. A current licensee that successfully files a renewal application as provided in paragraph (B) of this rule is entitled to continue to act as a short-term lender while the renewal application is pending.

(B) A licensee is responsible for ensuring that its renewal application is received by the division on or prior to the thirty-first day of December. The failure of a licensee to receive any reminder notice that the division may send will not relieve the licensee of the renewal deadline.

(C) A licensee cannot change its address by filing a renewal application and indicating its new intended address on the renewal application. Address changes shall be made in compliance with paragraph (B) of rule 1301:8-11-04 of the Administrative Code.

(D) Each question on the renewal application is material to the licensing process. Submitting false or incomplete information or omitting information in connection with a renewal application is grounds for denial of the application or revocation of the license and may subject the applicant and those individuals who signed the application to civil or criminal penalties.

(E) If the information contained in a renewal application for a short-term loan license becomes inaccurate for any reason while the renewal application is pending, the applicant shall be responsible for correcting the inaccurate information within ten business days of the change.

(F) An applicant may request the withdrawal of an application prior to a determination being made by the division by submitting a written request that the application be withdrawn. A request to withdraw a renewal application for a short-term loan license can only be submitted by those individuals legally authorized to do so on behalf of the applicant. An application may only be withdrawn with the permission of the superintendent.

(G) All application fees are non-refundable regardless of whether an application is withdrawn or denied.

(H) Upon approval of a renewal application, a license will be issued for the remainder of the annual licensure period, which ends the following thirty-first day of December.

Last updated October 15, 2024 at 10:35 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03

Ohio Adm.Code 1301:8-11-06 Surety bond.

(A) Each applicant for a short-term loan license shall obtain and each licensee shall continuously maintain a corporate surety bond that conforms to the requirements set forth in division (D) of section 1321.37 of the Revised Code and complies with the following:

(1) The surety bond shall be in a format prescribed by the division.

(2) The surety bond must be issued in the name of the applicant or licensee, and shall state the main office of the applicant or licensee. If the applicant or licensee uses a trade or alternative business name, the trade or alternative name(s) shall be included on the bond.

(3) A bond may be issued for a period of more than one license period, as long as the coverage is continuous and does not expire until the end of a license period.

(B) Surety bonds required as a condition for a license under section 1321.37 of the Revised Code shall be continuously maintained. Should a lapse in coverage of the surety bond required by division (D) of section 1321.37 of the Revised Code occur, the licensee shall cease all short-term lending activity broker activity governed by sections 1321.35 to 1321.48 of the Revised Code until the licensee can present to the superintendent of the division of financial institutions evidence that the licensee has obtained a proper surety bond which extends through the duration of the licensure period. A licensee that experiences a lapse in or break in coverage of its surety bond shall present evidence which satisfies the superintendent that the licensee conducted no short-term loans or lending activities during the period in question. Failure to obtain a surety bond that complies with section 1321.37 of the Revised Code and the provisions of this rule within sixty days of the first date of a lapse in coverage, or engaging in any short-term lending activity governed by sections 1321.35 to 1321.48 of the Revised Code without a proper bond in place, is grounds for revocation of a short-term lender's license.

(C) Whenever the penal sum of the surety bond is reduced for any reason, the licensee shall cease all short-term lending activity governed by sections 1321.35 to 1321.48 of the Revised Code until the licensee can restore the bond to the full required value. Failure to obtain a surety bond that complies with section 1321.37 of the Revised Code and the provisions of this rule within sixty days of the first date the penal sum of the bond was reduced, or engaging in any short-term lending activity governed by sections 1321.35 to 1321.48 of the Revised Code without a proper bond in place, is grounds for revocation of a short term lender license.

(D) The liability of the corporate surety on the bond to the superintendent and to any borrower injured by a violation of any provision of sections 1321.35 to 1321.48 of the Revised Code shall not be affected in any way by any misrepresentation, breach of warranty, or failure to pay the premium, by any act or omission upon the part of the licensee, by the insolvency or bankruptcy of the licensee, or by the insolvency of the licensee's estate. The liability for any act or omission that occurs during the term of the corporate surety bond shall be maintained and in effect for at least two years after the date on which the corporate surety bond is terminated or canceled.

(E) The corporate surety bond shall not be canceled by the licensee or the corporate surety except upon notice to the superintendent by certified mail, return receipt requested. The cancellation shall not be effective prior to thirty days after the superintendent receives the notice.

Last updated October 15, 2024 at 10:35 AM

History

Effective: October 14, 2024
Promulgated Under: 119.03