(A) No registrant and entity holding a valid letter of exemption under this chapter, through its operations manager or otherwise, shall fail to do either of the following:

Terms Used In Ohio Code 1322.43

  • Branch office: means a location at which a licensee conducts business other than a registrant's principal place of business, if at least one of the following applies to the location:

    (1) The address of the location appears on business cards, stationery, or advertising used by the registrant;

    (2) The registrant's name or advertising at the location suggests that mortgage transactions are made at the location;

    (3) The location is held out to the public as a licensee's place of business due to the actions of an employee or independent contractor of the registrant; or

    (4) The location within this state is controlled directly or indirectly by the registrant. See Ohio Code 1322.01

  • Entity: means a business organization, including a sole proprietorship. See Ohio Code 1322.01
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: means the consensual interest in real property located in this state, including improvements to that property, securing a debt evidence by a mortgage, trust indenture, deed of trust, or other lien on real property. See Ohio Code 1322.01
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Mortgage loan originator: means an individual who for compensation or gain, or in the expectation of compensation or gain, does any of the following:

    (a) Takes a residential mortgage loan application;

    (b) Assists or offers to assist a buyer in obtaining or applying to obtain a residential mortgage loan by, among other things, advising on loan terms, including rates, fees, and other costs;

    (c) Offers or negotiates terms of a residential mortgage loan;

    (d) Issues or offers to issue a commitment for a residential mortgage loan to a buyer. See Ohio Code 1322.01

  • Person: means an individual, sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, or association. See Ohio Code 1322.01
  • Registrant: means any person that has been issued a certificate of registration under this chapter. See Ohio Code 1322.01
  • state: means the state of Ohio. See Ohio Code 1.59
  • Superintendent of financial institutions: includes the deputy superintendent for consumer finance as provided in section 1181. See Ohio Code 1322.01

(1) Reasonably supervise a mortgage loan originator or any other person associated with the registrant or entity;

(2) Establish reasonable procedures designed to avoid violations of any provision of this chapter or the rules adopted under this chapter, or violations of applicable state and federal consumer and lending laws or rules, by mortgage loan originators or any other person associated with the registrant or entity.

(B) No registrant or entity holding a letter of exemption issued under this chapter shall:

(1) Receive, directly or indirectly, a premium on the fees charged for services performed by a bona fide third party;

(2) Pay or receive, directly or indirectly, a referral fee or kickback of any kind to or from a bona fide third party or other party with a related interest in the transaction, including a home improvement builder, real estate developer, or real estate broker or agent, for the referral of business.

(C)(1) Notwithstanding any provision of this chapter to the contrary, a registrant or entity holding a letter of exemption under this chapter may allow a mortgage loan originator or any other person associated with the registrant or entity to transact business on behalf of the registrant or entity from a location other than the registrant’s or entity’s principal office or a branch office if all of the following apply:

(a) The registrant or entity has a written policy governing the supervision of the mortgage loan originator or other person associated with the registrant or entity while the originator or person transacts business on behalf of the registrant or entity from such a location.

(b) Access to the registrant’s or entity’s platform and customer information is in accordance with the registrant’s or entity’s written information security plan.

(c) The mortgage loan originator or other person associated with the registrant or entity does not interact with a customer at the originator’s or person’s residence, unless the residence is the registrant’s or entity’s principal office or a branch office.

(d) Physical records are not maintained at such a location.

(2) The superintendent of financial institutions may charge a registrant or entity an annual fee to cover the costs associated with administering division (C)(1) of this section. The fee shall not exceed twenty-five dollars for each location at which a mortgage loan originator or any other person associated with the registrant or entity transacts business on behalf of the registrant or entity other than the registrant’s or entity’s principal office or a branch office.

Last updated June 30, 2022 at 5:05 PM

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