Ohio Enacts Provisions Regarding Residential Mortgage Lending Act

Ohio recently enacted House Bill 199 to amend the Ohio Mortgage Brokers Act and Ohio Mortgage Loan Act to establish the Ohio Residential Mortgage Lending Act in order to regulate all non-depository lending secured by residential real estate and dwellings under one new act.  The new law brings the registration of mortgage lenders and brokers, and the licensing of mortgage loan originators, together under a single statute.

Among other changes, House Bill 199 updates certain definitions, such as “mortgage broker,” “residential mortgage loan,” and “mortgage lender.”  In addition, it limits the application of the current Ohio Mortgage Loan Act to unsecured loans and loans secured by other than residential real estate.

House Bill 199 was signed into law by the Governor of Ohio on December 22, 2017 and takes effect 91 days after filing with the Ohio Secretary of State.  The legislative text of House Bill 199 is available here.