Ohio Makes Loan Prepayment Penalty Adjustment for 2023

The Ohio Department of Commerce has updated the threshold for that state’s prohibition on certain prepayment penalties, effective January 1, 2023, to $107,633.  Under Ohio Revised Code §1343.011(C)(2)(a)-(b), with this year’s adjustment, no penalty may be charged for the prepayment or refinancing of a residential mortgage obligation of less than $107,633 for loans that are made by a mortgage broker, loan officer, or non-bank mortgage lender.  The threshold loan amount limit is adjusted annually on January 1st, based on changes in the Consumer Price Index.