Ohio Repeals MLO Dual Capacity Prohibition

The Ohio Division of Financial Institutions recently issued a letter repealing its prohibition against mortgage professionals from acting as both a mortgage professional and a real estate broker in the same transaction.  While the intent of the prohibition was to prevent conflicts of interest, Ohio now requires MLOs to disclose when the MLO (or an associate) has acted as a real estate broker in connection with the sale of the property and to inform the buyer that the buyer is not required to use the MLOs services.  The MLO must obtain the buyer’s signature on a dual capacity disclosure form, a sample of which Ohio has created.