Bill Text: OH HB80 | 2013-2014 | 130th General Assembly | Introduced

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Bill Title: To require registration of residential mortgage servicers, to regulate residential mortgage servicers, and to adopt civil and criminal penalties for violations of the bill's provisions.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced - Dead) 2013-02-26 - To Financial Institutions, Housing and Urban Development [HB80 Detail]

Download: Ohio-2013-HB80-Introduced.html

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As Introduced

130th General Assembly Regular Session 2013-2014

H. B. No. 80

Representatives Driehaus, Foley 

Cosponsors: Representatives Boyd, Patterson, Antonio, Ramos, Letson, Hagan, R., Reece 

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A BILL

To amend sections 109.572, 1181.05, 1181.21, and

1

1321.52 and to enact sections 1323.01 to 1323.20

2

and 1323.99 of the Revised Code to require

3

registration of residential mortgage servicers, to

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regulate residential mortgage servicers, and to

5

adopt civil and criminal penalties for violations

6

of the bill's provisions.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 109.572, 1181.05, 1181.21, and	8
1321.52 be amended and sections 1323.01, 1323.02, 1323.03,	9
1323.04, 1323.05, 1323.06, 1323.07, 1323.08, 1323.09, 1323.10,	10
1323.11, 1323.12, 1323.13, 1323.14, 1323.15, 1323.16, 1323.17,	11
1323.18, 1323.19, 1323.20, and 1323.99 of the Revised Code be	12
enacted to read as follows:	13

Sec. 109.572. (A)(1) Upon receipt of a request pursuant to	14
section 121.08, 3301.32, 3301.541, or 3319.39 of the Revised Code,	15
a completed form prescribed pursuant to division (C)(1) of this	16
section, and a set of fingerprint impressions obtained in the	17
manner described in division (C)(2) of this section, the	18
superintendent of the bureau of criminal identification and	19
investigation shall conduct a criminal records check in the manner	20
described in division (B) of this section to determine whether any	21
information exists that indicates that the person who is the	22
subject of the request previously has been convicted of or pleaded	23
guilty to any of the following:	24

(a) A violation of section 2903.01, 2903.02, 2903.03,	25
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	26
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	27
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	28
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01,	29
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,	30
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,	31
2925.06, or 3716.11 of the Revised Code, felonious sexual	32
penetration in violation of former section 2907.12 of the Revised	33
Code, a violation of section 2905.04 of the Revised Code as it	34
existed prior to July 1, 1996, a violation of section 2919.23 of	35
the Revised Code that would have been a violation of section	36
2905.04 of the Revised Code as it existed prior to July 1, 1996,	37
had the violation been committed prior to that date, or a	38
violation of section 2925.11 of the Revised Code that is not a	39
minor drug possession offense;	40

(b) A violation of an existing or former law of this state,	41
any other state, or the United States that is substantially	42
equivalent to any of the offenses listed in division (A)(1)(a) of	43
this section;	44

(c) If the request is made pursuant to section 3319.39 of the	45
Revised Code for an applicant who is a teacher, any offense	46
specified in section 3319.31 of the Revised Code.	47

(2) On receipt of a request pursuant to section 3712.09 or	48
3721.121 of the Revised Code, a completed form prescribed pursuant	49
to division (C)(1) of this section, and a set of fingerprint	50
impressions obtained in the manner described in division (C)(2) of	51
this section, the superintendent of the bureau of criminal	52
identification and investigation shall conduct a criminal records	53
check with respect to any person who has applied for employment in	54
a position for which a criminal records check is required by those	55
sections. The superintendent shall conduct the criminal records	56
check in the manner described in division (B) of this section to	57
determine whether any information exists that indicates that the	58
person who is the subject of the request previously has been	59
convicted of or pleaded guilty to any of the following:	60

(a) A violation of section 2903.01, 2903.02, 2903.03,	61
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	62
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	63
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	64
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	65
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	66
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	67
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	68
2925.22, 2925.23, or 3716.11 of the Revised Code;	69

(b) An existing or former law of this state, any other state,	70
or the United States that is substantially equivalent to any of	71
the offenses listed in division (A)(2)(a) of this section.	72

(3) On receipt of a request pursuant to section 173.27,	73
173.394, 3701.881, 5111.032, 5111.033, 5111.034, 5123.081, or	74
5123.169 of the Revised Code, a completed form prescribed pursuant	75
to division (C)(1) of this section, and a set of fingerprint	76
impressions obtained in the manner described in division (C)(2) of	77
this section, the superintendent of the bureau of criminal	78
identification and investigation shall conduct a criminal records	79
check of the person for whom the request is made. The	80
superintendent shall conduct the criminal records check in the	81
manner described in division (B) of this section to determine	82
whether any information exists that indicates that the person who	83
is the subject of the request previously has been convicted of,	84
has pleaded guilty to, or has been found eligible for intervention	85
in lieu of conviction for any of the following, regardless of the	86
date of the conviction, the date of entry of the guilty plea, or	87
the date the person was found eligible for intervention in lieu of	88
conviction:	89

(a) A violation of section 959.13, 959.131, 2903.01, 2903.02,	90
2903.03, 2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.15,	91
2903.16, 2903.21, 2903.211, 2903.22, 2903.34, 2903.341, 2905.01,	92
2905.02, 2905.05, 2905.11, 2905.12, 2905.32, 2905.33, 2907.02,	93
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	94
2907.21, 2907.22, 2907.23, 2907.24, 2907.25, 2907.31, 2907.32,	95
2907.321, 2907.322, 2907.323, 2907.33, 2909.02, 2909.03, 2909.04,	96
2909.22, 2909.23, 2909.24, 2911.01, 2911.02, 2911.11, 2911.12,	97
2911.13, 2913.02, 2913.03, 2913.04, 2913.05, 2913.11, 2913.21,	98
2913.31, 2913.32, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,	99
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2913.51,	100
2917.01, 2917.02, 2917.03, 2917.31, 2919.12, 2919.121, 2919.123,	101
2919.22, 2919.23, 2919.24, 2919.25, 2921.03, 2921.11, 2921.12,	102
2921.13, 2921.21, 2921.24, 2921.32, 2921.321, 2921.34, 2921.35,	103
2921.36, 2921.51, 2923.12, 2923.122, 2923.123, 2923.13, 2923.161,	104
2923.162, 2923.21, 2923.32, 2923.42, 2925.02, 2925.03, 2925.04,	105
2925.041, 2925.05, 2925.06, 2925.09, 2925.11, 2925.13, 2925.14,	106
2925.141, 2925.22, 2925.23, 2925.24, 2925.36, 2925.55, 2925.56,	107
2927.12, or 3716.11 of the Revised Code;	108

(b) Felonious sexual penetration in violation of former	109
section 2907.12 of the Revised Code;	110

(c) A violation of section 2905.04 of the Revised Code as it	111
existed prior to July 1, 1996;	112

(d) A violation of section 2923.01, 2923.02, or 2923.03 of	113
the Revised Code when the underlying offense that is the object of	114
the conspiracy, attempt, or complicity is one of the offenses	115
listed in divisions (A)(3)(a) to (c) of this section;	116

(e) A violation of an existing or former municipal ordinance	117
or law of this state, any other state, or the United States that	118
is substantially equivalent to any of the offenses listed in	119
divisions (A)(3)(a) to (d) of this section.	120

(4) On receipt of a request pursuant to section 2151.86 of	121
the Revised Code, a completed form prescribed pursuant to division	122
(C)(1) of this section, and a set of fingerprint impressions	123
obtained in the manner described in division (C)(2) of this	124
section, the superintendent of the bureau of criminal	125
identification and investigation shall conduct a criminal records	126
check in the manner described in division (B) of this section to	127
determine whether any information exists that indicates that the	128
person who is the subject of the request previously has been	129
convicted of or pleaded guilty to any of the following:	130

(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,	131
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21,	132
2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02,	133
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	134
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	135
2907.322, 2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24,	136
2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02,	137
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161,	138
2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, or 3716.11	139
of the Revised Code, a violation of section 2905.04 of the Revised	140
Code as it existed prior to July 1, 1996, a violation of section	141
2919.23 of the Revised Code that would have been a violation of	142
section 2905.04 of the Revised Code as it existed prior to July 1,	143
1996, had the violation been committed prior to that date, a	144
violation of section 2925.11 of the Revised Code that is not a	145
minor drug possession offense, two or more OVI or OVUAC violations	146
committed within the three years immediately preceding the	147
submission of the application or petition that is the basis of the	148
request, or felonious sexual penetration in violation of former	149
section 2907.12 of the Revised Code;	150

(b) A violation of an existing or former law of this state,	151
any other state, or the United States that is substantially	152
equivalent to any of the offenses listed in division (A)(4)(a) of	153
this section.	154

(5) Upon receipt of a request pursuant to section 5104.012 or	155
5104.013 of the Revised Code, a completed form prescribed pursuant	156
to division (C)(1) of this section, and a set of fingerprint	157
impressions obtained in the manner described in division (C)(2) of	158
this section, the superintendent of the bureau of criminal	159
identification and investigation shall conduct a criminal records	160
check in the manner described in division (B) of this section to	161
determine whether any information exists that indicates that the	162
person who is the subject of the request has been convicted of or	163
pleaded guilty to any of the following:	164

(a) A violation of section 2903.01, 2903.02, 2903.03,	165
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22,	166
2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,	167
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22,	168
2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323,	169
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04,	170
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	171
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,	172
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2919.12,	173
2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 2923.12,	174
2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or	175
3716.11 of the Revised Code, felonious sexual penetration in	176
violation of former section 2907.12 of the Revised Code, a	177
violation of section 2905.04 of the Revised Code as it existed	178
prior to July 1, 1996, a violation of section 2919.23 of the	179
Revised Code that would have been a violation of section 2905.04	180
of the Revised Code as it existed prior to July 1, 1996, had the	181
violation been committed prior to that date, a violation of	182
section 2925.11 of the Revised Code that is not a minor drug	183
possession offense, a violation of section 2923.02 or 2923.03 of	184
the Revised Code that relates to a crime specified in this	185
division, or a second violation of section 4511.19 of the Revised	186
Code within five years of the date of application for licensure or	187
certification.	188

(b) A violation of an existing or former law of this state,	189
any other state, or the United States that is substantially	190
equivalent to any of the offenses or violations described in	191
division (A)(5)(a) of this section.	192

(6) Upon receipt of a request pursuant to section 5153.111 of	193
the Revised Code, a completed form prescribed pursuant to division	194
(C)(1) of this section, and a set of fingerprint impressions	195
obtained in the manner described in division (C)(2) of this	196
section, the superintendent of the bureau of criminal	197
identification and investigation shall conduct a criminal records	198
check in the manner described in division (B) of this section to	199
determine whether any information exists that indicates that the	200
person who is the subject of the request previously has been	201
convicted of or pleaded guilty to any of the following:	202

(a) A violation of section 2903.01, 2903.02, 2903.03,	203
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	204
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	205
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	206
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,	207
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	208
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	209
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code,	210
felonious sexual penetration in violation of former section	211
2907.12 of the Revised Code, a violation of section 2905.04 of the	212
Revised Code as it existed prior to July 1, 1996, a violation of	213
section 2919.23 of the Revised Code that would have been a	214
violation of section 2905.04 of the Revised Code as it existed	215
prior to July 1, 1996, had the violation been committed prior to	216
that date, or a violation of section 2925.11 of the Revised Code	217
that is not a minor drug possession offense;	218

(b) A violation of an existing or former law of this state,	219
any other state, or the United States that is substantially	220
equivalent to any of the offenses listed in division (A)(6)(a) of	221
this section.	222

(7) On receipt of a request for a criminal records check from	223
an individual pursuant to section 4749.03 or 4749.06 of the	224
Revised Code, accompanied by a completed copy of the form	225
prescribed in division (C)(1) of this section and a set of	226
fingerprint impressions obtained in a manner described in division	227
(C)(2) of this section, the superintendent of the bureau of	228
criminal identification and investigation shall conduct a criminal	229
records check in the manner described in division (B) of this	230
section to determine whether any information exists indicating	231
that the person who is the subject of the request has been	232
convicted of or pleaded guilty to a felony in this state or in any	233
other state. If the individual indicates that a firearm will be	234
carried in the course of business, the superintendent shall	235
require information from the federal bureau of investigation as	236
described in division (B)(2) of this section. Subject to division	237
(F) of this section, the superintendent shall report the findings	238
of the criminal records check and any information the federal	239
bureau of investigation provides to the director of public safety.	240

(8) On receipt of a request pursuant to section 1321.37,	241
1321.53, 1321.531, 1322.03, 1322.031, 1323.05, or 4763.05 of the	242
Revised Code, a completed form prescribed pursuant to division	243
(C)(1) of this section, and a set of fingerprint impressions	244
obtained in the manner described in division (C)(2) of this	245
section, the superintendent of the bureau of criminal	246
identification and investigation shall conduct a criminal records	247
check with respect to any person who has applied for a license,	248
permit, or certification from the department of commerce or a	249
division in the department. The superintendent shall conduct the	250
criminal records check in the manner described in division (B) of	251
this section to determine whether any information exists that	252
indicates that the person who is the subject of the request	253
previously has been convicted of or pleaded guilty to any of the	254
following: a violation of section 2913.02, 2913.11, 2913.31,	255
2913.51, or 2925.03 of the Revised Code; any other criminal	256
offense involving theft, receiving stolen property, embezzlement,	257
forgery, fraud, passing bad checks, money laundering, or drug	258
trafficking, or any criminal offense involving money or	259
securities, as set forth in Chapters 2909., 2911., 2913., 2915.,	260
2921., 2923., and 2925. of the Revised Code; or any existing or	261
former law of this state, any other state, or the United States	262
that is substantially equivalent to those offenses.	263

(9) On receipt of a request for a criminal records check from	264
the treasurer of state under section 113.041 of the Revised Code	265
or from an individual under section 4701.08, 4715.101, 4717.061,	266
4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28,	267
4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296,	268
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4755.70,	269
4757.101, 4759.061, 4760.032, 4760.06, 4761.051, 4762.031,	270
4762.06, 4776.021, or 4779.091 of the Revised Code, accompanied by	271
a completed form prescribed under division (C)(1) of this section	272
and a set of fingerprint impressions obtained in the manner	273
described in division (C)(2) of this section, the superintendent	274
of the bureau of criminal identification and investigation shall	275
conduct a criminal records check in the manner described in	276
division (B) of this section to determine whether any information	277
exists that indicates that the person who is the subject of the	278
request has been convicted of or pleaded guilty to any criminal	279
offense in this state or any other state. Subject to division (F)	280
of this section, the superintendent shall send the results of a	281
check requested under section 113.041 of the Revised Code to the	282
treasurer of state and shall send the results of a check requested	283
under any of the other listed sections to the licensing board	284
specified by the individual in the request.	285

(10) On receipt of a request pursuant to section 1121.23,	286
1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 of the Revised	287
Code, a completed form prescribed pursuant to division (C)(1) of	288
this section, and a set of fingerprint impressions obtained in the	289
manner described in division (C)(2) of this section, the	290
superintendent of the bureau of criminal identification and	291
investigation shall conduct a criminal records check in the manner	292
described in division (B) of this section to determine whether any	293
information exists that indicates that the person who is the	294
subject of the request previously has been convicted of or pleaded	295
guilty to any criminal offense under any existing or former law of	296
this state, any other state, or the United States.	297

(11) On receipt of a request for a criminal records check	298
from an appointing or licensing authority under section 3772.07 of	299
the Revised Code, a completed form prescribed under division	300
(C)(1) of this section, and a set of fingerprint impressions	301
obtained in the manner prescribed in division (C)(2) of this	302
section, the superintendent of the bureau of criminal	303
identification and investigation shall conduct a criminal records	304
check in the manner described in division (B) of this section to	305
determine whether any information exists that indicates that the	306
person who is the subject of the request previously has been	307
convicted of or pleaded guilty or no contest to any offense under	308
any existing or former law of this state, any other state, or the	309
United States that is a disqualifying offense as defined in	310
section 3772.07 of the Revised Code or substantially equivalent to	311
such an offense.	312

(12) On receipt of a request pursuant to section 2151.33 or	313
2151.412 of the Revised Code, a completed form prescribed pursuant	314
to division (C)(1) of this section, and a set of fingerprint	315
impressions obtained in the manner described in division (C)(2) of	316
this section, the superintendent of the bureau of criminal	317
identification and investigation shall conduct a criminal records	318
check with respect to any person for whom a criminal records check	319
is required by that section. The superintendent shall conduct the	320
criminal records check in the manner described in division (B) of	321
this section to determine whether any information exists that	322
indicates that the person who is the subject of the request	323
previously has been convicted of or pleaded guilty to any of the	324
following:	325

(a) A violation of section 2903.01, 2903.02, 2903.03,	326
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	327
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	328
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	329
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	330
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	331
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	332
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	333
2925.22, 2925.23, or 3716.11 of the Revised Code;	334

(b) An existing or former law of this state, any other state,	335
or the United States that is substantially equivalent to any of	336
the offenses listed in division (A)(12)(a) of this section.	337

(B) Subject to division (F) of this section, the	338
superintendent shall conduct any criminal records check to be	339
conducted under this section as follows:	340

(1) The superintendent shall review or cause to be reviewed	341
any relevant information gathered and compiled by the bureau under	342
division (A) of section 109.57 of the Revised Code that relates to	343
the person who is the subject of the criminal records check,	344
including, if the criminal records check was requested under	345
section 113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03,	346
1163.05, 1315.141, 1321.37, 1321.53, 1321.531, 1322.03, 1322.031,	347
1323.05, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541, 3319.39,	348
3701.881, 3712.09, 3721.121, 3772.07, 4749.03, 4749.06, 4763.05,	349
5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081,	350
5123.169, or 5153.111 of the Revised Code, any relevant	351
information contained in records that have been sealed under	352
section 2953.32 of the Revised Code;	353

(2) If the request received by the superintendent asks for	354
information from the federal bureau of investigation, the	355
superintendent shall request from the federal bureau of	356
investigation any information it has with respect to the person	357
who is the subject of the criminal records check, including	358
fingerprint-based checks of national crime information databases	359
as described in 42 U.S.C. 671 if the request is made pursuant to	360
section 2151.86, 5104.012, or 5104.013 of the Revised Code or if	361
any other Revised Code section requires fingerprint-based checks	362
of that nature, and shall review or cause to be reviewed any	363
information the superintendent receives from that bureau. If a	364
request under section 3319.39 of the Revised Code asks only for	365
information from the federal bureau of investigation, the	366
superintendent shall not conduct the review prescribed by division	367
(B)(1) of this section.	368

(3) The superintendent or the superintendent's designee may	369
request criminal history records from other states or the federal	370
government pursuant to the national crime prevention and privacy	371
compact set forth in section 109.571 of the Revised Code.	372

(4) The superintendent shall include in the results of the	373
criminal records check a list or description of the offenses	374
listed or described in division (A)(1), (2), (3), (4), (5), (6),	375
(7), (8), (9), (10), (11), or (12) of this section, whichever	376
division requires the superintendent to conduct the criminal	377
records check. The superintendent shall exclude from the results	378
any information the dissemination of which is prohibited by	379
federal law.	380

(5) The superintendent shall send the results of the criminal	381
records check to the person to whom it is to be sent not later	382
than the following number of days after the date the	383
superintendent receives the request for the criminal records	384
check, the completed form prescribed under division (C)(1) of this	385
section, and the set of fingerprint impressions obtained in the	386
manner described in division (C)(2) of this section:	387

(a) If the superintendent is required by division (A) of this	388
section (other than division (A)(3) of this section) to conduct	389
the criminal records check, thirty;	390

(b) If the superintendent is required by division (A)(3) of	391
this section to conduct the criminal records check, sixty.	392

(C)(1) The superintendent shall prescribe a form to obtain	393
the information necessary to conduct a criminal records check from	394
any person for whom a criminal records check is to be conducted	395
under this section. The form that the superintendent prescribes	396
pursuant to this division may be in a tangible format, in an	397
electronic format, or in both tangible and electronic formats.	398

(2) The superintendent shall prescribe standard impression	399
sheets to obtain the fingerprint impressions of any person for	400
whom a criminal records check is to be conducted under this	401
section. Any person for whom a records check is to be conducted	402
under this section shall obtain the fingerprint impressions at a	403
county sheriff's office, municipal police department, or any other	404
entity with the ability to make fingerprint impressions on the	405
standard impression sheets prescribed by the superintendent. The	406
office, department, or entity may charge the person a reasonable	407
fee for making the impressions. The standard impression sheets the	408
superintendent prescribes pursuant to this division may be in a	409
tangible format, in an electronic format, or in both tangible and	410
electronic formats.	411

(3) Subject to division (D) of this section, the	412
superintendent shall prescribe and charge a reasonable fee for	413
providing a criminal records check under this section. The person	414
requesting the criminal records check shall pay the fee prescribed	415
pursuant to this division. In the case of a request under section	416
1121.23, 1155.03, 1163.05, 1315.141, 1323.05, 1733.47, 1761.26,	417
2151.33, 2151.412, or 5111.032 of the Revised Code, the fee shall	418
be paid in the manner specified in that section.	419

(4) The superintendent of the bureau of criminal	420
identification and investigation may prescribe methods of	421
forwarding fingerprint impressions and information necessary to	422
conduct a criminal records check, which methods shall include, but	423
not be limited to, an electronic method.	424

(D) The results of a criminal records check conducted under	425
this section, other than a criminal records check specified in	426
division (A)(7) of this section, are valid for the person who is	427
the subject of the criminal records check for a period of one year	428
from the date upon which the superintendent completes the criminal	429
records check. If during that period the superintendent receives	430
another request for a criminal records check to be conducted under	431
this section for that person, the superintendent shall provide the	432
results from the previous criminal records check of the person at	433
a lower fee than the fee prescribed for the initial criminal	434
records check.	435

(E) When the superintendent receives a request for	436
information from a registered private provider, the superintendent	437
shall proceed as if the request was received from a school	438
district board of education under section 3319.39 of the Revised	439
Code. The superintendent shall apply division (A)(1)(c) of this	440
section to any such request for an applicant who is a teacher.	441

(F)(1) All information regarding the results of a criminal	442
records check conducted under this section that the superintendent	443
reports or sends under division (A)(7) or (9) of this section to	444
the director of public safety, the treasurer of state, or the	445
person, board, or entity that made the request for the criminal	446
records check shall relate to the conviction of the subject	447
person, or the subject person's plea of guilty to, a criminal	448
offense.	449

(2) Division (F)(1) of this section does not limit, restrict,	450
or preclude the superintendent's release of information that	451
relates to an adjudication of a child as a delinquent child, or	452
that relates to a criminal conviction of a person under eighteen	453
years of age if the person's case was transferred back to a	454
juvenile court under division (B)(2) or (3) of section 2152.121 of	455
the Revised Code and the juvenile court imposed a disposition or	456
serious youthful offender disposition upon the person under either	457
division, if either of the following applies with respect to the	458
adjudication or conviction:	459

(a) The adjudication or conviction was for a violation of	460
section 2903.01 or 2903.02 of the Revised Code.	461

(b) The adjudication or conviction was for a sexually	462
oriented offense, as defined in section 2950.01 of the Revised	463
Code, the juvenile court was required to classify the child a	464
juvenile offender registrant for that offense under section	465
2152.82, 2152.83, or 2152.86 of the Revised Code, and that	466
classification has not been removed.	467

(G) As used in this section:

468

(1) "Criminal records check" means any criminal records check	469
conducted by the superintendent of the bureau of criminal	470
identification and investigation in accordance with division (B)	471
of this section.	472

(2) "Minor drug possession offense" has the same meaning as	473
in section 2925.01 of the Revised Code.	474

(3) "OVI or OVUAC violation" means a violation of section	475
4511.19 of the Revised Code or a violation of an existing or	476
former law of this state, any other state, or the United States	477
that is substantially equivalent to section 4511.19 of the Revised	478
Code.	479

(4) "Registered private provider" means a nonpublic school or	480
entity registered with the superintendent of public instruction	481
under section 3310.41 of the Revised Code to participate in the	482
autism scholarship program or section 3310.58 of the Revised Code	483
to participate in the Jon Peterson special needs scholarship	484
program.	485

Sec. 1181.05.  (A) As used in this section, "consumer finance	486
company" means any person required to be licensed or registered	487
under Chapter 1321., 1322., 1323., 4712., 4727., or 4728. or	488
sections 1315.21 to 1315.30 of the Revised Code.	489

(B) Neither the superintendent of financial institutions nor	490
any other employee of the division of financial institutions shall	491
do any of the following: be interested, directly or indirectly, in	492
any bank, savings and loan association, savings bank, credit	493
union, or consumer finance company, that is under the supervision	494
of the superintendent of financial institutions; directly or	495
indirectly borrow money from any such financial institution or	496
company; serve as a director or officer of or be employed by any	497
such financial institution or company; or own an equity interest	498
in any such financial institution or company. For purposes of this	499
section, an equity interest does not include the ownership of an	500
account in a mutual savings and loan association or in a savings	501
bank that does not have permanent stock or the ownership of a	502
share account in a credit union.	503

(C) Subject to division (G) of this section, an employee of	504
the division of financial institutions may retain any extension of	505
credit that otherwise would be prohibited by division (B) of this	506
section if both of the following apply:	507

(1) The employee obtained the extension of credit prior to	508
October 29, 1995, or the commencement of the employee's employment	509
with the division, or as a result of a change in the employee's	510
marital status, the consummation of a merger, acquisition,	511
transfer of assets, or other change in corporate ownership beyond	512
the employee's control, or the sale of the extension of credit in	513
the secondary market or other business transaction beyond the	514
employee's control.	515

(2) The employee liquidates the extension of credit under its	516
original terms and without renegotiation.	517

If the employee chooses to retain the extension of credit,	518
the employee shall immediately provide written notice of the	519
retention to the employee's supervisor. Thereafter, the employee	520
shall be disqualified from participating in any decision,	521
examination, audit, or other action that may affect that	522
particular creditor.	523

(D) Subject to division (G) of this section, an employee of	524
the division of financial institutions may retain any ownership of	525
or beneficial interest in the securities of a financial	526
institution or consumer finance company that is under the	527
supervision of the division of financial institutions, or of a	528
holding company or subsidiary of such a financial institution or	529
company, which ownership or beneficial interest otherwise would be	530
prohibited by division (B) of this section, if the ownership or	531
beneficial interest is acquired by the employee through	532
inheritance or gift, prior to October 29, 1995, or the	533
commencement of the employee's employment with the division, or as	534
a result of a change in the employee's marital status or the	535
consummation of a merger, acquisition, transfer of assets, or	536
other change in corporate ownership beyond the employee's control.	537

If the employee chooses to retain the ownership or beneficial	538
interest, the employee shall immediately provide written notice of	539
the retention to the employee's supervisor. Thereafter, the	540
employee shall be disqualified from participating in any decision,	541
examination, audit, or other action that may affect the issuer of	542
the securities. However, if the ownership of or beneficial	543
interest in the securities and the subsequent disqualification	544
required by this division impair the employee's ability to perform	545
the employee's duties, the employee may be ordered to divest self	546
of the ownership of or beneficial interest in the securities.	547

(E) Notwithstanding division (B) of this section, an employee	548
of the division of financial institutions may have an indirect	549
interest in the securities of a financial institution or consumer	550
finance company that is under the supervision of the division of	551
financial institutions, which interest arises through ownership of	552
or beneficial interest in the securities of a publicly held mutual	553
fund or investment trust, if the employee owns or has a beneficial	554
interest in less than five per cent of the securities of the	555
mutual fund or investment trust, and the mutual fund or investment	556
trust is not advised or sponsored by a financial institution or	557
consumer finance company that is under the supervision of the	558
division of financial institutions. If the mutual fund or	559
investment trust is subsequently advised or sponsored by a	560
financial institution or consumer finance company that is under	561
the supervision of the division of financial institutions, the	562
employee shall immediately provide written notice of the ownership	563
of or beneficial interest in the securities to the employee's	564
supervisor. Thereafter, the employee shall be disqualified from	565
participating in any decision, examination, audit, or other action	566
that may affect the financial institution or consumer finance	567
company. However, if the ownership of or beneficial interest in	568
the securities and the subsequent disqualification required by	569
this division impair the employee's ability to perform the	570
employee's duties, the employee may be ordered to divest self of	571
the ownership of or beneficial interest in the securities.	572

(F)(1) For purposes of this section, the interests of an	573
employee's spouse or dependent child arising through the ownership	574
or control of securities shall be considered the interests of the	575
employee, unless the interests are solely the financial interest	576
and responsibility of the spouse or dependent child, the interests	577
are not in any way derived from the income, assets, or activity of	578
the employee, and any financial or economic benefit from the	579
interests is for the personal use of the spouse or dependent	580
child.	581

(2) If an employee's spouse or dependent child obtains	582
interests arising through the ownership or control of securities	583
and, pursuant to division (F)(1) of this section, the interests	584
are not considered the interests of the employee, the employee	585
shall immediately provide written notice of the interests to the	586
employee's supervisor. Thereafter, the employee shall be	587
disqualified from participating in any decision, examination,	588
audit, or other action that may affect the issuer of the	589
securities.	590

(G) For purposes of divisions (C) and (D) of this section,	591
both of the following apply:	592

(1) With respect to any employee of the former division of	593
consumer finance who, on the first day of the first pay period	594
commencing after the effective date of this section, becomes an	595
employee of the division of financial institutions, the employee's	596
employment with the division of financial institutions is deemed	597
to commence on the first day of the first pay period commencing	598
after the effective date of this section.	599

(2) With respect to any employee who, on October 29, 1995,	600
became an employee of the division of financial institutions, the	601
employee may, notwithstanding divisions (C) and (D) of this	602
section, retain any extension of credit by a consumer finance	603
company that was obtained at any time prior to the first day of	604
the first pay period commencing after the effective date of this	605
section, or retain any ownership of or beneficial interest in the	606
securities of a consumer finance company, or of a holding company	607
or subsidiary of such a company, that was acquired at any time	608
prior to the first day of the first pay period commencing after	609
the effective date of this section. If the employee chooses to	610
retain the extension of credit or the ownership or beneficial	611
interest, the employee shall comply with divisions (C) and (D) of	612
this section.	613

Sec. 1181.21.  (A) As used in this section, "consumer finance	614
company" has the same meaning as in section 1181.05 of the Revised	615
Code.	616

(B) The superintendent of financial institutions shall see	617
that the laws relating to consumer finance companies are executed	618
and enforced.	619

(C) The deputy superintendent for consumer finance shall be	620
the principal supervisor of consumer finance companies. In that	621
position the deputy superintendent for consumer finance shall,	622
notwithstanding section 1321.421, division (A) of section 1321.76,	623
and sections 1321.07, 1321.55, 1322.06, 1323.12, 4727.05, and	624
4728.05 of the Revised Code, be responsible for conducting	625
examinations and preparing examination reports under those	626
sections. In addition, the deputy superintendent for consumer	627
finance shall, notwithstanding sections 1315.27, 1321.10, 1321.43,	628
1321.54, 1321.77, 1322.12, 1323.11, 4712.14, 4727.13, and 4728.10	629
of the Revised Code, have the authority to adopt rules and	630
standards in accordance with those sections. In performing or	631
exercising any of the examination, rule-making, or other	632
regulatory functions, powers, or duties vested by this division in	633
the deputy superintendent for consumer finance, the deputy	634
superintendent for consumer finance shall be subject to the	635
control of the superintendent of financial institutions and the	636
director of commerce.	637

Sec. 1321.52.  (A)(1) No person, on that person's own behalf	638
or on behalf of any other person, shall do any of the following	639
without having first obtained a certificate of registration from	640
the division of financial institutions:	641

(a) Advertise, solicit, or hold out that the person is	642
engaged in the business of making residential mortgage loans	643
secured by a mortgage on a borrower's real estate which is other	644
than a first lien on the real estate;	645

(b) Engage in the business of lending or collecting the	646
person's own or another person's money, credit, or choses in	647
action for non-first lien residential mortgage loans;	648

(c) Employ or compensate mortgage loan originators licensed	649
or who should be licensed under sections 1321.51 to 1321.60 of the	650
Revised Code to conduct the business of making residential	651
mortgage loans;	652

(d)(c) Make loans in this state of the type set forth in	653
division (C) of this section that are unsecured or are secured by	654
other than real property, which loans are for more than five	655
thousand dollars at a rate of interest greater than permitted by	656
section 1343.01 or other specific provisions of the Revised Code.	657

(2) Each person issued a certificate of registration or	658
license is subject to all the rules prescribed under sections	659
1321.51 to 1321.60 of the Revised Code.	660

(B)(1) All loans made to persons who at the time are	661
residents of this state are considered as made within this state	662
and subject to the laws of this state, regardless of any statement	663
in the contract or note to the contrary, except as follows:	664

(a) If the loan is primarily secured by a lien on real	665
property in another state and is arranged by a mortgage loan	666
originator licensed by that state, the borrower may by choice of	667
law designate that the transaction be governed by the law where	668
the real property is located if the other state has consumer	669
protection laws covering the borrower that are applicable to the	670
transaction.	671

(b) If the loan is for the purpose of purchasing goods	672
acquired by the borrower when the borrower is outside of this	673
state, the loan may be governed by the laws of the other state.	674

(2) Nothing in division (B)(1) of this section prevents a	675
choice of law or requires registration or licensure of persons	676
outside of this state in a transaction involving the solicitation	677
of residents of this state to obtain non-real estate secured loans	678
that require the borrowers to physically visit a lender's	679
out-of-state office to apply for and obtain the disbursement of	680
loan funds.	681

(C) A registrant may make unsecured loans, loans secured by a	682
mortgage on a borrower's real estate which is a first lien or	683
other than a first lien on the real estate, loans secured by other	684
than real estate, and loans secured by any combination of	685
mortgages and security interests, on terms and conditions provided	686
by sections 1321.51 to 1321.60 of the Revised Code.	687

(D)(1) If a lender that is subject to sections 1321.51 to	688
1321.60 of the Revised Code makes a loan in violation of division	689
(A)(1) of this section, the lender has no right to collect,	690
receive, or retain any interest or charges on that loan.	691

(2) If a registrant applies to the division for a renewal of	692
the registrant's certificate after the date required by division	693
(A)(7) of section 1321.53 of the Revised Code, but prior to the	694
first day of February of that year, and the division approves the	695
application, division (D)(1) of this section does not apply with	696
respect to any loan made by the registrant while the registrant's	697
certificate was expired.	698

(3) If a person's registration under sections 1321.51 to	699
1321.60 of the Revised Code terminates due to nonrenewal or	700
otherwise but the person continues to engage in the business of	701
collecting or servicing non-first lien residential mortgage loans	702
in violation of division (A)(1) of this section, the	703
superintendent of financial institutions may take administrative	704
action, including action on any subsequent application for a	705
certificate of registration. In addition, no late fee, bad check	706
charge except as incurred, charge related to default or cost to	707
realize on its security interest, or prepayment penalty on	708
non-first lien residential mortgage loans shall be collected or	709
retained by a person who is in violation of division (A)(1)(b) of	710
this section for the period of time in which the person was in	711
violation. Nothing in division (D)(3) of this section prevents or	712
otherwise precludes any other actions or penalties provided by law	713
or modifies a defense of holder in due course that a subsequent	714
purchaser servicing the residential mortgage loan may raise.	715

(E)(1) No individual shall engage in the business of a	716
mortgage loan originator without first obtaining and maintaining	717
annually a license pursuant to section 1321.532 of the Revised	718
Code from the division of financial institutions. A mortgage loan	719
originator shall be employed or associated with a registrant or	720
entity exempt from registration under sections 1321.51 to 1321.60	721
of the Revised Code, but shall not be employed by or associated	722
with more than one registrant or exempt entity at any one time.	723

(2) An individual acting under the individual's authority as	724
a registered mortgage loan originator shall not be required to be	725
licensed under division (E)(1) of this section.	726

(3) An individual who holds a valid temporary mortgage loan	727
originator license issued pursuant to section 1321.537 of the	728
Revised Code may engage in the business of a mortgage loan	729
originator in accordance with sections 1321.51 to 1321.60 of the	730
Revised Code during the term of the temporary license.	731

(F)(1) Each licensee shall register with, and maintain a	732
valid unique identifier issued by, the nationwide mortgage	733
licensing system and registry.	734

(2) No person shall use a licensee's unique identifier for	735
any purpose other than as set forth in the "Secure and Fair	736
Enforcement for Mortgage Licensing Act of 2008," 122 Stat. 2810,	737
12 U.S.C. 5101.	738

(G)(1) If a person that is subject to sections 1321.51 to	739
1321.60 of the Revised Code makes a loan in violation of division	740
(A)(1)(d)(c) of this section and subsequently sells or assigns	741
that loan, the person is liable to the borrower for any interest	742
paid on that loan to the holder or assignee in excess of the rate	743
that would be applicable in the absence of sections 1321.51 to	744
1321.60 of the Revised Code, in addition to any interest or	745
charges paid on that loan to the unauthorized lender as provided	746
by division (D)(1) of this section.	747

(2) If a person that is subject to sections 1321.51 to	748
1321.60 of the Revised Code makes a residential mortgage loan in	749
violation of division (A)(1)(b) or (c) of this section and	750
subsequently sells or assigns that loan, the lender is liable to	751
the borrower for any interest paid on that loan to the holder or	752
assignee in excess of the rate set forth in division (B)(4) of	753
section 1343.01 of the Revised Code, in addition to any interest	754
or charges paid on that loan to the unauthorized lender as	755
provided by division (D)(1) of this section.	756

Sec. 1323.01. As used in this chapter:

757

(A) "Mortgage servicer" or "servicer" means a person who	758
engages directly or indirectly, whether for compensation, gain for	759
another, or on the person's own behalf, in the business of	760
receiving scheduled periodic payments from a borrower pursuant to	761
the terms of a residential mortgage loan, including amounts	762
received for deposit in an escrow account, and applying those	763
payments received toward principal, interest, and other	764
obligations of the borrower including amounts to be paid from an	765
escrow account.	766

"Mortgage servicer" includes a person who makes or holds a	767
loan if that person also services the loan.	768

"Mortgage servicer" does not include any of the following:

769

(1) The federal deposit insurance corporation or the	770
resolution trust corporation, in connection with assets acquired,	771
assigned, sold, or transferred pursuant to the "Federal Deposit	772
Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C.	773
1823(c), or as receiver or conservator of an insured depository	774
institution;	775

(2) The government national mortgage association, the federal	776
national mortgage association, the federal home loan mortgage	777
corporation, the resolution trust corporation, or the federal	778
deposit insurance corporation, in any case in which the	779
assignment, sale, or transfer of the servicing of the mortgage	780
loan is preceded by:	781

(a) Termination of the contract for servicing the loan for	782
cause;	783

(b) Commencement of proceedings for bankruptcy of the	784
servicer;	785

(c) Commencement of proceedings by the federal deposit	786
insurance corporation or the resolution trust corporation for	787
conservatorship or receivership of the servicer or an entity by	788
which the servicer is owned or controlled.	789

(3) The national credit union administration, in connection	790
with assets acquired, assigned, sold, or transferred pursuant to	791
federal law, or as a receiver or conservator of an insured credit	792
union;	793

(4) Any political subdivision or any public agency of the	794
United States or any state.	795

(B) "Mortgage lender" means a person engaged in the business	796
of making residential mortgage loans for compensation or gain.	797

(C) "Residential mortgage" and "residential mortgage loan"	798
mean an obligation to pay a sum of money evidenced by a note and	799
secured by a lien upon real property located within this state	800
containing four or fewer residential units and includes such an	801
obligation on a residential condominium or cooperative unit.	802

(D) "Employee" means an individual for whom a person pays a	803
wage or salary, pays social security and unemployment taxes,	804
provides workers' compensation coverage, and withholds local,	805
state, and federal income taxes. "Employee" includes any	806
individual who acts as an operations manager of a registered	807
mortgage servicer, but for whom the servicer is prevented by law	808
from making income tax withholdings.	809

(E) "Operations manager" means the employee or owner	810
responsible for the everyday operations, compliance requirements,	811
and management of a registrant or applicant.	812

(F) "Superintendent of financial institutions" or	813
"superintendent" includes the deputy superintendent for consumer	814
finance as provided in section 1181.21 of the Revised Code.	815

(G) "Credit union" means an entity chartered under Chapter	816
1733. of the Revised Code or under similar laws of another state	817
or the United States. "Credit union" includes a credit union	818
service organization consisting of multiple credit unions.	819

Sec. 1323.02.  (A) This chapter shall be known as the	820
"residential mortgage servicers registration act."	821

(B) This chapter does not apply to any of the following:

822

(1) Any entity that is chartered and lawfully doing business	823
as a bank, savings bank, trust company, savings and loan	824
association, or credit union under the authority of any law of	825
this state, another state, or the United States;	826

(2) Life, property, or casualty insurance companies licensed	827
to do business in this state;	828

(3) Any attorney or law firm acting on behalf of any mortgage	829
note holder or mortgage servicer when acting in connection with	830
the practice of law in this state, except as otherwise provided in	831
division (D) of this section;	832

(4) Any political subdivision, or any governmental or other	833
public agency, corporation, or instrumentality in or of the United	834
States or any state;	835

(5) An institution of higher education as defined in section	836
1713.01 of the Revised Code;	837

(6) A debt collector acting under the name of, and as agent	838
for, a mortgage servicer registrant to collect a debt in default.	839

(C) Mortgage lenders registered under section 1321.52 of the	840
Revised Code and mortgage brokers registered under section 1322.02	841
of the Revised Code are exempt from the registration requirements	842
of section 1323.03 of the Revised Code but shall comply with	843
divisions (C), (D), (F), and (G) of section 1323.15, and sections	844
1323.16, 1323.17, and 1323.18 of the Revised Code in connection	845
with the servicing of residential mortgage loans. Any violation of	846
these sections is an unfair and deceptive practice in violation of	847
section 1345.02 of the Revised Code and may result in	848
administrative action and penalties the superintendent of	849
financial institutions of the department of commerce imposes	850
pursuant to sections 1321.54 and 1322.10 of the Revised Code.	851

(D) Any attorney or law firm primarily engaged in debt	852
collection shall comply with division (D) of section 1323.15 and	853
section 1323.18 of the Revised Code when acting as a mortgage	854
servicer, notwithstanding the general exemption from this chapter.	855
Any violation by an attorney of division (D) of section 1323.15 or	856
section 1323.18 of the Revised Code, in connection with any debt	857
collection activity that is not considered the practice of law, is	858
deemed to be an unfair and deceptive practice in violation of	859
section 1345.02 of the Revised Code.	860

Sec. 1323.03.  (A) No person, on that person's own behalf or	861
on behalf of any other person, shall do either of the following	862
unless that person is registered as a mortgage servicer and has a	863
certificate of registration from the superintendent of financial	864
institutions of the department of commerce:	865

(1) Engage in the business of collecting money, credit, or	866
choses in action for residential mortgage loans or otherwise act	867
as a mortgage servicer;	868

(2) Collect accelerated mortgage payments from a biweekly or	869
other accelerated payment plan that the person operates, arranges,	870
or offers to arrange for compensation or gain in connection with a	871
residential mortgage loan.	872

(B) Any person who acts in willful violation of division (A)	873
of this section, after receiving written notice of the violation	874
from the superintendent or a court, may not collect any amounts as	875
interest or charges on that loan. Any amounts collected shall be	876
credited as a principal reduction to the loan.	877

(C)(1) When a registration expires for any reason and the	878
former registrant continues to service residential mortgage loans	879
in violation of division (A) of this section, the superintendent	880
may take administrative action, including action on any subsequent	881
application for a certificate of registration.	882

(2) A servicer with an expired registration may not collect,	883
charge, or retain any late fee, bad check charge except as	884
incurred, charge related to default, cost to realize on its	885
security interest, or prepayment penalty on any residential	886
mortgage loan unless that servicer applies to the superintendent	887
for a registration renewal and a certificate of registration prior	888
to the first day of August of the year the registration expires	889
and the superintendent approves that application.	890

(D) No person shall conduct the business of a mortgage	891
servicer in association with any exempt business if the	892
superintendent has ordered that exempt business, in writing, to	893
desist from conduct that the superintendent found to be a mere	894
conduit for the mortgage servicer and that the association of the	895
servicer and the exempt business is intended to conceal an evasion	896
of this chapter or the rules adopted under it. Any determination	897
made pursuant to this division shall be made in accordance with	898
Chapter 119. of the Revised Code.	899

Sec. 1323.04.  (A) Any application for registration as a	900
mortgage servicer shall be in writing, under oath, and in the form	901
the superintendent of financial institutions of the department of	902
commerce prescribes. It shall contain an undertaking by the	903
applicant to abide by this chapter and any other information that	904
the superintendent requires. Applicants that are foreign	905
corporations shall obtain and maintain a license pursuant to	906
Chapter 1703. of the Revised Code before seeking registration or	907
registration renewal as a mortgage servicer.	908

(B) Upon an applicant's filing an application and paying a	909
nonrefundable two-hundred-dollar investigation fee, a	910
nonrefundable one-thousand-dollar annual registration fee, and any	911
additional fee required by law, the superintendent shall	912
investigate the relevant facts. If the application requires	913
investigation outside this state, the applicant may be required to	914
advance sufficient funds to pay any of the actual expenses when it	915
appears that these expenses will exceed two hundred dollars. The	916
superintendent shall furnish an itemized statement of any expenses	917
the applicant is required to pay. The superintendent shall not	918
issue any certificate of registration unless all the required fees	919
have been paid.	920

(C) An applicant shall designate an employee or owner who has	921
at least three years' experience in the mortgage, collections,	922
servicing, or lending field as the applicant's operations manager.	923
No operations manager shall be employed by any other mortgage	924
servicer while acting as an operations manager. Any operations	925
manager must be acceptable to the superintendent.	926

(D) The superintendent may consider an application for	927
registration as a mortgage servicer withdrawn if that application	928
does not contain all of the information required under division	929
(A) of this section and the applicant does not submit that	930
information within ninety days after the superintendent requests	931
the information in writing.	932

(E) The superintendent of financial institutions shall	933
deposit any licensing fee, charge, or fine received pursuant to	934
this chapter into the consumer finance fund in the state treasury,	935
created under section 1321.21 of the Revised Code, unless	936
otherwise specified by law.	937

Sec. 1323.05.  (A)(1) Any investigation the superintendent of	938
financial institutions of the department of commerce undertakes	939
with respect to an application for registration as a mortgage	940
servicer shall include a civil records check of the applicant,	941
including any individual whose identity is required to be	942
disclosed in the application, and criminal records check at the	943
time of the initial application and every five years thereafter,	944
or upon a change of control of the registrant if the persons	945
acquiring control have not had a criminal records check submitted	946
to the superintendent within the past five years.	947

(2) Where the applicant is a business entity, the	948
superintendent may require a civil and criminal background check	949
of those persons that the superintendent determines have the	950
authority to direct and control the operations of the applicant.	951

(B) When conducting a criminal background check, the	952
superintendent shall request the superintendent of the bureau of	953
criminal identification and investigation, or a vendor the	954
superintendent approves, to conduct a criminal records check based	955
on the applicant's fingerprints or if fingerprints are unreadable,	956
based on the applicant's social security number in accordance with	957
division (A)(8) of section 109.572 of the Revised Code.	958
Notwithstanding division (K) of section 121.08 of the Revised	959
Code, the superintendent of financial institutions shall request	960
that criminal record information from the federal bureau of	961
investigation be obtained as part of the criminal records check.	962

(C) The applicant shall pay any fee required under division	963
(C)(3) of section 109.572 of the Revised Code.	964

Sec. 1323.06.  (A) The superintendent of financial	965
institutions of the department of commerce shall issue a	966
certificate of registration as a mortgage servicer to an applicant	967
if the superintendent finds that the applicant's financial	968
responsibility, experience, character, and general fitness command	969
the confidence of the public and warrant the belief that the	970
business will be operated honestly and fairly in compliance with	971
the purposes of this chapter and the rules adopted under it, and	972
that the applicant has the requisite bond or applicable net worth	973
as this chapter requires.	974

(B) Upon finding an applicant does not meet the conditions	975
set forth in this chapter, the superintendent shall issue a notice	976
of intent to deny an application for registration or renewal. The	977
superintendent shall immediately notify the applicant of the	978
denial, the grounds for the denial, and the applicant's	979
opportunity to be heard on the action in accordance with Chapter	980
119. of the Revised Code.	981

(C) Any certificate issued pursuant to this section shall	982
expire on the first day of July next after its issue, and on the	983
first day of July in each succeeding year unless renewed by filing	984
a renewal application and payment of an annual fee and any	985
additional fee required by law, on or before the last day of June	986
of each year.	987

Sec. 1323.07.  (A) To renew a registration as a mortgage	988
servicer, a registrant shall timely file a renewal application on	989
a form the superintendent of financial institutions of the	990
department of commerce prescribes, along with any additional	991
information that the superintendent requires.	992

(B) As a condition of renewal, a registrant must provide	993
proof that the designated operations manager meets the criteria	994
for initial approval set forth in section 1323.05 of the Revised	995
Code and that the mortgage servicer meets the minimum standards	996
for the issuance of the certificate of registration under sections	997
1323.04 to 1323.06 of the Revised Code.	998

(C) The superintendent shall not grant any renewal if the	999
applicant's certificate of registration is subject to an order of	1000
suspension, revocation, or an unpaid and past due fine the	1001
superintendent has imposed.	1002

(D) If an application for renewal of a certificate of	1003
registration does not contain all the information this section	1004
requires, and if the registrant does not submit that information	1005
to the superintendent within ninety days after the superintendent	1006
requests the information in writing, the superintendent may	1007
consider the application withdrawn.	1008

Sec. 1323.08.  At any time there is a change of five per cent	1009
or more in the ownership of a registrant, the superintendent of	1010
financial institutions of the department of commerce may make any	1011
investigation necessary to determine whether any fact or condition	1012
presently exists that would have warranted the superintendent	1013
denying the original application had the fact or condition existed	1014
at the time of that application. If the superintendent finds such	1015
a fact or condition, the superintendent may revoke the	1016
registrant's registration and certificate pursuant to Chapter 119.	1017
of the Revised Code.	1018

Sec. 1323.09.  (A) Each place of business to which borrowers	1019
are regularly directed to remit payment shall display its own	1020
certificate of registration. The superintendent of financial	1021
institutions of the department of commerce may issue additional	1022
certificates of registration to the same person for additional	1023
places of business upon compliance with the requirements governing	1024
the issuance of a single certificate.	1025

(B)(1) Any change in the place of business to a location	1026
outside the original municipal corporation requires a new	1027
certificate of registration. A registrant who makes such a change	1028
of location shall submit a new application, pay the registration	1029
fee and, if the superintendent requires, pay an investigation fee	1030
of two hundred dollars. The registrant must have the new	1031
certificate before operating in the new location.	1032

(2) A registrant who wishes to change its place of business	1033
within the same municipal corporation shall give written notice of	1034
the change in advance to the superintendent, who shall provide a	1035
certificate for the new address without cost.	1036

(C) A registrant that changes its name shall give written	1037
notice of the change to the superintendent prior to acting as a	1038
mortgage servicer under the new name. The superintendent shall	1039
provide a certificate in the new name without cost.	1040

(D) A registrant shall keep each certificate conspicuously	1041
posted in each place of business. A certificate of registration is	1042
not transferable or assignable.	1043

Sec. 1323.10.  (A) Any person who acts as a mortgage	1044
servicer, if not bonded pursuant to division (B) of this section,	1045
shall maintain at all times both of the following:	1046

(1) A net worth of at least two hundred fifty thousand	1047
dollars;	1048

(2) For each additional certificate of registration beyond	1049
the first, assets of at least fifty thousand dollars either in use	1050
or readily available for use in the conduct of the business.	1051

(B) Any person acting as a mortgage servicer by arranging	1052
biweekly or other accelerated payment plans and collecting those	1053
payments shall obtain and maintain in effect at all times a	1054
corporate surety bond issued by a bonding company or insurance	1055
company authorized to do business in this state. The servicer	1056
shall file a copy of the bond with the superintendent of financial	1057
institutions of the department of commerce. The bond shall meet	1058
all of the following conditions:	1059

(1) Be in favor of the superintendent;

1060

(2) Have a base penal sum of two hundred fifty thousand	1061
dollars for the first location and an additional penal sum of ten	1062
thousand dollars for each additional location that requires a	1063
separate certificate of registration;	1064

(3) Have a term that coincides with the term of registration;

1065

(4) Be for the exclusive benefit of any individual borrower	1066
injured by any violation of this chapter or the rules adopted	1067
under it by a servicer, its employees, or agent;	1068

(5) Have an aggregate liability of the corporate surety for	1069
any and all breaches of the conditions of the bond not to exceed	1070
the penal sum of the bond.	1071

(C)(1) A mortgage servicer shall give notice to the	1072
superintendent by certified mail of any action that is brought by	1073
a borrower against the servicer alleging injury by a violation of	1074
this chapter and of any judgment that is entered against the	1075
servicer by a borrower injured by that violation. The notice shall	1076
provide details sufficient to identify the action or judgment. The	1077
servicer shall file the notice with the superintendent within ten	1078
days after the commencement of the action or receipt of the notice	1079
of entry of a judgment.	1080

(2) A corporate surety shall give notice of any payment to	1081
the superintendent by certified mail within ten days after it pays	1082
any claim or judgment, with details sufficient to identify the	1083
person and the claim or judgment paid.	1084

(D) Whenever the penal sum of the corporate surety bond is	1085
reduced by one or more recoveries or payments, a servicer shall	1086
furnish a new or additional bond under this section, so that the	1087
total or aggregate penal sum of the bond or bonds equals the sum	1088
required by this section, or shall furnish an endorsement executed	1089
by the corporate surety reinstating the bond to the required penal	1090
sum set forth in division (B) of this section.	1091

(E) The liability of the corporate surety on the bond to the	1092
superintendent and to any borrower injured by a violation of this	1093
chapter is not affected in any way by any misrepresentation,	1094
breach of warranty, or failure to pay the premium, by any act or	1095
omission upon the part of the servicer, by the insolvency or	1096
bankruptcy of the servicer, or by the insolvency of the servicer's	1097
estate. The servicer shall maintain in effect liability for any	1098
act or omission that occurs during the term of the corporate	1099
surety bond for at least two years after the date on which the	1100
corporate surety bond is terminated or canceled.	1101

(F) Neither the servicer nor the corporate surety shall	1102
cancel a corporate surety bond except upon notice to the	1103
superintendent by certified mail, return receipt requested. A	1104
cancellation is not effective until thirty days after the	1105
superintendent receives the notice.	1106

(G) No servicer shall fail to comply with this section. Any	1107
servicer that fails to comply shall cease acting as a mortgage	1108
servicer in this state until that servicer complies with this	1109
section.	1110

Sec. 1323.11.  (A) The superintendent of financial	1111
institutions of the department of commerce may adopt, in	1112
accordance with Chapter 119. of the Revised Code, rules to	1113
administer and enforce this chapter and to carry out its purposes.	1114

(B) The superintendent may investigate alleged violations of	1115
this chapter or the rules adopted under it, or complaints	1116
concerning any violation. In conducting an investigation, the	1117
superintendent, by subpoena, may compel witnesses to testify in	1118
relation to any matter over which the superintendent has	1119
jurisdiction, and may require the production or photocopying of	1120
any book, record, or other document pertaining to such matter. If	1121
a person fails to comply with the subpoena, or permit photocopying	1122
of any document subpoenaed, a court of common pleas, upon the	1123
superintendent's application, shall compel obedience by attachment	1124
proceedings for contempt or a refusal to testify.	1125

(C)(1) In accordance with Chapter 119. of the Revised Code,	1126
the superintendent may revoke, suspend, or refuse to renew any	1127
registration issued under this chapter if the superintendent finds	1128
any of the following:	1129

(a) A violation of or failure to comply with any provision of	1130
this chapter or the rules adopted under it, Chapter 1345. of the	1131
Revised Code, federal debt collection laws, or any other law	1132
applicable to the business the registrant conducts under the	1133
registrant's certificate of registration;	1134

(b) The registrant has been convicted of or pleaded guilty or	1135
no contest in a domestic, foreign, or military court to any felony	1136
or any criminal offense involving theft, receiving stolen	1137
property, embezzlement, forgery, fraud, passing bad checks, money	1138
laundering, breach of trust, dishonesty, or drug trafficking, or	1139
any criminal offense involving money or securities;	1140

(c) The registrant's certificate of registration, license, or	1141
comparable authority as a mortgage servicer has been revoked in	1142
any other state.	1143

(2) The superintendent may impose a monetary fine pursuant to	1144
division (F) of this section in addition to, or instead of, any	1145
revocation, suspension, or denial or in settlement of matters	1146
subject to claims under division (C)(1)(a) of this section.	1147

(3) Except as otherwise provided in section 1323.03 of the	1148
Revised Code, the revocation, suspension, or refusal to renew a	1149
registration does not impair the obligation of any pre-existing	1150
lawful contract made under this chapter if a mortgage servicer	1151
makes a good faith effort to promptly transfer its collection	1152
rights to a registrant or person exempt from registration. A	1153
servicer that does not make the requisite good faith effort is	1154
subject to additional monetary fines and legal or administrative	1155
action by the superintendent.	1156

(4) Nothing in division (C) of this section limits a court's	1157
ability to impose a cease and desist order preventing any further	1158
business or servicing activity.	1159

(D) The superintendent may apply to the court of common pleas	1160
for an order enjoining any violation of this chapter. Upon a	1161
showing that a person has committed or is about to commit a	1162
violation of this chapter, the court shall grant an injunction,	1163
restraining order, or other appropriate relief. If the application	1164
to a court is for an order enjoining a person from acting as a	1165
registrant or mortgage servicer in violation of division (A) of	1166
section 1323.03 of the Revised Code, the superintendent may	1167
request, and the court may impose, a civil penalty for that	1168
unregistered or unlicensed conduct in an amount not to exceed five	1169
thousand dollars per violation.	1170

(E) The superintendent may issue a cease and desist order if	1171
the superintendent determines that a person is engaged in or may	1172
be engaged in activities that violate this chapter or the rules	1173
adopted under it, after notice and a hearing conducted in	1174
accordance with Chapter 119. of the Revised Code.	1175

(F)(1) The superintendent may impose a fine of not more than	1176
one thousand dollars for each day a violation of this chapter or	1177
the rules adopted under it is committed, repeated, or continued.	1178
In determining the amount of a fine to impose, the superintendent	1179
may consider all of the following:	1180

(a) The seriousness of the violation;

1181

(b) The servicer's good faith efforts to prevent the	1182
violation;	1183

(c) The servicer's history regarding violations and	1184
compliance with the superintendent's orders;	1185

(d) The servicer's financial resources;

1186

(e) Any other matters the superintendent considers	1187
appropriate in enforcing this chapter.	1188

(2) Monetary fines imposed under this section do not preclude	1189
any criminal fine described in section 1323.99 of the Revised	1190
Code.	1191

(G) All fines collected pursuant to this section shall be	1192
paid to the treasurer of state to the credit of the consumer	1193
finance fund created in section 1321.21 of the Revised Code.	1194

Sec. 1323.12.  (A)(1) A mortgage servicer shall keep separate	1195
records pertaining to each loan serviced. The servicer shall	1196
preserve those records for so long as the servicer has	1197
responsibility for the loan and retain copies of those records for	1198
at least four years even if the servicer transfers the original	1199
copies for any reason. At any time responsibility for the loan is	1200
transferred to another servicer, the servicer who is ceasing	1201
responsibility shall transfer all original loan documents and	1202
records to the servicer who is assuming responsibility for the	1203
loan. Any system of electronic imaging of required records shall	1204
be approved by the superintendent of financial institutions of the	1205
department of commerce prior to its use but at no time shall such	1206
a system be a substitute for maintaining original documents as	1207
this section requires.	1208

(2) As often as necessary, the superintendent may make or	1209
cause to be made an examination of records pertaining to loans	1210
serviced for the purpose of determining whether the servicer is	1211
complying with this chapter and of verifying any registrant's	1212
annual report.	1213

(B)(1) The superintendent may require each servicer to file	1214
each year a report under oath or affirmation, on forms the	1215
superintendent supplies, concerning the business and operations	1216
for the preceding calendar year. A servicer that operates two or	1217
more registered offices or who operates registered offices with	1218
one or more affiliated servicers, may file a composite report of	1219
the group of registered offices in lieu of individual reports.	1220

(2) The reports provided under division (B)(1) of this	1221
section are not public records as defined in section 149.43 of the	1222
Revised Code and are not open to public inspection.	1223

(C)(1) The following information is confidential:

1224

(a) Examination information, and any information leading to	1225
or arising from an examination;	1226

(b) Investigation information, and any information arising	1227
from or leading to an investigation.	1228

(2) The information described in division (C) of this section	1229
is confidential for all purposes except when it is necessary for	1230
the superintendent to take official action regarding the affairs	1231
of a servicer or in connection with criminal or civil proceedings	1232
to be initiated by a prosecuting attorney or the attorney general.	1233
This information may be introduced into evidence or disclosed	1234
pursuant to section 1181.25 of the Revised Code.	1235

(D) All application information is a public record as defined	1236
in section 149.43 of the Revised Code, except social security	1237
numbers, employer identification numbers, financial account	1238
numbers, the identity of the institution where financial accounts	1239
are maintained, personal financial information, fingerprint cards	1240
and the information contained on such cards, and criminal	1241
background information.	1242

(E) Nothing in this section prevents the superintendent from	1243
releasing information relating to servicers or exchanging that	1244
information with other financial institution regulatory	1245
authorities. For this purpose, a "financial institution regulatory	1246
authority" includes a regulator of a business activity in which a	1247
servicer is engaged or has applied to engage, to the extent that	1248
the regulator has jurisdiction over a servicer engaged in that	1249
business activity. A servicer is engaged in a business activity,	1250
and a regulator of that business activity has jurisdiction over	1251
the servicer, whether the servicer conducts the activity directly	1252
or a subsidiary or affiliate of the servicer conducts the	1253
activity.	1254

(F) Nothing in this section prevents the superintendent of	1255
financial institutions from releasing information relating to	1256
mortgage servicers to the attorney general, to the superintendent	1257
of real estate and professional licensing of the department of	1258
commerce for purposes relating to the administration of Chapters	1259
4735. and 4763. of the Revised Code, to the superintendent of	1260
insurance for purposes relating to the administration of Chapter	1261
3953. of the Revised Code, to the commissioner of securities of	1262
the department of commerce for purposes relating to the	1263
administration of Chapter 1707. of the Revised Code, or to local	1264
law enforcement agencies and local prosecutors. Information	1265
released pursuant to this section remains confidential. The	1266
superintendent of financial institutions, by rule, may designate	1267
additional state agencies and regulatory authorities as entities	1268
with which to share this confidential information.	1269

Sec. 1323.13.  No person, in connection with any examination	1270
or investigation conducted by the superintendent of financial	1271
institutions of the department of commerce under this chapter,	1272
shall knowingly do any of the following:	1273

(A) Circumvent, interfere with, obstruct, or fail to	1274
cooperate, including making a false or misleading statement,	1275
failing to produce records, or intimidating or suborning any	1276
witness;	1277

(B) Withhold, abstract, remove, mutilate, destroy, or secrete	1278
any books, records, computer records, or other information;	1279

(C) Tamper with, alter, or manufacture any evidence.

1280

Sec. 1323.14.  (A) No mortgage servicer, through its	1281
operations manager or otherwise, shall fail to reasonably	1282
supervise persons the servicer employs or associates with, or to	1283
establish reasonable procedures to avoid violations of this	1284
chapter or the rules adopted under it, violations of applicable	1285
state and federal consumer and lending laws or rules by persons	1286
the servicer employs or associates with.	1287

(B) Within ten business days of any change in a mortgage	1288
servicer's statutory agent designation or address, the servicer	1289
shall file with the superintendent of financial institutions of	1290
the department of commerce evidence that the servicer has filed	1291
such changes with the secretary of state.	1292

(C)(1) At least thirty days prior to the closure of a	1293
registered office location, a mortgage servicer shall notify the	1294
superintendent by filing a notice of closure on a form approved by	1295
the superintendent. The notice shall indicate the custodian of the	1296
records and where the records will be maintained. Within five	1297
business days after the closure, the servicer shall surrender the	1298
certificate of registration issued to that location by returning	1299
it to the superintendent.	1300

(2) The closure of an office and the surrender of a	1301
certificate does not affect a mortgage servicer's civil or	1302
criminal liability for acts committed before the surrender.	1303

(D) A mortgage servicer shall maintain books and records in	1304
compliance with this chapter and make them available to the	1305
superintendent of financial institutions of the department of	1306
commerce. After any closure, records remain subject to examination	1307
and or investigation. The servicer shall send the superintendent	1308
written notice of any change in the location of the records or the	1309
custodian of those records.	1310

Sec. 1323.15.  (A) No mortgage servicer shall refuse to	1311
provide information regarding the amount required to pay in full a	1312
residential mortgage loan when the borrower or a person the	1313
borrower designates makes that request in writing. The servicer	1314
shall provide the requested payoff statement without charge one	1315
time during any twelve-month period. If additional payoff	1316
statements are requested, the servicer may charge an amount not in	1317
excess of three dollars for each additional statement. The	1318
servicer shall provide any payoff statement within five business	1319
days of the request.	1320

(B) No mortgage servicer shall obtain a certificate of	1321
registration through any false or fraudulent representation of a	1322
material fact or any omission of a material fact required by state	1323
or federal law, or make any substantial misrepresentation in the	1324
registration application.	1325

(C) No mortgage servicer shall make false or misleading	1326
statements of a material fact, omissions of statements required by	1327
state or federal law, or false promises regarding a material fact,	1328
through advertising or other means, or engage in a continued	1329
course of misrepresentations.	1330

(D) No mortgage servicer shall engage in conduct that	1331
constitutes improper, fraudulent, or dishonest dealings.	1332

(E) No mortgage servicer or applicant for registration shall	1333
fail to notify the superintendent of financial institutions of the	1334
department of commerce within thirty days after the servicer or	1335
applicant has:	1336

(1) Been convicted of or pleaded guilty or no contest in a	1337
domestic, foreign, or military court to any felony;	1338

(2) Been convicted of or pleaded guilty or no contest in a	1339
domestic, foreign, or military court to any criminal offense	1340
involving theft, receiving stolen property, embezzlement, forgery,	1341
fraud, passing bad checks, money laundering, breach of trust,	1342
dishonesty, or drug trafficking, or any criminal offense involving	1343
money or securities;	1344

(3) Had a mortgage servicer registration, license, or	1345
comparable authority revoked in any other state.	1346

(F) No mortgage servicer shall knowingly make, propose, or	1347
solicit fraudulent, false, or misleading statements on any	1348
mortgage servicing document or on any document related to an	1349
accounting of payments remitted or disbursed. For purposes of this	1350
division, "fraudulent, false, or misleading statements" does not	1351
include mathematical errors, inadvertent transposition of numbers,	1352
typographical errors, or any other bona fide error.	1353

(G) No mortgage servicer shall knowingly instruct, solicit,	1354
propose, or otherwise cause a borrower to sign in blank a	1355
document.	1356

Sec. 1323.16. (A) In addition to the duties imposed by common	1357
law or state or federal law, in the course of servicing	1358
residential mortgage loans in this state, a mortgage servicer	1359
shall do all of the following:	1360

(1) Act with good faith and fair dealing in any transaction,	1361
practice, or course of business associated with servicing;	1362

(2) Act with reasonable skill, care, and diligence;

1363

(3) Act in good faith to provide the borrower with the facts	1364
relating to the nature and extent of any delinquency or default	1365
and the amounts owed or necessary to reinstate the loan or cure	1366
the default;	1367

(4) Subject to the servicer's duties and obligations under	1368
its mortgage servicing contract, attempt a resolution,	1369
modification, or workout to the delinquency of a borrower who	1370
requests assistance;	1371

(5) Make a good faith effort to correct any erroneous	1372
information it has provided to any credit reporting agency;	1373

(6) Provide information regarding the amount required to pay	1374
in full a residential mortgage loan within five business days when	1375
requested by the borrower or by another person designated in	1376
writing by the borrower. The servicer shall provide the requested	1377
payoff statement without charge once during any twelve-month	1378
period. If additional payoff statements are requested, the	1379
servicer may charge an amount not in excess of three dollars for	1380
each additional statement.	1381

(7) Make all payments from any escrow account in a timely	1382
manner, so as to avoid the assessment of late fees, penalties, or	1383
consequential damages, notwithstanding any loan delinquency,	1384
unless there are insufficient funds in the escrow account to cover	1385
the payments;	1386

(8) Accept and credit each residential mortgage loan payment	1387
received on the date received;	1388

(9) Take all steps necessary to terminate a foreclosure	1389
action when the condition giving rise to action has been fully	1390
cured. Upon cure of a default, the servicer shall reinstate the	1391
borrower to the same position as if the default had not occurred,	1392
and nullify, as of the date of the cure, any acceleration of any	1393
obligation under the residential mortgage loan or note arising	1394
from the default.	1395

(10) In addition to the duties enumerated in this chapter,	1396
any mortgage servicer for a government-insured loan shall comply	1397
with the loss mitigation standards and guidelines as required by	1398
the insuring entity.	1399

(B) When establishing a loan modification solution for a	1400
borrower, a mortgage servicer shall seek to achieve long-term	1401
sustainability for the borrower.	1402

Sec. 1323.17.  No mortgage servicer shall do any of the	1403
following in connection with a residential mortgage loan:	1404

(A) Collect, charge, or retain any fee from the borrower	1405
unless the fee is reasonable, for a bona fide service rendered,	1406
and specifically authorized by the residential mortgage loan and	1407
permitted by law;	1408

(B) Initiate a foreclosure action without proof of ownership	1409
as evidenced by a declaration signed under penalty of perjury,	1410
stating that the party in interest has reviewed the original note	1411
and all subsequent assignments and has concluded that the party in	1412
interest owns the note or mortgage;	1413

(C) Fail to provide written notice to the borrower before	1414
acquiring and placing hazard, homeowner's, or flood insurance on a	1415
property or acquiring and placing such insurance if the mortgage	1416
servicer knows, or has reason to know, that a policy for such	1417
insurance is in effect;	1418

(D) Acquire and place hazard, homeowner's, or flood insurance	1419
on a property for an amount that exceeds the greater of the	1420
insurable improvements to the property, the last known coverage	1421
amount that was sufficient to meet the borrower's insurance	1422
obligations, or the unpaid balance owed by the borrower;	1423

(E) Fail to refund unearned premiums for insurance the	1424
mortgage servicer or its agents placed upon the borrower,	1425
providing there is reasonable evidence that the needed coverage	1426
had been obtained, the forced placement is not necessary, and the	1427
property is properly insured in accordance with the loan or note.	1428

Sec. 1323.18. (A) No mortgage servicer shall use unfair,	1429
deceptive or unconscionable means to collect or attempt to collect	1430
any claim in connection with a residential mortgage loan. Without	1431
limiting the general application of the foregoing, the following	1432
actions violate this section:	1433

(1) The collection or the attempt to collect any interest or	1434
other charge, fee, or expense that is incidental to the principal	1435
obligation, unless expressly authorized by the agreement creating	1436
the obligation and by law, including division (A) of section	1437
1323.17 of the Revised Code;	1438

(2) Any communication with a borrower if the mortgage	1439
servicer knows that the borrower is represented by an attorney and	1440
the attorney's name and address are known or could be easily	1441
ascertained. This prohibition does not apply if the borrower's	1442
attorney fails to respond within thirty days to answer	1443
correspondence, return phone calls, or discuss the obligation in	1444
question, or the attorney consents to the servicer having direct	1445
communication with the borrower;	1446

(3) Placing a telephone call or otherwise communicating by	1447
telephone with a borrower or third party, at any place including a	1448
place of employment, and falsely stating that the call is "urgent"	1449
or an "emergency";	1450

(4) Using profane or obscene language or language that is	1451
intended to unreasonably abuse the listener or reader;	1452

(5) Placing telephone calls without disclosure of the	1453
caller's identity and with the intent to annoy, harass, or	1454
threaten any person at the number called;	1455

(6) Causing expense to any person in the form of long	1456
distance telephone tolls, text messaging fees, or other charges	1457
the servicer causes by concealing the true purpose of the	1458
communication;	1459

(7) Causing a telephone to ring or engaging any person in a	1460
telephone conversation repeatedly or continuously, or at unusual	1461
times or times known to be inconvenient, with the intent to annoy,	1462
abuse, oppress, or threaten any person at the called number.	1463

(B) The requirements set forth in this section are in	1464
addition to any other requirement set forth in federal or state	1465
law regulating the conduct of collection activities, including the	1466
Federal Fair Debt Collection Practices Act, 91 Stat. 874 (1977),	1467
15 U.S.C. 1692 et seq.	1468

Sec. 1323.19.  (A) No mortgage servicer, in conducting a	1469
mortgage servicer business, shall engage in any unfair, deceptive	1470
or unconscionable act in violation of Chapter 1345. of the Revised	1471
Code. Any violation of the sections set forth in division (C),	1472
(D), (F), or (G) of section 1323.15 or section 1323.16, 1323.17,	1473
or 1323.18 of the Revised Code is an unfair and deceptive act or	1474
practice in violation of section 1345.02 of the Revised Code. The	1475
attorney general may take enforcement action and a borrower may	1476
seek recovery under Chapter 1345. of the Revised Code for the	1477
violations set forth in this division.	1478

(B) A borrower injured by a violation of division (A) of this	1479
section may not recover damages, attorney's fees, and costs under	1480
Chapter 1345. of the Revised Code if the borrower has recovered	1481
damages in a cause of action initiated under section 1323.20 of	1482
the Revised Code and the damages sought under Chapter 1345. of the	1483
Revised Code are based on the same acts or circumstances as the	1484
damages awarded under section 1323.20 of the Revised Code.	1485

Sec. 1323.20.  (A) A borrower injured by a violation of this	1486
chapter may recover damages in an amount not less than all	1487
improper charges or fees paid to the mortgage servicer, plus	1488
reasonable attorney's fees and court costs, and also may be	1489
awarded punitive damages.	1490

(B) Nothing in this section prevents recovery under division	1491
(B) or (C)(2) of section 1323.03 of the Revised Code.	1492

(C) A borrower may not recover damages, attorney's fees, or	1493
costs under this section if the borrower also recovered damages in	1494
an action initiated under any section of Chapter 1321. or 1345. of	1495
the Revised Code and the damages so awarded were based on the same	1496
acts or circumstances as the damages sought under this section.	1497

Sec. 1323.99.  (A) Whoever violates division (A)(1) or (2) of	1498
section 1323.03, or division (F) or (G) of section 1323.15 of the	1499
Revised Code is guilty of a felony of the fifth degree.	1500

(B) Whoever violates section 1323.13 of the Revised Code with	1501
the intent to interfere or obstruct an examination or	1502
investigation is guilty of a felony of the fourth degree.	1503

Section 2. That existing sections 109.572, 1181.05, 1181.21,	1504
and 1321.52 of the Revised Code are hereby repealed.	1505

Section 3. Section 1323.03 of the Revised Code takes effect	1506
six months after the effective date of this act. During that	1507
six-month period, the Superintendent of Financial Institutions of	1508
the Department of Commerce may take applications for registration	1509
as a mortgage servicer, process the applications, and issue	1510
certificates of registration as the Superintendent is able. During	1511
that time, no mortgage servicer is required to have a certificate	1512
of registration and the Superintendent is not obligated to issue	1513
certificates until the Superintendent is able.	1514

Section 4.  Section 109.572 of the Revised Code is presented	1515
in this act as a composite of the section as amended by both Am.	1516
Sub. H.B. 487 and Am. Sub. S.B. 337 of the 129th General Assembly.	1517
The General Assembly, applying the principle stated in division	1518
(B) of section 1.52 of the Revised Code that amendments are to be	1519
harmonized if reasonably capable of simultaneous operation, finds	1520
that the composite is the resulting version of the section in	1521
effect prior to the effective date of the section as presented in	1522
this act.	1523