1301:8-7-15 Mortgage loan origination disclosure statements and good faith estimates and other required disclosures to buyers.

(A) Within three business days after taking an application for a loan from a buyer, a registrant shall deliver to the buyer a "Mortgage Loan Origination Disclosure Statement" which shall be on the form approved by the division and posted on its web site for that purpose, and shall include:

(1) The name, address, and telephone number of each buyer;

(2) The typewritten name of the loan officer who originated the loan on behalf of the registrant, the loan officer identification number listed on the loan officer's license issued by the division, and the signature of the loan officer;

(3) The street address, telephone number and facsimile number of the registered office from which the loan officer is working and the number on the certificate of registration issued to the office by the division;

(4) A declaration of whether the buyer will be required to pay for the services of any bona fide third party service providers if the registrant is unable to assist the buyer in obtaining a mortgage loan;

(5) A clear description of the method by which the fee to be paid to the registrant by the buyer will be calculated and a good faith estimate of the total dollar amount of the fee, as required by division (A)(1)(f) of section 1322.062 of the Revised Code. The fee calculation method shall disclose any and all compensation received by the registrant from the buyer, regardless of how the compensation is identified on mortgage loan disclosures. The disclosure of the fees must be expressed as the total dollar amount of the fees the registrant anticipates receiving from the buyer for originating the loan. If the registrant bases its fees, in whole or in part, on a percentage of the principal amount of a loan, the registrant shall disclose the dollar amount of fees in the required good faith estimate by multiplying the percentage to be charged by the anticipated principal amount of the loan. Disclosure of ranges of dollar amounts or percentages, or statements that the fees are "to be determined" are prohibited;

(6) A statement informing the buyer that to the extent permitted by state and federal law the registrant may also receive compensation from the lender in the mortgage loan transaction;

(7) A description of all the services the registrant has agreed to perform for the buyer;

(8) Notice to the buyer that the buyer is not obligated to use the registrant's services in obtaining a residential mortgage loan;

(9) If the mortgage loan to be originated by the registrant will exceed ninety per cent of the value of the property involved, the boldface statement required by division (A)(1)(j) of section 1322.062 of the Revised Code as set forth by the form approved by the division and posted on its web site for this purpose; and

(10) A place for the signature of each buyer acknowledging receipt of the required "Mortgage Loan Origination Disclosure Statement."

(B) As used in division (B) of section 1322.062 of the Revised Code, the phrase "no later than twenty-four hours after the change occurs" shall not include those hours on Sundays and national holidays.

(C) As used in division (A)(1)(f) of section 1322.062 of the Revised Code, "the fee to be paid by the buyer to the registrant" means any and all broker compensation the registrant receives from the buyer, but does not include any fees paid to the registrant by lenders in the form of yield spread premiums or service release premiums, nor does the phrase include any fees collected by registrants from buyers on behalf of bona fide third party service providers.

(D) The good faith estimate statement required by division (D) of section 1322.062 of the Revised Code must disclose all of the following:

(1) All of the information required for estimates by the "Real Estate Settlement Procedures Act," 88 Stat. 1724, 12 U.S.C. 2601 et seq., in effect on January 1, 2007; and

(2) The "nature of relationship" and "notice to borrower" statements as written in division (D) of section 1322.062 of the Revised Code and set forth by the form approved by the division and posted on its web site for this purpose. The required "nature of relationship" and "notice to borrower" disclosure form shall be appended to the required good faith estimate disclosure.

(E) Timely disclosures.

(1) As used in division (B) of section 1322.064 of the Revised Code, the phrase "twenty-four hours after the change occurs" shall not include those hours on Sundays and national holidays.

(2) In order to document that notifications of material changes to the terms and conditions of loans required by division (B) of section 1322.062 of the Revised Code, division (A) of section 1322.063 of the Revised Code, and divisions (A)(1) and (A)(2) of section 1322.064 of the Revised Code are made to buyers in a timely manner, the registrant shall do one of the following:

(a) Obtain the signature of the buyer on a dated statement in which the buyer acknowledges the time and date that notification of the changes was received;

(b) Maintain a record by time-dated facsimile that the disclosures were provided by fax to and received by the buyer;

(c) Maintain a record by time-dated computer e-mail that the disclosures were provided by e-mail to and received by the buyer; or

(d) Maintain a record by time-dated overnight, express, or certified mail that the disclosures were provided by such mail and received by the buyer.

The disclosures required by section 1322.064 of the Revised Code shall be provided on the form approved by the division and posted on its web site for this purpose. Provided, however, that where the sole change is to the mortgage broker fees, then such change may be disclosed by the provision of a revised mortgage loan origination disclosure statement.

(F) A registrant shall maintain in its records for each loan file the disclosure form required herein, both the initial and any revised versions, as executed by the borrower(s) and the responsible loan officer.

Effective: 06/01/2007
R.C. 119.032 review dates: 11/15/2010
Promulgated Under: 119.03
Statutory Authority: 1322.12
Rule Amplifies: 1322.062