(A) In this rule, the following definitions shall apply:
(1) "CE" means continuing education.
(2) "Approved CE" means a continuing education course that has been approved by the superintendent of the division of financial institutions for credit in accordance with section 1322.052 of the Revised Code. A continuing education course may be offered through classroom instruction, on-line computer learning, or video taped instruction.
(3) "Hour" shall mean sixty minutes of class time, of which fifty minutes shall be instruction, with a maximum of ten minutes of break per hour.
(4) "Attendee" is a licensee or license applicant who attends an Approved CE course.
(5) "Licensee" includes loan officers and operations managers.
(6) "Approved Provider" means a person approved by the superintendent of the division of financial institutions to offer Approved CE courses to attendees for credit and who is responsible for ensuring the division is timely informed of an attendee's completion of an Approved CE course.
(B) Each licensee shall complete at least six credit hours of approved CE for each calendar year. Credits earned in excess of six hours in any calendar year may not be carried over to the next calendar year. Credit will be given to an attendee who has a loan officer license application on file with the division at the time the attendee completes the approved CE course. The six credit hours may be obtained in a single program, course or activity or in separate courses, programs or activities.
(C) A licensee is exempt from the CE requirement of section 1322.052 of the Revised Code for the calendar year in which the licensee is first issued a license under section 1322.041 of the Revised Code. Should the individual's license be cancelled for any reason and the individual reapply and be issued a new license in a different calendar year, the exemption shall not apply and the individual will be required to complete a minimum of six credit hours of Approved CE each calendar year.
(D) When a licensee who is also a designated operations manager at the time the licensee completes any Approved CE course, credit shall be applied to both the individual's loan officer CE requirement and the registrant's operations manager's CE requirement. Should the licensee leave the employ of the registrant after earning CE credits, the credits earned by that licensee will not accrue to the benefit of any other registrant.
(E) Provider Approval. Application for Approved Provider status shall be made on a form prescribed by the superintendent and shall include the following:
(1) The name and address of the applicant;
(2) A sworn statement of whether the applicant has been convicted in the ten years preceeding submission of the application of any crime (misdemeanor or felony) involving real estate, mortgage lending, settlement services or appraisal work;
(3) A sworn statement of whether the applicant has filed for or received bankruptcy protection more than once within the ten years preceeding submission of the application;
(4) A sworn statement of whether the applicant has had any prior approval to conduct or offer education revoked, suspended or not renewed by any state or federal regulatory authority;
(5) The names and addresses of all persons or entities holding an interest of five percent or more in the applicant;
(6) A sworn statement of whether any person or entity holding an interest of five percent or more in the applicant has been convicted in the ten years preceeding submission of the application of any crime (misdemeanor or felony) involving real estate, mortgage lending, settlement services or appraisal work;
(7) A sworn statement of whether any person or entity holding an interest of five percent or more in the applicant has filed for or recieved bankruptcy protection more than once within the ten years preceeding submission of the application;
(8) An application for the approval of at least one CE course in the form established in division J of this rule;
(9) A certificate of good standing issued by the Ohio secretary of state that is not more than sixty days old if the applicant is a corporation, limited liability company, partnership, association, or any other entity required to register with the secretary as a domestic or foreign entity and if the entity is engaging in business under a trade name, then the applicant shall also provide proof of the applicable filing with the Ohio secretary of state. In the event the applicant is a natural person doing business under a trade name or other fictitious name, then proof that the person has made the appropriate filing with the Ohio secretary of state; and
(10) Any other information the superintendent requests.
(F) If the applicant submits an application that is incomplete or if the application lacks information deemed necessary by the division, the division may return the application with a letter indicating areas which must be addressed in order for the division to continue the approval process. If the division retains the incomplete application and notifies the applicant in writing that more information is needed and the applicant fails to submit the requested information within ninety days, the superintendent may consider the application withdrawn.
(G) The superintendent shall approve an application for an Approved Provider if the superintendent finds:
(1) The applicant has made all applicable filings with the Ohio secretary of state as set forth in paragraph (E)(9) of this rule;
(2) Neither the applicant nor any person or entity holding an interest of five percent or more in the applicant has been convicted in the ten years preceeding submission of the application of any crime (misdemeanor or felony) involving real estate, mortgage lending, settlement services or appraisal work;
(3) The applicant has not had any prior approval to conduct or offer education revoked, suspended or refused to be renewed by any state or federal regulatory authority; and
(4) Neither the applicant nor any person holding an interest of five percent or more have a history involving multiple bankruptcies that indicates that the applicant or such person is unable to effectively run a company, which could ultimately jeopardize the ability of attendees to receive CE credit.
(H) If a provider's application is approved the provider will be notified in writing of this approval as a CE provider at the time the provider's first course is approved.
(I) Once approved as a CE Provider the provider shall remain approved unless and until the superintendent finds the provider has not complied with this rule. If the superintendent finds the provider has not complied with this rule, the superintendent shall send notice , via certified mail, to the provider stating that the provider is no longer approved. Upon receipt of the notice, the provider will be permitted to offer any previously approved CE course that is scheduled to take place within thirty days of receipt of the notice to ensure the provider's non-compliance does not adversely affect attendees.
(J) Course approval. Courses consisting of more than twenty per cent video-taped information are not permitted, however online instruction courses may be approved. All requests for approval of a course must be made in the manner prescribed by the superintendent and shall contain the following information:
(1) A description of:
(a) The number of requested credit hours and length of the course. For purposes of this rule a credit hour must provide for no less than fifty minutes of instruction. Breaks, introductions, lunches, announcements, or other non-instruction time is to be excluded in calculating the credit hours requested. Each course shall be a minimum of one credit hour;
(b) The purpose or objective of the course and how the material offered will increase the knowledge of mortgage lending and related subjects for attendees;
(c) The course tutition and the provider's refund fee policy;
(d) The method of presentation;
(e) The time, date, and location of the course, if known. If the course will be offered more than once, the date, time and location for each offering shall be provided if known. The provider may submit for approval any additional dates not already submitted with the initial application for the course on an as-needed basis. Any additional date submission should be made at least ten days prior to the proposed additional date. Such submissions may be made by mail or by electronically emailing a completed and readable scanned image file of the additional date form approved by the superintendent to the person designated to receive additional date submissions. Additional dates submitted electronically shall be deemed received by the superintendent on the day the scanned image file is sent to the proper person designated by the superintendent; and
(f) The name and address of the course instructor.
(2) A detailed content outline which contains a description of each topic to be covered by the course. This outline must specify the time components spent on each topic and the description must be sufficiently detailed to justify the request for each credit hour. The outline shall contain:
(a) The proposed time component;
(b) The specific material to be covered in each time component; and
(c) The justification for the time allotted to each component to teach or instruct that component.
(3) A description of materials to be employed by the instructor in teaching the course including a copy of the promotional brochures currently in use or proposed to be used for the course once approved by the superintendent. If a course is advertised prior to gaining the approval of the division, all advertisements pertaining to that course disseminated prior to division approval must contain a conspicuous disclosure that continuing education credits are pending approval of the division.
(4) A description of how the course is to be administered, including the method of verification of attendance or completion of the course.
(K) Provider Practices and CE Course Rules.
(1) A course must be offered and presented as approved by the division.
(2) A provider must inform the division, in writing, of any change in a course's location, date or time no later than ten days prior to the course. The superintendent has the discretion to waive the ten day notice requirement where the circumstances for the change were beyond the control of the provider.
(3) Providers may not change a course's content or outline without prior written approval of the division. Failure to obtain such written approval in advance of the course may result in the denial of CE credit for the course and disapproval of the provider's approved status to offer CE credit.
(4) Providers must submit an attendance roster, in a form prescribed by the division, to the division within fifteen days after a course is completed. The roster shall contain the identifying information of any licensee who completed the course, the date the course was completed, and any other information requested by the superintendent. One roster shall be submitted for each course offering. Failure of a provider to timely submit the identifying information of any licensee who completed a course may result in the licensee not receiving credit for the course, and could result in the disapproval of the provider's ability to offer continuing education credits.
(5) The date the course is completed must be recorded and submitted to the division. Any other date, such as the date a provider receives a registration or proctor form or payment is received, is insignificant. Providing the division with any date other than the date a course is actually completed may result in the disapproval of a provider's right to offer continuing education.
(6) Providers shall issue each attendee a certificate of completion identifying the name of the course, the course location and completion date, and the full name of the Approved Provider.
(7) Providers shall not issue certificates of completion to persons who do not attend or complete the scheduled hours for any CE course.
(8) Providers shall be responsible for determining that the attendee or person completing the course is the actual person scheduled to complete the course.
(9) A course must be conducted as advertised and represented to the division. A course may not be offered for more credits than approved by the division, unless the division approves such modification prior to the course presentation. If an approved course is not offered in its entirety because of an emergency, the provider must notify the division within three business days of the course, and must provide a written account of the emergency, a schedule of what information was provided, and the course roster.
(10) The same title submitted to the division for approval must be the same title used for the course and advertising for the course.
(11) Any material or instruction given concerning an interpretation of sections 1322.01 to 1322.12 of the Revised Code must be accompanied with a disclaimer that the interpretation may differ from that of the division.
(12) The superintendent of the division of financial institutions or his representative may audit at no cost any course at any time with or without advanced notice to the instructor or provider.
(13) To avoid any conflict of interest or situations in which a provider or instructor may be called as a witness, while serving or acting as an Approved Provider or course instructor, the provider or instructor shall not represent a person against the division on a matter concerning continuing education.
(14) A provider may not discount prices for CE courses as an incentive, in exchange for, or as a promotion for any real estate, title, appraisal, lending or mortgage broker business affiliated with the provider or any person owning any interest in the provider.
(15) All courses must be open to all licensees and license applicants.
(16) The use of any course to promote any particular loan product, lender, mortgage broker or settlement service is prohibited.
(L) Requirements for distance education programs:
(1) For purposes of this rule, the term "distance education" refers to continuing education programs in which instruction is accomplished through the use of media whereby teacher and student are separated by distance and/or by time;
(2) The superintendent will approve a course in distance education for continuing education credit based upon a satisfactory review of the following criteria:
(a) The application materials submitted pursuant to paragraphs (E), (G), and (J) of this rule;
(b) The course is designed to assure that students actively participate in the instructional process while completing the course by utilizing techniques that require substantial student interaction with the instructor, other students, written course materials, or a computer program. With the exception of proctored home-study courses, the course design shall not permit students to sit passively and observe instruction or read instructional materials;
(c) The course, when taken without interruption, consists of no more than six hours of distance education;
(d) If in each unit of instruction there is no activity from the student after fifty minutes of instruction time, the course will shut down and the student will have to begin from the beginning of the unit;
(e) The provider gives students an orientation or information package which contains all necessary information about the course, including but not limited to information about the course subject matter and learning objective, procedures and requirements for satisfactory course completion, special requirements with regard to computer hardware and software or other equipment, and the availability of instructor or technical support;
(f) The provider gives appropriate instructor and technical support to enable students to satisfactorily complete the course;
(g) The provider utilizes procedures that provide reasonable assurance of student identity and that the student receiving the continuing education credit for completing the course actually performed all of the work required to complete the course;
(h) The provider controls navigation through the course to ensure students master the material on a unit-by-unit basis by use of some means of assessment such as a quiz;
(i) The provider utilizes a clock/time on each screen to control navigation through the course to ensure that course completion time equals the amount of continuing education credit hours received.
(3) Course rosters for distance education classes must be submitted to the superintendent every fifteen days.
(M) Instructor qualification. Instructors, seminar and conference leaders, lecturers, and others who present a continuing education requirement program must meet at least one of the following qualifications:
(1) Possession of a bachelor's or graduate degree in a related field to that in which the person is to teach, from a school listed as an institution of higher learning by the United States department of education, or from a comparable school of a foreign country; or
(2) Possession of a valid teaching credential or certificate from Ohio or another state authorizing the holder to teach in the field of instruction in which the person is to teach; or
(3) Three years full-time experience in real estate mortgage lending or law; or
(4) Any combination of at least three years of full-time experience relevant to the applicable field and college level education;
(5) Any person that has been disciplined through an administrative action by the Ohio division of financial institutions for a violation of Chapter 1322. of the Revised Code or the rule adopted thereunder is ineligible to serve as an instructor, seminar or conference leader or lecturer.