1301:8-7-19 Notification requirements.

Registrants, licensees and applicants for a certificate of registration or license are required to keep all information on file with the division of financial institutions current, including but not limited to the following:

(A) Notification of sale, transfer, or hypothecation of stock, security, or other equitable, beneficial or ownership interest. If equitable, beneficial, or ownership interest in a registrant or applicant changes from the information provided on the registration application and the data on file with the division by an aggregate amount of five percent or more, the registrant or applicant is required to notify the superintendent of the division of financial institutions of such change and to submit the names, social security numbers, and addresses of any and all persons to which the interest was transferred within thirty days of the effective date of such transfer.

(B) Notification of action alleging injury by a violation of any provision of chapter 1322. of the Revised Code. Pursuant to division (B)(1) of section 1322.05 of the Revised Code within ten business days of the commencement of an action in any court in any jurisdiction brought by a buyer against a registrant or a loan officer of the registrant alleging injury by a violation of any provision of chapter 1322. of the Revised Code, the registrant shall notify the division by:

(1) Filing a "Notification of Action" form approved by the superintendent of the division of financial institutions;

(2) Attaching a copy of the complaint to the notification form described in paragraph (B)(1) of this rule; and

(3) Mailing the notification form and complaint described in paragraphs (B)(1) and (B)(2) of this rule, via certified mail, to the superintendent of the division of financial institutions.

For purposes of division (B) of section 1322.05 of the Revised Code and this rule, the term "commencement of an action" shall mean upon service of a filed court complaint.

(C) Notification of Judgment. A registrant shall, within ten business days of being served with notice of a judgment entered against the registrant or a loan officer of the registrant by a buyer injured by a violation of any provision of Chapter 1322. of the Revised Code, notify the superintendent of the division of financial institutions by:

(1) Filing a "Notification of Judgment" form approved by the superintendent of the division of financial institutions; and

(2) Attaching a copy of the judgment to the notification form described in paragraph (B)(1) of this rule; and

(3) Mailing the notification form and judgment described in paragraphs (B)(1) and (B)(2) of this rule, via certified mail, to the superintendent of the division of financial institutions.

(D) Notification of guilty plea or criminal conviction. All registrants, licensees and applicants for a certificate of registration or license are required to notify the superintendent of the division of financial institutions of any guilty plea or conviction of a criminal offense involving theft, receiving stolen property, embezzlement, forgery , fraud, passing bad checks, money laundering, or drug trafficking, or any criminal offense involving money or securities within thirty business days of such plea or conviction by:

(1) Filing a "Notification of Guilty Plea or Criminal Conviction" form approved by the superintendent of the division of financial institutions; and

(2) Attaching a certified copy of the judgment or plea entry to the notification form described in paragraph (B)(1) of this rule; and

(3) Mailing the notification form and judgment described in paragraphs (B)(1) and (B)(2) of this rule, via certified mail, to the superintendent of the division of financial institutions.

(E) Statutory Agent. Within ten business days of any change in a registrant's statutory agent designation or address, the registrant shall file with the superintendent of the division of financial institutions evidence that the registrant has filed such changes with the Ohio secretary of state.

(F) Office Closure. At least thirty days prior to the closure of a registered office location, the registrant shall notify the division by filing an "Notice of Office Closure--Part A" form approved by the division. The form shall indicate the custodian of the records and the location where the records will be maintained in compliance with rule 1301:8-7-06 of the Administrative Code. Within five business days after the closure, the certificate of registration issued to that location shall be surrendered to the division by returning it to the division along with the"Notice of Office Closure--Part B" form approved by the division.

Books and records must be maintained in compliance with rule 1301:8-7-06 of the Administrative Code, and must be accessible to the division, as such records remain subject to examination and or investigation under chapter 1322. of the Revised Code. Written notice must be sent to the division of any change in location or the custodian of the records.

The closure of an office and the surrender of a certificate will not affect a person's civil or criminal liability for acts committed before the surrender, and does not impair or affect the obligation of a preexisting lawful contract between the previous registrant and any person, including a borrower.

(G) Employment termination of loan officer or operations manager. If the employment of a loan officer or operations manager is terminated for any reason, a registrant shall return the individual's original loan officer license to the division of financial institutions within five business days after the termination by submitting the license along with the "Loan Officer Termination Notification" form approved by the division.

In accordance with division (C)(3) of rule 1301:8-7-08 of the Administrative Code, the unexpired, uncancelled license of the loan officer or operations manager returned to the division shall be held in escrow. A license held in escrow is considered inactive and the holder of an inactive license is not authorized to originate.

(H) Change of address. Registrants and licensees must notify the superintendent of the division of financial institutions of a change in business or residence address using the following procedures. Merely placing the new address on correspondence or filings with the division, or any other attempt other than the procedures outlined in this rule, is insufficient.

(1) Change of resident address for licensee. A licensee shall notify the superintendent of the division of financial institutions of a change in the licensee's resident address within thirty days of such change. This change of address shall be made on a form proscribed by the superintendent of financial institutions.

(2) Change of address of registered office. A registrant shall notify the superintendent of the division of financial institutions of an address change in any of the registrant's registered offices, at least thirty days prior to the effective date, by:

(a) Filing a completed "Mortgage Broker Office Relocation Application" form approved by the superintendent of the division of financial institutions, and attaching the following:

(i) A photograph of the new location showing a street view of the office;

(ii) A copy of the lease or rental agreement for the location at which the business will be transacted showing that the applicant is contractually responsible, or proof that the applicant owns the location;

(iii) If the application is for a location that is a residence, the applicant must submit:

(a) a certified copy of a zoning permit authorizing the use of the residence for commercial purposes; or

(b) a written opinion or other document issued by the county or political subdivision where the residence is located certifying that the use of the residence to transact business as a mortgage broker is not prohibited.

(iv) If the relocation concerns the registrant's main office, the registrant shall submit an updated surety bond, rider or endorsement reflecting the new address with the application described in section (i) above; and

(v) A non-refundable fifteen dollar relocation application fee.

(b) Upon approval of the relocation application, a new certificate of registration shall be issued reflecting the new address. The registrant shall surrender the old certificate of registration to the division within five business days of receipt of the certificate reflecting the new office location. The registrant shall display the new certificate in accordance with division (J) of rule 1301:8-7-02 of the Administrative Code.

(c) If the registrant intends to change its main office location to another registered office location, the registrant should not file a relocation application, but instead shall file a "Redesignation of Main Office Location" form approved by the superintendent of the division of financial institutions.

(I) Name change of loan officer or operations manager. A licensee must notify the superintendent of the division of financial institutions of a legal name change within thirty days of such change by filing a "Loan Officer/Operations Manager Name Change" form approved by the superintendent of the division of financial institutions, and attaching a copy of the name change order, such as a marriage license, divorce decree or court order. A new license will be printed reflecting the new name. Once the license has been issued with the licensee's new name, use of the licensee's prior name in connection with loan origination activities is prohibited.

(J) A registrant may, with the prior approval of the superintendent of the division of financial institutions, change its corporate name, its trade or business name, or service mark, provided:

(1) The registrant and the proposed new name or mark complies with division (A)(1) of section 1101.15 of the Revised Code;

(2) The proposed new name or mark is duly registered with the Ohio secretary of state;

(3) The registrant submits proof that the surety bond has been executed in the new name;

(4) The registrant has given the superintendent of the division of financial institutions at least thirty days prior notice of the proposed new name or mark; and

(5) The superintendent of the division of financial institutions determines that the new name or mark is not likely to mislead or confuse buyers.

(K) Upon approval of the registrant's new corporate, trade or business name, a new certificate of registration shall be issued reflecting the new name. The new certificate shall be displayed in compliance with division (J) of rule 1301:8-7-02 of the Administrative Code.

Effective: 06/01/2007
R.C. 119.032 review dates: 11/15/2009
Promulgated Under: 119.03
Statutory Authority: 1322.12
Rule Amplifies: 1322.021 , 1322.031 , 1322.05 , 1322.07
Prior Effective Dates: 9-1-06