Lawriter - OAC - 1301:8-7-20 Compensation.

1301:8-7-20 Compensation.

(A) Compensation of any kind paid to a licensee employed by or associated with a registrant or qualified exempt entity shall be paid by check or electronic draft drawn on an account of the registrant or qualified exempt entity. Registrants shall not pay compensation from the special account maintained pursuant to section 1322.08 of the Revised Code. Compensation to a licensee may be paid on an account of a third party payroll administrator acting as the registrant's or qualified exempt entity's agent. The check or electronic draft must be written to the licensee in the licensee's legal name.

(B) A registrant or qualified exempt entity may compensate a licensee or former licensee in accordance with paragraph (A) of this rule after the expiration, cancellation, surrender, or transfer of the individual's license only for those origination activities performed while the individual was sponsored by the registrant or qualified exempt entity via the NMLS, provided the registrant or qualified exempt entity shall document to the superintendent's satisfaction that such compensation was for origination activities occurring during such sponsorship.

(C) A registrant or qualified exempt entity shall not pay compensation of any kind to a loan processor or to any individual in a manner designed to circumvent the licensing requirement of division (B)(1) of section 1322.02 of the Revised Code.

(D) Registrants, qualified exempt entities, and licensees shall comply with the loan originator compensation regulations set forth in 12 C.F.R. part 1026, as in effect on January 12, 2014.

Replaces: 1301:8-7-20

Effective: 1/4/2016
Five Year Review (FYR) Dates: 07/20/2020
Promulgated Under: 119.03
Statutory Authority: 1322.12
Rule Amplifies: 1322.01, 1322.02, 1322.07, 1322.08
Prior Effective Dates: 9/1/2006, 6/1/2007