1322.074 Prohibited interest in appraisal company.

(A) As used in this section and section 1322.075 of the Revised Code:

(1) “Appraisal company” means a sole proprietorship, partnership, corporation, limited liability company, or any other business entity or association, that employs or retains the services of a person licensed or certified under Chapter 4763. of the Revised Code for purposes of performing residential real estate appraisals for mortgage loans.

(2) “Immediate family” means a spouse residing in the person’s household and any dependent child.

(B) Except as otherwise provided in division (C) of this section, no registrant, or any member of the registrant’s immediate family, shall own or control a majority interest in an appraisal company.

(C) Division (B) of this section shall not apply to any registrant, or any member of the registrant’s immediate family, who, on the effective date of this section, owns or controls a majority interest in an appraisal company. However, such ownership or control is subject to the following conditions:

(1) The registrant and members of the registrant’s immediate family shall not increase their interest in the company.

(2) The interest is not transferable to a member of the registrant’s immediate family.

(3) If the registrant is convicted of or pleads guilty to a criminal violation of sections 1322.01 to 1322.12 of the Revised Code or any criminal offense described in division (A)(1)(b) of section 1322.10 of the Revised Code, the superintendent of financial institutions may, as an alternative to any of the actions authorized under section 1322.10 of the Revised Code, order the registrant or members of the registrant’s immediate family to divest their interest in the company.

Effective Date: 01-01-2007