As Introduced

129th General Assembly Regular Session 2011-2012

S. B. No. 14

Senator Skindell 

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A BILL

To amend sections 109.572, 1181.05, 1181.21, and

1

1321.52 and to enact sections 1323.01 to 1323.20

2

and 1323.99 of the Revised Code to require

3

registration of residential mortgage servicers,

4

to regulate residential mortgage servicers, and to

5

adopt civil and criminal penalties for violations

6

of the bill's provisions.

7

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 109.572, 1181.05, 1181.21, and	8
1321.52 be amended and sections 1323.01, 1323.02, 1323.03,	9
1323.04, 1323.05, 1323.06, 1323.07, 1323.08, 1323.09, 1323.10,	10
1323.11, 1323.12, 1323.13, 1323.14, 1323.15, 1323.16, 1323.17,	11
1323.18, 1323.19, 1323.20, and 1323.99 of the Revised Code be	12
enacted to read as follows:	13

Sec. 109.572. (A)(1) Upon receipt of a request pursuant to	14
section 121.08, 3301.32, 3301.541, or 3319.39 of the Revised Code,	15
a completed form prescribed pursuant to division (C)(1) of this	16
section, and a set of fingerprint impressions obtained in the	17
manner described in division (C)(2) of this section, the	18
superintendent of the bureau of criminal identification and	19
investigation shall conduct a criminal records check in the manner	20
described in division (B) of this section to determine whether any	21
information exists that indicates that the person who is the	22
subject of the request previously has been convicted of or pleaded	23
guilty to any of the following:	24

(a) A violation of section 2903.01, 2903.02, 2903.03,	25
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	26
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	27
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	28
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2911.01,	29
2911.02, 2911.11, 2911.12, 2919.12, 2919.22, 2919.24, 2919.25,	30
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05,	31
2925.06, or 3716.11 of the Revised Code, felonious sexual	32
penetration in violation of former section 2907.12 of the Revised	33
Code, a violation of section 2905.04 of the Revised Code as it	34
existed prior to July 1, 1996, a violation of section 2919.23 of	35
the Revised Code that would have been a violation of section	36
2905.04 of the Revised Code as it existed prior to July 1, 1996,	37
had the violation been committed prior to that date, or a	38
violation of section 2925.11 of the Revised Code that is not a	39
minor drug possession offense;	40

(b) A violation of an existing or former law of this state,	41
any other state, or the United States that is substantially	42
equivalent to any of the offenses listed in division (A)(1)(a) of	43
this section.	44

(2) On receipt of a request pursuant to section 5123.081 of	45
the Revised Code with respect to an applicant for employment in	46
any position with the department of developmental disabilities,	47
pursuant to section 5126.28 of the Revised Code with respect to an	48
applicant for employment in any position with a county board of	49
developmental disabilities, or pursuant to section 5126.281 of the	50
Revised Code with respect to an applicant for employment in a	51
direct services position with an entity contracting with a county	52
board for employment, a completed form prescribed pursuant to	53
division (C)(1) of this section, and a set of fingerprint	54
impressions obtained in the manner described in division (C)(2) of	55
this section, the superintendent of the bureau of criminal	56
identification and investigation shall conduct a criminal records	57
check. The superintendent shall conduct the criminal records check	58
in the manner described in division (B) of this section to	59
determine whether any information exists that indicates that the	60
person who is the subject of the request has been convicted of or	61
pleaded guilty to any of the following:	62

(a) A violation of section 2903.01, 2903.02, 2903.03,	63
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	64
2903.341, 2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03,	65
2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12,	66
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	67
2907.322, 2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12,	68
2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02,	69
2925.03, or 3716.11 of the Revised Code;	70

(b) An existing or former municipal ordinance or law of this	71
state, any other state, or the United States that is substantially	72
equivalent to any of the offenses listed in division (A)(2)(a) of	73
this section.	74

(3) On receipt of a request pursuant to section 173.27,	75
173.394, 3712.09, 3721.121, or 3722.151 of the Revised Code, a	76
completed form prescribed pursuant to division (C)(1) of this	77
section, and a set of fingerprint impressions obtained in the	78
manner described in division (C)(2) of this section, the	79
superintendent of the bureau of criminal identification and	80
investigation shall conduct a criminal records check with respect	81
to any person who has applied for employment in a position for	82
which a criminal records check is required by those sections. The	83
superintendent shall conduct the criminal records check in the	84
manner described in division (B) of this section to determine	85
whether any information exists that indicates that the person who	86
is the subject of the request previously has been convicted of or	87
pleaded guilty to any of the following:	88

(a) A violation of section 2903.01, 2903.02, 2903.03,	89
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	90
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	91
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	92
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	93
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	94
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	95
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	96
2925.22, 2925.23, or 3716.11 of the Revised Code;	97

(b) An existing or former law of this state, any other state,	98
or the United States that is substantially equivalent to any of	99
the offenses listed in division (A)(3)(a) of this section.	100

(4) On receipt of a request pursuant to section 3701.881 of	101
the Revised Code with respect to an applicant for employment with	102
a home health agency as a person responsible for the care,	103
custody, or control of a child, a completed form prescribed	104
pursuant to division (C)(1) of this section, and a set of	105
fingerprint impressions obtained in the manner described in	106
division (C)(2) of this section, the superintendent of the bureau	107
of criminal identification and investigation shall conduct a	108
criminal records check. The superintendent shall conduct the	109
criminal records check in the manner described in division (B) of	110
this section to determine whether any information exists that	111
indicates that the person who is the subject of the request	112
previously has been convicted of or pleaded guilty to any of the	113
following:	114

(a) A violation of section 2903.01, 2903.02, 2903.03,	115
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	116
2905.01, 2905.02, 2905.04, 2905.05, 2907.02, 2907.03, 2907.04,	117
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.21,	118
2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322,	119
2907.323, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	120
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	121
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code or a	122
violation of section 2925.11 of the Revised Code that is not a	123
minor drug possession offense;	124

(b) An existing or former law of this state, any other state,	125
or the United States that is substantially equivalent to any of	126
the offenses listed in division (A)(4)(a) of this section.	127

(5) On receipt of a request pursuant to section 5111.032,	128
5111.033, or 5111.034 of the Revised Code, a completed form	129
prescribed pursuant to division (C)(1) of this section, and a set	130
of fingerprint impressions obtained in the manner described in	131
division (C)(2) of this section, the superintendent of the bureau	132
of criminal identification and investigation shall conduct a	133
criminal records check. The superintendent shall conduct the	134
criminal records check in the manner described in division (B) of	135
this section to determine whether any information exists that	136
indicates that the person who is the subject of the request	137
previously has been convicted of, has pleaded guilty to, or has	138
been found eligible for intervention in lieu of conviction for any	139
of the following, regardless of the date of the conviction, the	140
date of entry of the guilty plea, or the date the person was found	141
eligible for intervention in lieu of conviction:	142

(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,	143
2903.04, 2903.041, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16,	144
2903.21, 2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05,	145
2905.11, 2905.12, 2907.02, 2907.03, 2907.04, 2907.05, 2907.06,	146
2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23, 2907.24,	147
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,	148
2909.03, 2909.04, 2909.05, 2909.22, 2909.23, 2909.24, 2911.01,	149
2911.02, 2911.11, 2911.12, 2911.13, 2913.02, 2913.03, 2913.04,	150
2913.05, 2913.11, 2913.21, 2913.31, 2913.32, 2913.40, 2913.41,	151
2913.42, 2913.43, 2913.44, 2913.441, 2913.45, 2913.46, 2913.47,	152
2913.48, 2913.49, 2913.51, 2917.01, 2917.02, 2917.03, 2917.11,	153
2917.31, 2919.12, 2919.22, 2919.23, 2919.24, 2919.25, 2921.03,	154
2921.11, 2921.13, 2921.34, 2921.35, 2921.36, 2923.01, 2923.02,	155
2923.03, 2923.12, 2923.13, 2923.161, 2923.32, 2925.02, 2925.03,	156
2925.04, 2925.05, 2925.06, 2925.11, 2925.13, 2925.14, 2925.22,	157
2925.23, 2927.12, or 3716.11 of the Revised Code, felonious sexual	158
penetration in violation of former section 2907.12 of the Revised	159
Code, a violation of section 2905.04 of the Revised Code as it	160
existed prior to July 1, 1996, a violation of section 2919.23 of	161
the Revised Code that would have been a violation of section	162
2905.04 of the Revised Code as it existed prior to July 1, 1996,	163
had the violation been committed prior to that date;	164

(b) A violation of an existing or former municipal ordinance	165
or law of this state, any other state, or the United States that	166
is substantially equivalent to any of the offenses listed in	167
division (A)(5)(a) of this section.	168

(6) On receipt of a request pursuant to section 3701.881 of	169
the Revised Code with respect to an applicant for employment with	170
a home health agency in a position that involves providing direct	171
care to an older adult, a completed form prescribed pursuant to	172
division (C)(1) of this section, and a set of fingerprint	173
impressions obtained in the manner described in division (C)(2) of	174
this section, the superintendent of the bureau of criminal	175
identification and investigation shall conduct a criminal records	176
check. The superintendent shall conduct the criminal records check	177
in the manner described in division (B) of this section to	178
determine whether any information exists that indicates that the	179
person who is the subject of the request previously has been	180
convicted of or pleaded guilty to any of the following:	181

(a) A violation of section 2903.01, 2903.02, 2903.03,	182
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	183
2905.01, 2905.02, 2905.11, 2905.12, 2907.02, 2907.03, 2907.05,	184
2907.06, 2907.07, 2907.08, 2907.09, 2907.12, 2907.25, 2907.31,	185
2907.32, 2907.321, 2907.322, 2907.323, 2911.01, 2911.02, 2911.11,	186
2911.12, 2911.13, 2913.02, 2913.03, 2913.04, 2913.11, 2913.21,	187
2913.31, 2913.40, 2913.43, 2913.47, 2913.51, 2919.25, 2921.36,	188
2923.12, 2923.13, 2923.161, 2925.02, 2925.03, 2925.11, 2925.13,	189
2925.22, 2925.23, or 3716.11 of the Revised Code;	190

(b) An existing or former law of this state, any other state,	191
or the United States that is substantially equivalent to any of	192
the offenses listed in division (A)(6)(a) of this section.	193

(7) When conducting a criminal records check upon a request	194
pursuant to section 3319.39 of the Revised Code for an applicant	195
who is a teacher, in addition to the determination made under	196
division (A)(1) of this section, the superintendent shall	197
determine whether any information exists that indicates that the	198
person who is the subject of the request previously has been	199
convicted of or pleaded guilty to any offense specified in section	200
3319.31 of the Revised Code.	201

(8) On receipt of a request pursuant to section 2151.86 of	202
the Revised Code, a completed form prescribed pursuant to division	203
(C)(1) of this section, and a set of fingerprint impressions	204
obtained in the manner described in division (C)(2) of this	205
section, the superintendent of the bureau of criminal	206
identification and investigation shall conduct a criminal records	207
check in the manner described in division (B) of this section to	208
determine whether any information exists that indicates that the	209
person who is the subject of the request previously has been	210
convicted of or pleaded guilty to any of the following:	211

(a) A violation of section 959.13, 2903.01, 2903.02, 2903.03,	212
2903.04, 2903.11, 2903.12, 2903.13, 2903.15, 2903.16, 2903.21,	213
2903.211, 2903.22, 2903.34, 2905.01, 2905.02, 2905.05, 2907.02,	214
2907.03, 2907.04, 2907.05, 2907.06, 2907.07, 2907.08, 2907.09,	215
2907.21, 2907.22, 2907.23, 2907.25, 2907.31, 2907.32, 2907.321,	216
2907.322, 2907.323, 2909.02, 2909.03, 2909.22, 2909.23, 2909.24,	217
2911.01, 2911.02, 2911.11, 2911.12, 2913.49, 2917.01, 2917.02,	218
2919.12, 2919.22, 2919.24, 2919.25, 2923.12, 2923.13, 2923.161,	219
2925.02, 2925.03, 2925.04, 2925.05, 2925.06, 2927.12, or 3716.11	220
of the Revised Code, a violation of section 2905.04 of the Revised	221
Code as it existed prior to July 1, 1996, a violation of section	222
2919.23 of the Revised Code that would have been a violation of	223
section 2905.04 of the Revised Code as it existed prior to July 1,	224
1996, had the violation been committed prior to that date, a	225
violation of section 2925.11 of the Revised Code that is not a	226
minor drug possession offense, two or more OVI or OVUAC violations	227
committed within the three years immediately preceding the	228
submission of the application or petition that is the basis of the	229
request, or felonious sexual penetration in violation of former	230
section 2907.12 of the Revised Code;	231

(b) A violation of an existing or former law of this state,	232
any other state, or the United States that is substantially	233
equivalent to any of the offenses listed in division (A)(8)(a) of	234
this section.	235

(9) Upon receipt of a request pursuant to section 5104.012 or	236
5104.013 of the Revised Code, a completed form prescribed pursuant	237
to division (C)(1) of this section, and a set of fingerprint	238
impressions obtained in the manner described in division (C)(2) of	239
this section, the superintendent of the bureau of criminal	240
identification and investigation shall conduct a criminal records	241
check in the manner described in division (B) of this section to	242
determine whether any information exists that indicates that the	243
person who is the subject of the request has been convicted of or	244
pleaded guilty to any of the following:	245

(a) A violation of section 2903.01, 2903.02, 2903.03,	246
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.22,	247
2903.34, 2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04,	248
2907.05, 2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22,	249
2907.23, 2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323,	250
2911.01, 2911.02, 2911.11, 2911.12, 2913.02, 2913.03, 2913.04,	251
2913.041, 2913.05, 2913.06, 2913.11, 2913.21, 2913.31, 2913.32,	252
2913.33, 2913.34, 2913.40, 2913.41, 2913.42, 2913.43, 2913.44,	253
2913.441, 2913.45, 2913.46, 2913.47, 2913.48, 2913.49, 2919.12,	254
2919.22, 2919.24, 2919.25, 2921.11, 2921.13, 2923.01, 2923.12,	255
2923.13, 2923.161, 2925.02, 2925.03, 2925.04, 2925.05, 2925.06, or	256
3716.11 of the Revised Code, felonious sexual penetration in	257
violation of former section 2907.12 of the Revised Code, a	258
violation of section 2905.04 of the Revised Code as it existed	259
prior to July 1, 1996, a violation of section 2919.23 of the	260
Revised Code that would have been a violation of section 2905.04	261
of the Revised Code as it existed prior to July 1, 1996, had the	262
violation been committed prior to that date, a violation of	263
section 2925.11 of the Revised Code that is not a minor drug	264
possession offense, a violation of section 2923.02 or 2923.03 of	265
the Revised Code that relates to a crime specified in this	266
division, or a second violation of section 4511.19 of the Revised	267
Code within five years of the date of application for licensure or	268
certification.	269

(b) A violation of an existing or former law of this state,	270
any other state, or the United States that is substantially	271
equivalent to any of the offenses or violations described in	272
division (A)(9)(a) of this section.	273

(10) Upon receipt of a request pursuant to section 5153.111	274
of the Revised Code, a completed form prescribed pursuant to	275
division (C)(1) of this section, and a set of fingerprint	276
impressions obtained in the manner described in division (C)(2) of	277
this section, the superintendent of the bureau of criminal	278
identification and investigation shall conduct a criminal records	279
check in the manner described in division (B) of this section to	280
determine whether any information exists that indicates that the	281
person who is the subject of the request previously has been	282
convicted of or pleaded guilty to any of the following:	283

(a) A violation of section 2903.01, 2903.02, 2903.03,	284
2903.04, 2903.11, 2903.12, 2903.13, 2903.16, 2903.21, 2903.34,	285
2905.01, 2905.02, 2905.05, 2907.02, 2907.03, 2907.04, 2907.05,	286
2907.06, 2907.07, 2907.08, 2907.09, 2907.21, 2907.22, 2907.23,	287
2907.25, 2907.31, 2907.32, 2907.321, 2907.322, 2907.323, 2909.02,	288
2909.03, 2911.01, 2911.02, 2911.11, 2911.12, 2919.12, 2919.22,	289
2919.24, 2919.25, 2923.12, 2923.13, 2923.161, 2925.02, 2925.03,	290
2925.04, 2925.05, 2925.06, or 3716.11 of the Revised Code,	291
felonious sexual penetration in violation of former section	292
2907.12 of the Revised Code, a violation of section 2905.04 of the	293
Revised Code as it existed prior to July 1, 1996, a violation of	294
section 2919.23 of the Revised Code that would have been a	295
violation of section 2905.04 of the Revised Code as it existed	296
prior to July 1, 1996, had the violation been committed prior to	297
that date, or a violation of section 2925.11 of the Revised Code	298
that is not a minor drug possession offense;	299

(b) A violation of an existing or former law of this state,	300
any other state, or the United States that is substantially	301
equivalent to any of the offenses listed in division (A)(10)(a) of	302
this section.	303

(11) On receipt of a request for a criminal records check	304
from an individual pursuant to section 4749.03 or 4749.06 of the	305
Revised Code, accompanied by a completed copy of the form	306
prescribed in division (C)(1) of this section and a set of	307
fingerprint impressions obtained in a manner described in division	308
(C)(2) of this section, the superintendent of the bureau of	309
criminal identification and investigation shall conduct a criminal	310
records check in the manner described in division (B) of this	311
section to determine whether any information exists indicating	312
that the person who is the subject of the request has been	313
convicted of or pleaded guilty to a felony in this state or in any	314
other state. If the individual indicates that a firearm will be	315
carried in the course of business, the superintendent shall	316
require information from the federal bureau of investigation as	317
described in division (B)(2) of this section. The superintendent	318
shall report the findings of the criminal records check and any	319
information the federal bureau of investigation provides to the	320
director of public safety.	321

(12) On receipt of a request pursuant to section 1321.37,	322
1321.53, 1321.531, 1322.03, 1322.031, 1323.05, or 4763.05 of the	323
Revised Code, a completed form prescribed pursuant to division	324
(C)(1) of this section, and a set of fingerprint impressions	325
obtained in the manner described in division (C)(2) of this	326
section, the superintendent of the bureau of criminal	327
identification and investigation shall conduct a criminal records	328
check with respect to any person who has applied for a license,	329
permit, or certification from the department of commerce or a	330
division in the department. The superintendent shall conduct the	331
criminal records check in the manner described in division (B) of	332
this section to determine whether any information exists that	333
indicates that the person who is the subject of the request	334
previously has been convicted of or pleaded guilty to any of the	335
following: a violation of section 2913.02, 2913.11, 2913.31,	336
2913.51, or 2925.03 of the Revised Code; any other criminal	337
offense involving theft, receiving stolen property, embezzlement,	338
forgery, fraud, passing bad checks, money laundering, or drug	339
trafficking, or any criminal offense involving money or	340
securities, as set forth in Chapters 2909., 2911., 2913., 2915.,	341
2921., 2923., and 2925. of the Revised Code; or any existing or	342
former law of this state, any other state, or the United States	343
that is substantially equivalent to those offenses.	344

(13) On receipt of a request for a criminal records check	345
from the treasurer of state under section 113.041 of the Revised	346
Code or from an individual under section 4701.08, 4715.101,	347
4717.061, 4725.121, 4725.501, 4729.071, 4730.101, 4730.14,	348
4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,	349
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,	350
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051,	351
4762.031, 4762.06, or 4779.091 of the Revised Code, accompanied by	352
a completed form prescribed under division (C)(1) of this section	353
and a set of fingerprint impressions obtained in the manner	354
described in division (C)(2) of this section, the superintendent	355
of the bureau of criminal identification and investigation shall	356
conduct a criminal records check in the manner described in	357
division (B) of this section to determine whether any information	358
exists that indicates that the person who is the subject of the	359
request has been convicted of or pleaded guilty to any criminal	360
offense in this state or any other state. The superintendent shall	361
send the results of a check requested under section 113.041 of the	362
Revised Code to the treasurer of state and shall send the results	363
of a check requested under any of the other listed sections to the	364
licensing board specified by the individual in the request.	365

(14) On receipt of a request pursuant to section 1121.23,	366
1155.03, 1163.05, 1315.141, 1733.47, or 1761.26 of the Revised	367
Code, a completed form prescribed pursuant to division (C)(1) of	368
this section, and a set of fingerprint impressions obtained in the	369
manner described in division (C)(2) of this section, the	370
superintendent of the bureau of criminal identification and	371
investigation shall conduct a criminal records check in the manner	372
described in division (B) of this section to determine whether any	373
information exists that indicates that the person who is the	374
subject of the request previously has been convicted of or pleaded	375
guilty to any criminal offense under any existing or former law of	376
this state, any other state, or the United States.	377

(15) On receipt of a request for a criminal records check	378
from an appointing or licensing authority under section 3772.07 of	379
the Revised Code, a completed form prescribed under division	380
(C)(1) of this section, and a set of fingerprint impressions	381
obtained in the manner prescribed in division (C)(2) of this	382
section, the superintendent of the bureau of criminal	383
identification and investigation shall conduct a criminal records	384
check in the manner described in division (B) of this section to	385
determine whether any information exists that indicates that the	386
person who is the subject of the request previously has been	387
convicted of or pleaded guilty or no contest to any offense under	388
any existing or former law of this state, any other state, or the	389
United States that is a disqualifying offense as defined in	390
section 3772.07 of the Revised Code or substantially equivalent to	391
such an offense.	392

(16) Not later than thirty days after the date the	393
superintendent receives a request of a type described in division	394
(A)(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12),	395
(14), or (15) of this section, the completed form, and the	396
fingerprint impressions, the superintendent shall send the person,	397
board, or entity that made the request any information, other than	398
information the dissemination of which is prohibited by federal	399
law, the superintendent determines exists with respect to the	400
person who is the subject of the request that indicates that the	401
person previously has been convicted of or pleaded guilty to any	402
offense listed or described in division (A)(1), (2), (3), (4),	403
(5), (6), (7), (8), (9), (10), (11), (12), (14), or (15) of this	404
section, as appropriate. The superintendent shall send the person,	405
board, or entity that made the request a copy of the list of	406
offenses specified in division (A)(1), (2), (3), (4), (5), (6),	407
(7), (8), (9), (10), (11), (12), (14), or (15) of this section, as	408
appropriate. If the request was made under section 3701.881 of the	409
Revised Code with regard to an applicant who may be both	410
responsible for the care, custody, or control of a child and	411
involved in providing direct care to an older adult, the	412
superintendent shall provide a list of the offenses specified in	413
divisions (A)(4) and (6) of this section.	414

Not later than thirty days after the superintendent receives	415
a request for a criminal records check pursuant to section 113.041	416
of the Revised Code, the completed form, and the fingerprint	417
impressions, the superintendent shall send the treasurer of state	418
any information, other than information the dissemination of which	419
is prohibited by federal law, the superintendent determines exist	420
with respect to the person who is the subject of the request that	421
indicates that the person previously has been convicted of or	422
pleaded guilty to any criminal offense in this state or any other	423
state.	424

(B) The superintendent shall conduct any criminal records	425
check requested under section 113.041, 121.08, 173.27, 173.394,	426
1121.23, 1155.03, 1163.05, 1315.141, 1321.53, 1321.531, 1322.03,	427
1322.031, 1323.05, 1733.47, 1761.26, 2151.86, 3301.32, 3301.541,	428
3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 3772.07, 4701.08,	429
4715.101, 4717.061, 4725.121, 4725.501, 4729.071, 4730.101,	430
4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222, 4731.281,	431
4731.296, 4731.531, 4732.091, 4734.202, 4740.061, 4741.10,	432
4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032, 4760.06,	433
4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012,	434
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,	435
5126.281, or 5153.111 of the Revised Code as follows:	436

(1) The superintendent shall review or cause to be reviewed	437
any relevant information gathered and compiled by the bureau under	438
division (A) of section 109.57 of the Revised Code that relates to	439
the person who is the subject of the request, including, if the	440
criminal records check was requested under section 113.041,	441
121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141,	442
1321.37, 1321.53, 1321.531, 1322.03, 1322.031, 1323.05, 1733.47,	443
1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09,	444
3721.121, 3722.151, 3772.07, 4749.03, 4749.06, 4763.05, 5104.012,	445
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,	446
5126.281, or 5153.111 of the Revised Code, any relevant	447
information contained in records that have been sealed under	448
section 2953.32 of the Revised Code;	449

(2) If the request received by the superintendent asks for	450
information from the federal bureau of investigation, the	451
superintendent shall request from the federal bureau of	452
investigation any information it has with respect to the person	453
who is the subject of the request, including fingerprint-based	454
checks of national crime information databases as described in 42	455
U.S.C. 671 if the request is made pursuant to section 2151.86,	456
5104.012, or 5104.013 of the Revised Code or if any other Revised	457
Code section requires fingerprint-based checks of that nature, and	458
shall review or cause to be reviewed any information the	459
superintendent receives from that bureau. If a request under	460
section 3319.39 of the Revised Code asks only for information from	461
the federal bureau of investigation, the superintendent shall not	462
conduct the review prescribed by division (B)(1) of this section.	463

(3) The superintendent or the superintendent's designee may	464
request criminal history records from other states or the federal	465
government pursuant to the national crime prevention and privacy	466
compact set forth in section 109.571 of the Revised Code.	467

(C)(1) The superintendent shall prescribe a form to obtain	468
the information necessary to conduct a criminal records check from	469
any person for whom a criminal records check is requested under	470
section 113.041 of the Revised Code or required by section 121.08,	471
173.27, 173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1321.53,	472
1321.531, 1322.03, 1322.031, 1323.05, 1733.47, 1761.26, 2151.86,	473
3301.32, 3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151,	474
3772.07, 4701.08, 4715.101, 4717.061, 4725.121, 4725.501,	475
4729.071, 4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171,	476
4731.222, 4731.281, 4731.296, 4731.531, 4732.091, 4734.202,	477
4740.061, 4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061,	478
4760.032, 4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091,	479
5104.012, 5104.013, 5111.032, 5111.033, 5111.034, 5123.081,	480
5126.28, 5126.281, or 5153.111 of the Revised Code. The form that	481
the superintendent prescribes pursuant to this division may be in	482
a tangible format, in an electronic format, or in both tangible	483
and electronic formats.	484

(2) The superintendent shall prescribe standard impression	485
sheets to obtain the fingerprint impressions of any person for	486
whom a criminal records check is requested under section 113.041	487
of the Revised Code or required by section 121.08, 173.27,	488
173.394, 1121.23, 1155.03, 1163.05, 1315.141, 1321.53, 1321.531,	489
1322.03, 1322.031, 1323.05, 1733.47, 1761.26, 2151.86, 3301.32,	490
3301.541, 3319.39, 3701.881, 3712.09, 3721.121, 3722.151, 3772.07,	491
4701.08, 4715.101, 4717.061, 4725.121, 4725.501, 4729.071,	492
4730.101, 4730.14, 4730.28, 4731.081, 4731.15, 4731.171, 4731.222,	493
4731.281, 4731.296, 4731.531, 4732.091, 4734.202, 4740.061,	494
4741.10, 4749.03, 4749.06, 4755.70, 4757.101, 4759.061, 4760.032,	495
4760.06, 4761.051, 4762.031, 4762.06, 4763.05, 4779.091, 5104.012,	496
5104.013, 5111.032, 5111.033, 5111.034, 5123.081, 5126.28,	497
5126.281, or 5153.111 of the Revised Code. Any person for whom a	498
records check is requested under or required by any of those	499
sections shall obtain the fingerprint impressions at a county	500
sheriff's office, municipal police department, or any other entity	501
with the ability to make fingerprint impressions on the standard	502
impression sheets prescribed by the superintendent. The office,	503
department, or entity may charge the person a reasonable fee for	504
making the impressions. The standard impression sheets the	505
superintendent prescribes pursuant to this division may be in a	506
tangible format, in an electronic format, or in both tangible and	507
electronic formats.	508

(3) Subject to division (D) of this section, the	509
superintendent shall prescribe and charge a reasonable fee for	510
providing a criminal records check requested under section	511
113.041, 121.08, 173.27, 173.394, 1121.23, 1155.03, 1163.05,	512
1315.141, 1321.53, 1321.531, 1322.03, 1322.031, 1323.05, 1733.47,	513
1761.26, 2151.86, 3301.32, 3301.541, 3319.39, 3701.881, 3712.09,	514
3721.121, 3722.151, 3772.07, 4701.08, 4715.101, 4717.061,	515
4725.121, 4725.501, 4729.071, 4730.101, 4730.14, 4730.28,	516
4731.081, 4731.15, 4731.171, 4731.222, 4731.281, 4731.296,	517
4731.531, 4732.091, 4734.202, 4740.061, 4741.10, 4749.03, 4749.06,	518
4755.70, 4757.101, 4759.061, 4760.032, 4760.06, 4761.051,	519
4762.031, 4762.06, 4763.05, 4779.091, 5104.012, 5104.013,	520
5111.032, 5111.033, 5111.034, 5123.081, 5126.28, 5126.281, or	521
5153.111 of the Revised Code. The person making a criminal records	522
request under any of those sections shall pay the fee prescribed	523
pursuant to this division. A person making a request under section	524
3701.881 of the Revised Code for a criminal records check for an	525
applicant who may be both responsible for the care, custody, or	526
control of a child and involved in providing direct care to an	527
older adult shall pay one fee for the request. In the case of a	528
request under section 1121.23, 1155.03, 1163.05, 1315.141,	529
1733.47, 1761.26, or 5111.032 of the Revised Code, the fee shall	530
be paid in the manner specified in that section.	531

(4) The superintendent of the bureau of criminal	532
identification and investigation may prescribe methods of	533
forwarding fingerprint impressions and information necessary to	534
conduct a criminal records check, which methods shall include, but	535
not be limited to, an electronic method.	536

(D) A determination whether any information exists that	537
indicates that a person previously has been convicted of or	538
pleaded guilty to any offense listed or described in division	539
(A)(1)(a) or (b), (A)(2)(a) or (b), (A)(3)(a) or (b), (A)(4)(a) or	540
(b), (A)(5)(a) or (b), (A)(6)(a) or (b), (A)(7), (A)(8)(a) or (b),	541
(A)(9)(a) or (b), (A)(10)(a) or (b), (A)(12), (A)(14), or (A)(15)	542
of this section, or that indicates that a person previously has	543
been convicted of or pleaded guilty to any criminal offense in	544
this state or any other state regarding a criminal records check	545
of a type described in division (A)(13) of this section, and that	546
is made by the superintendent with respect to information	547
considered in a criminal records check in accordance with this	548
section is valid for the person who is the subject of the criminal	549
records check for a period of one year from the date upon which	550
the superintendent makes the determination. During the period in	551
which the determination in regard to a person is valid, if another	552
request under this section is made for a criminal records check	553
for that person, the superintendent shall provide the information	554
that is the basis for the superintendent's initial determination	555
at a lower fee than the fee prescribed for the initial criminal	556
records check.	557

(E) As used in this section:

558

(1) "Criminal records check" means any criminal records check	559
conducted by the superintendent of the bureau of criminal	560
identification and investigation in accordance with division (B)	561
of this section.	562

(2) "Minor drug possession offense" has the same meaning as	563
in section 2925.01 of the Revised Code.	564

(3) "Older adult" means a person age sixty or older.

565

(4) "OVI or OVUAC violation" means a violation of section	566
4511.19 of the Revised Code or a violation of an existing or	567
former law of this state, any other state, or the United States	568
that is substantially equivalent to section 4511.19 of the Revised	569
Code.	570

Sec. 1181.05.  (A) As used in this section, "consumer finance	571
company" means any person required to be licensed or registered	572
under Chapter 1321., 1322., 1323., 4712., 4727., or 4728. or	573
sections 1315.21 to 1315.30 of the Revised Code.	574

(B) Neither the superintendent of financial institutions nor	575
any other employee of the division of financial institutions shall	576
do any of the following: be interested, directly or indirectly, in	577
any bank, savings and loan association, savings bank, credit	578
union, or consumer finance company, that is under the supervision	579
of the superintendent of financial institutions; directly or	580
indirectly borrow money from any such financial institution or	581
company; serve as a director or officer of or be employed by any	582
such financial institution or company; or own an equity interest	583
in any such financial institution or company. For purposes of this	584
section, an equity interest does not include the ownership of an	585
account in a mutual savings and loan association or in a savings	586
bank that does not have permanent stock or the ownership of a	587
share account in a credit union.	588

(C) Subject to division (G) of this section, an employee of	589
the division of financial institutions may retain any extension of	590
credit that otherwise would be prohibited by division (B) of this	591
section if both of the following apply:	592

(1) The employee obtained the extension of credit prior to	593
October 29, 1995, or the commencement of the employee's employment	594
with the division, or as a result of a change in the employee's	595
marital status, the consummation of a merger, acquisition,	596
transfer of assets, or other change in corporate ownership beyond	597
the employee's control, or the sale of the extension of credit in	598
the secondary market or other business transaction beyond the	599
employee's control.	600

(2) The employee liquidates the extension of credit under its	601
original terms and without renegotiation.	602

If the employee chooses to retain the extension of credit,	603
the employee shall immediately provide written notice of the	604
retention to the employee's supervisor. Thereafter, the employee	605
shall be disqualified from participating in any decision,	606
examination, audit, or other action that may affect that	607
particular creditor.	608

(D) Subject to division (G) of this section, an employee of	609
the division of financial institutions may retain any ownership of	610
or beneficial interest in the securities of a financial	611
institution or consumer finance company that is under the	612
supervision of the division of financial institutions, or of a	613
holding company or subsidiary of such a financial institution or	614
company, which ownership or beneficial interest otherwise would be	615
prohibited by division (B) of this section, if the ownership or	616
beneficial interest is acquired by the employee through	617
inheritance or gift, prior to October 29, 1995, or the	618
commencement of the employee's employment with the division, or as	619
a result of a change in the employee's marital status or the	620
consummation of a merger, acquisition, transfer of assets, or	621
other change in corporate ownership beyond the employee's control.	622

If the employee chooses to retain the ownership or beneficial	623
interest, the employee shall immediately provide written notice of	624
the retention to the employee's supervisor. Thereafter, the	625
employee shall be disqualified from participating in any decision,	626
examination, audit, or other action that may affect the issuer of	627
the securities. However, if the ownership of or beneficial	628
interest in the securities and the subsequent disqualification	629
required by this division impair the employee's ability to perform	630
the employee's duties, the employee may be ordered to divest self	631
of the ownership of or beneficial interest in the securities.	632

(E) Notwithstanding division (B) of this section, an employee	633
of the division of financial institutions may have an indirect	634
interest in the securities of a financial institution or consumer	635
finance company that is under the supervision of the division of	636
financial institutions, which interest arises through ownership of	637
or beneficial interest in the securities of a publicly held mutual	638
fund or investment trust, if the employee owns or has a beneficial	639
interest in less than five per cent of the securities of the	640
mutual fund or investment trust, and the mutual fund or investment	641
trust is not advised or sponsored by a financial institution or	642
consumer finance company that is under the supervision of the	643
division of financial institutions. If the mutual fund or	644
investment trust is subsequently advised or sponsored by a	645
financial institution or consumer finance company that is under	646
the supervision of the division of financial institutions, the	647
employee shall immediately provide written notice of the ownership	648
of or beneficial interest in the securities to the employee's	649
supervisor. Thereafter, the employee shall be disqualified from	650
participating in any decision, examination, audit, or other action	651
that may affect the financial institution or consumer finance	652
company. However, if the ownership of or beneficial interest in	653
the securities and the subsequent disqualification required by	654
this division impair the employee's ability to perform the	655
employee's duties, the employee may be ordered to divest self of	656
the ownership of or beneficial interest in the securities.	657

(F)(1) For purposes of this section, the interests of an	658
employee's spouse or dependent child arising through the ownership	659
or control of securities shall be considered the interests of the	660
employee, unless the interests are solely the financial interest	661
and responsibility of the spouse or dependent child, the interests	662
are not in any way derived from the income, assets, or activity of	663
the employee, and any financial or economic benefit from the	664
interests is for the personal use of the spouse or dependent	665
child.	666

(2) If an employee's spouse or dependent child obtains	667
interests arising through the ownership or control of securities	668
and, pursuant to division (F)(1) of this section, the interests	669
are not considered the interests of the employee, the employee	670
shall immediately provide written notice of the interests to the	671
employee's supervisor. Thereafter, the employee shall be	672
disqualified from participating in any decision, examination,	673
audit, or other action that may affect the issuer of the	674
securities.	675

(G) For purposes of divisions (C) and (D) of this section,	676
both of the following apply:	677

(1) With respect to any employee of the former division of	678
consumer finance who, on the first day of the first pay period	679
commencing after the effective date of this section, becomes an	680
employee of the division of financial institutions, the employee's	681
employment with the division of financial institutions is deemed	682
to commence on the first day of the first pay period commencing	683
after the effective date of this section.	684

(2) With respect to any employee who, on October 29, 1995,	685
became an employee of the division of financial institutions, the	686
employee may, notwithstanding divisions (C) and (D) of this	687
section, retain any extension of credit by a consumer finance	688
company that was obtained at any time prior to the first day of	689
the first pay period commencing after the effective date of this	690
section, or retain any ownership of or beneficial interest in the	691
securities of a consumer finance company, or of a holding company	692
or subsidiary of such a company, that was acquired at any time	693
prior to the first day of the first pay period commencing after	694
the effective date of this section. If the employee chooses to	695
retain the extension of credit or the ownership or beneficial	696
interest, the employee shall comply with divisions (C) and (D) of	697
this section.	698

Sec. 1181.21.  (A) As used in this section, "consumer finance	699
company" has the same meaning as in section 1181.05 of the Revised	700
Code.	701

(B) The superintendent of financial institutions shall see	702
that the laws relating to consumer finance companies are executed	703
and enforced.	704

(C) The deputy superintendent for consumer finance shall be	705
the principal supervisor of consumer finance companies. In that	706
position the deputy superintendent for consumer finance shall,	707
notwithstanding section 1321.421, division (A) of section	708
1321.76, and sections 1321.07, 1321.55, 1322.06, 1323.12, 4727.05,	709
and 4728.05 of the Revised Code, be responsible for conducting	710
examinations and preparing examination reports under those	711
sections. In addition, the deputy superintendent for consumer	712
finance shall, notwithstanding sections 1315.27, 1321.10,	713
1321.43, 1321.54, 1321.77, 1322.12, 1323.11, 4712.14, 4727.13, and	714
4728.10 of the Revised Code, have the authority to adopt rules	715
and standards in accordance with those sections. In performing or	716
exercising any of the examination, rule-making, or other	717
regulatory functions, powers, or duties vested by this division in	718
the deputy superintendent for consumer finance, the deputy	719
superintendent for consumer finance shall be subject to the	720
control of the superintendent of financial institutions and the	721
director of commerce.	722

Sec. 1321.52.  (A)(1) No person, on that person's own behalf	723
or on behalf of any other person, shall do any of the following	724
without having first obtained a certificate of registration from	725
the division of financial institutions:	726

(a) Advertise, solicit, or hold out that the person is	727
engaged in the business of making residential mortgage loans	728
secured by a mortgage on a borrower's real estate which is other	729
than a first lien on the real estate;	730

(b) Engage in the business of lending or collecting the	731
person's own or another person's money, credit, or choses in	732
action for non-first lien residential mortgage loans;	733

(c) Employ or compensate mortgage loan originators licensed	734
or who should be licensed under sections 1321.51 to 1321.60 of the	735
Revised Code to conduct the business of making residential	736
mortgage loans;	737

(d)(c) Make loans in this state of the type set forth in	738
division (C) of this section that are unsecured or are secured by	739
other than real property, which loans are for more than five	740
thousand dollars at a rate of interest greater than permitted by	741
section 1343.01 or other specific provisions of the Revised Code.	742

(2) Each person issued a certificate of registration or	743
license is subject to all the rules prescribed under sections	744
1321.51 to 1321.60 of the Revised Code.	745

(B)(1) All loans made to persons who at the time are	746
residents of this state are considered as made within this state	747
and subject to the laws of this state, regardless of any statement	748
in the contract or note to the contrary, except as follows:	749

(a) If the loan is primarily secured by a lien on real	750
property in another state and is arranged by a mortgage loan	751
originator licensed by that state, the borrower may by choice of	752
law designate that the transaction be governed by the law where	753
the real property is located if the other state has consumer	754
protection laws covering the borrower that are applicable to the	755
transaction.	756

(b) If the loan is for the purpose of purchasing goods	757
acquired by the borrower when the borrower is outside of this	758
state, the loan may be governed by the laws of the other state.	759

(2) Nothing in division (B)(1) of this section prevents a	760
choice of law or requires registration or licensure of persons	761
outside of this state in a transaction involving the solicitation	762
of residents of this state to obtain non-real estate secured loans	763
that require the borrowers to physically visit a lender's	764
out-of-state office to apply for and obtain the disbursement of	765
loan funds.	766

(C) A registrant may make unsecured loans, loans secured by a	767
mortgage on a borrower's real estate which is a first lien or	768
other than a first lien on the real estate, loans secured by other	769
than real estate, and loans secured by any combination of	770
mortgages and security interests, on terms and conditions provided	771
by sections 1321.51 to 1321.60 of the Revised Code.	772

(D)(1) If a lender that is subject to sections 1321.51 to	773
1321.60 of the Revised Code makes a loan in violation of division	774
(A)(1) of this section, the lender has no right to collect,	775
receive, or retain any interest or charges on that loan.	776

(2) If a registrant applies to the division for a renewal of	777
the registrant's certificate after the date required by division	778
(A)(7) of section 1321.53 of the Revised Code, but prior to the	779
first day of February of that year, and the division approves the	780
application, division (D)(1) of this section does not apply with	781
respect to any loan made by the registrant while the registrant's	782
certificate was expired.	783

(3) If a person's registration under sections 1321.51 to	784
1321.60 of the Revised Code terminates due to nonrenewal or	785
otherwise but the person continues to engage in the business of	786
collecting or servicing non-first lien residential mortgage loans	787
in violation of division (A)(1) of this section, the	788
superintendent of financial institutions may take administrative	789
action, including action on any subsequent application for a	790
certificate of registration. In addition, no late fee, bad check	791
charge except as incurred, charge related to default or cost to	792
realize on its security interest, or prepayment penalty on	793
non-first lien residential mortgage loans shall be collected or	794
retained by a person who is in violation of division (A)(1)(b) of	795
this section for the period of time in which the person was in	796
violation. Nothing in division (D)(3) of this section prevents or	797
otherwise precludes any other actions or penalties provided by law	798
or modifies a defense of holder in due course that a subsequent	799
purchaser servicing the residential mortgage loan may raise.	800

(E)(1) No individual shall engage in the business of a	801
mortgage loan originator without first obtaining and maintaining	802
annually a license pursuant to section 1321.532 of the Revised	803
Code from the division of financial institutions. A mortgage loan	804
originator shall be employed or associated with a registrant or	805
entity exempt from registration under sections 1321.51 to 1321.60	806
of the Revised Code, but shall not be employed by or associated	807
with more than one registrant or exempt entity at any one time.	808

(2) An individual acting under the individual's authority as	809
a registered mortgage loan originator shall not be required to be	810
licensed under division (E)(1) of this section.	811

(F)(1) Each licensee shall register with, and maintain a	812
valid unique identifier issued by, the nationwide mortgage	813
licensing system and registry.	814

(2) No person shall use a licensee's unique identifier for	815
any purpose other than as set forth in the "Secure and Fair	816
Enforcement for Mortgage Licensing Act of 2008," 122 Stat. 2810,	817
12 U.S.C. 5101.	818

(G)(1) If a person that is subject to sections 1321.51 to	819
1321.60 of the Revised Code makes a loan in violation of division	820
(A)(1)(d)(c) of this section and subsequently sells or assigns	821
that loan, the person is liable to the borrower for any interest	822
paid on that loan to the holder or assignee in excess of the rate	823
that would be applicable in the absence of sections 1321.51 to	824
1321.60 of the Revised Code, in addition to any interest or	825
charges paid on that loan to the unauthorized lender as provided	826
by division (D)(1) of this section.	827

(2) If a person that is subject to sections 1321.51 to	828
1321.60 of the Revised Code makes a residential mortgage loan in	829
violation of division (A)(1)(b) or (c) of this section and	830
subsequently sells or assigns that loan, the lender is liable to	831
the borrower for any interest paid on that loan to the holder or	832
assignee in excess of the rate set forth in division (B)(4) of	833
section 1343.01 of the Revised Code, in addition to any interest	834
or charges paid on that loan to the unauthorized lender as	835
provided by division (D)(1) of this section.	836

Sec. 1323.01. As used in this chapter:

837

(A) "Mortgage servicer" or "servicer" means a person who	838
engages directly or indirectly, whether for compensation, gain	839
for another, or on the person's own behalf, in the business of	840
receiving scheduled periodic payments from a borrower pursuant to	841
the terms of a residential mortgage loan, including amounts	842
received for deposit in an escrow account, and applying those	843
payments received toward principal, interest, and other	844
obligations of the borrower including amounts to be paid from an	845
escrow account.	846

"Mortgage servicer" includes a person who makes or holds a	847
loan if that person also services the loan.	848

"Mortgage servicer" does not include any of the following:

849

(1) The federal deposit insurance corporation or the	850
resolution trust corporation, in connection with assets acquired,	851
assigned, sold, or transferred pursuant to the "Federal Deposit	852
Insurance Corporation Act," 64 Stat. 873 (1950), 12 U.S.C.	853
1823(c), or as receiver or conservator of an insured depository	854
institution;	855

(2) The government national mortgage association, the federal	856
national mortgage association, the federal home loan mortgage	857
corporation, the resolution trust corporation, or the federal	858
deposit insurance corporation, in any case in which the	859
assignment, sale, or transfer of the servicing of the mortgage	860
loan is preceded by:	861

(a) Termination of the contract for servicing the loan for	862
cause;	863

(b) Commencement of proceedings for bankruptcy of the	864
servicer;	865

(c) Commencement of proceedings by the federal deposit	866
insurance corporation or the resolution trust corporation for	867
conservatorship or receivership of the servicer or an entity by	868
which the servicer is owned or controlled.	869

(3) The national credit union administration, in connection	870
with assets acquired, assigned, sold, or transferred pursuant to	871
federal law, or as a receiver or conservator of an insured credit	872
union;	873

(4) Any political subdivision or any public agency of the	874
United States or any state.	875

(B) "Mortgage lender" means a person engaged in the business	876
of making residential mortgage loans for compensation or gain.	877

(C) "Residential mortgage" and "residential mortgage loan"	878
mean an obligation to pay a sum of money evidenced by a note and	879
secured by a lien upon real property located within this state	880
containing four or fewer residential units and includes such an	881
obligation on a residential condominium or cooperative unit.	882

(D) "Employee" means an individual for whom a person pays a	883
wage or salary, pays social security and unemployment taxes,	884
provides workers' compensation coverage, and withholds local,	885
state, and federal income taxes. "Employee" includes any	886
individual who acts as an operations manager of a registered	887
mortgage servicer, but for whom the servicer is prevented by law	888
from making income tax withholdings.	889

(E) "Operations manager" means the employee or owner	890
responsible for the everyday operations, compliance requirements,	891
and management of a registrant or applicant.	892

(F) "Superintendent of financial institutions" or	893
"superintendent" includes the deputy superintendent for consumer	894
finance as provided in section 1181.21 of the Revised Code.	895

(G) "Credit union" means an entity chartered under Chapter	896
1733. of the Revised Code or under similar laws of another state	897
or the United States. "Credit union" includes a credit union	898
service organization consisting of multiple credit unions.	899

Sec. 1323.02.  (A) This chapter shall be known as the	900
"residential mortgage servicers registration act."	901

(B) This chapter does not apply to any of the following:

902

(1) Any entity that is chartered and lawfully doing business	903
as a bank, savings bank, trust company, savings and loan	904
association, or credit union under the authority of any law of	905
this state, another state, or the United States;	906

(2) Life, property, or casualty insurance companies licensed	907
to do business in this state;	908

(3) Any attorney or law firm acting on behalf of any mortgage	909
note holder or mortgage servicer when acting in connection with	910
the practice of law in this state, except as otherwise provided in	911
division (D) of this section;	912

(4) Any political subdivision, or any governmental or other	913
public agency, corporation, or instrumentality in or of the	914
United States or any state;	915

(5) An institution of higher education as defined in section	916
1713.01 of the Revised Code;	917

(6) A debt collector acting under the name of, and as agent	918
for, a mortgage servicer registrant to collect a debt in default.	919

(C) Mortgage lenders registered under section 1321.52 of the	920
Revised Code and mortgage brokers registered under section 1322.02	921
of the Revised Code are exempt from the registration requirements	922
of section 1323.03 of the Revised Code but shall comply with	923
divisions (C), (D), (F), and (G) of section 1323.15, and sections	924
1323.16, 1323.17, and 1323.18 of the Revised Code in connection	925
with the servicing of residential mortgage loans. Any violation	926
of these sections is an unfair and deceptive practice in	927
violation of section 1345.02 of the Revised Code and may result	928
in administrative action and penalties the superintendent of	929
financial institutions of the department of commerce imposes	930
pursuant to sections 1321.54 and 1322.10 of the Revised Code.	931

(D) Any attorney or law firm primarily engaged in debt	932
collection shall comply with division (D) of section 1323.15 and	933
section 1323.18 of the Revised Code when acting as a mortgage	934
servicer, notwithstanding the general exemption from this chapter.	935
Any violation by an attorney of division (D) of section 1323.15	936
or section 1323.18 of the Revised Code, in connection with any	937
debt collection activity that is not considered the practice of	938
law, is deemed to be an unfair and deceptive practice in	939
violation of section 1345.02 of the Revised Code.	940

Sec. 1323.03.  (A) No person, on that person's own behalf or	941
on behalf of any other person, shall do either of the following	942
unless that person is registered as a mortgage servicer and has a	943
certificate of registration from the superintendent of financial	944
institutions of the department of commerce:	945

(1) Engage in the business of collecting money, credit, or	946
choses in action for residential mortgage loans or otherwise act	947
as a mortgage servicer;	948

(2) Collect accelerated mortgage payments from a biweekly or	949
other accelerated payment plan that the person operates, arranges,	950
or offers to arrange for compensation or gain in connection with	951
a residential mortgage loan.	952

(B) Any person who acts in willful violation of division (A)	953
of this section, after receiving written notice of the violation	954
from the superintendent or a court, may not collect any amounts	955
as interest or charges on that loan. Any amounts collected shall	956
be credited as a principal reduction to the loan.	957

(C)(1) When a registration expires for any reason and the	958
former registrant continues to service residential mortgage loans	959
in violation of division (A) of this section, the superintendent	960
may take administrative action, including action on any	961
subsequent application for a certificate of registration.	962

(2) A servicer with an expired registration may not collect,	963
charge, or retain any late fee, bad check charge except as	964
incurred, charge related to default, cost to realize on its	965
security interest, or prepayment penalty on any residential	966
mortgage loan unless that servicer applies to the superintendent	967
for a registration renewal and a certificate of registration	968
prior to the first day of August of the year the registration	969
expires and the superintendent approves that application.	970

(D) No person shall conduct the business of a mortgage	971
servicer in association with any exempt business if the	972
superintendent has ordered that exempt business, in writing, to	973
desist from conduct that the superintendent found to be a mere	974
conduit for the mortgage servicer and that the association of the	975
servicer and the exempt business is intended to conceal an evasion	976
of this chapter or the rules adopted under it. Any determination	977
made pursuant to this division shall be made in accordance with	978
Chapter 119. of the Revised Code.	979

Sec. 1323.04.  (A) Any application for registration as a	980
mortgage servicer shall be in writing, under oath, and in the	981
form the superintendent of financial institutions of the	982
department of commerce prescribes. It shall contain an undertaking	983
by the applicant to abide by this chapter and any other	984
information that the superintendent requires. Applicants that are	985
foreign corporations shall obtain and maintain a license pursuant	986
to Chapter 1703. of the Revised Code before seeking registration	987
or registration renewal as a mortgage servicer.	988

(B) Upon an applicant's filing an application and paying a	989
nonrefundable two-hundred-dollar investigation fee, a	990
nonrefundable one-thousand-dollar annual registration fee, and any	991
additional fee required by law, the superintendent shall	992
investigate the relevant facts. If the application requires	993
investigation outside this state, the applicant may be required to	994
advance sufficient funds to pay any of the actual expenses when it	995
appears that these expenses will exceed two hundred dollars. The	996
superintendent shall furnish an itemized statement of any	997
expenses the applicant is required to pay. The superintendent	998
shall not issue any certificate of registration unless all the	999
required fees have been paid.	1000

(C) An applicant shall designate an employee or owner who has	1001
at least three years' experience in the mortgage, collections,	1002
servicing, or lending field as the applicant's operations	1003
manager. No operations manager shall be employed by any other	1004
mortgage servicer while acting as an operations manager. Any	1005
operations manager must be acceptable to the superintendent.	1006

(D) The superintendent may consider an application for	1007
registration as a mortgage servicer withdrawn if that application	1008
does not contain all of the information required under division	1009
(A) of this section and the applicant does not submit that	1010
information within ninety days after the superintendent requests	1011
the information in writing.	1012

(E) The superintendent of financial institutions shall	1013
deposit any licensing fee, charge, or fine received pursuant to	1014
this chapter into the consumer finance fund in the state	1015
treasury, created under section 1321.21 of the Revised Code,	1016
unless otherwise specified by law.	1017

Sec. 1323.05.  (A)(1) Any investigation the superintendent of	1018
financial institutions of the department of commerce undertakes	1019
with respect to an application for registration as a mortgage	1020
servicer shall include a civil records check of the applicant,	1021
including any individual whose identity is required to be	1022
disclosed in the application, and criminal records check at the	1023
time of the initial application and every five years thereafter,	1024
or upon a change of control of the registrant if the persons	1025
acquiring control have not had a criminal records check submitted	1026
to the superintendent within the past five years.	1027

(2) Where the applicant is a business entity, the	1028
superintendent may require a civil and criminal background check	1029
of those persons that the superintendent determines have the	1030
authority to direct and control the operations of the applicant.	1031

(B) When conducting a criminal background check, the	1032
superintendent shall request the superintendent of the bureau of	1033
criminal identification and investigation, or a vendor the	1034
superintendent approves, to conduct a criminal records check	1035
based on the applicant's fingerprints or if fingerprints are	1036
unreadable, based on the applicant's social security number in	1037
accordance with division (A)(12) of section 109.572 of the Revised	1038
Code. Notwithstanding division (K) of section 121.08 of the	1039
Revised Code, the superintendent of financial institutions shall	1040
request that criminal record information from the federal bureau	1041
of investigation be obtained as part of the criminal records	1042
check.	1043

(C) The applicant shall pay any fee required under division	1044
(C)(3) of section 109.572 of the Revised Code.	1045

Sec. 1323.06.  (A) The superintendent of financial	1046
institutions of the department of commerce shall issue a	1047
certificate of registration as a mortgage servicer to an applicant	1048
if the superintendent finds that the applicant's financial	1049
responsibility, experience, character, and general fitness command	1050
the confidence of the public and warrant the belief that the	1051
business will be operated honestly and fairly in compliance with	1052
the purposes of this chapter and the rules adopted under it, and	1053
that the applicant has the requisite bond or applicable net worth	1054
as this chapter requires.	1055

(B) Upon finding an applicant does not meet the conditions	1056
set forth in this chapter, the superintendent shall issue a notice	1057
of intent to deny an application for registration or renewal. The	1058
superintendent shall immediately notify the applicant of the	1059
denial, the grounds for the denial, and the applicant's	1060
opportunity to be heard on the action in accordance with Chapter	1061
119. of the Revised Code.	1062

(C) Any certificate issued pursuant to this section shall	1063
expire on the first day of July next after its issue, and on the	1064
first day of July in each succeeding year unless renewed by filing	1065
a renewal application and payment of an annual fee and any	1066
additional fee required by law, on or before the last day of June	1067
of each year.	1068

Sec. 1323.07.  (A) To renew a registration as a mortgage	1069
servicer, a registrant shall timely file a renewal application on	1070
a form the superintendent of financial institutions of the	1071
department of commerce prescribes, along with any additional	1072
information that the superintendent requires.	1073

(B) As a condition of renewal, a registrant must provide	1074
proof that the designated operations manager meets the criteria	1075
for initial approval set forth in section 1323.05 of the Revised	1076
Code and that the mortgage servicer meets the minimum standards	1077
for the issuance of the certificate of registration under	1078
sections 1323.04 to 1323.06 of the Revised Code.	1079

(C) The superintendent shall not grant any renewal if the	1080
applicant's certificate of registration is subject to an order of	1081
suspension, revocation, or an unpaid and past due fine the	1082
superintendent has imposed.	1083

(D) If an application for renewal of a certificate of	1084
registration does not contain all the information this section	1085
requires, and if the registrant does not submit that information	1086
to the superintendent within ninety days after the superintendent	1087
requests the information in writing, the superintendent may	1088
consider the application withdrawn.	1089

Sec. 1323.08.  At any time there is a change of five per cent	1090
or more in the ownership of a registrant, the superintendent of	1091
financial institutions of the department of commerce may make any	1092
investigation necessary to determine whether any fact or condition	1093
presently exists that would have warranted the superintendent	1094
denying the original application had the fact or condition	1095
existed at the time of that application. If the superintendent	1096
finds such a fact or condition, the superintendent may revoke the	1097
registrant's registration and certificate pursuant to Chapter	1098
119. of the Revised Code.	1099

Sec. 1323.09.  (A) Each place of business to which borrowers	1100
are regularly directed to remit payment shall display its own	1101
certificate of registration. The superintendent of financial	1102
institutions of the department of commerce may issue additional	1103
certificates of registration to the same person for additional	1104
places of business upon compliance with the requirements governing	1105
the issuance of a single certificate.	1106

(B)(1) Any change in the place of business to a location	1107
outside the original municipal corporation requires a new	1108
certificate of registration. A registrant who makes such a change	1109
of location shall submit a new application, pay the registration	1110
fee and, if the superintendent requires, pay an investigation fee	1111
of two hundred dollars. The registrant must have the new	1112
certificate before operating in the new location.	1113

(2) A registrant who wishes to change its place of business	1114
within the same municipal corporation shall give written notice	1115
of the change in advance to the superintendent, who shall provide	1116
a certificate for the new address without cost.	1117

(C) A registrant that changes its name shall give written	1118
notice of the change to the superintendent prior to acting as a	1119
mortgage servicer under the new name. The superintendent shall	1120
provide a certificate in the new name without cost.	1121

(D) A registrant shall keep each certificate conspicuously	1122
posted in each place of business. A certificate of registration	1123
is not transferable or assignable.	1124

Sec. 1323.10.  (A) Any person who acts as a mortgage	1125
servicer, if not bonded pursuant to division (B) of this section,	1126
shall maintain at all times both of the following:	1127

(1) A net worth of at least two hundred fifty thousand	1128
dollars;	1129

(2) For each additional certificate of registration beyond	1130
the first, assets of at least fifty thousand dollars either in	1131
use or readily available for use in the conduct of the business.	1132

(B) Any person acting as a mortgage servicer by arranging	1133
biweekly or other accelerated payment plans and collecting those	1134
payments shall obtain and maintain in effect at all times a	1135
corporate surety bond issued by a bonding company or insurance	1136
company authorized to do business in this state. The servicer	1137
shall file a copy of the bond with the superintendent of	1138
financial institutions of the department of commerce. The bond	1139
shall meet all of the following conditions:	1140

(1) Be in favor of the superintendent;

1141

(2) Have a base penal sum of two hundred fifty thousand	1142
dollars for the first location and an additional penal sum of ten	1143
thousand dollars for each additional location that requires a	1144
separate certificate of registration;	1145

(3) Have a term that coincides with the term of	1146
registration;	1147

(4) Be for the exclusive benefit of any individual borrower	1148
injured by any violation of this chapter or the rules adopted	1149
under it by a servicer, its employees, or agent;	1150

(5) Have an aggregate liability of the corporate surety for	1151
any and all breaches of the conditions of the bond not to exceed	1152
the penal sum of the bond.	1153

(C)(1) A mortgage servicer shall give notice to the	1154
superintendent by certified mail of any action that is brought by	1155
a borrower against the servicer alleging injury by a violation of	1156
this chapter and of any judgment that is entered against the	1157
servicer by a borrower injured by that violation. The notice	1158
shall provide details sufficient to identify the action or	1159
judgment. The servicer shall file the notice with the	1160
superintendent within ten days after the commencement of the	1161
action or receipt of the notice of entry of a judgment.	1162

(2) A corporate surety shall give notice of any payment to	1163
the superintendent by certified mail within ten days after it pays	1164
any claim or judgment, with details sufficient to identify the	1165
person and the claim or judgment paid.	1166

(D) Whenever the penal sum of the corporate surety bond is	1167
reduced by one or more recoveries or payments, a servicer shall	1168
furnish a new or additional bond under this section, so that the	1169
total or aggregate penal sum of the bond or bonds equals the sum	1170
required by this section, or shall furnish an endorsement executed	1171
by the corporate surety reinstating the bond to the required penal	1172
sum set forth in division (B) of this section.	1173

(E) The liability of the corporate surety on the bond to the	1174
superintendent and to any borrower injured by a violation of this	1175
chapter is not affected in any way by any misrepresentation,	1176
breach of warranty, or failure to pay the premium, by any act or	1177
omission upon the part of the servicer, by the insolvency or	1178
bankruptcy of the servicer, or by the insolvency of the	1179
servicer's estate. The servicer shall maintain in effect	1180
liability for any act or omission that occurs during the term of	1181
the corporate surety bond for at least two years after the date	1182
on which the corporate surety bond is terminated or canceled.	1183

(F) Neither the servicer nor the corporate surety shall	1184
cancel a corporate surety bond except upon notice to the	1185
superintendent by certified mail, return receipt requested. A	1186
cancellation is not effective until thirty days after the	1187
superintendent receives the notice.	1188

(G) No servicer shall fail to comply with this section. Any	1189
servicer that fails to comply shall cease acting as a mortgage	1190
servicer in this state until that servicer complies with this	1191
section.	1192

Sec. 1323.11.  (A) The superintendent of financial	1193
institutions of the department of commerce may adopt, in	1194
accordance with Chapter 119. of the Revised Code, rules to	1195
administer and enforce this chapter and to carry out its purposes.	1196

(B) The superintendent may investigate alleged violations of	1197
this chapter or the rules adopted under it, or complaints	1198
concerning any violation. In conducting an investigation, the	1199
superintendent, by subpoena, may compel witnesses to testify in	1200
relation to any matter over which the superintendent has	1201
jurisdiction, and may require the production or photocopying of	1202
any book, record, or other document pertaining to such matter. If	1203
a person fails to comply with the subpoena, or permit	1204
photocopying of any document subpoenaed, a court of common pleas,	1205
upon the superintendent's application, shall compel obedience by	1206
attachment proceedings for contempt or a refusal to testify.	1207

(C)(1) In accordance with Chapter 119. of the Revised Code,	1208
the superintendent may revoke, suspend, or refuse to renew any	1209
registration issued under this chapter if the superintendent	1210
finds any of the following:	1211

(a) A violation of or failure to comply with any provision of	1212
this chapter or the rules adopted under it, Chapter 1345. of the	1213
Revised Code, federal debt collection laws, or any other law	1214
applicable to the business the registrant conducts under the	1215
registrant's certificate of registration;	1216

(b) The registrant has been convicted of or pleaded guilty or	1217
no contest in a domestic, foreign, or military court to any	1218
felony or any criminal offense involving theft, receiving stolen	1219
property, embezzlement, forgery, fraud, passing bad checks, money	1220
laundering, breach of trust, dishonesty, or drug trafficking, or	1221
any criminal offense involving money or securities;	1222

(c) The registrant's certificate of registration, license,	1223
or comparable authority as a mortgage servicer has been revoked in	1224
any other state.	1225

(2) The superintendent may impose a monetary fine pursuant	1226
to division (F) of this section in addition to, or instead of,	1227
any revocation, suspension, or denial or in settlement of matters	1228
subject to claims under division (C)(1)(a) of this section.	1229

(3) Except as otherwise provided in section 1323.03 of the	1230
Revised Code, the revocation, suspension, or refusal to renew a	1231
registration does not impair the obligation of any pre-existing	1232
lawful contract made under this chapter if a mortgage servicer	1233
makes a good faith effort to promptly transfer its collection	1234
rights to a registrant or person exempt from registration. A	1235
servicer that does not make the requisite good faith effort is	1236
subject to additional monetary fines and legal or administrative	1237
action by the superintendent.	1238

(4) Nothing in division (C) of this section limits a court's	1239
ability to impose a cease and desist order preventing any further	1240
business or servicing activity.	1241

(D) The superintendent may apply to the court of common	1242
pleas for an order enjoining any violation of this chapter. Upon a	1243
showing that a person has committed or is about to commit a	1244
violation of this chapter, the court shall grant an injunction,	1245
restraining order, or other appropriate relief. If the	1246
application to a court is for an order enjoining a person from	1247
acting as a registrant or mortgage servicer in violation of	1248
division (A) of section 1323.03 of the Revised Code, the	1249
superintendent may request, and the court may impose, a civil	1250
penalty for that unregistered or unlicensed conduct in an amount	1251
not to exceed five thousand dollars per violation.	1252

(E) The superintendent may issue a cease and desist order if	1253
the superintendent determines that a person is engaged in or may	1254
be engaged in activities that violate this chapter or the rules	1255
adopted under it, after notice and a hearing conducted in	1256
accordance with Chapter 119. of the Revised Code.	1257

(F)(1) The superintendent may impose a fine of not more than	1258
one thousand dollars for each day a violation of this chapter or	1259
the rules adopted under it is committed, repeated, or continued.	1260
In determining the amount of a fine to impose, the superintendent	1261
may consider all of the following:	1262

(a) The seriousness of the violation;

1263

(b) The servicer's good faith efforts to prevent the	1264
violation;	1265

(c) The servicer's history regarding violations and	1266
compliance with the superintendent's orders;	1267

(d) The servicer's financial resources;

1268

(e) Any other matters the superintendent considers	1269
appropriate in enforcing this chapter.	1270

(2) Monetary fines imposed under this section do not	1271
preclude any criminal fine described in section 1323.99 of the	1272
Revised Code.	1273

(G) All fines collected pursuant to this section shall be	1274
paid to the treasurer of state to the credit of the consumer	1275
finance fund created in section 1321.21 of the Revised Code.	1276

Sec. 1323.12.  (A)(1) A mortgage servicer shall keep	1277
separate records pertaining to each loan serviced. The servicer	1278
shall preserve those records for so long as the servicer has	1279
responsibility for the loan and retain copies of those records	1280
for at least four years even if the servicer transfers the	1281
original copies for any reason. At any time responsibility for the	1282
loan is transferred to another servicer, the servicer who is	1283
ceasing responsibility shall transfer all original loan documents	1284
and records to the servicer who is assuming responsibility for	1285
the loan. Any system of electronic imaging of required records	1286
shall be approved by the superintendent of financial institutions	1287
of the department of commerce prior to its use but at no time	1288
shall such a system be a substitute for maintaining original	1289
documents as this section requires.	1290

(2) As often as necessary, the superintendent may make or	1291
cause to be made an examination of records pertaining to loans	1292
serviced for the purpose of determining whether the servicer is	1293
complying with this chapter and of verifying any registrant's	1294
annual report.	1295

(B)(1) The superintendent may require each servicer to file	1296
each year a report under oath or affirmation, on forms the	1297
superintendent supplies, concerning the business and operations	1298
for the preceding calendar year. A servicer that operates two or	1299
more registered offices or who operates registered offices with	1300
one or more affiliated servicers, may file a composite report of	1301
the group of registered offices in lieu of individual reports.	1302

(2) The reports provided under division (B)(1) of this	1303
section are not public records as defined in section 149.43 of the	1304
Revised Code and are not open to public inspection.	1305

(C)(1) The following information is confidential:

1306

(a) Examination information, and any information leading to	1307
or arising from an examination;	1308

(b) Investigation information, and any information arising	1309
from or leading to an investigation.	1310

(2) The information described in division (C) of this section	1311
is confidential for all purposes except when it is necessary for	1312
the superintendent to take official action regarding the affairs	1313
of a servicer or in connection with criminal or civil proceedings	1314
to be initiated by a prosecuting attorney or the attorney	1315
general. This information may be introduced into evidence or	1316
disclosed pursuant to section 1181.25 of the Revised Code.	1317

(D) All application information is a public record as defined	1318
in section 149.43 of the Revised Code, except social security	1319
numbers, employer identification numbers, financial account	1320
numbers, the identity of the institution where financial accounts	1321
are maintained, personal financial information, fingerprint cards	1322
and the information contained on such cards, and criminal	1323
background information.	1324

(E) Nothing in this section prevents the superintendent from	1325
releasing information relating to servicers or exchanging that	1326
information with other financial institution regulatory	1327
authorities. For this purpose, a "financial institution regulatory	1328
authority" includes a regulator of a business activity in which a	1329
servicer is engaged or has applied to engage, to the extent that	1330
the regulator has jurisdiction over a servicer engaged in that	1331
business activity. A servicer is engaged in a business activity,	1332
and a regulator of that business activity has jurisdiction over	1333
the servicer, whether the servicer conducts the activity directly	1334
or a subsidiary or affiliate of the servicer conducts the	1335
activity.	1336

(F) Nothing in this section prevents the superintendent of	1337
financial institutions from releasing information relating to	1338
mortgage servicers to the attorney general, to the superintendent	1339
of real estate and professional licensing of the department of	1340
commerce for purposes relating to the administration of Chapters	1341
4735. and 4763. of the Revised Code, to the superintendent of	1342
insurance for purposes relating to the administration of Chapter	1343
3953. of the Revised Code, to the commissioner of securities of	1344
the department of commerce for purposes relating to the	1345
administration of Chapter 1707. of the Revised Code, or to local	1346
law enforcement agencies and local prosecutors. Information	1347
released pursuant to this section remains confidential. The	1348
superintendent of financial institutions, by rule, may designate	1349
additional state agencies and regulatory authorities as entities	1350
with which to share this confidential information.	1351

Sec. 1323.13.  No person, in connection with any examination	1352
or investigation conducted by the superintendent of financial	1353
institutions of the department of commerce under this chapter,	1354
shall knowingly do any of the following:	1355

(A) Circumvent, interfere with, obstruct, or fail to	1356
cooperate, including making a false or misleading statement,	1357
failing to produce records, or intimidating or suborning any	1358
witness;	1359

(B) Withhold, abstract, remove, mutilate, destroy, or secrete	1360
any books, records, computer records, or other information;	1361

(C) Tamper with, alter, or manufacture any evidence.

1362

Sec. 1323.14.  (A) No mortgage servicer, through its	1363
operations manager or otherwise, shall fail to reasonably	1364
supervise persons the servicer employs or associates with, or to	1365
establish reasonable procedures to avoid violations of this	1366
chapter or the rules adopted under it, violations of applicable	1367
state and federal consumer and lending laws or rules by persons	1368
the servicer employs or associates with.	1369

(B) Within ten business days of any change in a mortgage	1370
servicer's statutory agent designation or address, the servicer	1371
shall file with the superintendent of financial institutions of	1372
the department of commerce evidence that the servicer has filed	1373
such changes with the secretary of state.	1374

(C)(1) At least thirty days prior to the closure of a	1375
registered office location, a mortgage servicer shall notify the	1376
superintendent by filing a notice of closure on a form approved by	1377
the superintendent. The notice shall indicate the custodian of the	1378
records and where the records will be maintained. Within five	1379
business days after the closure, the servicer shall surrender the	1380
certificate of registration issued to that location by returning	1381
it to the superintendent.	1382

(2) The closure of an office and the surrender of a	1383
certificate does not affect a mortgage servicer's civil or	1384
criminal liability for acts committed before the surrender.	1385

(D) A mortgage servicer shall maintain books and records in	1386
compliance with this chapter and make them available to the	1387
superintendent of financial institutions of the department of	1388
commerce. After any closure, records remain subject to examination	1389
and or investigation. The servicer shall send the superintendent	1390
written notice of any change in the location of the records or	1391
the custodian of those records.	1392

Sec. 1323.15.  (A) No mortgage servicer shall refuse to	1393
provide information regarding the amount required to pay in full	1394
a residential mortgage loan when the borrower or a person the	1395
borrower designates makes that request in writing. The servicer	1396
shall provide the requested payoff statement without charge one	1397
time during any twelve-month period. If additional payoff	1398
statements are requested, the servicer may charge an amount not	1399
in excess of three dollars for each additional statement. The	1400
servicer shall provide any payoff statement within five business	1401
days of the request.	1402

(B) No mortgage servicer shall obtain a certificate of	1403
registration through any false or fraudulent representation of a	1404
material fact or any omission of a material fact required by	1405
state or federal law, or make any substantial misrepresentation	1406
in the registration application.	1407

(C) No mortgage servicer shall make false or misleading	1408
statements of a material fact, omissions of statements required	1409
by state or federal law, or false promises regarding a material	1410
fact, through advertising or other means, or engage in a	1411
continued course of misrepresentations.	1412

(D) No mortgage servicer shall engage in conduct that	1413
constitutes improper, fraudulent, or dishonest dealings.	1414

(E) No mortgage servicer or applicant for registration shall	1415
fail to notify the superintendent of financial institutions of	1416
the department of commerce within thirty days after the servicer	1417
or applicant has:	1418

(1) Been convicted of or pleaded guilty or no contest in a	1419
domestic, foreign, or military court to any felony;	1420

(2) Been convicted of or pleaded guilty or no contest in a	1421
domestic, foreign, or military court to any criminal offense	1422
involving theft, receiving stolen property, embezzlement, forgery,	1423
fraud, passing bad checks, money laundering, breach of trust,	1424
dishonesty, or drug trafficking, or any criminal offense involving	1425
money or securities;	1426

(3) Had a mortgage servicer registration, license, or	1427
comparable authority revoked in any other state.	1428

(F) No mortgage servicer shall knowingly make, propose, or	1429
solicit fraudulent, false, or misleading statements on any	1430
mortgage servicing document or on any document related to an	1431
accounting of payments remitted or disbursed. For purposes of	1432
this division, "fraudulent, false, or misleading statements" does	1433
not include mathematical errors, inadvertent transposition of	1434
numbers, typographical errors, or any other bona fide error.	1435

(G) No mortgage servicer shall knowingly instruct, solicit,	1436
propose, or otherwise cause a borrower to sign in blank a	1437
document.	1438

Sec. 1323.16. (A) In addition to the duties imposed by common	1439
law or state or federal law, in the course of servicing	1440
residential mortgage loans in this state, a mortgage servicer	1441
shall do all of the following:	1442

(1) Act with good faith and fair dealing in any transaction,	1443
practice, or course of business associated with servicing;	1444

(2) Act with reasonable skill, care, and diligence;

1445

(3) Act in good faith to provide the borrower with the facts	1446
relating to the nature and extent of any delinquency or default	1447
and the amounts owed or necessary to reinstate the loan or cure	1448
the default;	1449

(4) Subject to the servicer's duties and obligations under	1450
its mortgage servicing contract, attempt a resolution,	1451
modification, or workout to the delinquency of a borrower who	1452
requests assistance;	1453

(5) Make a good faith effort to correct any erroneous	1454
information it has provided to any credit reporting agency;	1455

(6) Provide information regarding the amount required to pay	1456
in full a residential mortgage loan within five business days	1457
when requested by the borrower or by another person designated in	1458
writing by the borrower. The servicer shall provide the requested	1459
payoff statement without charge once during any twelve-month	1460
period. If additional payoff statements are requested, the	1461
servicer may charge an amount not in excess of three dollars for	1462
each additional statement.	1463

(7) Make all payments from any escrow account in a timely	1464
manner, so as to avoid the assessment of late fees, penalties, or	1465
consequential damages, notwithstanding any loan delinquency,	1466
unless there are insufficient funds in the escrow account to cover	1467
the payments;	1468

(8) Accept and credit each residential mortgage loan payment	1469
received on the date received;	1470

(9) Take all steps necessary to terminate a foreclosure	1471
action when the condition giving rise to action has been fully	1472
cured. Upon cure of a default, the servicer shall reinstate the	1473
borrower to the same position as if the default had not occurred,	1474
and nullify, as of the date of the cure, any acceleration of any	1475
obligation under the residential mortgage loan or note arising	1476
from the default.	1477

(10) In addition to the duties enumerated in this chapter,	1478
any mortgage servicer for a government-insured loan shall comply	1479
with the loss mitigation standards and guidelines as required by	1480
the insuring entity.	1481

(B) When establishing a loan modification solution for a	1482
borrower, a mortgage servicer shall seek to achieve long-term	1483
sustainability for the borrower.	1484

Sec. 1323.17.  No mortgage servicer shall do any of the	1485
following in connection with a residential mortgage loan:	1486

(A) Collect, charge, or retain any fee from the borrower	1487
unless the fee is reasonable, for a bona fide service rendered,	1488
and specifically authorized by the residential mortgage loan and	1489
permitted by law;	1490

(B) Initiate a foreclosure action without proof of ownership	1491
as evidenced by a declaration signed under penalty of perjury,	1492
stating that the party in interest has reviewed the original note	1493
and all subsequent assignments and has concluded that the party	1494
in interest owns the note or mortgage;	1495

(C) Fail to provide written notice to the borrower before	1496
acquiring and placing hazard, homeowner's, or flood insurance on a	1497
property or acquiring and placing such insurance if the mortgage	1498
servicer knows, or has reason to know, that a policy for such	1499
insurance is in effect;	1500

(D) Acquire and place hazard, homeowner's, or flood insurance	1501
on a property for an amount that exceeds the greater of the	1502
insurable improvements to the property, the last known coverage	1503
amount that was sufficient to meet the borrower's insurance	1504
obligations, or the unpaid balance owed by the borrower;	1505

(E) Fail to refund unearned premiums for insurance the	1506
mortgage servicer or its agents placed upon the borrower,	1507
providing there is reasonable evidence that the needed coverage	1508
had been obtained, the forced placement is not necessary, and the	1509
property is properly insured in accordance with the loan or note.	1510

Sec. 1323.18. (A) No mortgage servicer shall use unfair,	1511
deceptive or unconscionable means to collect or attempt to	1512
collect any claim in connection with a residential mortgage loan.	1513
Without limiting the general application of the foregoing, the	1514
following actions violate this section:	1515

(1) The collection or the attempt to collect any interest or	1516
other charge, fee, or expense that is incidental to the principal	1517
obligation, unless expressly authorized by the agreement creating	1518
the obligation and by law, including division (A) of section	1519
1323.17 of the Revised Code;	1520

(2) Any communication with a borrower if the mortgage	1521
servicer knows that the borrower is represented by an attorney and	1522
the attorney's name and address are known or could be easily	1523
ascertained. This prohibition does not apply if the borrower's	1524
attorney fails to respond within thirty days to answer	1525
correspondence, return phone calls, or discuss the obligation in	1526
question, or the attorney consents to the servicer having direct	1527
communication with the borrower;	1528

(3) Placing a telephone call or otherwise communicating by	1529
telephone with a borrower or third party, at any place including	1530
a place of employment, and falsely stating that the call is	1531
"urgent" or an "emergency";	1532

(4) Using profane or obscene language or language that is	1533
intended to unreasonably abuse the listener or reader;	1534

(5) Placing telephone calls without disclosure of the	1535
caller's identity and with the intent to annoy, harass, or	1536
threaten any person at the number called;	1537

(6) Causing expense to any person in the form of long	1538
distance telephone tolls, text messaging fees, or other charges	1539
the servicer causes by concealing the true purpose of the	1540
communication;	1541

(7) Causing a telephone to ring or engaging any person in a	1542
telephone conversation repeatedly or continuously, or at unusual	1543
times or times known to be inconvenient, with the intent to	1544
annoy, abuse, oppress, or threaten any person at the called	1545
number.	1546

(B) The requirements set forth in this section are in	1547
addition to any other requirement set forth in federal or state	1548
law regulating the conduct of collection activities, including the	1549
Federal Fair Debt Collection Practices Act, 91 Stat. 874 (1977),	1550
15 U.S.C. 1692 et seq.	1551

Sec. 1323.19.  (A) No mortgage servicer, in conducting a	1552
mortgage servicer business, shall engage in any unfair, deceptive	1553
or unconscionable act in violation of Chapter 1345. of the Revised	1554
Code. Any violation of the sections set forth in division (C),	1555
(D), (F), or (G) of section 1323.15 or section 1323.16, 1323.17,	1556
or 1323.18 of the Revised Code is an unfair and deceptive act or	1557
practice in violation of section 1345.02 of the Revised Code. The	1558
attorney general may take enforcement action and a borrower may	1559
seek recovery under Chapter 1345. of the Revised Code for the	1560
violations set forth in this division.	1561

(B) A borrower injured by a violation of division (A) of this	1562
section may not recover damages, attorney's fees, and costs under	1563
Chapter 1345. of the Revised Code if the borrower has recovered	1564
damages in a cause of action initiated under section 1323.20 of	1565
the Revised Code and the damages sought under Chapter 1345. of	1566
the Revised Code are based on the same acts or circumstances as	1567
the damages awarded under section 1323.20 of the Revised Code.	1568

Sec. 1323.20.  (A) A borrower injured by a violation of this	1569
chapter may recover damages in an amount not less than all	1570
improper charges or fees paid to the mortgage servicer, plus	1571
reasonable attorney's fees and court costs, and also may be	1572
awarded punitive damages.	1573

(B) Nothing in this section prevents recovery under division	1574
(B) or (C)(2) of section 1323.03 of the Revised Code.	1575

(C) A borrower may not recover damages, attorney's fees, or	1576
costs under this section if the borrower also recovered damages	1577
in an action initiated under any section of Chapter 1321. or	1578
1345. of the Revised Code and the damages so awarded were based	1579
on the same acts or circumstances as the damages sought under this	1580
section.	1581

Sec. 1323.99.  (A) Whoever violates division (A)(1) or (2) of	1582
section 1323.03, or division (F) or (G) of section 1323.15 of the	1583
Revised Code is guilty of a felony of the fifth degree.	1584

(B) Whoever violates section 1323.13 of the Revised Code with	1585
the intent to interfere or obstruct an examination or	1586
investigation is guilty of a felony of the fourth degree.	1587

Section 2. That existing sections 109.572, 1181.05, 1181.21,	1588
and 1321.52 of the Revised Code are hereby repealed.	1589

Section 3. Section 1323.03 of the Revised Code takes effect	1590
six months after the effective date of this act. During that	1591
six-month period, the Superintendent of Financial Institutions of	1592
the Department of Commerce may take applications for registration	1593
as a mortgage servicer, process the applications, and issue	1594
certificates of registration as the Superintendent is able. During	1595
that time, no mortgage servicer is required to have a certificate	1596
of registration and the Superintendent is not obligated to issue	1597
certificates until the Superintendent is able.	1598