An “Information Document” is required under Ohio Rev. Code Ann. § 1345.05(a)(4) & (G) and Ohio Admin. Code 109:4-3-29 is to be provided to borrowers at the time of applying for a loan, or within 5 days of application if such is not made in person. Ohio’s Attorney General is held responsible for the development of this document and he has published such on his website (http://www.ohioattorneygeneral.gov/Files/Forms/Forms-for-Business-and-Nonprofit/Required-Mortgage-Loan-Disclosure-Forms).
This “Information Document” (of which Cx11195 is a duplicate), discloses to borrowers a list of “unfair, deceptive or unconscionable acts” which businesses are prohibited from doing in connection with residential mortgage loans. Among these practices are charging prepayment penalties in violation of Supra § 1343.011(C)(2)(a), which prohibits the charging of such penalties on loans with a principal amount less than a statutorily-prescribed principal amount criterion which adjusts yearly. This principal amount criterion is disclosed in the “Information Document.”
As expected on a yearly basis, Ohio’s Attorney General has modified the “Information Document” to include the new criterion for 2014 (which is $86,929) and, as a result, we will be updating Cx11195 to match the model form. Since the “Information Document” makes reference to the criteria for both 2013 and 2014, we will proceed to push to Production the updates to our form before 2014.
We will also be updating our Prepayment Penalty Matrix to reflect the changes to the principal amount as well.
Updates to Cx11195 will take effect on November 15, 2013. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
November 8, 2013