Ohio HB 483 was signed into law on June 16, 2014 making amendments to Ohio Rev. Code Ann. § 1322.063 as follows:
Property tax escrow and monthly payment disclosure.
(A) In addition to the disclosures required under section 1322.062 of the Revised Code, a registrant or licensee shall, not later than three business days before a loan is closed, deliver to the borrower a written disclosure that includes the following:
(1) A statement indicating whether property taxes will be escrowed;
(2) A description of what is covered by the regular monthly payment, including principal, interest, taxes, and insurance, as applicable.
(B) A registrant or licensee shall disclose the information in division (A) of this section by delivering either the model form located on the web site of the division of financial institutions or the appropriate federal form that discloses substantially similar information as published in Appendix H of 12 C.F.R. Part 1026, as amended.
(C) No registrant or licensee shall fail to comply with this section.
Cx11205 (OH Escrow Account Disclosure) has been changed to reflect the model form located at http://www.com.ohio.gov/documents/fiin_OMBAOMLA_MonthlyPmtDisclosure.pdf as referenced in Ibid. § 1322.063(B).
The impact of this change is twofold:
1) The separate Notice of Escrow of Taxes and Regular Monthly Payment Disclosure forms required for individuals and entities regulated under Id. § 1322.063 by the Ohio Mortgage Broker Act (OMBA) and under Ibid. § 1321.592 by the Ohio Mortgage Loan Act (OMLA) have now been combined into one form.
2) While the timeframe for delivering the Notice of Escrow of Taxes and Regular Monthly Payment Disclosure form under Ibid. § 1321.592(A) remains “not earlier than three business days nor later than twenty-four hours before the loan is closed”, the timeframe for delivering the disclosure form under amended Ibid. § 1322.063(A) will now be “not later than three business days before a loan is closed”.
The effective date of the amendment to Ohio Rev. Code Ann. § 1322.063 is September 15, 2014, but these document changes will take effect early, as allowed by the Ohio Division of Financial Institutions, on August 12, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
August 5, 2014