In addition to the changes we are making to Cx11205 (see http://www.docutechcorp.com/document-change-oh-escrow-account-disclosure-cx11205), we will also be updating the lender-version of the Ohio “Notice of Escrow of Taxes & Regular Monthly Payment” to match the latest version of this model form, which is published on the Ohio Department of Commerce’s website (http://www.com.ohio.gov/documents/fiin_OMBAOMLA_MonthlyPmtDisclosure.pdf).
Prior to the enactment of 2014 Ohio Laws File 114 (H.B. 483), there were two published versions of this model form. One was for licensees or registrants under the Mortgage Broker Act (“MBA”; see Ohio Rev. Code Ann. § 1322.063) and the other for licensees and registrants under the Mortgage Loan Act (“MLA”; Ibid. § 1321.592[A]).
Cx11205 was a duplicate of the MBA version, while Cx11197 was a duplicate of the MLA version. Both versions have now been merged into one model form. However, it is still necessary for Docutech to provide both an MBA and MLA version of this form, due to the different timing requirements for each. Effective September 15, 2014 the MBA now requires the Notice to be provided “not later than three business days before a loan is closed.” (Supra) However, the MLA requires the notice to be provided “not earlier than three business days nor later than twenty-four hours before the loan is closed.” (Ibid.)
Due to this discrepancy, we will continue to provide both a broker- and lender- version of the Notice. Both documents will be duplicates of the model form and both will continue to print in Initial Disclosure package (since we do not currently have a pre-closing disclosure package). However, Cx11197 will now print with a coversheet, with the following instructions on the coversheet:
“According to Ohio Rev. Code Ann. § 1321.592(A), the ‘Notice of Escrow of Taxes & Regular Monthly Payment’ must be provided to the borrower ‘not earlier than three business days nor later than twenty-four hours before the loan is closed.’
The accompanying version of this notice should not be provided to the borrower until the appropriate time frame specified above has arrived.”
We will also be configuring Cx11197 to be “Ink Sign” only, so that loan originators can deal with this disclosure and its instructions as necessary.
This change will take effect on August 15, 2014. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
August 8, 2014