Ohio generally has two licensing Acts which apply to mortgage brokers and lenders: the Mortgage Broker Act (OMBA) and the Mortgage Loan Act (OMLA). Some entities are exempt from these laws or have different requirements which apply to them, and can seek exemption under the Mortgage Broker Act Mortgage Banker Exemption. As a result of this licensing system, some state disclosure requirements apply to some licensees and do not apply to others.
In order to print only the disclosures that are legally required for each license type, we have set up an “Ohio License Type” field (Field 109166) which will be used as an alternate, more accurate, way of triggering some Ohio documents. As more documents are configured to print with the Ohio License Type field, clients can set this field to the appropriate licensing category and help themselves provide only the disclosures they are required to provide.
Please note that if the Ohio License Type field is not set, all Ohio disclosures will continue to print as they are at this time. Setting the Ohio License Type field is not a requirement, but rather an optional enhancement to provide disclosures more accurately.
The first document we will be configuring for Ohio License Type is the Mortgage Loan Origination Disclosure Statement Addendum (our Cx11204), which has Oh. Rev. Code § 1322.062(D) as its statutory authority. The statute requires that the “registrant or licensee delivers the residential mortgage loan origination disclosure statement pursuant to division (A) of this section…” The statute defines “Registrant” as “any person that has been issued a mortgage broker certificate of registration under sections 1322.01 to 1322.12 of the Revised Code.” A “Licensee” is defined as “any individual who has been issued a loan originator license under sections 1322.01 to 1322.12 of the Revised Code.” As the disclosure requirement applies to both registrants and licensees, it would apply to both mortgage brokers under § 1322.01 et seq. and loan originators under the same statutes.
In order to print the Ohio Mortgage Loan Origination Disclosure Statement Addendum when appropriate, Docutech will use the new Ohio License Type field with four options based on license type:
- Mortgage Broker Act Certificate of Registration (OMBA Licenses based on § 1322.01)
- Mortgage Loan Act Certificate of Registration (OMLA Licenses based on § 1321.51)
- Mortgage Broker Act Mortgage Banker Exemption
- Not Selected.
The two print configurations that will trigger the OH Mortgage Loan Origination Disclosure Statement Addendum (Cx11204) are as follows:
- The current configuration:
- State Code = Ohio
- Lender is a Broker = Yes
- Document Package Type = Initial Disclosure
- The additional new configuration:
- State Code = Ohio
- Ohio License Type = Mortgage Broker Act Certificate of Registration (OMBA)
- Document Package Type = Initial Disclosure
These changes will be in effect on June 6, 2017. If you have any questions or concerns about these changers, please contact Client Support at 1.800.497.3584.
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