On June 13, 2017, Gov. John Kasich (R-OH) signed into law S.B. 24 (2017) which enacts a new “Ohio Consumer Installment Loan Act” under Ohio Rev. Code Ann. §§ 1321.62 through 1321.702 (see https://www.legislature.ohio.gov/legislation/legislation-summary?id=GA132-SB-24; press release of the signing can be found at: http://www.governor.ohio.gov/MediaRoom/PressReleases/TabId/200/ArticleId/703/kasich-signs-four-bills-6-13-17.aspx). Among other provisions, the Consumer Installment Loan Act imposes new disclosure provisions upon licensees under the Act (see new Ibid. § 1321.667[D]).
We note that this Act will not apply to “any credit transaction secured by an interest in the covered borrower’s residential mortgage loan, including a transaction to finance the purchase or initial construction of a dwelling, any refinance transaction, home equity loan or home equity line of credit, or reverse mortgage.” (Ibid. § 1321.631[D]) The definition “residential mortgage loan” is defined as any loan secured by an “interest on a dwelling or on residential real estate upon which is constructed or intended to be constructed a dwelling.” (Ibid. § 1321.62[BB]) However, this will not exclude all loans secured by real property (e.g. loans secured by vacant property, upon which there is no intention to construct a dwelling).
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