As previously announced, we had slated the following documents for potential retirement, due to the passage of OH HB 199 (2017):
- OH Mortgage Loan Origination Disclosure (Cx3472);
- OH Non-Brokered Escrow Account Disclosure (Cx11197);
- OH Mortgage Loan Origination Disclosure Statement Addendum (Cx11204);
- OH Escrow Account Disclosure (Cx11205); and
- OH Notice of Change in Mortgage Terms (Cx12463).
While the statutory provisions requiring these documents were repealed, the administrative law provisions requiring them have not been amended to reflect the changes under Ibid. Nevertheless, the Ohio Division of Financial Institutions issued an “Implementation Guide” for this bill (available directly at: https://www.com.ohio.gov/documents/fiin_HB199guidance.pdf) which provides the following, applicable guidance:
“Q. Once the new law goes into effect on March 23, 2018, what are my responsibilities under the prior laws?
A. Any loans made prior to March 23, 2018, must follow the law in effect at the time the loan was originated. In other words, all recordkeeping rules, statutory provisions and administrative rules that were in place at that time will apply to any business activities up until that date and remain applicable to each loan until the loan and the associated recordkeeping timeframe expire.
Q. When the statute takes effect on March 23, how will that impact the administrative rules?
A. If a statute is in direct conflict with any portion of the administrative code, the statute should be followed and determines the outcome. Legal counsel for companies and MLOs and registrants under O.R.C. Chapters 1321 and 1322 should carefully review H.B. 199 for changes to legal requirements that might conflict with portions of the Administrative Code. . . .
Q. Are there any currently required disclosures that will NOT be required in the future?
A. Private legal counsel should carefully review H.B. 199 before advising clients on changing their disclosure practices. In general, the legislation removed forms that were required by O.R.C. Chapters 1322 and 1321, and kept those forms required by other state statutes. For example, the OMBA Mortgage Loan Origination Disclosure Statement and OMLA notice of change in mortgage terms forms will no longer be required, but the Ohio Attorney General forms still will be required.”
Based on these, we will be making the following configuration changes:
- Adding new document trigger “Application Date On or After 03/23/2018” (FI 119894) equals “No” to the configurations for Cx3472 and Cx11204. While the guidance provided by the Division indicates that the older provisions repealed by H.B. 199 apply to loans “made” before March 23rd, it does not specify whether “made” means “originated” or “consummated.” We will, therefore, be taking a conservative approach and will discontinue providing these two documents for loans “originated” on or after March 23rd.
- Cx11197, Cx11205, and Cx12463 have already been converted to “upon request” documents and do not print for all clients in loan packages (see https://compliance.docutech.com/2015/10/07/configuration-changes-oh-non-brokered-escrow-account-disclosure-cx11197-and-oh-escrow-account-disclosure-cx11205/). While these documents are no longer required statutorily, we will continue to provide them as “upon request” documents for clients who wish to continue providing them.
These changes will take effect on March 23, 2018. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
UPDATE: We have also retired “OH High Loan To Value Disclosure” (Cx11198), effective March 31, 2018, as the requirements for this document (Ohio Rev. Code Ann. §§ 1321.592[B] & 1322.062[A][j]) have been repealed as well.