Don’t forget to update your Ohio Homebuyers’ Protection Act Informational Document with the 2016 prepayment penalty adjustment. Beginning January 1, 2016, no mortgage broker, loan officer or nonbank mortgage lender may charge a penalty for the prepayment or refinancing of a residential mortgage obligation secured by a first lien if the loan amount is less than $87,410. See Ohio Revised Code 1343.011(C)(2).
The Ohio Homebuyers’ Protection Act Informational Document is required by Ohio Revised Code 1345.05(G). An acknowledgement of the consumer’s receipt must be retained by the lender, mortgage broker and loan officer, as applicable. The Ohio Attorney General and the Department of Commerce may examine your records to ensure that you are providing the most current version of this document to consumers with the 2016 adjusted amount. The updated form can be found here. The rule regarding distribution and receipt of the Informational Document can be found here.