Lenders of all sizes should take notice: Ohio’s rules are about to change. The Ohio Division of Financial Institutions (DFI) filed the final version of the Ohio Mortgage Broker Act (OMBA) rules on July 20, 2015. The new rules will become effective on January 4, 2016.
This should give mortgage brokers, mortgage bankers, credit union service organizations, loan originators and third-party processors and underwriters adequate time to make the operational changes necessary for compliance. Many of the changes were made in order to meet the minimum standards set by the Secure and Fair Enforcement for Mortgage Licensing Act of 2008. Here are just a few of the highlights:
- Third-party processing and underwriting companies and nonprofit organizations will be able to apply for a letter of exemption beginning around November 1.
- Mortgage bankers will be able to originate USDA loans and Federal Home Loan Bank of Cincinnati loans under the authority of their letters of exemption.
- Registrants and licensees will be allowed to place their NMLS numbers on advertisements in lieu of their Ohio numbers.
- There will be no separate test to become an operations manager.
- DFI will be able to accept some federal forms in lieu of similar state forms.
- No fines or make-up courses will be required for continuing education violations that occurred before 2010.
- New objective and specific criteria will be used to evaluate an individual’s financial responsibility to be a loan originator.
Deputy Superintendent Bob Niemi and members of DFI will entertain questions about the new rules during a panel discussion at the Midwest Financial Services Regulatory and Compliance Conference on August 20, 2015, in Columbus, Ohio. A booklet containing the new OMBA rules will be available at the conference. This event will feature many engaging speakers on a variety of hot topics, including Richard Cordray, director of the Consumer Financial Protection Bureau. For more information or to register, click here.