Ohio Division of Financial Institutions
Mortgage Brokers & Lenders Letter 2008-2
March 7, 2008
Ohio Mortgage Lenders Registered Under the Ohio Mortgage Loan Act.
Statement on Subprime Mortgage Lending Regarding Compliance with Ohio
R.C. §§ 1321.53(A)(4) and 1349.41(B)
SUMMARY: This letter is intended to alert mortgage lenders registered under the Ohio
Mortgage Loan Act of the position of the Ohio Division of Financial Institutions
that compliance with the requirement that
they demonstrate financial
responsibility, character, and general fitness to warrant the belief that the
business will be operated honestly and fairly in compliance with and within the
purposes of sections 1321.51 to 1321.60 of the Revised Code per Ohio R.C.
§1321.53(A)(4), as well as act in good faith and with fair dealing per Ohio R.C.
§1349.41(B), requires due consideration of the proper procedures set forth
herein on the placement of subprime loan products.
Ohio Revised Code § 1321.53(A)(4)
This provision of the Ohio Mortgage Loan Act (“OMLA”) is intended to prevent
dishonest businesses or those that act in violation of the OMLA or its purposes
from obtaining or retaining a certificate of registration under the OMLA.
Ohio Revised Code § 1349.41(B)
This provision of the Ohio Revised Code is intended to require that mortgage
lenders act in good faith and fair dealing when, inter alia, presenting loan
products and financing options to consumer borrowers.
OHIO DIVISION OF FINANCIAL INSTITUTIONS
STATEMENT ON SUBPRIME MORTGAGE LENDING
On July 10, 2007, the Office of the Comptroller of the Currency (OCC), the Board of Governors
of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), the
Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA)
(collectively, the Agencies) published a final interagency Statement on Subprime Mortgage
Lending in the Federal Register (Volume 72, Number 131, Page