Current through all regulations passed and filed through September 16, 2024
(A) In accordance with division (B) of
section
1322.34 of the Revised
Code and division (C)(3) of section 1322.05 of the Revised
Code, the four-year retention period commences on the date
the residential mortgage loan is closed or, if the residential mortgage loan is
not closed, the date of the withdrawal or denial of the residential mortgage
loan application. If the residential mortgage loan is serviced by a qualified
exempt entity, the four-year retention period commences on the date the
residential mortgage loan is paid in full or the date the registrant ceases to
service the residential mortgage loan. The retention period for advertisements
commences from the date the advertisements are published, broadcast or
disseminated.
(B) A registrant or
qualified exempt entity shall notify the superintendent via the NMLS of a
change of location of its records pertaining to business conducted pursuant to
Chapter 1322. of the Revised Code no later than five business days after the
change.
(C)
As used in division (E) of section
1322.34 of the Revised Code,
"estimated costs of the examination" includes, in addition to the proportionate
costs of the salaries of division of financial institutions employees who
conduct the examination, the division's travel, lodging, and per diem expenses incurred in travel to examine
the books and records. At the request of the superintendent, payment of the
estimated costs of the
examination, as determined by the superintendent, shall be made in
advance and placed on deposit with the division. After actual costs are
determined, any excess funds shall be refunded to the registrant or qualified
exempt entity.
(D) All records
shall be kept current and shall be available at all times during normal
business hours for review by the superintendent. Records should be legible and
maintained in a type size that is clearly readable without magnification and in
conformity with state or federal law. Except when otherwise
provided by federal or state law, records shall be maintained in English. When
records are allowed to be in a language other than English, the registrant or
qualified exempt entity, at its expense, shall be responsible for providing the
superintendent with a full and accurate translation. For purposes of this rule,
"current" means within thirty days from the date of the occurrence of the event
required to be recorded.
(E) A
registrant or qualified exempt entity shall segregate the records pertaining to
business conducted pursuant to Chapter 1322. of the Revised Code from all other
business records.
(F) Records
pertaining to business conducted pursuant to Chapter 1322. of the Revised Code
may be maintained in their original paper form or on an electronic storage
media or system. Any records maintained on an electronic storage media or
system shall meet all of the following requirements:
(1) The electronic storage media or system
must preserve the records in a non- rewriteable, non-erasable format;
(2) The electronic storage media or system
must verify automatically the quality and accuracy of the storage media
recording process;
(3) The
electronic storage media or system must serialize the original and the
duplicate units of storage media, and affix a date and time for the required
period of retention on both the original and duplicate;
(4) The electronic storage media or system
must have the capacity to readily download indices and records preserved on the
electronic storage media or system to any medium acceptable to the
superintendent;
(5) Acceptable
facilities and appropriate equipment must, at all times during normal business
hours, be available to the superintendent for immediate, easily readable
projection or production of electronic storage media or system images and for
producing easily readable images;
(6) Immediate facsimile enlargement must be
available upon the superintendent's request;
(7) A duplicate copy of the electronic record
stored on any electronic media or system for the time required must be stored
separately from the "original" electronic record;
(8) The electronic storage media or system
must organize and index accurately all information maintained on both the
original and duplicate storage media or system. At all times, a registrant or
qualified exempt entity must be able to have indices of the electronic records
being stored available for examination by the superintendent. Each index must
also be duplicated and the duplicate copies must be stored separately from the
original copy of each index. Original and duplicate indices must be preserved
for the time required for the indexed records;
(9) An audit system will be in place
providing for accountability regarding inputting of records and inputting any
changes made to every original and duplicate record maintained and preserved.
At all times, a registrant or qualified exempt entity must be able to have the
results of the audit system available for examination by the superintendent.
The audit results must be preserved for the time required for the audited
records;
(10) All information
necessary to access records and indices stored on the electronic storage media
or system, a copy of the physical and logical file format of the electronic
storage media or system, the field format of all different information types
written on the electronic storage media or system, together with the
appropriate documentation and information necessary to access records and
indices will be maintained, kept current and provided promptly to the
superintendent, upon request;
(11)
No paper documents produced or reproduced by means of an electronic storage
media or system shall be destroyed until the conditions of this paragraph have
been met with regard to each paper document that is to be destroyed;
and
(12) At the request of the
division, the records shall be printed on paper for inspection or examination
without cost to the division within forty-eight hours of the request. The
superintendent may grant additional time for good cause shown upon receipt of a
request for additional time from the registrant or qualified exempt
entity.
(G) A registrant
or qualified exempt entity shall create, maintain, keep current and preserve
the following books and records:
(1) A
searchable electronic spreadsheet of all borrowers for whom the registrant or
qualified exempt entity has obtained residential mortgage loans. The
spreadsheet shall contain for each borrower the closing date of the residential
mortgage loan obtained for the borrower, the amount of the residential mortgage
loan, the licensee responsible for originating the residential mortgage loan,
the identity of the lender that funded or purchased the residential mortgage
loan, the residential mortgage loan application date, the residential mortgage
loan program type, the
property address, and the identifying loan number;
(2) A borrower file for
each application received which shall contain, when applicable, at least the
following:
(a) A copy of the initial and final
residential mortgage loan applications signed and dated by the borrower and the
licensee originating the residential mortgage loan, including any attachments,
supplements, or addenda thereto;
(b) Copies of verification documentation,
including written
authorizations to order credit reports, income verifications, deposit and asset
verification, all copies of the credit reports and any supplements to the
credit report, and any correspondence to any person regarding credit
repair;
(c) Copies of written or
electronic communications, including underwriting decisions, opinions or prequalification
correspondence, interest rate lock-ins, residential mortgage loan commitments,
and notes in connection with that residential mortgage loan application or its
ultimate disposition;
(d) Copies of
all
state and federal disclosures or forms applicable to the borrower, both initial
and any revised versions.
(e) A
copy of each appraisal and the corresponding appraisal invoice and order form;
and
(f) Receipts or other
documentation for any fees collected by the registrant or qualified exempt
entity from the borrower for payment to bona fide, third-party service
providers.
(3) A file of all
advertisements.
(4) General business
records, including:
(a) All agreements with lenders to whom
residential mortgage loan applications are submitted;
(b) All checkbooks, check registers, bank
statements, deposit slips, withdrawal slips, and canceled
checks or electronic images;
(c)
Copies of checks made payable to a registrant or qualified exempt entity from a
borrower or other entity paying a fee for the services of the registrant,
qualified exempt entity, or licensee;
(d) Documentation to support the source of
and purpose for each receipt and disbursement of funds in order that the
receipts may be reconciled to bank deposits and to the books of the registrant
or qualified exempt entity. Settlement statements are not acceptable proof of
receipt for purposes of this rule;
(e) Copies of all federal tax withholding
forms, reports of income for federal taxation, and evidence of payments to all
employees, independent contractors and others compensated by the registrant or
qualified exempt entity in connection with the conduct of mortgage lending
business;
(f) Copies of all
contractual arrangements or understandings with employees, independent
contractors, and third parties that relate in any way to the providing of
residential mortgage broker or mortgage lending services, including
any agreements for the
pricing of goods or services, any investor contracts, any employment
agreements, and any non-compete agreements;
(g) Copies of organizational documents,
including articles of
incorporation, corporate minutes, and documents evidencing corporate name
changes, change of ownership or officers; and
(h) Such other books and records as the
superintendent may require.
(H)
A registrant or
qualified exempt
entity shall comply with
rules promulgated under
15 U.S.C.
1681w
and 15
U.S.C. , including 16
C.F.R. Part 313 and 16 C.F.R. Part 682, as those rules
are in effect May 1, 2024.
