1. State of Ohio Recently Introduced Legislation Marianne Collins, ED & COO Ohio Mortgage Bankers Association www.ohiomba.org

2. Legislation Recently Introduced in the Ohio House of Representatives HB 80 HB 80 HB 223 HB 223 HB 201 HB 201

3. HB 80 (Foley) Makes it a 5 th degree felony for a servicer to fail to register Makes it a 5 th degree felony for a servicer to fail to register Servicer must name an experienced employee in the registration to act as operations manager. That person will be investigated Servicer must name an experienced employee in the registration to act as operations manager. That person will be investigated Servicer shall maintain a $250,000 net worth Servicer shall maintain a $250,000 net worth Servicer will produce a pay-off statement within 5 business days of written request. There can be no charge for the 1 st statement, and no more than $3 charged for any additional statements in a 12 month period. Servicer will produce a pay-off statement within 5 business days of written request. There can be no charge for the 1 st statement, and no more than $3 charged for any additional statements in a 12 month period.

4. May not make false statements to a borrower May not make false statements to a borrower May not ask a borrower to sign anything in blank May not ask a borrower to sign anything in blank Make escrow payments in a timely manner Make escrow payments in a timely manner Credit payments on the date received Credit payments on the date received Comply with loss mitigation standards as required by the insuring entity Comply with loss mitigation standards as required by the insuring entity May not charge any fee that is not reasonable May not charge any fee that is not reasonable May not initiate a foreclosure action without proof of ownership May not initiate a foreclosure action without proof of ownership May not obtain forced-place insurance without written notice to the borrower May not obtain forced-place insurance without written notice to the borrower May not communicate with a borrower who is represented by an attorney May not communicate with a borrower who is represented by an attorney

5. May not telephone a borrower and state it is an “ emergency ” or “ urgent ” May not telephone a borrower and state it is an “ emergency ” or “ urgent ” May not use obscene language May not use obscene language May not call a borrower with the intent to annoy, harass or threaten May not call a borrower with the intent to annoy, harass or threaten May not cause a borrower to pay for a text message or toll call May not cause a borrower to pay for a text message or toll call May not call a borrower repeatedly, continually or at unusual times May not call a borrower repeatedly, continually or at unusual times

6. Exemptions Depository Institutions Depository Institutions Insurance Companies Insurance Companies Attorneys Attorneys Government Agencies Government Agencies Institutions of Higher Education Institutions of Higher Education Debt collector representing a servicer Debt collector representing a servicer

7. OMBA Recommendation Give the CFPB ’ s Servicing Rule a chance to work before imposing additional state regulation

8. HB 223 (Grossman) Does away with the 2/3 minimum bid at Sheriff Sale for abandoned properties Does away with the 2/3 minimum bid at Sheriff Sale for abandoned properties In a foreclosure action the municipality/court will determine if the property is a abandoned In a foreclosure action the municipality/court will determine if the property is a abandoned The property will be considered abandoned if: The property will be considered abandoned if: - The lien holders & owner are deemed to have abandoned their rights to the property - The lien holders & owner are deemed to have abandoned their rights to the property -No bids after 2 advertised sheriff sales -No bids after 2 advertised sheriff sales Property may go to a land bank Property may go to a land bank Owner may not cause damage to the property after being served in a foreclosure action Owner may not cause damage to the property after being served in a foreclosure action

9. Does away with the minimum bid at the second sheriff sale for all other residential properties. If the property is not sold at the 2 nd sale, it will be deemed abandoned. Does away with the minimum bid at the second sheriff sale for all other residential properties. If the property is not sold at the 2 nd sale, it will be deemed abandoned. Blighted Properties Blighted Properties Properties deemed “ blighted ” by the municipal court will be ordered to be sold free and clear of any liens (other than federal taxes) if the lien holder or interested party does not remediate the conditions of the property. Properties deemed “ blighted ” by the municipal court will be ordered to be sold free and clear of any liens (other than federal taxes) if the lien holder or interested party does not remediate the conditions of the property. If the lien holder or other interested party remediates the blight, the court will grant them a lien in the amount of their remediation expenses. If the lien holder or other interested party remediates the blight, the court will grant them a lien in the amount of their remediation expenses.

10. Only “ qualified ” bidders, as determined by the municipality, are eligible to purchase blighted properties Only “ qualified ” bidders, as determined by the municipality, are eligible to purchase blighted properties Sheriff will provide the list of qualified bidders at time of the sale Sheriff will provide the list of qualified bidders at time of the sale Sheriff will conduct the sale Sheriff will conduct the sale Winning bidder must obtain a bond Winning bidder must obtain a bond Property will be sold free of liens (except federal taxes) Property will be sold free of liens (except federal taxes) No minimum bid No minimum bid Sale proceeds will go to the municipality to extinguish costs first, then to lien holders Sale proceeds will go to the municipality to extinguish costs first, then to lien holders Winning bidder must remediate blight and may not sell the property for 18 months Winning bidder must remediate blight and may not sell the property for 18 months

11. OMBA Recommendations Do away with the 2/3 minimum bid on all sheriff sales. However, there will still be a appraisal, and if the property sells for less than 2/3, the lender has a right of redemption for a certain period of time Do away with the 2/3 minimum bid on all sheriff sales. However, there will still be a appraisal, and if the property sells for less than 2/3, the lender has a right of redemption for a certain period of time Do away with the 18 month holding period when a blighted property is purchased Do away with the 18 month holding period when a blighted property is purchased Allow online advertising and sheriff sales Allow online advertising and sheriff sales Do not require blighted property bidders to be “ qualified ” by the municipality Do not require blighted property bidders to be “ qualified ” by the municipality Confirmation serves as title transfer Confirmation serves as title transfer Allow plaintiff ’ s attorney to perfect service Allow plaintiff ’ s attorney to perfect service

12. HB 201 (Butler) Changes the penalty for not filing a satisfaction of mortgage in a timely manner (90 days after payoff) from $250 to $50 per day. Changes the penalty for not filing a satisfaction of mortgage in a timely manner (90 days after payoff) from $250 to $50 per day.

13. OMBA Recommendations The current penalty of $250 allows for further penalties if harmed The current penalty of $250 allows for further penalties if harmed We feel current law is sufficient We feel current law is sufficient