1. CMBA October Meeting Robert Niemi Deputy Superintendent for Consumer Finance Division of Financial Institutions

2. www.com.ohio.gov

3. DFI MISSION Responsibility: The Division regulates Ohio's state-chartered financial institutions and consumer finance companies. The Division charters depository institutions, licenses non- depository financial services, and conducts on-site examinations. Our Mission The Division aims to provide fair and efficient supervision of Ohio-chartered depositories, including banks, savings and loan associations, savings banks, and credit unions, as well as trust companies, money transmitters, non- depository financial services, and share guarantee corporations, to help maintain the safety and soundness of these institutions.

4. Division of Financial Institutions The Division of Financial Institutions regulates state-chartered financial institutions and consumer finance companies:  Banks & Savings Institutions Section  Money Transmitters  Credit Unions Section  Consumer Finance Section  Office of Consumer Affairs

5. Consumer Finance Section  Mortgage Brokers  Exempt Mortgage Bankers  Loan Originators  Temporary Loan Originators  Mortgage Loan Act Lenders  Mortgage Loan Originators  Temporary Mortgage Loan Originators  Non Profit Mortgage Lenders  Third Party Underwriting & Processing Company

6. Consumer Finance Section  Check Cashers  Credit Service Organizations  Pawn Brokers  Precious Metals Dealers (voluntary compliance)  Premium Finance Companies  Small Loan Act Lenders ( 8%)  Short Term Loan Act (= 31 days)

7. 7/31/13 OMBA Loan Originators – active 4629 OMBA Loan Originators – escrowed 786 Mortgage Banker Exempt Locations 379 Mortgage Broker Locations 519 OMLA MLO’s – active 2178 OMLA MLO’s – escrowed 352 OMLA Locations 1436 Mortgage Licensing Statistics 8/31/14 4888 1169 399 587 2300 559 1555

8. Consumer Finance Section  Check Cashers 908  Credit Service Organizations 48/1125  Pawn Brokers 323  Precious Metals Dealers 85  Premium Finance Companies 45  Small Loan Act Lenders ( 8%) 193  Short Term Loan Act (= 31 days) 0**

9. Licensing Update:

10. 10 Market Trends Mortgage rates are expected to rise (though Fannie Mae predicts they will do so more slowly than MBA’s estimate) Housing starts are picking up and reached a 10 month high in July Fannie Mae predicts the portion of refi will drop to 39% in 2014 and 26% in 2015 (from a peak of 72% in 2012) Sources: 1. Mortgage Bankers Association (charts), 2. National Assoc of Realtors, 3. Fannie Mae.

11. 11 NMLS Trends The number of Active MLOs at the Top 10 state-licensed companies saw an increase of 17% from Q2 last year But nationwide, active MLOs have dropped 21% Active companies dropped 38% from last year Home purchase volume is down 12% from Q2 last year, refi is down 66% from last year * An “Active” company or MLO originated at least one loan in the quarter. Source: NMLS, August 2014.

12. Alaska Texas Utah Montana California Arizona Idaho Nevada Oregon Iowa Colorado Kansas Wyoming New Mexico Missouri Minnesota Nebraska Oklahoma South Dakota Washington Arkansas North Dakota Louisiana Hawaii Illinois Ohio Florida Georgia Alabama Wisconsin Virginia Indiana Michigan Mississippi Kentucky Tennessee Pennsylvania North Carolina South Carolina West Virginia New Jersey Maine New York Vermont Maryland New Hampshire Connecticut Delaware Massachusetts Rhode Island State Adoption of Uniform State Test State Regulatory Registry LLC, last updated 10/01/2014 Puerto RicoVirgin Islands District of Columbia Guam adopted UT DFI has

13. UST Adoption Table

14. Alaska Texas Utah Montana California Arizona Idaho Nevada Oregon Iowa Colorado Kansas Wyoming New Mexico Missouri Minnesota Nebraska Oklahoma South Dakota Washington Arkansas North Dakota Louisiana Hawaii Illinois Ohio Florida Georgia Alabama Wisconsin Virginia Indiana Michigan Mississippi Kentucky Tennessee Pennsylvania North Carolina South Carolina West Virginia New Jersey Maine New York Vermont Maryland New Hampshire Connecticut Delaware Massachusetts Rhode Island Expanded State Agency Use of NMLS State Regulatory Registry LLC | Updated 8/27/2014 Puerto Rico All agencies manage mortgage licenses on NMLS District of Columbia Agencies currently managing Other Financial Service Related Licenses on NMLS Note: Details concerning transition to NMLS will be posted on the NMLS Resource Center as state agencies make them available. Agencies that added Other Financial Service Related Licenses on NMLS in 2014

15. http://www.nmlsconsumeraccess.org/

16.  Get Your C/E done now – Please!  OMBA Rules redrafted (CFPB rules )  Shared with stakeholders  Ohio CSI Business Impact Study  JCARR Rules Review & Hearings  CSBS Accreditation Process  CSBS/CFPB – State Coordinating Committee  Ombudsman / NMLS Policy Committee  AARMR Treasurer Update:

17.  Uniform State Test  No separate Operations Manager Test  MCR in place of Annual Reports  Exam update – Initial 6 month visit  All the Bad Apples are not gone  Revoked by other States  Where do you want us to go?  Please get your C.E. done! Update:

18. Questions Robert Niemi Deputy Superintendent of Consumer Finance Ohio Department of Commerce Division of Financial Institutions 77 South High Street, 21 st floor Columbus, OH 43215 (614) 644-7517 (614) 728-8400 robert.niemi@com.ohio.gov webdfi-cf@com.ohio.gov