Following a recent trend in the financial services regulatory arena, Ohio recently passed legislation requiring mortgage servicers, including entities that merely hold mortgage servicing rights (MSRs), to obtain a Residential Mortgage Lending Act Certificate of Registration in the state. Substitute House Bill 489, which passed the legislature on December 5, 2018, and was signed by Gov. John Kasich on December 19, 2018, amends the Ohio Residential Mortgage Lending Act to include mortgage servicers among those companies that must obtain a Certificate of Registration.
Notably, the added definition of “mortgage servicer” under the revised statutes includes an entity that holds MSRs. The inclusion of MSR holders follows a recent trend among states to capture this activity under state licensing regimes. For example, Pennsylvania’s recent statutory updates included requirements for MSR holders to obtain a mortgage servicing license.
The statute takes effect 91 days from the date that it is sent to the Secretary of State, which has not yet occurred. If you have questions regarding filing an application or compliance with this new requirement, we would be happy to assist.