New Ohio requirements for junior note holders

[Andy Mirza]

A servicer sent us a white paper from an attorney warning about new requirements for junior lien holders in OH. We don't own any notes in OH and I have no idea about this new law or the attorney's take on it but thought it would be useful to pass on in case it's applicable to readers that follow this BP category. Here's the executive summary:

Executive Summary.

The State of Ohio has enacted amendments to its Residential Mortgage Lending Act (“RMLA”) that significantly impact note investors. Ohio House Bill 489 was signed in December 2018 and goes into effect on March 20, 2019. Owners of second mortgages and junior liens are now subject to new pre-collection notice requirements which we believe will be used by consumer law attorneys to sue note investors for hefty damages. Ohio House Bill 489 also amended the RMLA to effectively require all mortgage holders to register with the Ohio Division of Financial Institutions and obtain a Certificate of Registration. Failure to comply will expose note investors to civil damages, fines, and administrative enforcement. Our firm believes that consumer law attorneys will use a note investor’s failure to register as both a defense to foreclosure and also a basis for damages claims.

Hope this is useful....

[Don Konipol]

@Andy Mirza

Most in the legislature are attorneys so they can pass laws that in effect transfer wealth from business people to themselves, while raising consumer costs under the false premises of “protecting” consumers.