The Ohio Department of Commerce recently published the annual adjustment to the loan amount limit for prepayment penalties under Ohio Revised Code Section 1343.011(C).
Ohio Revised Code 1343.011(C)(2)(a) provides that no mortgage broker, loan officer or nonbank mortgage lender may charge a prepayment penalty on a first-lien residential mortgage obligation of less than $75,000. Under Ohio Revised Code 1343.011(C)(2)(b), the loan amount limit is to be adjusted annually on January 1st by the annual percentage change in the Consumer Price Index (CPI). The Ohio Department of Commerce is responsible for publishing the adjusted amount on its website.
For 2020, the loan limit amount has been adjusted to $92,566.
Accordingly, DocMagic has updated its respective Ohio prepayment penalty audit to consider the new loan limit, with an effective date of January 1, 2020, and is in the process of updating its Prepayment Penalty Matrix.
To view the Ohio Department of Commerce’s announcement regarding the annual adjustment to the loan amount limit for prepayment penalties, please click here.
Please contact DocMagic’s Compliance Department is you have any questions regarding the content of this article.