Ohio Amends Required Disclosure at Closing

The Ohio Office of Attorney General, Consumer Protection, amended provisions relating to the required disclosure at closing. These provisions are effective on July 20, 2017.

Ohio Rev. Code Ann. §1345.031(B)(8) states that suppliers must disclose to the consumer at the closing of a consumer transaction that a consumer is not required to complete the transaction just because the consumer received prior estimates of closing costs or signed an application. Also, suppliers must disclose the consumer should not close a loan transaction that contains different terms and conditions than those promised.

Ohio Admin. Code Sec. 109:4-3-23 states that a supplier must provide the notice attached to this rule as appendix A in order to comply with Ohio Rev. Code Ann. §1345.031(B)(8). Appendix A must be in writing, in duplicate, in at least fourteen point type, signed and dated by the consumer before the consumer signs any other document at the closing of the loan.

The supplier shall provide a copy of the signed disclosure (appendix A) required under this rule to each consumer who is a party to the transaction at the closing. The supplier must retain the original or a copy of the signed form in the consumer’s loan file for a period of at least two years from the date of closing, or as required by other applicable state or federal law, whichever time period is greater.

Ohio Admin. Code Sec. 109:4-3-23 Appendix A was previously known as the “Closing Disclosure”, the amendments have changed the name of that document to “Disclosure of Right Not to Close”. This amendment will avoid confusion with the closing disclosure required by Regulation Z.

The full text of Ohio Admin. Code Sec. 109:4-3-23 can be found here: Full Text

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Robert Harrison, JD, is a regulatory compliance consultant with Bankers Advisory. He is a graduate of Boston University and earned his juris doctor at the Boston University School of Law. Robert is admitted to the Bar in Massachusetts.


Hello Robert
What or how does the state of Ohio specifically define “residential mortgage loan transaction”?
Can this include HELOC’s second mortgages and junior liens as well. Or only first lien mortgages?
Thanks for your assistance 🙂
Big fan or your columns.

Debra Weiss

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