Ohio Loan Prepayment Penalty Adjustment for 2018

The Ohio Department of Commerce announced its annual loan prepayment penalty adjustment for 2018. The announcement states that no penalties may be imposed on prepayment or refinancing of a residential mortgage loan of less than $89,261. This is effective as of January 1, 2018.

Ohio Revised Code 1343.011(C)(2)(a), previously set the loan obligation maximum at $75,000. Ohio Revised Code 1343.011(C)(2)(b) allows the loan amount limit to be adjusted annually on January 1.  The adjustment is determined by the annual percentage change in the Consumer Price Index (CPI) as reported on June 1 of the year preceding the adjustment.  During the period of June 1, 2016, to June 1, 2017, the CPI increased by 0.86%.

The full text of this announcement can be found here: http://www.com.ohio.gov/documents/fiin_prepaymentpenalty.pdf

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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.

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