Ohio § 1343.011

§ 1343.011.

(A) As used in this section: (1) “ Discount points ” means any charges, whether or not actually denominated as “discount points,” that

are paid by the seller or the buyer of residential real property to a residential

mortgage lender or that are deducted and retained by a residential mortgage lender

from the proceeds of the residential mortgage.  “Discount points” does not include the costs associated with settlement services

as defined in the “Real Estate Settlement Procedures Act of 1974,” 88 Stat. 1724, 12 U.S.C. 2601 , amendments thereto, reenactments thereof, enactments parallel thereto, or in substitution

therefor, or regulations issued thereunder. (2) “ Residential mortgage ” means an obligation to pay a sum of money evidenced by a note and secured by a lien

upon real property located within this state containing two or fewer residential units

or on which two or fewer residential units are to be constructed and includes such

an obligation on a residential condominium or cooperative unit. (3) “ Residential mortgage lender ” means any person, bank, or savings and loan association that lends money or extends

or grants credit and obtains a residential mortgage to assure payment of the debt.  The term also includes the holder at any time of a residential mortgage obligation. (B) Except residential mortgage loans described in division (B)(3) of section 1343.01 of the Revised Code , no residential mortgage lender shall receive either directly or indirectly from

a seller or buyer of real estate any discount points in excess of two per cent of

the original principal amount of the residential mortgage.  This division is not a limitation on discount points or other charges for purposes

of section 501(b)(4) of the “Depository Institutions Deregulation and Monetary Control

Act of 1980,” 94 Stat. 161, 12 U.S.C.A. 1735f-7a . (C)(1) Except as provided in division (C)(2) of this section, residential mortgage obligations

may be prepaid or refinanced without penalty at any time after five years from the

execution date of the mortgage.  Prior to such time a prepayment or refinancing penalty may be provided not in excess

of one per cent of the original principal amount of the residential mortgage. (2)(a) No penalty may be charged for the prepayment or refinancing of a residential mortgage

obligation of less than seventy-five thousand dollars that is made or arranged by

a mortgage broker, loan officer, or nonbank mortgage lender, as those terms are defined

in section 1345.01 of the Revised Code , and that is secured by a mortgage on a borrower's real estate that is a first lien

on the real estate. (b) The amount specified in division (C)(2)(a) of this section shall be adjusted annually

on the first day of January by the annual percentage change in the consumer price

index for all urban consumers, midwest region, all items, as determined by the bureau

of labor statistics of the United States department of labor or, if that index is

no longer published, a generally available comparable index, as reported on the first

day of June of the year preceding the adjustment.  The department of commerce shall publish the adjusted amounts on its official web

site.