The Ohio Department of Commerce recently published the annual adjustment to the loan limit amount for prepayment penalties under Ohio Revised Code 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) for all urban consumers, Midwest Region, as reported on June 1st of the year preceding the adjustment.
For 2021, the loan limit amount has been adjusted to $93,119.
DocMagic has updated its Ohio prepayment penalty audit to consider the new loan limit, retroactively effective as of January 1, 2021, and is in the process of updating its Prepayment Penalty Matrix.
Please contact DocMagic’s Compliance Department with any questions regarding this article.
