The Ohio Division of Financial Institutions (Division) issued a Residential Mortgage Lending Letter (Lending Letter) allowing mortgage lenders, brokers and mortgage loan originators to act as both a mortgage lender, broker or mortgage loan originator and a real estate broker or agent in the same transaction (previously prohibited). Per the Lending Letter, a mortgage loan originator, or an associate of a mortgage loan originator, may act as both a mortgage loan originator and a real estate broker or agent in connection with the sale of property if the mortgage loan originator provides the buyer a “dual capacity disclosure” informing the borrower that the borrower is not required to use the mortgage loan originator’s services. The dual capacity disclosure must be signed by the borrower. The Division published a sample dual capacity disclosure that may be used. The Lending Letter went into effect June 7, 2024.
Click to view the OH Residential Mortgage Lending Letter 2024-1: https://www.tenaco.com/wp-content/uploads/2024/06/OH-Residential-Mortgage-Lending-Letter-2024-1.pdf
Click to view the OH Sample Dual Capacity Disclosure: https://www.tenaco.com/wp-content/uploads/2024/06/OH-Sample-Dual-Capacity-Disclosure.pdf
