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Joe
Uecker
State
Representative
06/04/06
Homebuyer
Protection Passed By Legislature
Last
week, the 126th General Assembly passed
landmark legislation that will provide better protection
for homebuyers across the state. Legislators set out to
pass a measure aimed at curbing predatory and unscrupulous
lending practices to better ensure fair deals for
Ohio
homebuyers and mortgage borrowers. The bill, Senate Bill
185 – commonly referred to as the Ohio Homebuyers’
Protection Act – received overwhelming bipartisan
support, further demonstrating the importance of this
issue for
Ohio
consumers.
Over
the last year and a half through the committee process, we
worked to craft better public policy for
Ohio
consumers. We
made several changes with regard to loan officers.
Currently, some loan officers who are licensed by the
state and operating here in
Ohio
have received those licenses regardless of criminal
records in other states. Previously, loan officers only
underwent a state background check before receiving a
license. A report from a special committee formed by the
legislature on predatory lending cited that since 2002,
1,300 loan officers had criminal records but only 140 were
rejected for licensing. Now, loan officers will be subject
to a federal background check in addition to the current
state background check, helping to reduce the number of
potentially fraudulent lenders.
Increasing
responsibility for all parts of the lending industry and
the home-buying process was a necessary task. Members of
the House not only worked to craft legislation that would
address oversight of loan officers, but residential real
estate appraisers and title companies as well. Many home
appraisers in our state are not required to obtain a
license and are therefore out of the reach and
jurisdiction of
Ohio
law. However, Senate Bill 185 requires residential real
estate appraisers obtain a license and undergo a federal
background check, spreading the net of accountability
beyond loan officers to real estate appraisers as well.
Ensuring
Ohio
laws and law enforcement officers have the needed
authority and oversight capabilities goes hand-in-hand
with the enhanced accountability of those in the lending
industry. While we have expanded the protections for
borrowers through changes to the lending industry, we must
also provide individual consumers with resources to
protect themselves.
A
section within the Consumers Sales Protection Act (CSPA)
–
Ohio
’s strongest consumer protection law – was established
to address prohibited lending practices by providing a
list of several violations, which consumers can use also
to defend themselves. Additionally, within Senate Bill
185, members of the of the House gave the Ohio Attorney
General – in consultation with the Superintendent of the
Division of Financial Institutions – the authority to
add to the list of outlawed practices over time.
Additionally, Senate Bill 185 gives the Attorney General
and Superintendent of the Division of Financial
Institutions the ability to pursue deceptive mortgage
lenders and brokers by seeking legal action.
We
all know that buying a home is one of the biggest
financial decisions for a family, and it is my hope that
the House has passed a measure to better protect Ohioans
as they make such an important decision. Through Senate
Bill 185, the general assembly was able to address
situations in which buyers are purposely deceived by
lenders or mortgage brokers and as we take time to
recognize National Homeowners Month this June, I remain
confident we have helped to further protect
Ohio
consumers.
Joe
Uecker
State
Representative
Ohio’s
66 District
Representing
Batavia, Goshen, Miami and Union Townships as well as the
Cities of Loveland and Milford and the Villages of Batavia
and Amelia.(614)
466-8134
District
Office (513)-248-2565
Website:
www.JoeUecker.com
Email:
Joe@JoeUecker.com |
