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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
A letter of exemption takes a credit union service organization or depository institution out of Ohio's registration requirement. It does not take its loan originators out of the bond requirement. Ohio lets the institution cover those originators under one bond instead of making each one buy a separate bond, and that single filing is usually the cleaner way to keep every originator active.
Mortgage loan originators who work for a credit union service organization or depository institution holding an Ohio letter of exemption must be covered by a corporate surety bond under Ohio Revised Code 1322.32. An individual originator's bond equals one half of one percent of the residential mortgage loans originated in the preceding calendar year, never less than $50,000 and never more than $100,000. The exempt institution may post the bond for its licensees instead. The bond runs to the Ohio Superintendent of Financial Institutions.
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Ohio's Residential Mortgage Lending Act lets a credit union service organization or a depository institution apply for a letter of exemption from registration under Ohio Revised Code 1322.05. The letter excuses the institution from holding a certificate of registration. Its mortgage loan originators still hold Ohio licenses, and under ORC 1322.32(A)(2) each of those licensees must be covered by a corporate surety bond.
An originator who carries an individual bond posts one half of one percent of the aggregate loan amount of residential mortgage loans originated in the immediately preceding calendar year. The bond may not exceed $100,000 and may not be less than $50,000, so an originator with little or no prior year volume posts the $50,000 floor.
ORC 1322.05 lets the exempt organization or institution provide the surety bond for its licensees in the same manner as is permitted for registrants. Under Ohio Administrative Code 1301:8-7-14, one bond in the appropriate aggregate amount covers a qualified exempt entity regardless of how many exempted office locations it has, and an endorsement rider adjusts the amount when an office opens or closes. Originators covered by their employer's bond do not need an individual bond. Confirm the aggregate amount the Division of Financial Institutions expects for your institution before the bond is issued.
The letter of exemption application carries a nonrefundable fee of $350 for each office location. Letters expire every December 31 and renew with another $350 per location fee. The bond term should line up with the license period it covers.
If a claim payment reduces the penal sum, ORC 1322.32(C) requires a new or additional bond, or a reinstatement endorsement, to bring coverage back to the required total. Any lawsuit a buyer files alleging a violation, and any resulting judgment, must be reported to the superintendent by certified mail within ten days.
No. The letter exempts the credit union service organization or depository institution from registration. ORC 1322.32(A)(2) still requires a bond for every licensee employed by or associated with the holder, either an individual bond or one provided by the institution.
One half of one percent of the residential mortgage loans the originator originated in the preceding calendar year, with a floor of $50,000 and a ceiling of $100,000.
Yes. ORC 1322.05 allows the institution to provide the surety bond for its licensees in the same manner as registrants, and OAC 1301:8-7-14 allows one bond in the aggregate amount regardless of the number of exempted offices. Originators covered that way do not need their own bonds.
Every December 31. The renewal goes in before that date with a nonrefundable $350 fee for each office location.
The penal sum is reduced by the payment, and ORC 1322.32(C) requires a new or additional bond or a reinstatement endorsement to bring it back to the required amount.
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