HB 1 is a new law in Ohio State that was introduced relating to mortgage loan originators, martial arts match promoters, and manufactured housing dealers. The new law incorporates the new federal law for mortgage loan originators which requires them to be licensed and to attain a surety bond or to be covered by their employer’s surety bond. The present law requires all mortgage lenders/brokers to register and acquire a surety bond of $50,000 plus $10,000 for additional locations to their primary place of business. HB 1 states that residential mortgage lenders and brokers must sustain a surety bond as well as a net worth requirement. The surety bond must be from a state authorized bonding company and it will have to be in a quantity equivalent to “one-half percent of the aggregated loan amount of residential mortgage loans originated in the immediately preceding calendar year.” The required bond would be capped at $150,000 and cannot be less than the existing requirement of $50,000 plus $10,000 for every additional location. All mortgage brokers are subject to indistinguishable bonding requirements, but not the recent net worth provisions. Additionally, individual mortgage loan originators who are not covered by an employer’s bond have the surety bond amount capped at $100,000. There is no net worth requirement for loan originators. HB 1 also specifies claims procedures regarding the surety bond. Credit union service organizations are obliged to attain a surety bond under the new law for their mortgage loan originators.
The new bill included other surety bonding provisions. These additions included an expansion of the bond requirement for boxing and wresting match promoters. The new law states that promoters for mixed martial arts, kick boxing, tough man contests, or any other form of martial arts have been exposed to the surety bond requirement; but wrestling match promoters have been excused. The new law also amplified the bond amount from $5,000 to no less than $20,000, and it terminated the cash substitutes to the surety bond. The previous law authorized a cash bond, certified check or a bank draft. Lastly, HB 1 applies to private competitions as well.
The new law also impacts manufactured housing dealers by subjecting them to a bonding requirement for motor vehicle dealers. HB 1 requires licensees that have been licensed for fewer than three years to acquire a surety bond in a quantity no less than $25,000 if the dealer sells a used manufactured home without attaining a certificate of title in the dealer’s name beforehand. The surety bond is exclusively for the function of compensating retail purchasers who sustain losses due to the dealer’s failure to obey the certificate of title laws. Additionally, the new law requires new manufactured home retailers to attain a surety bond or certificate of deposit in a quantity no less than $100,000. HB 1 also directs the Manufactured Housing Commission to implement regulations for manufactured housing brokers, which must contain a surety bond requirement in a quantity that will be established in the policy.