Bob Niemi was quoted in National Mortgage News on the impact of a new Ohio law that will start including mortgage servicing rights (MSR) holders in its increased regulation of nonbank servicers. A mortgage servicer is defined as “an entity that, for itself or on behalf of the holder of a mortgage loan, holds the servicing rights, records mortgage payments on its books or performs other functions to carry out the mortgage holder’s obligations or rights under the mortgage agreement.”
"If the security for that loan is an Ohio property, that is where this is going to impact national lenders,” explained Niemi.
The new law’s passage follows a series of attempts over the years to bring regulation of nonbank servicers in line with practices suggested for accreditation by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, said Niemi.
He encourages MSR holders to consult their attorneys and check with state authorities if they have compliance questions.
Technical corrections could still be made to the Ohio law in response to such concerns if state officials were amenable, but they would have to pass through a bill submitted to the legislature to do it, Niemi said.
The complete article, “Ohio Law Adds Increased Regulation of Nonbank Servicers, MSR Holders,” first appeared in National Mortgage News on March 20, 2019.