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Ohio Administrative Code (Last Updated: January 12, 2021) |
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1301:9 Division of Financial Institutions: Credit Unions |
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Chapter1301:9-4. Appraisal Requirements for Mortgages and Home Equity Loans |
1301:9-4-07. Home equity and second mortgage loans
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(A) Notwithstanding the provisions of paragraph (D) of rule 1301:9-2-23 of the Ohio Administrative Code, when making a home equity loan or a second mortgage loan, an appraisal is required for loans greater than one hundred thousand dollars. The appraisal shall be made by a certified or licensed independent appraiser who has satisfied the requirements of Chapter 4763. Of the Revised Code and applicable rules or other comparable statute. Appraisals for loans one hundred thousand dollars and under shall, as a minimum, be made by qualified staff personnel who have been approved by the board of directors and include a written report documenting the comparable sales and exterior inspection. Appraisals must be in writing, dated and signed. Certified or licensed independent appraisers shall be paid the same fee whether or not the loan is granted. Sales price and loan information shall be withheld from the appraiser.
(B) Notwithstanding the provisions of paragraph (G) of rule 1301:9-2-23 of the Ohio Administrative Code, the payment schedules for home equity and second mortgage loans should provide for monthly installments that include amortization of the principal and interest within the terms of the loan agreement, but shall provide that installments be made at least quarterly.
(C) If requested by a credit union, the superintendent may approve a less restrictive real estate loan policy than provided by rule 1301:9-2-21 of the Ohio Administrative Code. The request shall be made in writing and include a copy of the proposed real estate loan policy and a certified copy of the resolution of the board of directors adopting the policy. The credit union must substantiate that it has the expertise, capital, management, and experience to implement the proposed policy.