From the Statehouse 2006 No. 18
by Jennifer Garrison
Jun. 8, 2006
FROM THE STATEHOUSE – 2006 No. 18
As promised I will continue to detail my votes from the week of May 20th as it was a marathon session. One of the highlights was the vote on the conference committee report for the Predatory Lending Bill, Senate Bill 185. The Senate passed out SB 185 in February and the House passed it out in March. There were many differences in the House and Senate versions, so a conference committee worked on a compromise bill.
This bill is designed to make Ohio first in providing homeowner protections and to slow the home foreclosure rates in Ohio. The bill applies the Consumer Sales Practices Act (CSPA) to mortgage brokers, loan officers and non-depository lending institutions. The bill identifies withholding or misrepresenting key disclosures is an unfair deceptive practice. The bill also increases the requirements for brokers to provide good faith estimates of costs.
The bill creates a bright line test of unconscionable acts or practices for residential mortgages. These acts include:
• Flipping a mortgage loan without a net tangible benefit;
• Charging and attempting to enforce prepayment penalties in loans under $75,000;
• Using and attempting to enforce unconscionable clauses, like requiring payment of attorney fees and liquidated damages;
• Taking advantage of a consumer’s known physical or mental infirmities;
• Failing to consider a consumer’s ability to pay;
• Compensating or instructing a real estate appraiser to influence an appraisal.
This bill will reduce the number of unfair and deceptive lending behaviors. In no way do I want to convey all lending institutions have been unfair to consumers. Most lending institutions have not committed unfair acts on homeowners. However, the lenders who did prey on borrowers did significant damage. Ohio leads the nation with the most home foreclosures. I voted “yes” on the conference report and the bill passed.
Amended Substitute Bill 343 places some additional restrictions on probationary drivers. This bill keeps the age to obtain a temporary instruction permit at age 15 1/2. A probationary driver may not drive a car with more than 1 non-family member unless a parent or guardian is in the car.
A probationary driver under 17 years of age, cannot drive from midnight to 6:00 a.m. without a parent or guardian. A probationary driver between the ages of 17 and 18 cannot drive between 1:00 a. m. and 5:00 a.m. unless accompanied by a parent or a guardian. There are no regulations on hours of operating a vehicle for adult probationary drivers. The aim of this bill is to regulate underage drivers, who do not have full driving privileges to reduce this groups accident rates.
The bill permits driving for a probationary license holder during the restricted hours if he or she has written documentation from an employer or for an official school function and emergencies.
Additionally, if a probationary license holder commits a moving violation within 6 months of receiving the license, and the holder is not 16 ½ years of age, the holder cannot drive without a parent or guardian for an additional 6 months or until the driver’s 17th birthday. I voted “yes”. The bill passed.
Senate Bill 271 designates the Newark Earthworks as the official prehistoric monument of Ohio. I voted “yes”. The bill passed.
House Bill 358 requires applicants of Medicaid to show proof of U.S. citizenship or qualified alien status. I voted “yes. The bill passed.
You can reach Jennifer Garrison at her Columbus office at 614-644-8728 or in the district at 740-373-2414 or by e-mail at jennifer@jennifergarrison.com. Her website is www.jennifergarrison.co