CMBA October Meeting Robert Niemi Deputy Superintendent for Consumer Finance Division of Financial Institutions
DFI MISSION Responsibility: The Division regulates Ohio's state-chartered financial institutions and consumer finance companies. The Division charters depository institutions, licenses non-depository financial services, and conducts on-site examinations. Our Mission The Division aims to provide fair and efficient supervision of Ohio-chartered depositories, including banks, savings and loan associations, savings banks, and credit unions, as well as trust companies, money transmitters, non-depository financial services, and share guarantee corporations, to help maintain the safety and soundness of these institutions.
Division of Financial Institutions The Division of Financial Institutions regulates state-chartered financial institutions and consumer finance companies: • Banks & Savings Institutions Section • Money Transmitters • Credit Unions Section • Consumer Finance Section • Office of Consumer Affairs
Consumer Finance Section • Mortgage Brokers • Exempt Mortgage Bankers • Loan Originators • Temporary Loan Originators • Mortgage Loan Act Lenders • Mortgage Loan Originators • Temporary Mortgage Loan Originators • Non Profit Mortgage Lenders • Third Party Underwriting & Processing Company
Consumer Finance Section • Check Cashers • Credit Service Organizations • Pawn Brokers • Precious Metals Dealers (voluntary compliance) • Premium Finance Companies • Small Loan Act Lenders (<$5,000 & >8%) • Short Term Loan Act (=<$500 & >31 days)
Mortgage Licensing Statistics 8/31/14 4888 1169 399 587 2300 559 1555 7/31/13 OMBA Loan Originators – active 4629 OMBA Loan Originators – escrowed 786 Mortgage Banker Exempt Locations 379 Mortgage Broker Locations 519 OMLA MLO’s – active 2178 OMLA MLO’s – escrowed 352 OMLA Locations 1436
Consumer Finance Section • Check Cashers 908 • Credit Service Organizations 48/1125 • Pawn Brokers 323 • Precious Metals Dealers85 • Premium Finance Companies 45 • Small Loan Act Lenders (<$5,000 & >8%) 193 • Short Term Loan Act (=<$500 & >31 days) 0**
Market Trends • Mortgage rates are expected to rise (though Fannie Mae predicts they will do so more slowly than MBA’s estimate) • Housing starts are picking up and reached a 10 month high in July • Fannie Mae predicts the portion of refi will drop to 39% in 2014 and 26% in 2015 (from a peak of 72% in 2012) Sources: 1. Mortgage Bankers Association (charts), 2. National Assocof Realtors, 3. Fannie Mae.
NMLS Trends • The number of Active MLOs at the Top 10 state-licensed companies saw an increase of 17% from Q2 last year • But nationwide, active MLOs have dropped 21% • Active companies dropped 38% from last year • Home purchase volume is down 12% from Q2 last year, refi is down 66% from last year * An “Active” company or MLO originated at least one loan in the quarter. Source: NMLS, August 2014.
State Adoption of Uniform State Test Washington Maine Montana Vermont North Dakota Minnesota Oregon New Hampshire Idaho Wisconsin Massachusetts South Dakota New York Michigan Rhode Island Wyoming Connecticut Iowa Pennsylvania New Jersey Nebraska Nevada Ohio Utah Delaware Indiana Illinois Maryland West UT DFI has Colorado Virginia California adopted Virginia Kansas Missouri Kentucky District of Columbia North Carolina Tennessee Oklahoma Arizona South Arkansas New Mexico Carolina Georgia Mississippi Alabama Hawaii Texas Louisiana Florida Alaska Guam Puerto Rico Virgin Islands State Regulatory Registry LLC, last updated 10/01/2014
Expanded State Agency Use of NMLS All agencies manage mortgage licenses on NMLS Agencies currently managing Other Financial Service Related Licenses on NMLS Agencies that added Other Financial Service Related Licenses on NMLS in 2014 Note: Details concerning transition to NMLS will be posted on the NMLS Resource Center as state agencies make them available. Washington Maine Montana Vermont North Dakota Minnesota Oregon New Hampshire Idaho Massachusetts Wisconsin South Dakota New York Michigan Rhode Island Wyoming Connecticut Iowa Pennsylvania New Jersey Nebraska Nevada Indiana Ohio Delaware Utah Illinois Maryland West Colorado Virginia District of Columbia California Virginia Kansas Missouri Kentucky North Carolina Tennessee Oklahoma Arizona South Arkansas New Mexico Carolina Mississippi Georgia Alabama Hawaii Texas Louisiana Florida Alaska Puerto Rico State Regulatory Registry LLC | Updated 8/27/2014
Update: • Get Your C/E done now – Please! • OMBA Rules redrafted (CFPB rules) • Shared with stakeholders • Ohio CSI Business Impact Study • JCARR Rules Review & Hearings • CSBS Accreditation Process • CSBS/CFPB – State Coordinating Committee • Ombudsman / NMLS Policy Committee • AARMR Treasurer
Update: • Uniform State Test • No separate Operations Manager Test • MCR in place of Annual Reports • Exam update – Initial 6 month visit • All the Bad Apples are not gone • Revoked by other States • Where do you want us to go? • Please get your C.E. done!
Questions Robert Niemi Deputy Superintendent of Consumer Finance Ohio Department of Commerce Division of Financial Institutions 77 South High Street, 21st floor Columbus, OH 43215 (614) 644-7517 (614) 728-8400 firstname.lastname@example.org email@example.com