LibGuides: Buying and Selling a Home: Financing

Books

Nolo's Essential Guide to Buying Your First Home by Ilona Bray
Publication Date: 2019
Current version at https://lawlibrary.franklincountyohio.gov/. Underneath the For Public heading, click on Self-Help Legal Resources. Type in shown username and password. Search for the desired book at the Legal Information Reference Center.
Mortgage Lending by Andrew Pizor
Call Number: KF 695 .P59
Publication Date: 2024
Real Estate Financing by Brook Boyd
Call Number: KF 695 .B68
Publication Date: 2017
Only available at https://lawlibrary.franklincountyohio.gov/ as an ebook for Central Ohio Attorneys who have a library card with the Franklin County Law Library

Federal Law

12 U.S. Code § 1701j–3
No state may prohibit a lender from employing or enforcing a due-on-sale clause.
12 U.S. Code § 1701j–3
A lender may not exercise its option pursuant to a due-on-sale clause upon 1) a transfer where the spouse or children of the borrower become an owner of the property, 2) to an inter vivos trust in which the borrower is and remains a beneficiary, and which does not relate to a transfer of rights of occupancy in the property, 3) a transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property.
12 U.S. Code § 3806
Adjustable rate mortgage caps as determined by the Federal Reserve

Code of Federal Regulations

12 CFR Part 226
Truth in Lending - Regulation Z

Federal Agencies

Consumer Financial Protection Bureau
Federal Housing Finance Agency
Director Sandra Thompson's Statement on Title Acceptance Pilot
Federal Finance Housing Agency The recently approved title acceptance pilot will waive the requirement for lender’s title insurance or a legal opinion on certain low-risk refinance transactions where there is confidence that the property is free and clear of any prior lien or encumbrance.

Ohio Laws

Oh. Rev. Code Sec. 1322.02
The Financial Institutions Division of the Ohio Department of Commerce handles all supervision, examinations and regulations concerning activities of mortgage brokers. Ohio requires all mortgage brokers to be licensed by the state.
Oh. Rev. Code Sec. 1343.011
“Discount Points” are often used to make the apparent interest rate appear to be less, perhaps to prevent it from exceeding a statutory or other limit. They do have the practical value to the borrower of keeping the monthly payment This law imposes a limit of two points on residential mortgage loans except where the loan is insured by a federally related agency
Oh. Rev. Code Sec. 1345.031
Under the Ohio Consumer Sales Practices Act (“OCSPA”) no mortgage broker shall commit an unfair or deceptive act or practice in connection with a residential mortgage.
Oh. Rev. Code Sec. 2323.13
Cognovit notes barred in residential real estate transactions.
Oh. Rev. Code Sec. 3953.35
No title insurance agent shall do any of the following in connection with a mortgage loan of seventy-five thousand dollars or less:
(1) Knowingly coerce the consumer to enter into the loan;
(2) Knowingly fail to disclose to the consumer that the consumer does not have to close on the loan;
(3) Knowingly make a material misrepresentation to the consumer regarding the terms of the loan.
Oh. Rev. Code Sec. 5301.01
Acknowledgment of deed, mortgage, land contract, lease or memorandum of trust
Oh. Rev. Code Sec. 5302.12
Mortgage form
Oh. Rev. Code Sec. 5302.13
Mortgage covenants meaning and effect
Oh. Rev. Code Sec. 5302.14
Statutory condition meaning and effect
Oh. Rev. Code Sec. 5302.15
A lender may record a master mortgage form in any county.
Oh. Rev. Code Sec. 5302.16
The lender’s mortgages may then refer to the master mortgage form rather than having to include all of the provisions of the mortgage in each individual mortgage to the text of the note “Any part or all of a master mortgage form incorporated by reference pursuant to this section in a mortgage of real property is a part of such mortgage the same as if fully rewritten therein, and need not be recorded with such mortgage to be effective.
Oh. Rev. Code Sec. 5301.34
Release of mortgage on certificate of mortgagee or assignee
Oh. Rev. Code Sec. 5301.35
Waiver of priority of mortgages
Oh. Rev. Code Sec. 5301.233
In addition to any other debt or obligation, a mortgage may secure unpaid balances of advances made, with respect to the mortgaged premises, for the payment of taxes, assessments, insurance premiums, or costs incurred for the protection of the mortgaged premises, if such mortgage states that it shall secure such unpaid balances.

Forms

Your Home Loan Tool-Kit
This booklet from the CFPB must be delivered to the potential borrower not later than three days after receipt of a loan application.
Uniform Residential Loan Application (Form 1003)

Documentation of financing consists of a note and a mortgage. The note creates the debt and the mortgage secures that debt by a lien on the real estate. The forms below are generally used because they are approved by the secondary market players, Fannie Mae and Freddie Mac. Almost all mortgages are bought by Fannie Mae and Freddie Mac.

Buying and Selling a Home: Financing

Introduction

Most borrowers who require financing for their home purchase will obtain a mortgage loan from a commercial financial institution such as a bank, savings & loan or credit union. These lending institutions typically sell the resulting loan to Fannie Mae, Freddie Mac, FHA or VA.

Ohio has long followed a modified lien theory, a mortgage transfers to the lender only a security interest. The lender receives no immediate possessory interest. He does have a possessory interest, however, upon default