OHIO LOAN AMOUNT FOR PREPAYMENT PENALTY PROHIBITION ADJUSTED

Dreher Tomkies Scheiderer LLP
Attorneys at Law
2750 Huntington Center
41 South High Street
Columbus, Ohio 43215
Telephone (614) 628-8000
Fax (614) 628-1600

The Ohio civil interest statute provides that no penalty may be charged for the prepayment or refinancing of a residential mortgage obligation of less than $75,000 that is made or arranged by a mortgage broker, loan officer or non-bank mortgage lender and that is secured by a mortgage on a borrower's real estate that is a first lien on the real estate. The loan amount limit is to be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index (CPI). Based on the CPI, effective January 1, 2010 the loan amount is revised to $79,765.

The Ohio Mortgage Loan Act as amended by Ohio H.B. No. 1, effective January 1, 2010, incorporates the civil interest state limit on prepayment penalties into the MLA prepayment penalty provision.

Darrell L. Dreher and Elizabeth L. Anstaett