What Is Senate Bill 185 (SB-185)? 

In 2006, the Ohio State Senate passed the Ohio Homebuyers Protection Bill, aimed at protecting consumers from predatory lending practices. A s a result of SB-185, home-lending transactions will become more consumer-friendly.  Lenders will now be required to increase their disclosure of transactions so that homebuyers will be able to make more informed decisions when purchasing a home.  The bill seeks to reduce the number of unnecessary foreclosures that occur when lenders engage in deceptive practices and consumers are poorly informed of their fiduciary responsibilities.
Practices that have been banned as a result of SB-185 include:

• Convincing homebuyers to enter an agreement they knowingly cannot pay
• Refinancing a mortgage where the new loan does not have a recognizable benefit considering the terms of the old and new loan and the consumer’s financial circumstances
• Mortgage brokers taking advantage of the consumer’s inability to protect his or her interests due to known physical or mental conditions or illiteracy
• Failing to inform the consumer that he or she is not required to close the loan simply due to prior estimates or a signed application
• Charging more than one late fee for one loan payment
• Mortgage brokers claiming to represent an affiliation or sponsorship they do not represent
• Recommending or encouraging a consumer to default on a mortgage or loan credit agreement

What Does This Mean?
SB-185 improves lending practices by mandating stricter enforcement, increasing customer disclosure and changing current licensing requirements.  The bill requires that both mortgage brokers and certain lenders hold proper licenses and that they participate in continuing education to maintain their licenses.

All brokers and title companies must have their escrow accounts reviewed annually. 

How We Can Help

Full-Service Compliance Review
Schneider Downs & Co., Inc. offers compliance reviews for title companies according to guidelines established by SB-185. Under SB-185, title companies must complete an annual review of their trust accounts in order to maintain their license for business.  Our professionals can review your trust accounts and complete your required SB-185 review in a timely manner.  Our report will meet requirements under SB-185.

Schneider Downs & Co., Inc. offers advantages to you, including:

• Dedicated personnel for SB-185 reviews
• Completion of your required SB-185 annual review on time
• On-site service as necessary
• Experienced professionals ready to meet your SB-185 deadline

We will review select closing documents in addition to offering interviews and regular updates with our staff to ensure that your review is completed thoroughly and accurately.  After the review, we will be available to discuss any matters identified in the report.

Schedule your mandatory SB-185 review now to ensure that you are in compliance. Use our Online Scheduling Form to schedule your review today.

Contact Us

Jay Meglich, CPA, Shareholder, 614-586-7124

Nick Lombardo, CPA , Manager, 614-586-7132

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