WBK Industry News - State Regulatory Developments

Ohio Makes Loan Prepayment Penalty Adjustment for 2023

The Ohio Department of Commerce has updated the threshold for that state’s prohibition on certain prepayment penalties, effective January 1, 2023, to $107,633.  Under Ohio Revised Code §1343.011(C)(2)(a)-(b), with this year’s adjustment, no penalty may be charged for the prepayment or refinancing of a residential mortgage obligation of less than $107,633 for loans that are made by a mortgage broker, loan officer, or non-bank mortgage lender.  The threshold loan amount limit is adjusted annually on January 1st, based on changes in the Consumer Price Index.