Division of Financial Institutions: Complaints and Resolutions
Explore the Division of Financial Institutions' procedures for handling consumer complaints and resolving issues in the financial sector. Get insights into complaint trends, top complaint topics, and the division's role in safeguarding consumers and promoting financial stability in Ohio.
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Presentation Transcript
National Title Company Breakfast Meeting Division of Real Estate & Professional Licensing Kimberley Wells, Division Counsel Shannon Drawns, Enforcement Chief Division of Financial Institutions Zach Luck, Deputy Superintendent Samantha McCauley, Program Administrator Safe. Sound. Secure.
2 Overview of your division, how it plays a role in Commerce as a whole, etc. equipping businesses and protecting consumers. The Ohio Department of Commerce is focused on Commerce has seven Divisions. Our goal is to keep Ohioan s safe, sound and secure. Safe. Sound. Secure.
3 Division of Financial Institutions Complaints Complaint Process Intake consumer written complaints Forward to respondent Respondent to review complaint and respond directly to consumer Division review Safe. Sound. Secure.
4 Division of Financial Institutions Complaints Total number of complaints per fiscal year (July to June) Starting in July 2015 Total Complaints by Fiscal Year 350 300 250 200 150 100 50 0 FY16 FY17 FY18 Safe. Sound. Secure.
5 Division of Financial Institutions Complaints Total number of complaints by section of DFI Credit Unions BSI (Banks, Savings Institutions and Money Transmitters) Consumer Finance (Mortgage Lenders, Mortgage Brokers, Payday/Title Loans, etc.) Total Complaints by Section of DFI Outside of DFI Credit Union Consumer Finance BSI (MT) BSI 0 50 100 150 200 Safe. Sound. Secure.
6 Division of Financial Institutions Complaints Top five complaints based on product/service Checking/savings account Mortgage Auto loan Credit/prepaid card Payday/title loan Top 5 Complaints Based on Product/Services 140 120 100 80 60 40 20 0 Safe. Sound. Secure.
7 Division of Financial Institutions Complaints Top five Complaint Topics for Mortgage Related Complaints Account/Loan Balance Insurance Hardship Assistance Loan or Closing Process Account/Loan Management (Servicing) Top 5 Topics for Mortgage Related Complaints Account/Loan Balance Insurance Hardship Assistance Loan or Closing Process Account/Loan Management (Servicing) 0 5 10 15 20 25 Safe. Sound. Secure.
8 Ohio Division of Financial Institutions Regulations Proposed Legislation: Ohio Residential Mortgage Lending Act (House Bill 199) Currently pending in Senate, passed House Eliminate Dual Licensing of Mortgage Companies and Loan Originators Currently more than 100 companies and over 5,000 individuals have dual mortgage licenses Eliminate certain state-specific mortgage disclosures (not all) Eliminate brick-and-mortar requirement for mortgage companies Safe. Sound. Secure.
9 Ohio Division of Financial Institutions Other Consumer Finance News Do s and Don ts IT Upgrades - DFI Internal & NMLS Common Exam Finding: Be Careful with Compliance in a Box Common Licensing Issue: Watch Out for Test Date Expiration on Reapplications Common Issue: Keep Us Updated Branch Moves and Contact Info Safe. Sound. Secure.
10 Division of Real Estate & Professional Licensing Two types of licenses: sales and broker Process for obtaining a sales license Completion of Pre-licensure education for sales license: Real estate law Principles and practice Finance Appraisal Filing of an application to sit for sales exam Safe. Sound. Secure.
11 Division of Real Estate & Professional Licensing Broker license requirements Must have been a salesperson for two out of last five years and have completed 20 transactions Must complete four additional pre-licensure courses: Financial Management Human Resources or Personnel Management Applied Business Economics Business Law and a minimum of two years of postsecondary education, or equivalent hours of 60 semester hours or 90 quarter hours (four additional hours may be included in postsecondary education) Safe. Sound. Secure.
12 Division of Real Estate & Professional Licensing Do s and Don ts of licensure Do s: Complete renewal applications and continuing education timely Properly complete all applications disclose ethical history (convictions, investigations, discipline) Update address with the Division Provide written notice to the Superintendent within 15 days of a conviction Maintain transaction files for at least three years from the date of the transaction and cooperate during division investigations Safe. Sound. Secure.
13 Division of Real Estate & Professional Licensing Do s and Don ts Don ts: Don t affiliate with more than one brokerage (unless as a principal broker with authority to affiliate with more than one brokerage) Fail to include broker or management level licensee: obtain necessary guidance/advice from broker, management level licensee, and/or legal counsel Safe. Sound. Secure.
14 Division of Real Estate & Professional Licensing Complaints Complaint form is available on the division s website at: http://www.com.ohio.gov/documents/real_COM3688REComplai ntForm.pdf Safe. Sound. Secure.
15 Division of Real Estate & Professional Licensing Complaint Process Investigation, Legal review, Superintendent review NFA, Advisory Charges: notice of hearing, settlement Discipline determined by Ohio Real Estate Commission (OREC) Safe. Sound. Secure.
16 Division of Real Estate & Professional Licensing Most Common Complaints- Real Estate and Appraiser Property management Inconsistent or unsupported adjustments Unauthorized lockbox access Not reporting or explaining significant assistance Dispute of earnest money disbursement No inspection of subject Advertising non-compliance Use of inaccurate photographs Sales licensee working outside of brokerage (ex. Separate LLC) Unlicensed activity Safe. Sound. Secure.
17 Division of Real Estate & Professional Licensing Compliance/Violations Common Investigations: Property management deficiencies and unlicensed activity are common Inquiries related to advertising compliance are common: real estate teams equal prominence authority to list Safe. Sound. Secure.
18 Division of Real Estate & Professional Licensing Compliance/Violations Do s and Don ts Do Maintain transactional files agency documents contract copies trust account records written communication with parties, etc. Do maintain broker oversight of sales licensees -principal brokers are ultimately responsible for brokerage activities Safe. Sound. Secure.
CLOSED VS. CHARGED 700 661 600 490 500 376 400 354 334 294 300 243 218 200 122 108 87 86 81 70 100 58 43 0 2009 2010 2011 2012 2013 2014 2015 2016 Closed Charged Safe. Sound. Secure.
20 Division of Real Estate & Professional Licensing Compliance/Violations Do s and Don ts Do obtain all necessary consent and/or signatures/initials from parties to the transaction Do not advertise as a sales licensee without identifying broker affiliation in equal prominence Safe. Sound. Secure.
21 Division of Real Estate & Professional Licensing Wholesaling Option to purchase (commonly utilized) Intent - does the investor have actual intent to purchase the property? Advertising - the investor should not advertise the property but the interest held Do not advertise the property address or photographs of the property Advertisement should relate to the purchase/assignment of the contract Other considerations including: licensee vs. non-licensee investor https://www.youtube.com/watch?v=9fi54S8nwUA Safe. Sound. Secure.
22 Division of Real Estate & Professional Licensing Regulations House Bill 532- Real Estate license law changes https://www.youtube.com/watch?v=Jl0SQsPaZEA&feature=youtu.be http://www.com.ohio.gov/documents/real_HB532EPI.pdf Safe. Sound. Secure.
QUESTIONS?? Safe. Sound. Secure.
What can we do to better serve you? Zach Luck, Deputy Superintendent Samantha McCauley, Program Administrator Kimberley Wells, Division Counsel Shannon Drawns, Enforcement Chief WebReal@com.state.oh.us 614.466.4100 Follow us on Twitter: @OHDIVRealEstate Web.dfi@com.ohio.gov 614.728.8400 Safe. Sound. Secure.
