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Ohio Revised Code

Ohio Rev. Code § 1349.25 (2026)

Covered loan definitions

✓ current as of May 2026
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Effective:
January 1, 2007
Latest Legislation:
Senate Bill 185 - 126th General Assembly
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As used in sections 1349.25 to 1349.37 of the Revised Code:

(A) "Actuarial method" means the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed.

(B) "Consumer" means a natural person to whom credit is offered or extended primarily for personal, family, or household purposes.

(C) "Consummation" means the time that a consumer becomes contractually obligated on a credit transaction.

(D) "Covered loan" means a consumer credit mortgage loan transaction, including an open end credit plan, that involves property located within this state, is secured by the consumer's principal dwelling, and meets either of the following criteria:

(1) The annual percentage rate at consummation of the transaction exceeds the amount established under section 152(a) of the "Home Ownership and Equity Protection Act of 1994," 108 Stat. 2190, 15 U.S.C.A. 1602(aa), as amended, and the regulations adopted thereunder by the federal reserve board, as amended.

(2) If the total loan amount is twenty-five thousand dollars or more, the total points and fees payable by the consumer at or before loan closing exceed five per cent of the total loan amount. If the total loan amount is less than twenty-five thousand dollars, the total points and fees payable by the consumer at or before loan closing exceed eight per cent of the total loan amount.

For purposes of division (D) of this section:

(a) "Points and fees" has the same meaning as in section 152(a) of the "Home Ownership and Equity Protection Act of 1994," 108 Stat. 2190, 15 U.S.C. 1602(aa), as amended, and the regulations adopted thereunder by the federal reserve board, as amended, and includes single premium credit insurance and all compensation paid directly or indirectly to a mortgage broker from any source. For transactions under an open end credit plan, "points and fees" includes fees paid for the ability to access the line of credit and fees paid in order to utilize the maximum amount of credit available.

"Points and fees" does not include fees paid to a federal or state government agency that insures payment of some portion of a home loan, including the federal housing administration and the United States department of veterans affairs, or an amount not to exceed one percentage point in indirect mortgage broker compensation paid by any source.

(b) "Total loan amount" means the principal of the loan minus points and fees that are included in the principal amount. For transactions under an open end credit plan, "total loan amount" shall be calculated by using the total line of credit allowed under the loan at closing.

(c) "Consumer credit mortgage loan transaction" does not include a residential mortgage transaction or a reverse mortgage transaction.

Nothing in division (D) of this section shall be construed to authorize a consumer or any other party to pay compensation to a creditor for services provided by the creditor in connection with a covered loan, or to prohibit a creditor from charging or receiving such compensation.

(E) "Credit" means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.

(F) "Creditor" has the same meaning as in section 152(c) of the "Home Ownership and Equity Protection Act of 1994," 108 Stat. 2190, 15 U.S.C.A. 1602(f), as amended, and the regulations adopted thereunder by the federal reserve board, as amended.

(G) "Person" means a natural person, partnership, association, trust, corporation, or any other legal entity.

(H) The terms "open end credit plan," "residential mortgage transaction," and "reverse mortgage transaction" have the same meanings as in section 152(a) of the "Home Ownership and Equity Protection Act of 1994," 108 Stat. 2190, 15 U.S.C. 1602, as amended, and the regulations adopted thereunder by the federal reserve board, as amended.
Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 2004–2022 · leading case: City of Dayton v. State, 813 N.E.2d 707 (Ohio Ct. App. 2004).
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City of Dayton v. State, 813 N.E.2d 707 (Ohio Ct. App. 2004). · cites it 6× “386 enacted new sections of the Revised Code (R.C. 1349.25 to 1349.37) that basically incorporated the federal Home Ownership and Equity Protection Act of 1994 (“HOEPA”).”
Am. Fin. Servs. Ass'n v. City of Cleveland, 112 Ohio St. 3d 170 (Ohio 2006). · cites it 4× “, the federal predatory-lending law, into the Revised Code in Ohio’s predatory-lending laws, at R.C. 1349.25 through 1349.37. That legislation defined covered loans, R.”
City of Cleveland v. Ameriquest Mortg. Sec., Inc., 621 F. Supp. 2d 513 (N.D. Ohio 2009). · cites it 2× “, and the Ohio Homeowners Equity Protection Act, Ohio Rev.Code § 1349.25 et seq. Of particular relevance to this proceeding, in addition to the statutes noted supra, the federal government has enacted numerous laws and issued significant regulatory guidance specifically aimed at…”
Am. Fin. Servs. Ass'n v. City of Cleveland, 824 N.E.2d 553 (Ohio Ct. App. 2004). · cites it 2× “These laws, dealing with predatory lending in Ohio, are codified at R.C. 1349.25 through 1349.37. {¶ 8} The state defines “predatory loans” as loans that involve Ohio property and in which either (a) the annual interest rate at consummation exceeds the yield on comparable…”
City of Cleveland v. State, 923 N.E.2d 183 (Ohio Ct. App. 2009). · cites it 2× “386(1) “incorporated parts of the Home Ownership and Equity Protection Act of 1994, * * * the federal predatory-lending law,” into the Ohio Revised Code at R.C. 1349.25 through 1349.37, (2) defined covered loans through R.”
Mayher v. Ma (In Re Ma), 375 B.R. 387 (Bankr. N.D. Ohio 2007). · cites it 2× “the fee to be paid by the buyer to the registrant will be calculated; (g) A statement that the lender may pay compensation to the registrant; (h) A description of all the services the registrant has agreed to perform for the buyer; (i) A statement that the buyer has not entered…”
Am. Fin. Servs. Ass'n v. City of Toledo, 830 N.E.2d 1233 (Ohio Ct. App. 2005). · cites it 2× “386, which enacted the state predatory-lending law, preempts the city predatory-lending law. *488 {¶ 28} H.B. No. 386, which essentially incorporated the federal Home Ownership and Equity Protection Act of 1994 (“HOEPA”), added new sections to the Revised Code (at R.”
Harris v. Synovus Bank (N.D. Ohio 2022). · cites it 2× “Ohio Rev. Code § 1349.25(D); Ohio Rev. Code § 1345.”
— Ohio Rev. Code § 1349.25(D) — 6 cases
City of Dayton v. State, 813 N.E.2d 707 (Ohio Ct. App. 2004). “386 enacted new sections of the Revised Code (R.C. 1349.25 to 1349.37) that basically incorporated the federal Home Ownership and Equity Protection Act of 1994 (“HOEPA”).”
Am. Fin. Servs. Ass'n v. City of Cleveland, 112 Ohio St. 3d 170 (Ohio 2006). “, the federal predatory-lending law, into the Revised Code in Ohio’s predatory-lending laws, at R.C. 1349.25 through 1349.37. That legislation defined covered loans, R.”
Am. Fin. Servs. Ass'n v. City of Cleveland, 824 N.E.2d 553 (Ohio Ct. App. 2004). “These laws, dealing with predatory lending in Ohio, are codified at R.C. 1349.25 through 1349.37. {¶ 8} The state defines “predatory loans” as loans that involve Ohio property and in which either (a) the annual interest rate at consummation exceeds the yield on comparable…”
City of Cleveland v. State, 923 N.E.2d 183 (Ohio Ct. App. 2009). “386(1) “incorporated parts of the Home Ownership and Equity Protection Act of 1994, * * * the federal predatory-lending law,” into the Ohio Revised Code at R.C. 1349.25 through 1349.37, (2) defined covered loans through R.”
Am. Fin. Servs. Ass'n v. City of Toledo, 830 N.E.2d 1233 (Ohio Ct. App. 2005). “386, which enacted the state predatory-lending law, preempts the city predatory-lending law. *488 {¶ 28} H.B. No. 386, which essentially incorporated the federal Home Ownership and Equity Protection Act of 1994 (“HOEPA”), added new sections to the Revised Code (at R.”
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