Lending License in Ohio

[Lincoln Roth]

I am looking to purchase a note that was originated in Ohio. I will be holding this note in my 401k as an investment. Does anyone know if I need a “lending license” for such a transaction in Ohio?  I do not plan on brokering notes in Ohio.

[Chris Seveney]

Having spent countless hours on the phone with their department of finance I can tell you as a note investor you are required to be licensed. So anyone that says otherwise love to hear their opinions on why You are exempt from the following

https://nationwidelicensingsystem.org/slr/PublishedStateDocuments/OH-Residential-Mortgage-Lending-Act-Company-New-App-Checklist.pdf

Now as mentioned what are the chances of being caught ? I have researched very large hedge funds and none of them are licensed - I cannot name one person on BP who buys and sells notes in Ohio who is licensed.

Not being licensed would not invalidate your loan, you could just be subject to penalties.