An Ohio property owner has an existing first mortgage and takes out a second mortgage for home improvements. The second mortgage lender wants to ensure their lien is properly recorded. Under Ohio's recording statute, the second mortgage lender should:
Correct Answer
B) Record the second mortgage with the county recorder, where it will be junior to the first mortgage
Under Ohio's recording statute (ORC §5301.25), the second mortgage should be recorded with the county recorder in the county where the property is located. Since the first mortgage was recorded earlier, the second mortgage will be a junior lien, meaning it has lower priority in case of foreclosure.
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Related Topics & Key Terms
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Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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