SEA 334 Summary

• Effective July 1, 2014, amends Indiana Code provisions regulating mortgage lending and trade practices
• Allows federal savings banks to voluntarily register with the department to sponsor licensed mortgage loan originators as independent agents under exclusive written agreements, subject to NMLSR registration, surety bonding, financial reporting, and department examination requirements
• Expands licensing exemptions to include bona fide nonprofit organizations originating only zero-interest first or subordinate lien mortgages without balloon payments and not charging loan origination fees
• Requires creditors and exempt entities that employ or sponsor licensed mortgage loan originators to maintain valid NMLSR identifiers, surety bonds, records, and file reports with both NMLSR and the department
• Applies surety bond, record-keeping, and reporting requirements to both first lien (IC 24-4.4) and subordinate lien (IC 24-4.5) mortgage transactions