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IN HB1440

Bill

Status

Passed

5/1/2019

Primary Sponsor

Robert Heaton

Click for details

Origin

House of Representatives

2019 Regular Session

AI Summary

  • Repeals existing Indiana loan broker law (IC 23-2-5) and creates new Article 2.5 under IC 23-2.5, effective July 1, 2019, reorganizing and modernizing regulations for loan brokers, mortgage loan originators, and principal managers

  • Requires loan brokers to obtain a unique identifier from the Nationwide Multistate Licensing System (NMLS) and maintain a $60,000 surety bond covering all principal managers and mortgage loan originators

  • Establishes licensing fees: $200 for loan broker licenses plus $100 per ultimate equitable owner, $100 for principal manager licenses, $50 for mortgage loan originator licenses, and $75 for branch office licenses

  • Mandates 20 hours of initial education and 8 hours of annual continuing education for licensees, plus passage of a written examination with at least 75% correct answers

  • Creates criminal penalties for violations: Level 5 felony for knowing violations, elevated to Level 4 felony if the victim is at least 60 years old; civil penalties up to $10,000 per violation

Legislative Description

Loan brokers. Reorganizes current provisions regulating loan brokers and moves the reorganized provisions to a new article, including: (1) the loan broker regulation account; (2) licensure and notice requirements; (3) education and examination requirements for licensure; (4) requirements for loan broker offices, personnel, and conduct of business; and (5) violations and enforcement. Makes conforming amendments. Repeals the current law regulating loan brokers.

Last Action

Public Law 175

5/1/2019

Committee Referrals

Insurance & Financial Institutions2/27/2019
Financial Institutions1/15/2019

Full Bill Text

No bill text available