2023 Indiana Code › Title 24. Trade Regulation › Article 4.4. First Lien Mortgage Lending › Chapter 2. Miscellaneous › 24-4.4-2-405. Record Keeping; Use of Unique Identifier on Forms and Documents; Use of Examination and Regulatory Software; Reports of Condition to Nmlsr; Financial Statements; Notice to Department of Certain Events or Changes

Sec. 405. (1) Every licensee shall maintain records in a manner that will enable the department to determine whether the licensee is complying with this article. The record keeping system of a licensee is sufficient if the licensee makes the required information reasonably available. The department shall determine the sufficiency of the records and whether the licensee has made the required information reasonably available. The department shall be given free access to the records wherever the records are located. Records concerning any first lien mortgage transaction shall be retained for two (2) years after the making of the final entry relating to the transaction, but in the case of a revolving first lien mortgage transaction, the two (2) years required under this subsection is measured from the date of each entry relating to the transaction. A person that voluntarily registers with the department under IC 24-4.4-1-202(b)(8) for the purpose of sponsoring licensed mortgage loan originators shall:
(a) cooperate with the department; and
(b) provide access to records and documents;
as required by the department in carrying out examinations of the activities of the licensed mortgage loan originators sponsored by the person.
(2) The unique identifier of any person originating a mortgage transaction must be clearly shown on all mortgage transaction application forms and any other documents as required by the director.
(3) Every licensee shall use automated examination and regulatory software designated by the director, including third party software. Use of the software consistent with guidance and policies issued by the director is not a violation of IC 28-1-2-30.
(4) Each:
(a) creditor licensed to engage in mortgage transactions by the department; and
(b) person that is exempt from licensing and that:
(i) employs one (1) or more licensed mortgage loan originators; or
(ii) sponsors one (1) or more licensed mortgage originators as permitted by IC 24-4.4-1-202(b)(8) or by 750 IAC 9;
shall submit to the NMLSR reports of condition, which must be in a form and must contain information as required by the NMLSR.
(5) Each:
(a) creditor licensed by the department to engage in mortgage transactions; and
(b) person that is exempt from licensing and that:
(i) employs one (1) or more licensed mortgage loan originators; or
(ii) sponsors one (1) or more licensed mortgage loan originators as permitted by IC 24-4.4-1-202(b)(8) or by 750 IAC 9;
shall file with the department additional financial statements relating to all first lien mortgage transactions originated by the licensed creditor or the exempt person as required by the department, but not more frequently than annually, in the form prescribed by the department.
(6) A licensed creditor shall file notification with the department if the licensee:
(a) has a change in name, address, or any of its principals;
(b) opens a new branch, closes an existing branch, or relocates an existing branch;
(c) files for bankruptcy or reorganization; or
(d) is subject to revocation or suspension proceedings by a state or governmental authority with regard to the licensed creditor's activities;
not later than thirty (30) days after the date of the event described in this subsection.
(7) A licensee shall file notification with the department if the licensee or any director, executive officer, or manager of the licensee has been convicted of a felony under the laws of Indiana or any other jurisdiction. The licensee shall file the notification required by this subsection not later than thirty (30) days after the date of the event described in this subsection.
(8) A licensee shall file notification with the department if the licensee or any director, executive officer, or manager of the licensee has had the person's authority to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry revoked or suspended by Indiana or by any other state, federal, or foreign governmental agency or self regulatory organization. The licensee shall file the notification required by this subsection not later than thirty (30) days after the date of the event described in this subsection.
As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010, SEC.26; P.L.27-2012, SEC.12; P.L.103-2014, SEC.4; P.L.69-2018, SEC.9; P.L.197-2023, SEC.7.