reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 4. License Issuance and Renewal › 23-2.5-4-10. National Criminal History Background Check

Sec. 10. (a) At the time of application for an initial license under this chapter, the commissioner shall require the following to submit fingerprints for a national criminal history background check (as defined in IC 10-13-3-12) for use by the commissioner in determining whether the equitable owner of a loan broker, an individual described in subdivision (1), or the applicant should be denied issuance of a license under this chapter for a reason set forth in IC 23-2.5-11-1 or IC 23-2.5-11-2:
(1) In the case of an applicant for licensure as a loan broker, each ultimate equitable owner, equitable owner, director, manager, and officer.
(2) An applicant for licensure as a principal manager.
(3) An applicant for licensure as a mortgage loan originator.
(b) Every three (3) years at the time of application for renewal of a license issued under this chapter, beginning with the third calendar year following the calendar year during which the initial license is issued, the commissioner shall require the following to submit fingerprints for a national criminal history background check (as defined in IC 10-13-3-12) for use by the commissioner in determining whether the equitable owner of a loan broker, an individual described in subdivision (1), or the applicant should be denied renewal of a license under this chapter for a reason set forth in IC 23-2.5-11-1 or IC 23-2.5-11-2:
(1) In the case of an applicant for licensure as a loan broker, each ultimate equitable owner, equitable owner, director, manager, and officer.
(2) An applicant for licensure as a principal manager.
(3) An applicant for licensure as a mortgage loan originator.
(c) The individual whose fingerprints are submitted under this section shall pay any fees or costs associated with the fingerprints and background check required by this section.
(d) The commissioner may not release the results of a background check required by this section to any private entity.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 4. License Issuance and Renewal › 23-2.5-4-11. Financial Responsibility of Applicant

Sec. 11. In reviewing a consumer report obtained under section 2(b)(12) or 3(b)(12) of this chapter, the commissioner may consider one (1) or more of the following in determining whether the individual applicant has demonstrated financial responsibility:
(1) Bankruptcies filed by the individual during the most recent ten (10) years.
(2) Current outstanding civil judgments against the individual, except judgments resulting solely from medical expenses owed by the individual.
(3) Current outstanding tax liens or other government liens or filings.
(4) Foreclosure actions filed during the most recent three (3) years against property owned by the individual.
(5) Any pattern of seriously delinquent accounts associated with the individual during the most recent three (3) years.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 4. License Issuance and Renewal › 23-2.5-4-12. Electronic Surety Bond

Sec. 12. A loan broker shall maintain an electronic surety bond that:
(1) is satisfactory to the commissioner;
(2) is in the amount of sixty thousand dollars ($60,000); and
(3) covers the activities of each principal manager and mortgage loan originator employed by the loan broker.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 4. License Issuance and Renewal › 23-2.5-4-13. Evidence of Compliance

Sec. 13. (a) The commissioner may request evidence of compliance with this chapter at any of the following times:
(1) The time of application for an initial license.
(2) The time of renewal of a license.
(3) Any other time considered necessary by the commissioner.
(b) For purposes of subsection (a), evidence of compliance with this chapter must include a criminal background check, including a national criminal history background check (as defined in IC 10-13-3-12) by the Federal Bureau of Investigation.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 4. License Issuance and Renewal › 23-2.5-4-14. Unique Identifier; Use Restricted

Sec. 14. A unique identifier obtained by an individual from the Nationwide Multistate Licensing System as required by IC 23-2.5-3-1, IC 23-2.5-3-2, and IC 23-2.5-3-3 may not be used for purposes other than the purposes set forth in the S.A.F.E. Mortgage Licensing Act of 2008 (Title V of P.L.110-289).
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-1. Loan Processing Company Notice Filing

Sec. 1. Before engaging in loan processing activities, a loan processing company shall file, via the Nationwide Multistate Licensing System, a loan processing company notice filing.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-2. Form and Content of Loan Processing Company Notice Filing

Sec. 2. A loan processing company notice filing must be made on a form prescribed by the commissioner and include all of the following:
(1) The loan processing company's business name, address, and state of incorporation or business registration.
(2) The names of the owners, officers, members, or partners who control the loan processing company.
(3) The name of each individual who is employed by the loan processing company, including the unique identifier from the Nationwide Multistate Licensing System of each loan processor.
(4) The name and license number of each loan broker who:
(A) is licensed or required to be licensed under this article; and
(B) engaged the loan processing company to perform loan processing activities during the preceding calendar year.
(5) An attestation stating that each loan processor employed by the loan processing company has completed the education and examination requirements of a mortgage loan originator license under this article.
(6) Consent to service of process as described in section 7 of this chapter.
(7) An application fee of twenty-five dollars ($25).
As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-3. Loan Processing Company Notice Filing; Annual Renewal

Sec. 3. (a) A loan processing company notice filing described in section 2 of this chapter:
(1) expires on December 31 of each year; and
(2) must be refiled annually.
(b) A loan processing company shall update and renew the loan processing company's notice filing before the date on which the loan processing company notice filing expires by resubmitting the information and fee set forth in section 2 of this chapter.
(c) A loan processing company that engages in loan processing activities without filing or renewing a loan processing company notice filing as required by this chapter violates this article.
As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.3.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-4. Employment for Loan Processing Activities; Requirements

Sec. 4. A loan processing company may not employ an individual to engage in loan processing activities unless the individual:
(1) has completed the education and examination requirements for a mortgage loan originator; and
(2) is registered to conduct business in Indiana through the Nationwide Multistate Licensing System.
As added by P.L.175-2019, SEC.2. Amended by P.L.205-2021, SEC.5.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-5. Burden of Proof of Compliance

Sec. 5. A loan processing company bears the burden of showing that the loan processing company is in compliance with this chapter.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-6. Loan Processing Company or Loan Processor Violations

Sec. 6. (a) If the commissioner determines that a loan processing company or loan processor has violated this article, the commissioner may issue any notice or order determined by the commissioner to be in the public interest.
(b) A notice or order issued by the commissioner under subsection (a):
(1) may include remedies; and
(2) must follow the procedural requirements;
specified in IC 23-2.5-11.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-7. Agent for Service of Process

Sec. 7. (a) A loan processing company shall, before engaging in loan processing activities, file with the commissioner on a form prescribed by the commissioner an irrevocable consent appointing the secretary of state as the loan processing company's agent to receive service of process in a noncriminal suit, action, or proceeding against the loan processing company arising from a violation of this article.
(b) Service of process described in subsection (a) must be made in accordance with Indiana Rules of Trial Procedure.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 5. Loan Processing Company Notice Filing and Renewal › 23-2.5-5-8. Ceasing Loan Processing Activities; Requirements

Sec. 8. If a loan processing company ceases to engage in loan processing activities for any reason, the loan processing company shall do the following:
(1) Before ceasing loan processing activities, arrange for the preservation and maintenance of the records described in IC 23-2.5-9-2 for the remainder of the two (2) year maintenance period required by IC 23-2.5-9-2.
(2) Notify the commissioner of the exact physical address where the records will be maintained under subdivision (1).
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-1. Academic Education Required for Licensure

Sec. 1. (a) An applicant for an initial license under IC 23-2.5-4 shall provide to the commissioner evidence that, during the twenty-four (24) month period immediately preceding the application, the applicant completed at least twenty (20) hours of academic education that is acceptable to the commissioner and approved by the Nationwide Multistate Licensing System.
(b) The education hours required by subsection (a) must include the following:
(1) Three (3) hours of federal law and regulations concerning residential mortgage lending.
(2) Three (3) hours of ethics, including instruction on fraud, consumer protection, and fair lending practices.
(3) Two (2) hours of training concerning lending standards for nontraditional residential mortgage loan products.
(4) Two (2) hours of state law and rules concerning residential mortgage lending.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-2. Continuing Academic Education Required for Licensure

Sec. 2. (a) To maintain a license issued under IC 23-2.5-4, an individual shall provide to the commissioner evidence that the individual has, during each calendar year after the year during which the license is initially issued, completed at least eight (8) hours of academic education that is acceptable to the commissioner and approved by the Nationwide Multistate Licensing System.
(b) The education hours required by subsection (a) must include the following:
(1) Three (3) hours of federal law and regulations concerning residential mortgage lending.
(2) Two (2) hours of ethics, including instruction on fraud, consumer protection, and fair lending practices.
(3) Two (2) hours of training concerning lending standards for nontraditional residential mortgage loan products.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-3. License Lapse or Expiration; Educational Requirements for Licensure

Sec. 3. If a license issued under IC 23-2.5-4 lapses or expires for a period of at least five (5) years, the former licensee must complete the initial license educational requirements specified in section 1 of this chapter.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-4. Commissioner Review and Approval of Internal Academic Education Programs

Sec. 4. (a) In determining the acceptability of academic education, the commissioner shall consider approval of a licensee's internal academic education programs completed by employees.
(b) The commissioner may charge a fee, in an amount prescribed by the commissioner, for the commissioner's review of an education course to determine acceptability of the course as required by this chapter.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-5. Principal Manager; Mortgage Loan Originator; Written Examination Requirements

Sec. 5. (a) The commissioner shall require an applicant for licensure as a:
(1) principal manager; or
(2) mortgage loan originator;
under IC 23-2.5-4 to pass a written examination prepared and administered by the commissioner or an agent appointed by the commissioner and approved by the Nationwide Multistate Licensing System.
(b) The written examination required by this section must measure the applicant's knowledge and comprehension in appropriate subject areas, including the following:
(1) Ethics.
(2) Federal laws and regulations concerning the origination of residential mortgage loans.
(3) State laws and rules concerning the origination of residential mortgage loans.
(c) An individual who answers at least seventy-five percent (75%) of the questions on the written examination correctly is considered to have passed the examination.
(d) An individual who does not pass the written examination may retake the examination not more than two (2) additional times, with each subsequent attempt occurring at least thirty (30) days after the date on which the individual last sat for the examination.
(e) If an individual fails three (3) consecutive examinations, the individual must wait to retake the examination until at least six (6) months after the date on which the individual sat for the third examination.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-6. Mortgage Loan Originator Activities License or Registration Lapse or Expiration; Written Examination for Licensure or Registration

Sec. 6. If an individual who has been issued a principal manager license or mortgage loan originator license under this article, or a license or registration issued by another state or jurisdiction allowing the individual to perform mortgage loan origination activities:
(1) allows the individual's license or registration to lapse; or
(2) otherwise has not been a registered mortgage loan originator, issued a mortgage loan originator license, issued a principal manager license, or otherwise maintained a license or registration to perform mortgage loan origination activities;
for a period of at least five (5) years, the individual must pass the written examination required by this chapter as a condition of relicensure or reregistration.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 6. Education and Examination › 23-2.5-6-7. Written Examination; Time to Obtain License

Sec. 7. If an individual does not obtain a license within two (2) years after the date on which the individual passes the written examination for the license as required by this chapter, the commissioner may not issue the license to the individual unless the individual passes the written examination again.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-1. Loan Broker Employment of Principal Manager or Mortgage Loan Originator; License Required

Sec. 1. A loan broker shall not employ an individual to act as a principal manager or mortgage loan originator unless the individual is licensed under this article as a principal manager or mortgage loan originator, as applicable.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-2. Loan Processing Activities; Notice Filing Required

Sec. 2. A loan broker shall not engage the services of a person to perform loan processing activities unless the person has complied with the loan processing company notice filing requirements of IC 23-2.5-5.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-3. Loan Processor or Underwriter Activities; Representation to Public

Sec. 3. An individual who acts solely as a loan processor or an underwriter shall not represent to the public through:
(1) advertising; or
(2) other means of communicating or providing information, including business cards, stationery, brochures, signs, rate lists, or other promotional items;
that the individual will perform mortgage loan origination activities or otherwise act as a mortgage loan originator.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-4. Responsibilities of Principal Manager

Sec. 4. A loan broker shall, in accordance with section 5 of this chapter, employ and designate a principal manager who is responsible for supervising the:
(1) mortgage loan originators employed by the loan broker; and
(2) loan broker offices operated by the loan broker;
to ensure compliance with this article.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-5. Principal Manager; Supervising Activities Limitation

Sec. 5. (a) A principal manager designated by a loan broker under section 4 of this chapter may supervise not more than five (5) loan broker offices operated by the loan broker, including the principal place of business and any branch offices.
(b) A loan broker shall employ a sufficient number of additional principal managers designated as supervisors to accommodate any branch offices:
(1) operated by the loan broker; and
(2) in excess of the number permitted under subsection (a).
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-6. Annual Loan Broker Office Compliance Examinations

Sec. 6. (a) A principal manager shall complete at least one (1) compliance examination per year of each loan broker office for which the principal manager is the supervisor designated under section 4 of this chapter.
(b) A loan broker shall maintain complete documentation of each examination conducted by a principal manager under subsection (a):
(1) at the principal place of business; and
(2) for a minimum of five (5) years after the calendar year in which the examination is completed.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-7. Branch Office Manager

Sec. 7. (a) A loan broker that operates a branch office shall designate a unique individual to act as branch manager of the branch office.
(b) A branch manager designated under subsection (a) shall be licensed under this article as either a principal manager or a mortgage loan originator.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-8. Loan Broker Employees; Steps to Prevent Violation

Sec. 8. A loan broker that fails to take reasonable steps to prevent a violation of this article by a principal manager, mortgage loan originator, or other individual employed by the loan broker may subject the loan broker to discipline under IC 23-2.5-11.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-9. Principal Manager; Steps to Prevent Violation

Sec. 9. A principal manager who fails to take reasonable steps to prevent a violation of this article:
(1) by a mortgage loan originator who is supervised by the principal manager; or
(2) that occurs at a branch office that is supervised by the principal manager;
may subject the principal manager to discipline under IC 23-2.5-11.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-10. Branch Manager; Steps to Prevent Violation

Sec. 10. A branch manager who fails to take reasonable steps to prevent a violation of this article by an individual who works at the branch manager's designated branch office may subject the branch manager to discipline under IC 23-2.5-11.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 7. Loan Broker Offices and Personnel › 23-2.5-7-11. Loan Broker Review of Loan Processing Company Work

Sec. 11. (a) A loan broker shall diligently review work performed on the loan broker's behalf by a loan processing company.
(b) A loan broker that fails to take reasonable steps to review work performed by a loan processing company on the loan broker's behalf may subject the loan broker to discipline under IC 23-2.5-11.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-1. Loan Broker Contract

Sec. 1. (a) A contract for the services of a loan broker is not enforceable unless the contract is in writing and signed by each of the contracting parties.
(b) At the time a contract for the services of a loan broker is signed, the loan broker shall provide the following to each party to the contract:
(1) A copy of the signed contract.
(2) A written disclosure of any agreement entered into by the loan broker to procure loans exclusively from one (1) lender.
(c) A contract for the services of a loan broker must include the following statement:
"No statement or representation by a loan broker is valid or enforceable unless the statement or representation is in writing.".
(d) This section does not apply to a contract that provides for the payment of referral fees by a lender or a third party.
As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.4.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-2. Real Estate Appraiser; Influence; Ownership or Interest

Sec. 2. (a) A licensee or a person required to be licensed under this article shall not knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of real estate offered as security for a residential mortgage loan.
(b) Except as provided in subsection (c):
(1) a licensee;
(2) a person required to be licensed under this article; or
(3) a member of the immediate family of a licensee;
may not own or control a majority interest in an appraisal company.
(c) This subsection applies to a person or combination of persons described in subsection (b) who own or control a majority interest in an appraisal company on June 30, 2007. The prohibition set forth in subsection (b) does not apply to a person or combination of persons described in this subsection, subject to the following:
(1) The interest in the appraisal company owned or controlled by the person or combination of persons shall not be increased after June 30, 2007.
(2) The interest of a licensee shall not be transferred to a member of the licensee's immediate family.
(3) If the commissioner determines that any person or combination of persons described in subsection (b) has violated this chapter, the commissioner may order one (1) or more of the persons to divest their interest in the appraisal company. The commissioner may exercise the remedy provided by this subdivision in addition to, or as a substitute for, any other remedy available to the commissioner under this article.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-3. Contract Rescission; Consideration

Sec. 3. (a) If a transaction for which a loan broker has charged a fee is rescinded by a person under the federal Truth in Lending Act (15 U.S.C. 1601-1667e) within twenty (20) calendar days after the date on which a notice of the rescission is delivered to the creditor, the loan broker shall return to the person any consideration received by the loan broker other than bona fide third party fees.
(b) For purposes of calculating the period during which a person may avoid a contract under IC 24-5-10-8 or IC 24-4.5-2-502, a contract with a loan broker is considered to be a sale of services that occurs on the date on which the person signs the written contract required by section 1 of this chapter.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-5. Loan Broker Records

Sec. 5. A loan broker shall maintain the following records, or the electronic equivalent of the following:
(1) A file for each borrower or prospective borrower that contains the following:
(A) The name and address of the borrower or prospective borrower.
(B) A copy of the signed loan broker agreement.
(C) A copy of any other paper or instrument used in connection with the loan broker agreement and signed by the borrower or prospective borrower.
(D) If a loan was obtained for the borrower, the name and address of the creditor.
(E) If a loan is accepted by the borrower, a copy of the loan agreement.
(F) The amount of the loan broker's fee paid by the borrower. If there is an unpaid balance, the status of any collection effort.
(2) All:
(A) receipts from or for the account of borrowers or prospective borrowers; and
(B) disbursements to or for the account of borrowers or prospective borrowers;
recorded so that the transactions are readily identifiable.
(3) A:
(A) general ledger, posted at least monthly; and
(B) trial balance sheet and profit and loss statement, prepared within thirty (30) days of the date on which the commissioner requests the information.
(4) A sample of:
(A) all advertisements, pamphlets, circulars, letters, articles, Internet publications, or communications published:
(i) in a newspaper, magazine, or periodical; or
(ii) by other means of distribution;
(B) scripts of any recording, radio, or video announcement;
(C) any sales kits or literature; and
(D) any Internet communication distributed to at least ten (10) persons;
used in the solicitation of borrowers.
(5) A report that:
(A) lists all residential mortgage loans originated by the loan broker, including pending loans and loans that were not closed;
(B) is searchable by, or organized according to, the borrower's or prospective borrower's last name; and
(C) includes the following information for each residential mortgage loan listed:
(i) The name and address of the borrower or prospective borrower.
(ii) The name of the creditor.
(iii) The name of the mortgage loan originator.
(iv) The loan amount.
(v) The status of the loan, including the date of closing or denial by the creditor.
(vi) The interest rate for the loan.
The report required by this subdivision may be prepared or produced by or through the loan broker's loan origination software or other software used by the loan broker.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-6. Loan Broker Record Maintenance

Sec. 6. (a) The records maintained under section 5 of this chapter must be:
(1) maintained for two (2) years in the office of the loan broker in which the loan was originated; and
(2) separate or readily identifiable from the records of any other business that is conducted in the office of the loan broker.
(b) If the office in which records must be maintained under this section is located outside Indiana, the records must be:
(1) made available to the securities division at a location that is:
(A) located in Indiana; and
(B) accessible to the securities division; or
(2) maintained electronically and made available to the securities division not later than ten (10) business days after a request by the securities division to inspect or examine the records.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-7. Loan Broker Ceasing to Do Business; Records; Notice to Commissioner

Sec. 7. (a) A loan broker that ceases to conduct business as a loan broker or allows the loan broker license to lapse shall, before ceasing to conduct business as a loan broker, arrange for the preservation of the records specified in section 5 of this chapter for the remainder of the period specified in section 6(a)(1) of this chapter during which the loan broker ceases to conduct business as a loan broker.
(b) A loan broker described in subsection (a) shall notify the commissioner of the exact address of the physical location where the books and records will be maintained during the period described in subsection (a).
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-8. Security Breach of Loan Broker Record

Sec. 8. If a breach of the security of a record:
(1) maintained by a loan broker under this chapter; and
(2) containing the unencrypted, unredacted personal information of a borrower or prospective borrower;
occurs, the loan broker is subject to the disclosure requirements of IC 24-4.9-3, unless the loan broker is exempt from the disclosure requirements under IC 24-4.9-3-4.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-9. Licensee Disposal of Records

Sec. 9. A licensee may not dispose of the unencrypted, unredacted personal information of a borrower or prospective borrower without first shredding, incinerating, mutilating, erasing, or otherwise rendering the information illegible or unusable.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-10. Prospective Borrower Funds; Requirements

Sec. 10. If a licensee or a person required to be licensed under this article possesses funds that belong to another person, including money received by or on behalf of a prospective borrower, the licensee or person required to be licensed shall:
(1) upon request of the prospective borrower, account for the funds possessed for the prospective borrower;
(2) follow reasonable and lawful instructions from the prospective borrower concerning the prospective borrower's funds; and
(3) return the prospective borrower's unspent funds to the prospective borrower in a timely manner.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 8. Conduct of Business › 23-2.5-8-11. Loan Broker Reports of Condition

Sec. 11. (a) A loan broker shall, when required by the commissioner, submit reports of condition to the:
(1) commissioner; and
(2) Nationwide Multistate Licensing System.
(b) A report required by this section must be in the form and contain the information required by the commissioner.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-1. Loan Broker Agreement; Licensee Information

Sec. 1. A loan broker agreement that is delivered or required to be delivered by a licensee to a borrower or prospective borrower must contain the license number of:
(1) the loan broker; and
(2) each:
(A) mortgage loan originator; and
(B) principal manager;
who had contact with the file.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-2. Loan Processing Company Records

Sec. 2. (a) A loan processing company shall maintain records of all residential mortgage loan transactions conducted by the loan processing company as follows:
(1) The records required to be maintained under this section are the records pertaining to the part of each transaction the loan processing company conducts.
(2) The records must be maintained for at least two (2) years in the office of the loan processing company.
(3) The records must be readily identifiable or separate from the records of any other business conducted by the loan processing company.
(b) If the office in which records are maintained under this section is not located in Indiana, the records must be:
(1) made available to the securities division at a location that is:
(A) located in Indiana; and
(B) accessible to the securities division; or
(2) maintained electronically and made available to the securities division not later than ten (10) business days after a request by the securities division to inspect or examine the records.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-3. Loan Processing Company Breach; Disclosure

Sec. 3. If a breach occurs of the security of records that:
(1) are maintained by a loan processing company under this chapter; and
(2) contain the unencrypted, unredacted personal information of one (1) or more borrowers or prospective borrowers;
the loan processing company is subject to the disclosure requirements under IC 24-4.9-3. However, this section does not apply if the loan processor is exempt from the disclosure requirements under IC 24-4.9-3-4.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-4. Loan Processing Company Records Disposal

Sec. 4. A loan processing company may not dispose of the unencrypted, unredacted personal information of one (1) or more borrowers or prospective borrowers without first shredding, incinerating, mutilating, erasing, or otherwise rendering the information illegible or unusable.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-5. Loan Processing Company Records; Commissioner Examination

Sec. 5. The commissioner may examine the books and records of a loan processing company as often as the commissioner considers necessary to verify that the loan processing company is compliant with this article.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-6. Loan Processor; Federal Law Compliance

Sec. 6. A loan processor shall comply with all of the following:
(1) The federal Truth in Lending Act (15 U.S.C. 1601 et seq.).
(2) The federal Real Estate Settlement Procedures Act (12 U.S.C. 2601 et seq.).
(3) The federal Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).
(4) Any other federal law concerning residential mortgage lending.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 9. Residential Mortgage Loan Transaction Documents › 23-2.5-9-7. Loan Processor; Loan Processor Company; Violations

Sec. 7. The following are subject to disciplinary proceedings under IC 23-2.5-11 for a violation of this article:
(1) A loan processor.
(2) A loan processing company.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 11. Violations and Civil Enforcement › 23-2.5-11-1. Permissive Actions; Denial of Licensure Application or Renewal; Suspension; Revocation

Sec. 1. The commissioner may deny an application for an initial or a renewal license under this article, and may suspend or revoke the license of a licensee, if the applicant, the licensee, or an ultimate equitable owner of a loan broker or an applicant for a loan broker license:
(1) has, within the most recent ten (10) years:
(A) been the subject of an adjudication or a determination by:
(i) a court with jurisdiction; or
(ii) an agency or administrator that regulates securities, commodities, banking, financial services, insurance, real estate, or the real estate appraisal industry;
in Indiana or any other jurisdiction; and
(B) been found, after notice and opportunity for hearing, to have violated the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal laws of the state or any other jurisdiction;
(2) except as provided in section 2(1) of this chapter with respect to the activities of a loan broker, has:
(A) been denied the right to do business in the securities, commodities, banking, financial services, insurance, real estate, or real estate appraisal industry; or
(B) 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 the state or another state, federal, or foreign governmental agency or self-regulatory organization;
(3) is insolvent;
(4) has violated this article;
(5) has knowingly filed with the commissioner a document or statement that:
(A) contains a false representation of a material fact;
(B) fails to state a material fact; or
(C) contains a representation that becomes false:
(i) after the filing; and
(ii) during the term of the license;
and does not notify the commissioner as required by IC 23-2.5-4-8;
(6) has been convicted, during the ten (10) years preceding the date of the application, renewal, or review, of a crime, other than a felony, involving fraud or deceit;
(7) if the person is a loan broker or a principal manager, has failed to reasonably supervise the person's mortgage loan originators, loan processors or underwriters, or employees to ensure compliance with this article;
(8) is on the most recent tax warrant list supplied to the commissioner by the department of state revenue;
(9) has engaged in dishonest or unethical practices, as determined by the commissioner; or
(10) has, after receiving a request from the securities division for additional documentation or information in connection with an application for an initial or renewal license, failed to properly respond to the request within thirty (30) days after the date on which the person receives the request.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 11. Violations and Civil Enforcement › 23-2.5-11-2. Required Actions; Denial of Licensure Application or Renewal; Suspension; Revocation

Sec. 2. The commissioner shall deny an application for an initial or a renewal license under this article, and shall revoke the license of a licensee, if the applicant, the licensee, or an ultimate equitable owner of a loan broker or an applicant for a loan broker license:
(1) has had a:
(A) loan broker license issued under this article;
(B) mortgage loan originator license issued under this article;
(C) principal manager license issued under this article; or
(D) license that is:
(i) equivalent to a license described in clause (A), (B), or (C); and
(ii) issued by another jurisdiction;
revoked by the commissioner or the appropriate regulatory agency in another jurisdiction, whichever applies;
(2) has been convicted of or pleaded guilty or nolo contendere to a felony in a domestic, foreign, or military court:
(A) during the seven (7) year period immediately preceding the date of the application or renewal; or
(B) at a time preceding the date of the application or renewal if the felony involved an act of fraud or dishonesty, a breach of trust, or money laundering;
(3) fails to maintain the bond required by IC 23-2.5-4-12;
(4) fails to demonstrate the financial responsibility, character, and general fitness necessary to:
(A) command the confidence of the community in which the applicant or licensee engages or will engage in the activities of a loan broker; and
(B) warrant a determination by the commissioner that the applicant or licensee will operate honestly, fairly, and efficiently according to the requirements of this article;
(5) has failed to meet the education requirements set forth in IC 23-2.5-6;
(6) has failed to pass the written examination required by IC 23-2.5-6; or
(7) fails to:
(A) keep or maintain records in accordance with IC 23-2.5-8; or
(B) allow the commissioner or an agent appointed by the commissioner to inspect or examine a loan broker's books and records to determine compliance with IC 23-2.5-8.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 11. Violations and Civil Enforcement › 23-2.5-11-3. Investigation; Orders; Penalties

Sec. 3. (a) If the commissioner determines that a person has engaged in or is about to engage in an act or a practice that violates this article or a rule or an order under this article, the commissioner may investigate and issue:
(1) with a prior hearing if there exists no substantial threat of immediate irreparable harm; or
(2) without a prior hearing if there exists a substantial threat of immediate irreparable harm;
orders and notices determined by the commissioner to be in the public interest, including cease and desist orders, orders to show cause, and notices.
(b) After notice and hearing, the commissioner may enter an order of rescission, restitution, or disgorgement, including interest at the rate of eight percent (8%) per year, directed to a person who the commissioner determines has violated this article or a rule or an order under this article.
(c) If the commissioner determines, after a hearing, that a person has violated this article or a rule or an order under this article, the commissioner may, in addition to other remedies, impose a civil penalty on the person in an amount not to exceed ten thousand dollars ($10,000) for each violation.
(d) Upon the commissioner's issuance under subsection (a) of an order or notice without a prior hearing, the commissioner shall promptly notify:
(1) the respondent; and
(2) if the subject of the order or notice is a mortgage loan originator or a principal manager, the loan broker for whom the mortgage loan originator or principal manager is employed;
of the issuance of the order or notice.
(e) The notification required by subsection (d) must include the following:
(1) Notice that the order or notice has been issued.
(2) Notice of the reasons the order or notice has been issued.
(3) Notice that upon the commissioner's receipt of a written request from the person against which the order or notice is issued, the matter will be set for a hearing to commence not later than:
(A) fifteen (15) business days after the commissioner's receipt of the request if the original order or notice issued by the commissioner was a summary suspension, summary revocation, or denial of a license; and
(B) forty-five (45) business days after the commissioner's receipt of the request for any other order or notice, unless the respondent consents to a later date.
(f) If a hearing:
(1) is not requested under subsection (e); and
(2) is not ordered by the commissioner;
an order or notice issued under this section remains in effect until the order or notice is modified or vacated by the commissioner.
(g) If a hearing is requested under subsection (e) or ordered by the commissioner, the commissioner, after notice of an opportunity for hearing, may modify or vacate the order or notice or extend the order or notice until final determination.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 11. Violations and Civil Enforcement › 23-2.5-11-4. Censure; Permanent Bar

Sec. 4. The commissioner may do either of the following:
(1) Censure:
(A) a licensee;
(B) an officer, a director, an ultimate equitable owner, or an equitable owner of a loan broker; or
(C) another person;
who violates or causes a violation of this article.
(2) Permanently bar a person described in subdivision (1) from being:
(A) licensed under this article; or
(B) employed by, or affiliated with, a person that is licensed under this article;
if the person violates or causes a violation of this article.
As added by P.L.175-2019, SEC.2.
2023 Indiana Code › Title 23. Business and Other Associations › Article 2.5. Loan Brokers › Chapter 11. Violations and Civil Enforcement › 23-2.5-11-5. Notice Before Final Order

Sec. 5. (a) Except as provided in subsection (b), the commissioner may not enter a final order:
(1) denying, suspending, or revoking the license of an applicant or a licensee; or
(2) imposing another sanction;
without prior notice to all interested parties, opportunity for a hearing, and written findings of fact and conclusions of law.
(b) The commissioner may, by summary order, deny, suspend, or revoke a license:
(1) pending final determination of a proceeding under this chapter; or
(2) before a proceeding is initiated under this chapter.
(c) Upon the entry of a summary order under subsection (b), the commissioner shall promptly notify all interested parties:
(1) that the summary order has been entered;
(2) of the reasons for the summary order; and
(3) that, upon receipt by the commissioner of a written request from a party, the matter will be set for hearing to commence not later than forty-five (45) business days after the commissioner's receipt of the request.
(d) If a hearing:
(1) is not requested under subsection (c); and
(2) is not ordered by the commissioner;
the summary order remains in effect until the summary order is modified or vacated by the commissioner.
(e) If a hearing is requested under subsection (c) or ordered by the commissioner, the commissioner may:
(1) after notice of the hearing has been given to all interested persons; and
(2) the hearing has been held;
modify or vacate the summary order or extend the summary order until final determination is made.
As added by P.L.175-2019, SEC.2. Amended by P.L.211-2019, SEC.31.