Tuesday, July 29, 2008

Indiana Loan Brokers Need to Name a Principal Broker

Over a year ago, the Indiana legislature passed a new law that made several changes to the Indiana Loan Broker Act.

One of the provisions of that law requires a licensed loan broker to name a principal manager for each office in which it conducts brokering activities. The applicants for Principal Manager must submit a completed application, pay a fee of $232.25 (which includes the FBI background check fee), complete 24 hours of approved instruction, pass the originator test, provide proof of 3 years of mortgage industry experience, and must be employed by a licensed loan broker.

The Indiana Secretary of State has advised all loan brokers that if they do not comply with the new law by August 5, 2008, their license could be revoked. Licensees that offer Veterans Administration or Federal Housing Administration loans have until December 5, 2008 to comply.

If you are required to comply with the new law and haven’t done so, you could find that you cannot conduct business as a loan broker after August 5, 2008.

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