Citations Affected: IC 4-6-12.
Synopsis: Mortgage fraud unit. Establishes the mortgage fraud unit
within the office of the attorney general. Requires the unit to: (1)
investigate allegations of fraud in connection with mortgage lending;
(2) institute appropriate civil actions to remedy results of fraud in
connection with mortgage lending; and (3) cooperate with appropriate
federal and state agencies in the prosecution of criminal violations
involving fraud in connection with mortgage lending.
Effective: July 1, 2001.
January 9, 2001, read first time and referred to Committee on Financial Institutions.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration.
agencies in the investigation of fraud in connection with
(4) Cooperate with appropriate federal and state agencies in the prosecution of criminal violations involving fraud in connection with mortgage lending.
Sec. 5. (a) The unit shall cooperate with the following to implement this chapter:
(1) The professional licensing agency and the appropriate licensing boards with respect to persons licensed under IC 25.
(2) The department of financial institutions.
(3) The department of insurance with respect to the sale of insurance in connection with mortgage lending.
(4) The securities division of the office of the secretary of state.
(5) The Indiana supreme court disciplinary commission with respect to attorney misconduct.
(b) The attorney general may file complaints with any of the agencies listed in subsection (a) to implement this chapter.
(c) The establishment of the unit and its powers do not limit the jurisdiction of any agency described in subsection (a).
Sec. 6. The attorney general and an investigator of the unit may do any of the following when investigating alleged fraud in connection with mortgage lending:
(1) Issue and serve a subpoena for the production of records, including records stored in electronic data processing systems, for inspection by the attorney general or the investigator.
(2) Issue and serve a subpoena for the appearance of any person before the attorney general to provide testimony under oath.
(3) Apply to a court with jurisdiction to enforce a subpoena described in subdivision (1) or (2).
Sec. 7. The attorney general may make recommendations to the general assembly for appropriate legislation to address fraud in connection with mortgage lending.
Sec. 8. The unit shall initiate and maintain an education program to inform consumers of mortgage loans of fraud in connection with mortgage lending. The unit shall cooperate with the agencies listed in section 5(a) of this chapter to develop and implement the education program required by this section.