Introduced Version




HOUSE BILL No. 1144

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DIGEST OF INTRODUCED BILL



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.



Mahern, Avery


    January 9, 2001, read first time and referred to Committee on Financial Institutions.




Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1144


    A BILL FOR AN ACT to amend the Indiana Code concerning state offices and administration.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-6-12; (01)IN1144.1.1. -->     SECTION 1. IC 4-6-12 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
     Chapter 12. Mortgage Fraud Unit
    Sec. 1. As used in this chapter, "unit" refers to the mortgage fraud unit established by section 2 of this chapter.
    Sec. 2. The mortgage fraud unit is established in the office of the attorney general.
    Sec. 3. The attorney general shall hire qualified individuals to implement the responsibilities of the unit, subject to the budget agency's approval under IC 4-12-1-13.
    Sec. 4. The unit shall do the following:
        (1) Investigate allegations of fraud in connection with mortgage lending.
        (2) Institute appropriate administrative and civil actions to redress fraud in connection with mortgage lending.
        (3) Cooperate with federal, state, and local law enforcement

agencies in the investigation of fraud in connection with mortgage lending.
        (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.