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.
Additions: Whenever a new statutory provision is being enacted (or a new
constitutional provision adopted), the text of the new provision will appear in this
style type. Also, the word NEW will appear in that style type in the introductory
clause of each SECTION that adds a new provision to the Indiana Code or the
Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type
reconciles conflicts between statutes enacted by the 2007 Regular Session of the
General Assembly.
Be it enacted by the General Assembly of the State of Indiana:
fraudulent residential real estate transactions.
(c) The toll free telephone number required by this section
shall be staffed by:
(1) employees or investigators of the unit who have
knowledge of the laws concerning residential real estate
transactions;
(2) representatives of any of the entities described in section
4(a)(8) through 4(a)(10) of this chapter who have knowledge
of the laws concerning residential real estate transactions; or
(3) a combination of persons described in subdivisions (1) and
(2).
The attorney general shall designate persons to staff the toll free
telephone number as required by this subsection.
(d) Unless otherwise prohibited by law, the unit shall ensure
that information received from callers to the toll free telephone
number is shared with any entity described in section 4 of this
chapter that has jurisdiction over the matter not later than fifteen
(15) business days after the date the unit determines the
appropriate entity to which the information should be referred.
The unit shall establish uniform procedures for:
(1) responding to calls received;
(2) protecting:
(A) the anonymity of callers who wish to report
information anonymously; or
(B) the identity of callers who request that their identity
not be disclosed;
(3) documenting and verifying information reported by
callers; and
(4) transmitting reported information to the appropriate
entities described in section 4 of this chapter within the time
required by this subsection.
(e) The unit shall publicize the availability of the toll free
telephone number established under this section in a manner
reasonably designed to reach members of the public.
SECTION 2. IC 4-6-12-8, AS AMENDED BY P.L.181-2006,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 8. The unit shall cooperate with the Indiana
housing and community development authority in the development and
implementation of the home ownership education programs established
under IC 5-20-1-4(f). IC 5-20-1-4(d).
SECTION 3. IC 5-20-1-4, AS AMENDED BY P.L.99-2007,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. (a) The authority has all of the powers
necessary or convenient to carry out and effectuate the purposes and
provisions of this chapter, including the power:
(1) to make or participate in the making of construction loans to
sponsors of for multiple family residential housing that is federally
assisted or assisted by a government sponsored enterprise, such
as the Federal National Mortgage Association, the Federal Home
Loan Mortgage Corporation, or the Federal Agricultural Mortgage
Corporation, the Federal Home Loan Bank, and other similar
entities under terms that are approved by the authority;
(2) to make or participate in the making of mortgage loans to
sponsors of for multiple family residential housing that is federally
assisted or assisted by a government sponsored enterprise, such
as the Federal National Mortgage Association, the Federal Home
Loan Mortgage Corporation, or the Federal Agricultural Mortgage
Corporation, the Federal Home Loan Bank, and other similar
entities under terms that are approved by the authority;
(3) to purchase or participate in the purchase from mortgage
lenders of mortgage loans made to persons of low and moderate
income for residential housing;
(4) to make loans to mortgage lenders for the purpose of
furnishing funds to such mortgage lenders to be used for making
mortgage loans for persons and families of low and moderate
income. However, the obligation to repay loans to mortgage
lenders shall be general obligations of the respective mortgage
lenders and shall bear such date or dates, shall mature at such time
or times, shall be evidenced by such note, bond, or other
certificate of indebtedness, shall be subject to prepayment, and
shall contain such other provisions consistent with the purposes
of this chapter as the authority shall by rule or resolution
determine;
(5) to collect and pay reasonable fees and charges in connection
with making, purchasing, and servicing of its loans, notes, bonds,
commitments, and other evidences of indebtedness;
(6) to acquire real property, or any interest in real property, by
conveyance, including purchase in lieu of foreclosure, or
foreclosure, to own, manage, operate, hold, clear, improve, and
rehabilitate such real property and sell, assign, exchange, transfer,
convey, lease, mortgage, or otherwise dispose of or encumber
such real property where such use of real property is necessary
or appropriate to the purposes of the authority;
(7) to sell, at public or private sale, all or any part of any mortgage
or other instrument or document securing a construction loan, a
land development loan, a mortgage loan, or a loan of any type
permitted by this chapter;
(8) to procure insurance against any loss in connection with its
operations in such amounts and from such insurers as it may
deem necessary or desirable;
(9) to consent, subject to the provisions of any contract with
noteholders or bondholders which may then exist, whenever it
deems it necessary or desirable in the fulfillment of its purposes to
the modification of the rate of interest, time of payment of any
installment of principal or interest, or any other terms of any
mortgage loan, mortgage loan commitment, construction loan,
loan to lender, or contract or agreement of any kind to which the
authority is a party;
(10) to enter into agreements or other transactions with any
federal, state, or local governmental agency for the purpose of
providing adequate living quarters for such persons and families
in cities and counties where a need has been found for such
housing;
(11) to include in any borrowing such amounts as may be deemed
necessary by the authority to pay financing charges, interest on
the obligations (for a period not exceeding the period of
construction and a reasonable time thereafter or if the housing is
completed, two (2) years from the date of issue of the
obligations), consultant, advisory, and legal fees and such other
expenses as are necessary or incident to such borrowing;
(12) to make and publish rules respecting its lending programs and
such other rules as are necessary to effectuate the purposes of
this chapter;
(13) to provide technical and advisory services to sponsors,
builders, and developers of residential housing and to residents and
potential residents, including housing selection and purchase
procedures, family budgeting, property use and maintenance,
household management, and utilization of community resources;
suitable for use as a new residential facility for individuals with a
developmental disability or for individuals with a mental illness;
(25) to make or participate in the making of construction and
mortgage loans to individuals, partnerships, corporations, limited
liability companies, and organizations for the construction,
rehabilitation, or acquisition of residential facilities for children;
(26) to purchase or participate in the purchase of mortgage loans
from:
(A) public utilities (as defined in IC 8-1-2-1); or
(B) municipally owned gas utility systems organized under
IC 8-1.5;
if those mortgage loans were made for the purpose of insulating
and otherwise weatherizing single family residences in order to
conserve energy used to heat and cool those residences;
(27) to provide financial assistance to mutual housing associations
(IC 5-20-3) in the form of grants, loans, or a combination of
grants and loans for the development of housing for low and
moderate income families;
(28) to service mortgage loans made or acquired by the authority
and to impose and collect reasonable fees and charges in
connection with such servicing;
(29) subject to the authority's investment policy, to enter into
swap agreements (as defined in IC 8-9.5-9-4) in accordance with
IC 8-9.5-9-5 and IC 8-9.5-9-7;
(30) to promote and foster community revitalization through
community services and real estate development;
(31) to coordinate and establish linkages between governmental
and other social services programs to ensure the effective delivery
of services to low income individuals;
(32) to cooperate with local housing officials and plan
commissions in the development of projects that the officials or
commissions have under consideration;
(33) to take actions necessary to implement its powers that the
authority determines to be appropriate and necessary to ensure the
availability of state or federal financial assistance; and
(34) to administer any program or money designated by the state
or available from the federal government or other sources that is
consistent with the authority's powers and duties.
The omission of a power from the list in this subsection does not imply
that the authority lacks that power. The authority may exercise any
power that is not listed in this subsection but is consistent with the
powers listed in this subsection to the extent that the power is not
expressly denied by the Constitution of the State of Indiana or by
another statute.
(b) The authority shall structure and administer any program
conducted ensure that a mortgage loan acquired by the authority
under subsection (a)(3) or made by a mortgage lender with funds
provided by the authority under subsection (a)(4) in order to assure
that no mortgage loan shall is not knowingly be made to a person
whose adjusted family income, shall exceed as determined by the
authority, exceeds one hundred twenty-five percent (125%) of the
median income for the geographic area within which the person resides
and at least forty percent (40%) of the mortgage loans so financed shall
be for persons whose adjusted family income shall be below eighty
percent (80%) of the median income for such area. involved.
However, if the authority determines that additional
encouragement is needed for the development of the geographic
area involved, a mortgage loan acquired or made under subsection
(a)(3) or (a)(4) may be made to a person whose adjusted family
income, as determined by the authority, does not exceed one
hundred forty percent (140%) of the median income for the
geographic area involved. The authority shall establish procedures
that the authority determines are appropriate to structure and
administer any program conducted under subsection (a)(3) or
(a)(4) for the purpose of acquiring or making mortgage loans to
persons of low or moderate income. In determining what
constitutes low income, moderate income, or median income for
purposes of any program conducted under subsection (a)(3) or
(a)(4), the authority shall consider:
(1) the appropriate geographic area in which to measure
income levels; and
(2) the appropriate method of calculating low income,
moderate income, or median income levels including:
(A) sources of;
(B) exclusions from; and
(C) adjustments to;
income.
(c) In addition to the powers set forth in subsection (a), the
authority may, with the proceeds of bonds and notes sold to retirement
plans covered by IC 5-10-1.7, structure and administer a program of
purchasing or participating in the purchasing from mortgage lenders of
mortgage loans made to qualified members of retirement plans and other
individuals. The authority shall structure and administer any program
conducted under this subsection to assure that:
(1) each mortgage loan is made as a first mortgage loan for real
property:
(A) that is a single family dwelling, including a condominium
or townhouse, located in Indiana;
(B) for a purchase price of not more than ninety-five thousand
dollars ($95,000);
(C) to be used as the purchaser's principal residence; and
(D) for which the purchaser has made a down payment in an
amount determined by the authority;
(2) no mortgage loan exceeds seventy-five thousand dollars
($75,000);
(3) any bonds or notes issued which are backed by mortgage
loans purchased by the authority under this subsection shall be
offered for sale to the retirement plans covered by IC 5-10-1.7;
and
(4) qualified members of a retirement plan shall be given
preference with respect to the mortgage loans that in the aggregate
do not exceed the amount invested by their retirement plan in
bonds and notes issued by the authority that are backed by
mortgage loans purchased by the authority under this subsection.
(d) As used in this section, "a qualified member of a retirement plan"
means an active or retired member:
(1) of a retirement plan covered by IC 5-10-1.7 that has invested
in bonds and notes issued by the authority that are backed by
mortgage loans purchased by the authority under subsection (c);
and
(2) who for a minimum of two (2) years preceding the member's
application for a mortgage loan has:
(A) been a full-time state employee, teacher, judge, police
officer, or firefighter;
(B) been a full-time employee of a political subdivision
participating in the public employees' retirement fund;
(C) been receiving retirement benefits from the retirement plan;
or
(D) a combination of employment and receipt of retirement
benefits equaling at least two (2) years.
(e) (c) The authority, when directed by the governor, shall
administer programs and funds under 42 U.S.C. 1437 et seq.
(f) (d) The authority shall identify, promote, assist, and fund home
ownership education programs conducted throughout Indiana by
nonprofit counseling agencies certified by the authority using funds
appropriated under section 27 of this chapter. The attorney general and
the entities listed in IC 4-6-12-4(a)(1) through IC 4-6-12-4(a)(10) shall
cooperate with the authority in implementing this subsection.
SECTION 4. IC 5-20-1-4.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 4.5. (a) As used in this
section, "person with a disability" means a person who, by reason of
physical, mental, or emotional defect or infirmity, whether congenital
or acquired by accident, injury, or disease, is totally or partially
prevented from achieving the fullest attainable physical, social,
economic, mental, and vocational participation in the normal process of
living. "special needs populations" includes the following:
(1) Persons with physical or developmental disabilities.
(2) Persons with mental impairments.
(3) Single parent households.
(4) Victims of domestic violence.
(5) Abused children.
(6) Persons with chemical addictions.
(7) Homeless persons.
(8) The elderly.
(b) As used in this section, "qualified building" means a building:
(1) that is used or will be used to provide residential housing for
persons with disabilities; special needs populations; and
(2) for which a taxpayer is eligible to claim a low income housing
credit under 26 U.S.C. 42.
(c) Subject to subsection (d), the authority shall allocate to qualified
buildings at least ten percent (10%) of the total dollar amount of federal
low income housing credits allocated to the authority under 26 U.S.C.
42. The authority shall allocate credits under this section based on the
proportionate amount of a qualified building that is used to provide
residential housing for persons with disabilities, special needs
populations, as determined by the authority.
(d) The authority shall hold available the allocation made under
subsection (c) for qualified buildings through October 31 of each
calendar year. Beginning November 1 of each calendar year, any part
of the allocation that remains unassigned shall be available for any
appropriate use under 26 U.S.C. 42.
SECTION 5. IC 5-20-1-8, AS AMENDED BY P.L.235-2005,
SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 8. (a) Subject to the approval of the governor,
public finance director appointed under IC 4-4-11-9, the authority
is hereby authorized to issue bonds or notes, or a combination thereof,
to carry out and effectuate its purposes and powers. The principal of,
and the interest on, such bonds or notes shall be payable solely from the
funds provided for such payment in this chapter. The authority may
secure the repayment of such bonds and notes by the pledge of
mortgages and notes of others, revenues derived from operations and
loan repayments, the proceeds of its bonds, and any available revenues
or assets of the authority. The bonds or notes of each issue shall be
dated and may be made redeemable before maturity at the option of the
authority, at such price or prices and under such terms and conditions
as may be determined by the authority. Any such bonds or notes shall
bear interest at such rate or rates as may be determined by the
authority. Notes shall mature at such time or times not exceeding ten
(10) years from their date or dates, and bonds shall mature at such time
or times not exceeding forty-five (45) years from their date or dates, as
may be determined by the authority. The authority shall determine the
form and manner of execution of the bonds or notes, including any
interest coupons to be attached thereto, and shall fix the denomination
or denominations and the place or places of payment of principal and
interest, which may be any bank or trust company within or outside the
state. In case any officer whose signature, or a facsimile of whose
signature, shall appear on any bonds or notes or coupons attached
thereto shall cease to be such officer before the delivery thereof, such
signature or such facsimile shall nevertheless be valid and sufficient for
all purposes the same as if he the person had remained in office until
such delivery. The authority may also provide for the authentication of
the bonds or notes by a trustee or fiscal agent. The bonds or notes may
be issued in coupon or registered form, or both, as the authority may
determine, and provision may be made for the registration of any
coupon bonds or notes as to principal alone and also as to both principal
and interest, and for the reconversion into coupon bonds or notes of
any bonds or notes registered as to both principal and interest, and for
the interchange of registered and coupon bonds or notes. Upon the
approval of a resolution of the authority authorizing the sale of its bonds
or notes, such bonds or notes may be sold in such manner, either at
public or private sale, and for such price as the authority shall determine
to be for the best interest of the authority and to best effectuate the
purposes of this chapter.
(b) The proceeds of any bonds or notes shall be used solely for the
purposes for which they are issued. The proceeds shall be disbursed in
such manner and under such restrictions, if any, as the authority may
provide in the resolution authorizing the issuance of such bonds or
notes or in the trust agreement securing the same.
(c) Prior to the preparation of definitive bonds, the authority may,
under like restrictions and subject to the approval of the governor,
public finance director appointed under IC 4-4-11-9, issue interim
receipts or temporary bonds, with or without coupons, exchangeable
for definitive bonds when such bonds shall have been executed and are
available for delivery. The authority may also provide for the
replacement of any bonds or notes which shall become mutilated or
shall be destroyed or lost.
(d) The authority shall cooperate with and use the assistance of the
Indiana finance authority established under IC 4-4-11 in the issuance of
the bonds or notes.
SECTION 6. IC 5-20-1-18, AS AMENDED BY P.L.235-2005,
SECTION 90, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 18. The authority shall, promptly following the
close of each fiscal year, submit an annual report of its activities for the
preceding year to the governor, public finance director appointed
under IC 4-4-11-9, the budget committee, and the general assembly.
An annual report submitted under this section to the general assembly
must be in an electronic format under IC 5-14-6. The report shall set
forth a complete operating and financial statement of the authority
during such year, and a copy of such report shall be available to
inspection by the public at the Indianapolis office of the authority. The
authority shall cause an audit of its books and accounts to be made at
least once in each year by an independent certified public accountant
and the cost thereof may be paid from any available money of the
authority.
SECTION 7. IC 5-20-1-27, AS AMENDED BY P.L.181-2006,
SECTION 20, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 27. (a) The home ownership education account
within the state general fund is established to support the home
ownership education programs established under section 4(f) 4(d) of
this chapter. The account is administered by the authority.
(b) The home ownership education account consists of:
(1) fees collected under IC 24-9-9; and
(2) civil penalties imposed and collected under:
(A) IC 6-1.1-12-43(g)(2)(B); or
(B) IC 27-7-3-15.5(e).
(c) The expenses of administering the home ownership education
account shall be paid from money in the fund. account.
(d) The treasurer of state shall invest the money in the home
ownership education account not currently needed to meet the
obligations of the account in the same manner as other public money
may be invested.
SECTION 8. IC 5-20-3-4, AS AMENDED BY P.L.181-2006,
SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. (a) A mutual housing association may be
established as a nonprofit corporation incorporated under IC 23-7-1.1
(before its repeal on August 1, 1991) or IC 23-17 to prevent and
eliminate neighborhood deterioration and to preserve neighborhood
stability by:
(1) providing high quality, long term housing for families of low
and moderate income; and
(2) affording community and residential involvement in the
provision of that housing.
(b) The articles of incorporation of a mutual housing association
must meet the requirements of the Indiana housing and community
development authority under IC 5-20-1-6 and must be approved by the
authority.
(c) The articles of incorporation of a mutual housing association
must include a provision that provides that if the mutual housing
association dissolves, is involved in a bankruptcy proceeding, or
otherwise disposes of its physical properties, the association may only
transfer the assets to another entity that provides high quality long term
housing for families of low and moderate income.
SECTION 9. IC 6-1.1-12-43 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 43. (a) For purposes
of this section:
(1) "benefit" refers to:
(A) a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26,
29, 31, 33, or 34 of this chapter; or
(B) the homestead credit under IC 6-1.1-20.9-2;
form described in subsection (c) before closing the transaction, a
closing agent shall do the following as soon as possible after the
closing, and within the time prescribed by the department of
insurance under IC 27-7-3-15.5:
(1) To the extent determinable, input the information
described in IC 27-7-3-15.5(c)(2) into the system maintained
by the department of insurance under IC 27-7-3-15.5.
(2) Submit the form described in IC 27-7-3-15.5(c) to the data
base described in IC 27-7-3-15.5(c)(2)(D).
(e) (f) A closing agent to which this section applies shall document
its the closing agent's compliance with this section with respect to
each transaction in the form of verification of compliance signed by the
customer.
(f) (g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to
a civil penalty of twenty-five dollars ($25) for each instance in which
the closing agent fails to comply with this section with respect to a
customer. The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable to
the agency; and
(2) shall be paid into:
(A) the property tax replacement fund, if the closing agent
fails to comply with subsection (b); or
(B) the home ownership education account established by
IC 5-20-1-27, if the closing agent fails to comply with
subsection (e) in a transaction that is closed after
December 31, 2009.
(h) A closing agent is not liable for any other damages claimed by a
customer because of:
(1) the closing agent's mere failure to provide the appropriate
document to the customer under subsection (b); or
(2) with respect to a transaction that is closed after
December 31, 2009, the closing agent's failure to input the
information or submit the form described in subsection (e).
(g) (i) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this
section; and
borrower in the selection of loan products or terms.
(h) (g) As used in this chapter, "originator" means a person engaged
in origination activities. The term "originator" does not include a person
who performs origination activities for any entity that is not a loan
broker under subsection (e). (d).
(i) (h) As used in this chapter, "person" means an individual, a
partnership, a trust, a corporation, a limited liability company, a limited
liability partnership, a sole proprietorship, a joint venture, a joint stock
company, or another group or entity, however organized.
(j) (i) As used in this chapter, "registrant" means an individual who
is registered:
(1) to engage in origination activities under this chapter; or
(2) as a principal manager.
(k) (j) As used in this chapter, "ultimate equitable owner" means a
person who, directly or indirectly, owns or controls ten percent (10%)
or more of the equity interest in a loan broker licensed or required to be
licensed under this chapter, regardless of whether the person owns or
controls the equity interest through one (1) or more other persons or
one (1) or more proxies, powers of attorney, or variances.
(l) (k) As used in this chapter, "principal manager" means an
individual who:
(1) has at least three (3) years of experience:
(A) as a loan broker; or
(B) in financial services;
that is acceptable to the commissioner; and
(2) is principally responsible for the supervision and management
of the employees and business affairs of a licensee.
(l) As used in this chapter, "personal information" includes any
of the following:
(1) An individual's first and last names or first initial and last
name.
(2) Any of the following data elements:
(A) A Social Security number.
(B) A driver's license number.
(C) A state identification card number.
(D) A credit card number.
(E) A financial account number or debit card number in
combination with a security code, password, or access code
that would permit access to the person's account.
(3) With respect to an individual, any of the following:
(A) Address.
(B) Telephone number.
(C) Information concerning the individual's:
(i) income or other compensation;
(ii) credit history;
(iii) credit score;
(iv) assets;
(v) liabilities; or
(vi) employment history.
(m) As used in this chapter, personal information is
"encrypted" if the personal information:
(1) has been transformed through the use of an algorithmic
process into a form in which there is a low probability of
assigning meaning without use of a confidential process or
key; or
(2) is secured by another method that renders the personal
information unreadable or unusable.
(n) As used in this chapter, personal information is "redacted"
if the personal information has been altered or truncated so that
not more than the last four (4) digits of:
(1) a Social Security number;
(2) a driver's license number;
(3) a state identification number; or
(4) an account number;
are accessible as part of the personal information.
SECTION 11. IC 23-2-5-4, AS AMENDED BY P.L.230-2007,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. (a) A person may not engage in the loan
brokerage business in Indiana unless the person first obtains a
license from the commissioner. Any person desiring to engage or
continue in the loan brokerage business shall apply to the commissioner
for a license under this chapter.
(b) An individual may not perform origination activities in
Indiana on behalf of a person licensed or required to be licensed
under this chapter unless the individual first obtains a certificate
of registration from the commissioner. An individual desiring to be
employed by a licensee to engage in origination activities on behalf of
a person licensed or required to be licensed under this chapter
shall apply to the commissioner for registration under this chapter.
(c) An individual may not act as a principal manager on behalf
of a person licensed or required to be licensed under this chapter
unless the individual first obtains a certificate of registration from
the commissioner. Any individual desiring to be employed by a
licensee act as a principal manager on behalf of a person licensed or
required to be licensed under this chapter shall apply to the
commissioner for registration under this chapter.
(d) The commissioner may request evidence of compliance with
this section at any of the following times:
(1) The time of application for an initial:
(A) license; or
(B) certificate of registration.
(2) The time of renewal of a license or certificate of
registration.
(3) Any other time considered necessary by the
commissioner.
(e) For purposes of subsection (d), evidence of compliance with
this section 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.
SECTION 12. IC 23-2-5-5, AS AMENDED BY P.L.230-2007,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 5. (a) An application for license or renewal of a
license must contain:
(1) consent to service of process under subsection (h);
(2) evidence of the bond required in subsection (e);
(3) an application fee of four hundred dollars ($400), plus two
hundred dollars ($200) for each ultimate equitable owner;
(4) an affidavit affirming that none of the applicant's ultimate
equitable owners, directors, managers, or officers have been
convicted, in any jurisdiction, of an offense involving fraud or
deception that is punishable by at least one (1) year of
imprisonment, unless waived by the commissioner under
subsection (f); (i);
(5) evidence that the applicant, if the applicant is an individual, has
completed the education requirements under section 21 of this
chapter;
appointing the secretary of state to be the applicant's agent to receive
service of any lawful process in any noncriminal suit, action, or
proceeding against the applicant arising from the violation of any
provision of this chapter. Service shall be made in accordance with the
Indiana Rules of Trial Procedure.
(i) Upon good cause shown, the commissioner may waive the
requirements of subsection (a)(4) for one (1) or more of an applicant's
ultimate equitable owners, directors, managers, or officers.
(j) Whenever an initial or a renewal application for a license or
registration is denied or withdrawn, the commissioner shall retain the
initial or renewal application fee paid.
(k) The commissioner shall require each:
(1) equitable owner; and
(2) individual described in subsection (a)(4); and
(2) (3) applicant for registration as:
(A) an originator; or
(B) a principal manager;
to undergo submit fingerprints for a national criminal history
background check at the expense of the (as defined in IC 10-13-3-12)
by the Federal Bureau of Investigation, for use by the
commissioner in determining whether the equitable owner, the
individual described in subsection (a)(4), or the applicant should
be denied licensure or registration under this chapter for any
reason set forth in section 10(c) of this chapter. The equitable
owner, individual described in subsection (a)(4), or applicant shall
pay any fees or costs associated with the fingerprints and
background check required under this subsection. The
commissioner may not release the results of a background check
described in this subsection to any private entity.
(l) The commissioner may check the qualifications, background,
licensing status, and service history of each:
(1) equitable owner; and
(2) applicant for registration as:
(A) an originator; or
(B) a principal manager;
by accessing, upon availability, a multistate automated licensing system
for mortgage brokers and originators, including the National Mortgage
Licensing Database proposed by the Conference of State Bank
Supervisors and the American Association of Residential Mortgage
Regulators. The equitable owner or the applicant shall pay any fees or
costs associated with a check conducted under this subsection.
SECTION 13. IC 23-2-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. A licensee may not
continue engaging in the loan brokerage business unless the licensee's
license is renewed biennially. A registrant may not continue:
(1) engaging in origination activities; or
(2) acting as a principal manager;
unless the registrant's certificate of registration is renewed biennially. A
licensee shall renew its license and the certificates of registration of its
registrant employees by filing with the commissioner, at least thirty (30)
days before the expiration of the registration, license, an application
containing any information the commissioner may require to indicate
any material change from the information contained in the applicant's
original application or any previous application. A registrant may
renew the registrant's certificate of registration by filing with the
commissioner, at least thirty (30) days before the expiration of the
registration, an application containing any information the
commissioner may require to indicate any material change from
the information contained in the applicant's original application or
any previous application.
SECTION 14. IC 23-2-5-10, AS AMENDED BY P.L.230-2007,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 10. (a) Whenever it appears to the commissioner
that a person has engaged in or is about to engage in an act or a practice
constituting a violation of this chapter or a rule or an order under this
chapter, the commissioner may investigate and may issue, with a prior
hearing if there exists no substantial threat of immediate irreparable
harm or without a prior hearing, if there exists a substantial threat of
immediate irreparable harm, orders and notices as the commissioner
determines to be in the public interest, including cease and desist orders,
orders to show cause, and notices. 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 has violated this chapter or a rule or
order under this chapter.
(b) Upon the issuance of an order or notice without a prior hearing
by the commissioner under subsection (a), the commissioner shall
promptly notify the respondent and, if the subject of the order or notice
is a registrant, the licensee for whom the registrant is employed:
(1) that the order or notice has been issued;
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 after the filing
but during the term of a license or certificate of registration as
provided in subsection (i);
(7) has:
(A) been convicted, within ten (10) years before the date of the
application, renewal, or review, of any crime involving fraud
or deceit; or
(B) had a felony conviction (as defined in IC 35-50-2-1(b))
within five (5) years before the date of the application,
renewal, or review;
(8) if the person is a licensee or principal manager, has failed to
reasonably supervise the person's originators or employees to
ensure their compliance with this chapter;
(9) is on the most recent tax warrant list supplied to the
commissioner by the department of state revenue; or
(10) has engaged in dishonest or unethical practices in the loan
broker business, as determined by the commissioner.
(d) The commissioner may do either of the following:
(1) Censure:
(A) a licensee;
(B) an officer, a director, or an ultimate equitable owner of a
licensee;
(C) a registrant; or
(D) any other person;
who violates or causes a violation of this chapter.
(2) Permanently bar any person described in subdivision (1) from
being:
(A) licensed or registered under this chapter; or
(B) employed by or affiliated with a person licensed or
registered under this chapter;
if the person violates or causes a violation of this chapter.
(e) The commissioner may not enter a final order:
(1) denying, suspending, or revoking the license of a licensee or
the registration of a registrant; or
(2) imposing other sanctions;
without prior notice to all interested parties, opportunity for a hearing,
and written findings of fact and conclusions of law. However, the
commissioner may by summary order deny, suspend, or revoke a
license or certificate of registration pending final determination of any
proceeding under this section or before any proceeding is initiated under
this section. Upon the entry of a summary order, the commissioner
shall promptly notify all interested parties that the summary order has
been entered, of the reasons for the summary order, and that upon
receipt by the commissioner of a written request from a party, the
matter will be set for hearing to commence within fifteen (15) business
days after receipt of the request. If no hearing is requested and none is
ordered by the commissioner, the order remains in effect until it is
modified or vacated by the commissioner. If a hearing is requested or
ordered, the commissioner, after notice of the hearing has been given
to all interested persons and the hearing has been held, may modify or
vacate the order or extend it until final determination.
(f) IC 4-21.5 does not apply to a proceeding under this section.
(g) If a registrant seeks to transfer the registrant's registration to
another licensee who desires to have the registrant engage in origination
activities or serve as a principal manager, whichever applies, the
registrant shall, before the registrant conducts origination activities or
serves as a principal manager for the new employer, submit to the
commissioner, on a form prescribed by the commissioner, a registration
application, as required by section 5 of this chapter.
(h) If the employment of a registrant is terminated, whether:
(1) voluntarily by the registrant; or
(2) by the licensee employing the registrant;
the licensee that employed the registrant shall, not later than five (5)
days after the termination, notify the commissioner of the termination
and the reasons for the termination.
(i) If a material fact or statement included in an application under this
chapter changes after the application has been submitted, the applicant
shall provide written notice to the commissioner of the change. The
commissioner may revoke or refuse to renew the license or registration
of any person who:
(1) is required to submit a written notice under this subsection and
fails to provide the required notice within two (2) business days
after the person discovers or should have discovered the change;
or
(2) would not qualify for licensure or registration under this
chapter as a result of the change in a material fact or statement.
SECTION 15. IC 23-2-5-11, AS AMENDED BY P.L.48-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 11. (a) The commissioner may do the following:
(1) Adopt rules under IC 4-22-2 to implement this chapter.
(2) Make investigations and examinations:
(A) in connection with any application for licensure or for
registration of a licensee or registrant or with any license or
certificate of registration already granted; or
(B) whenever it appears to the commissioner, upon the basis
of a complaint or information, that reasonable grounds exist for
the belief that an investigation or examination is necessary or
advisable for the more complete protection of the interests of
the public.
(3) Charge as costs of investigation or examination all reasonable
expenses, including a per diem prorated upon the salary of the
commissioner or employee and actual traveling and hotel
expenses. All reasonable expenses are to be paid by the party or
parties under investigation or examination if the party has violated
this chapter.
(4) Issue notices and orders, including cease and desist notices
and orders, after making an investigation or examination under
subdivision (2). The commissioner may also bring an action on
behalf of the state to enjoin a person from violating this chapter.
The commissioner shall notify the person that an order or notice
has been issued, the reasons for it, and that a hearing will be set
within fifteen (15) days after the commissioner receives a written
request from the person requesting a hearing.
(5) Sign all orders, official certifications, documents, or papers
issued under this chapter or delegate the authority to sign any of
those items to a deputy.
(6) Hold and conduct hearings.
(7) Hear evidence.
(8) Conduct inquiries with or without hearings.
(9) Receive reports of investigators or other officers or employees
of the state of Indiana or of any municipal corporation or
governmental subdivision within the state.
(10) Administer oaths, or cause them to be administered.
(11) Subpoena witnesses, and compel them to attend and testify.
(12) Compel the production of books, records, and other
documents.
(13) Order depositions to be taken of any witness residing within
or without the state. The depositions shall be taken in the manner
prescribed by law for depositions in civil actions and made
returnable to the commissioner.
(14) Order that each witness appearing under the commissioner's
order to testify before the commissioner shall receive the fees and
mileage allowances provided for witnesses in civil cases.
(15) Provide interpretive opinions or issue determinations that the
commissioner will not institute a proceeding or an action under
this chapter against a specified person for engaging in a specified
act, practice, or course of business if the determination is
consistent with this chapter. The commissioner may adopt rules
to establish fees for individuals requesting an interpretive opinion
or a determination under this subdivision. A person may not
request an interpretive opinion or a determination concerning an
activity that:
(A) occurred before; or
(B) is occurring on;
the date the opinion or determination is requested.
(16) Subject to subsection (f), designate a multistate
automated licensing system and repository, established and
operated by a third party, to serve as the sole entity
responsible for:
(A) processing applications for:
(i) licenses and certificates of registration under this
chapter; and
(ii) renewals of licenses and certificates of registration
under this chapter; and
(B) performing other services that the commissioner
determines are necessary for the orderly administration
of the division's licensing and registration system.
A multistate automated licensing system and repository
described in this subdivision may include the National
Mortgage Licensing System established by the Conference of
State Bank Supervisors and the American Association of
Residential Mortgage Regulators. The commissioner may
take any action necessary to allow the division to participate
in a multistate automated licensing system and repository.
(b) If a witness, in any hearing, inquiry, or investigation conducted
under this chapter, refuses to answer any question or produce any item,
the commissioner may file a written petition with the circuit or superior
court in the county where the hearing, investigation, or inquiry in
question is being conducted requesting a hearing on the refusal. The
court shall hold a hearing to determine if the witness may refuse to
answer the question or produce the item. If the court determines that
the witness, based upon the witness's privilege against
self-incrimination, may properly refuse to answer or produce an item,
the commissioner may make a written request that the court grant use
immunity to the witness. Upon written request of the commissioner, the
court shall grant use immunity to a witness. The court shall instruct the
witness, by written order or in open court, that:
(1) any evidence the witness gives, or evidence derived from that
evidence, may not be used in any criminal proceedings against that
witness, unless the evidence is volunteered by the witness or is
not responsive to a question; and
(2) the witness must answer the questions asked and produce the
items requested.
A grant of use immunity does not prohibit evidence that the witness
gives in a hearing, investigation, or inquiry from being used in a
prosecution for perjury under IC 35-44-2-1. If a witness refuses to give
the evidence after the witness has been granted use immunity, the court
may find the witness in contempt.
(c) In any prosecution, action, suit, or proceeding based upon or
arising out of this chapter, the commissioner may sign a certificate
showing compliance or noncompliance with this chapter by any person.
This shall constitute prima facie evidence of compliance or
noncompliance with this chapter and shall be admissible in evidence in
any action at law or in equity to enforce this chapter.
(d) If:
(1) a person disobeys any lawful:
(A) subpoena issued under this chapter; or
(B) order or demand requiring the production of any books,
accounts, papers, records, documents, or other evidence or
information as provided in this chapter; or
(2) a witness refuses to:
(A) appear when subpoenaed;
(B) testify to any matter about which the witness may be
lawfully interrogated; or
(C) take or subscribe to any oath required by this chapter;
the circuit or superior court of the county in which the hearing, inquiry,
or investigation in question is held, if demand is made or if, upon
written petition, the production is ordered to be made, or the
commissioner or a hearing officer appointed by the commissioner, shall
compel compliance with the lawful requirements of the subpoena,
order, or demand, compel the production of the necessary or required
books, papers, records, documents, and other evidence and
information, and compel any witness to attend in any Indiana county
and to testify to any matter about which the witness may lawfully be
interrogated, and to take or subscribe to any oath required.
(e) If a person fails, refuses, or neglects to comply with a court
order under this section, the person shall be punished for contempt of
court.
(f) The commissioner's authority to designate a multistate
automated licensing system and repository under subsection
(a)(16) is subject to the following:
(1) The commissioner may not require any person exempt
from licensure or registration under this chapter, or any
employee or agent of an exempt person, to:
(A) submit information to; or
(B) participate in;
the multistate automated licensing system and repository.
(2) The commissioner may require a person required under
this chapter to submit information to the multistate
automated licensing system and repository to pay a
processing fee considered reasonable by the commissioner.
SECTION 16. IC 23-2-5-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 18. (a) Each loan broker
agreement shall be given an account number. Each licensee person
licensed or required to be licensed under this chapter shall keep and
maintain the following records or their electronic equivalent:
(1) A file for each borrower or proposed borrower that contains
the following:
(A) The name and address of the borrower or any proposed
borrower.
(B) A copy of the signed loan broker agreement.
(C) A copy of any other papers or instruments used in
connection with the loan broker agreement and signed by the
borrower or any proposed 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 that the borrower has
paid. If there is an unpaid balance, the status of any collection
efforts.
(2) All receipts from or for the account of borrowers or any
proposed borrowers and all disbursements to or for the account
of borrowers or any proposed borrowers, recorded so that the
transactions are readily identifiable.
(3) A general ledger that shall be posted at least monthly, and a
trial balance sheet and profit and loss statement prepared within
thirty (30) days of the commissioner's request for the information.
(4) A sample of:
(A) all advertisements, pamphlets, circulars, letters, articles, or
communications published in any newspaper, magazine, or
periodical;
(B) scripts of any recording, radio, or television
announcement; and
(C) any sales kits or literature;
to be used in solicitation of borrowers.
(b) The records listed in subsection (a) shall be kept for a period of
two (2) years in the licensee's loan broker's principal office and must
be separate or readily identifiable from the records of any other business
that is conducted in the office of the loan broker.
(c) If a breach of the security of any records:
(1) maintained by a loan broker under this section; and
(2) containing the unencrypted, unredacted personal
information of one (1) or more borrowers or prospective
borrowers;
occurs, the loan broker is subject to the disclosure requirements
under IC 24-4.9-3, unless the loan broker is exempt from the
disclosure requirements under IC 24-4.9-3-4.
(d) A person who is:
(1) licensed or required to be licensed under this chapter; or
(2) registered or required to be registered under this chapter;
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.
SECTION 17. IC 23-2-5-19, AS AMENDED BY P.L.230-2007,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 19. (a) The following persons are exempt from the
requirements of sections 4, 5, 6, 9, 17, 18, and 21 of this chapter:
(1) Any attorney while engaging in the practice of law.
(2) Any certified public accountant, public accountant, or
accountant practitioner holding a certificate or registered under
IC 25-2.1 while performing the practice of accountancy (as
defined by IC 25-2.1-1-10).
(3) Any person licensed as a real estate broker or salesperson
under IC 25-34.1 to the extent that the person is rendering loan
related services in the ordinary course of a transaction in which a
license as a real estate broker or salesperson is required.
(4) (3) Any broker-dealer, agent, or investment advisor registered
under IC 23-19.
(5) (4) Any person that:
(A) procures;
(B) promises to procure; or
(C) assists in procuring;
a loan that is not subject to the Truth in Lending Act (15 U.S.C.
1601 through 1667e).
(6) (5) Any community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from the Indiana
housing and community development authority established by
IC 5-20-1-3.
(7) (6) The Indiana housing and community development
authority.
(8) Subject to subsection (e), and except as provided in subsection
(f), any person authorized to:
(A) sell and service a loan for the Federal National Mortgage
Association or the Federal Home Loan Mortgage Association;
(B) issue securities backed by the Government National
Mortgage Association;
(C) make loans insured by the United States Department of
Housing and Urban Development or the United States
Department of Agriculture Rural Housing Service;
(D) act as a supervised lender or nonsupervised automatic
lender of the United States Department of Veterans Affairs; or
(E) act as a correspondent of loans insured by the United
States Department of Housing and Urban Development, if the
person closes at least twenty-five (25) such insured loans in
Indiana during each calendar year.
(9) Any person who is a creditor, or proposed to be a creditor, for
any loan.
(b) As used in this chapter, "bona fide third party fee" includes fees
for the following:
(1) Credit reports, investigations, and appraisals performed by a
person who holds a license or certificate as a real estate appraiser
under IC 25-34.1-8.
(2) If the loan is to be secured by real property, title examinations,
an abstract of title, title insurance, a property survey, and similar
purposes.
(3) The services provided by a loan broker in procuring possible
business for a lending institution if the fees are paid by the lending
institution.
(c) As used in this section, "successful procurement of a loan"
means that a binding commitment from a creditor to advance money
has been received and accepted by the borrower.
(d) The burden of proof of any exemption or classification provided
in this chapter is on the party claiming the exemption or classification.
(e) A person claiming an exemption under subsection (a)(8) shall, as
a condition to receiving or maintaining the exemption, file a notice every
twenty-four (24) months on a form acceptable to the commissioner.
The notice required under this subsection must:
(1) provide the name and business address of each originator
employed by the person to originate loans in Indiana;
(2) include all other information required by the commissioner;
and
(3) be accompanied by a fee of four hundred dollars ($400),
If any information included in a notice under this subsection changes
after the notice has been submitted, the person shall provide written
notice to the commissioner of the change. The commissioner's receipt
of a notice under this subsection shall not be considered to be a
determination or confirmation by the commissioner of the validity of the
claimed exemption.
(f) An exemption described in subsection (a)(8) does not extend to:
(1) a subsidiary of the exempt person; or
(2) an unaffiliated third party.
An exemption that applies to a person under subsection (a)(8)(D) does
not extend to a registered United States Department of Veterans Affairs
agent.
SECTION 18. IC 23-2-5-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 20. (a) A person shall
not, in connection with a contract for the services of a loan broker,
either directly or indirectly, do any of the following:
(1) Employ any device, scheme, or artifice to defraud.
(2) Make any untrue statements of a material fact or omit to state
a material fact necessary in order to make the statements made, in
the light of circumstances under which they are made, not
misleading.
(3) Engage in any act, practice, or course of business that
operates or would operate as a fraud or deceit upon any person.
(4) Collect or solicit any consideration, except a bona fide third
party fee, in connection with a loan until the loan has been closed.
(5) Receive any funds if the person knows that the funds
were generated as a result of a fraudulent act.
(6) File or cause to be filed with a county recorder any
document that the person knows:
(A) contains:
(i) a misstatement; or
(ii) an untrue statement;
of a material fact; or
(B) omits a statement of a material fact that is necessary
to make the statements that are made, in the light of
circumstances under which they are made, not misleading.
(7) Knowingly release or disclose the unencrypted,
unredacted personal information of one (1) or more
borrowers or prospective borrowers, unless the personal
information is used in an activity authorized by the borrower
or prospective borrower under one (1) or more of the
following circumstances:
(A) The personal information is:
(i) included on an application form or another form; or
(ii) transmitted as part of an application process or an
enrollment process.
(B) The personal information is used to obtain a consumer
report (as defined in IC 24-5-24-2) for an applicant for
credit.
(C) The personal information is used to establish, amend,
or terminate an account, a contract, or a policy, or to
confirm the accuracy of the personal information.
However, personal information allowed to be disclosed under
this subdivision may not be printed in whole or in part on a
postcard or other mailer that does not require an envelope,
or in a manner that makes the personal information visible
on an envelope or a mailer without the envelope or mailer
being opened.
(8) Engage in any reckless or negligent activity allowing the
release or disclosure of the unencrypted, unredacted personal
information of one (1) or more borrowers or prospective
borrowers. An activity described in this subdivision includes
an action prohibited by section 18(d) of this chapter.
(b) A person who commits an act described in subsection (a) is
subject to sections 10, 14, 15, and 16 of this chapter.
SECTION 19. IC 23-2-5-22, AS ADDED BY P.L.48-2006,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 22. (a) An appeal may be taken by:
(1) any loan broker or principal upon person whose application
for registration for a loan broker an initial or a renewal license
under this chapter is granted or denied, from any final order of
the commissioner concerning the application; or registration;
(2) any applicant for initial or renewed registration as a loan
broker principal manager or an originator, from any final order
of the commissioner affecting the application; or registration as a
loan broker or originator;
(3) any person against whom a civil penalty is imposed under
section 14(a) of this chapter, from the final order of the
commissioner imposing the civil penalty; or
(4) any person who is named as a respondent, from any final
order issued by the commissioner under section 10 or 11 of this
chapter;
to the Marion circuit court or to the circuit or superior court of the
county where the person taking the appeal resides or maintains a place
of business.
(b) Not later than twenty (20) days after the entry of the order, the
commissioner shall be served with:
(1) a written notice of the appeal stating the court to which the
appeal will be taken and the grounds upon which a reversal of the
final order is sought;
(2) a demand in writing from the appellant for a certified transcript
of the record and of all papers on file in the commissioner's office
affecting or relating to the order; and
(3) a bond in the penal sum of five hundred dollars ($500) to the
state of Indiana with sufficient surety to be approved by the
commissioner, conditioned upon the faithful prosecution of the
appeal to final judgment and the payment of all costs that are
adjudged against the appellant.
(c) Not later than ten (10) days after the commissioner is served
with the items listed in subsection (b), the commissioner shall make,
certify, and deliver to the appellant the transcript, and the appellant shall,
not later than five (5) days after the date the appellant receives the
transcript, file the transcript and a copy of the notice of appeal with the
clerk of the court. The notice of appeal serves as the appellant's
complaint. The commissioner may appear and file any motion or
pleading and form the issue. The cause shall be entered on the trial
calendar for trial de novo and given precedence over all matters pending
in the court.
(d) The court shall receive and consider any pertinent oral or written
evidence concerning the order of the commissioner from which the
appeal is taken. If the order of the commissioner is reversed, the court
shall in its mandate specifically direct the commissioner as to the
commissioner's further action in the matter. The commissioner is not
barred from revoking or altering the order for any proper cause that
accrues or is discovered after the order is entered. If the order is
affirmed, the appellant is not barred after thirty (30) days from the date
the order is affirmed from filing a new application if the application is
not otherwise barred or limited. During the pendency of the appeal, the
order from which the appeal is taken is not suspended but remains in
effect unless otherwise ordered by the court. An appeal may be taken
from the judgment of the court on the same terms and conditions as an
appeal is taken in civil actions.
SECTION 20. IC 24-4.4 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JANUARY
1, 2009]:
ARTICLE 4.4. FIRST LIEN MORTGAGE LENDING
Chapter 1. General Provisions and Definitions
Sec. 101. This article shall be known and may be cited as the
First Lien Mortgage Lending Act.
Sec. 102. (1) This article shall be liberally construed and applied
to promote its underlying purposes and policies.
(2) The underlying purposes and policies of this article are:
(a) to permit and encourage the development of fair and
economically sound first lien mortgage lending practices; and
(b) to conform the regulation of first lien mortgage lending
practices to applicable state and federal laws, rules, and
regulations.
(3) A reference to a requirement imposed by this article
includes reference to a related rule of the department adopted
under this article.
(4) A reference to a federal law in this article is a reference to
the law in effect December 31, 2008.
Sec. 103. This article:
(1) is a general act intended as a unified coverage of its
subject matter; and
(2) any part of this article may not be considered to be
impliedly repealed by subsequent legislation if such
construction can reasonably be avoided.
Sec. 104. The provisions of this article are severable, so that if:
(1) any provisions of this article; or
(2) the application of this article to any person or
circumstances;
is held invalid, the invalidity does not affect other provisions or
applications of this article that can be given effect without the
invalid provision or application.
Sec. 201. (1) Except as provided in subsection (2), this article
applies to a first lien mortgage transaction:
(a) that is secured by an interest in land in Indiana; and
(b) the closing for which takes place after December 31,
2008.
(2) This article does not apply to a first lien mortgage
transaction if:
(a) the debtor is not a resident of Indiana at the time the
transaction is entered into; and
(b) the laws of the debtor's state of residence requires that
the transaction be made under the laws of the state of the
debtor's residence.
Sec. 202. This article does not apply to the following:
(1) Extensions of credit to government or governmental
agencies or instrumentalities.
(2) A first lien mortgage transaction in which the debt is
incurred primarily for a purpose other than a personal,
family, or household purpose.
(3) An extension of credit primarily for a business, a
commercial, or an agricultural purpose.
(4) A first lien mortgage transaction made:
(a) in compliance with the requirements of; and
(b) by a community development corporation (as defined
in IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing and community development authority
established by IC 5-20-1-3.
(5) A supervised financial organization.
(6) An operating subsidiary that is majority owned, directly
or indirectly, by a supervised financial organization to the
extent the operating subsidiary is regulated by the chartering
authority of the supervised financial organization.
(7) A credit union service organization that is majority
owned, directly or indirectly, by one (1) or more credit
unions.
(8) Agencies, instrumentalities, and government owned
corporations of the United States, including United States
government sponsored enterprises.
Sec. 203. Any civil court in Indiana may exercise jurisdiction
over any creditor with respect to any conduct in Indiana governed
by this article or with respect to any claim arising from a
transaction subject to this article. In addition to any other method
provided by rule or by statute, personal jurisdiction over a creditor
may be acquired in a civil action or proceeding instituted in any
civil court by the service of process.
Sec. 301. In addition to definitions appearing in subsequent
chapters of this article, the following definitions apply throughout
this article:
(1) "Credit" means the right granted by a creditor to a
debtor to defer payment of debt or to incur debt and defer its
payment.
(2) "Creditor" means a person:
(a) that regularly engages in the extension of first lien
mortgage transactions that are subject to a credit service
charge or loan finance charge, as applicable, or are
payable by written agreement in more than four (4)
installments (not including a down payment); and
(b) to which the obligation is initially payable, either on
the face of the note or contract, or by agreement if there
is not a note or contract.