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Securities Division > Resources for > Loan Brokers > Frequently Asked Questions Loan Brokers

Frequently Asked Questions

What are the initial application requirements?
  • Completed MU1 application on the NMLS
  • Original surety bond in the appropriate graduated amount in effect for the full length of the licensing period with the obligee as State of Indiana 
  • A licensed Principal Manager is required for each location (including the principal office) performing Indiana business

Are loan originators required to be licensed?

  • Yes, loan originators working for a licensed loan broker must be licensed as well

Are principal managers required to be licensed as loan originators?

  • No, principal manager authority includes loan originator authority, no individual may hold both licenses simultaneously

What are the renewal application requirements?

  • Renewal window is November 1 – December 31, it is highly recommended that renewals be submitted prior to December 1 to allow time for processing
  • Individuals: continuing education, FBI check via the NMLS, assessment(if not already completed)
  • Companies: $100/Ultimate Equitable Owner, FBI check for owners and control persons(if not already completed previously)

What are the graduated bond amounts and how are they determined?

  • The amounts are as follows and are based on the previous year’s total origination volume:
    • $50,000                Less than $5 Million
    • $60,000                More than $5 Million less than $20 Million
    • $75,000                More than $20 Million
  • New bond form should not have an expiration date

How do I transfer to another loan broker?
  • The sponsorship on the NMLS with your current employer needs to be terminated and a new sponsorship needs to be created by your new employer and your employment history on your MU4 needs to be updated

What are the exemptions for the licensing requirement?
  • There is no de minimus exemption
  • All exemptions have been removed as of July 1, 2009

Where do I place my license number?
  • The company license number and individual license numbers for any individuals who work on the file need to only be placed on the Indiana Loan Broker Agreement

What are the education requirements?
  • The requirement for an initial applicant is twenty (20) hours of live, NMLS approved education
  • The requirement for a renewing applicant is 8 hours of NMLS approved education
  • A List of approved courses is available on the NMLS

How long does a loan originator have to become licensed once they begin employment with a licensed loan broker?

  • The loan originator must submit an application for license as a loan originator and the application must be approved before any origination activities may occur

If an originator leaves a loan broker, must the originator notify the Division?

  •   The originator's sponsorship on the NMLS must be terminated within 5 days of the termination of employment

May an originator work for multiple loan brokers?

  • No, an originator may not be employed by more than one loan broker at a time

Is an originator supposed to be paid using a W2 or 1099?
  • The Division has no jurisdiction of whether an originator is paid using a W2 or a 1099 but originators and principal managers are required to be employees of the loan broker