LOAN BROKER INFORMATION
Applying for License as a Loan Broker
- Any person who, in return for any consideration from any source procures, attempts to procure, or assists in procuring a loan from a third party or any other person, whether or not the person seeking the loan actually obtains the loan, is required to become licensed under the Indiana Loan Broker Act (Ind. Code 23-2-5), unless the person is not considered a loan broker under Ind. Code § 23-2-5-3(e) or qualifies for an exemption under Ind. Code § 23-2-5-19 .
- A person applying for a loan broker license must:
- Submit a properly completed Application for License as a Loan Broker (State Form 38168/Form LB1);
- Pay a non-refundable application fee of $400.00, plus $200.00 for each of the loan broker's ultimate equitable owners;
- Obtain a $50,000 surety bond in effect for the full length of the licensing period with the obligee as State of Indiana;
- Submit a properly completed Ultimate Equitable Owner Information Form (State Form53271/Form LB 2) for each of the loan broker's ultimate equitable owners;
- Obtain a criminal background check for each Ultimate Equitable Owner (see section "Criminal Background Report: Explanation and Instructions" for more information);
- Submit a properly completed Branch Office Notification (State Form 53264/Form LB 3) for each of the loan broker's branch office(s) located or engaging in origination activities in Indiana; and
- Have a properly registered principal manger for each office location, including the principal office location (See the section "Applying for Registration as a Principal Manager or an Originator" for registration requirements).
- Loan Broker Licensees must renew their license biennially. The license expires on December 31 of the second year after issuance. The renewal application must be submitted no later than December 1st of the year of expiration. Failure to submit the renewal on time will require the loan broker to apply for an initial license and complete all initial requirements.
Applying for Registration as a Principal Manager or an Originator
- Any individual that engages in origination activities or serves as a Principal Manager on behalf of a licensed loan broker must register with the Indiana Secretary of State, Securities Division under the Indiana Loan Broker Act (Ind. Code 23-2-5) by submitting a properly completed Application for Registration as a Principal Manager or an Originator (State Form 49718/Form LB 4)
- Applicants for registration as a Principal Manager must:
- Submit a properly completed Application for Registration as a Principal Manager or an Originator (State Form 49718/Form LB 4);
- Pay a non-refundable application fee of $200.00;
- Complete 24-hours live of approved academic instruction (see section "Approved Educational Courses for Principal Managers & Originators" for a list of approved courses);
- Successfully pass the required principal manager registration examination (see section "Principal Manager/Originator Registration Examination" for more information);
- Obtain a state criminal background report (see section "Criminal Background Report: Explanation and Instructions" for more information);
- Show proof that the individual has satisfied the minimum three (3) year experience requirement under Ind. Code § 23-2-5-5(c)(8); and
- Show proof of employment before the individual may engage in origination activites or serve as a principal manager.
- Applicants for registration as an Originator must:
- Submit a properly completed Application for Registration as a Principal Manager or an Originator (State Form 49718/Form LB 4);
- Pay a non-refundable application fee of $100.00;
- Complete 24-hours live of approved academic instruction (see section "Approved Educational Courses for Principal Managers & Originators" for a list of approved courses);
- Successfully pass the required originator registration examination (see section "Principal Manager/Originator Registration Examination" for more information);
- Obtain a state criminal background report (see section "Criminal Background Report: Explanation and Instructions" for more information); and
- Show proof of employment before the individual may engage in origination activities.
- Principal Managers and Originators are required to complete six (6) hours of continuing education during each calendar year after the year in which their registration was issued to maintain their certificate of registration.
- Principal Managers and Originators must renew their registration biennially. The registration expires on December 31 of the second year after issuance. The renewal applications must be submitted no later than December 1st of the year of expiration. Failure to submit the renewal on time will require the individual to apply for an initial registration and complete all initial requirements.
Claiming an Exemption
• Beginning July 1, 2007, new loan brokers that claim an exemption under Ind. Code § 23-2-5-19(a)(8) must file with the Securities Division a Claim of Exemption Form (State Form 53265/Form LB 5) every twenty-four (24) months.
• Loan Brokers that claimed an exemption under Ind. Code § 23-2-5-19(a)(8) prior to July 1, 2007 must file with the Securities Division a Claim of Exemption Form (State Form 53265/Form LB 5) no later than January 1, 2008.
• State Form 53265/Form LB 5 must be accompanied by a filing fee of $200.00. Beginning July 1, 2008 the fee increases to $400.00.
• This exemption must be renewed by filing a Claim of Exemption Form (State Form 53265/Form LB 5) every twenty-four (24) months.
• The following loan brokers are exempt under Ind. Code § 23-2-5-19(a)(8):
• Loan brokers that sell and service a loan for the Federal National Mortgage Association or the Federal Home Loan Mortgage Association;
• Loan brokers that issue securities backed by the Government National Mortgage Association;
• Loan brokers that make loans insured by the United States Department of Housing and Urban Development or the United States Department of Agriculture Rural Housing Service;
• Loan brokers that act as a supervised lender or non-supervised automatic lender of the United States Department of Veterans Affairs; and
• Loan brokers that 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.
• Criminal Background Report Explanation and Instructions
• Approved Educational Courses for Principal Managers & Originators
• Candidate Guide for the Principal Manager/Loan Originator Registration Examinations
• Company Console User Guide: This Guide is for company representatives that would be purchasing exams for candidates
Forms
• Application for License as a Loan Broker – State Form 38168/Form LB 1
• Ultimate Equitable Owner Information – State Form 53271/Form LB 2
• Branch Office Notification Form – State Form 53264/Form LB 3
• Application for Registration as a Principal Manager or an Originator – State Form 49718/Form LB 4
• Claim of Exemption – State Form 53265/Form LB 5
• Calculation of Loan Broker Application Fee - State Form 53304
• Loan Broker Bond - State Form 53305
• Application for Approval of Academic Instruction Course - State Form 53272
• Request for Limited Adult Criminal History Information - State Form #8053
Statutes, Rules, & Notifications
• Indiana Loan Broker Act (Ind. Code 23-2-5)
• Indiana Loan Broker Administrative Rules ( Ind. Admin Code 710 IAC 1-22-4)
• House Bill 1717 – Revised Loan Broker Act
• Summary of House Bill 1717
• June 7, 2007 Letter to Licensed Loan Broker Re: HB 1717
• June 7, 2007 Letter to Education Vendors Re: HB 1717
• Loan Broker Education Course Fee Schedule (07-0054 AO)
Additional Information:
• Loan Broker Frequently Asked Questions
• Loan Broker Regulation Frequently Asked Questions
• Search Secretary of State, Securities Division Database for Licensed Loan Brokers
• Search for HUD-approved Loan Brokers
Attention Lending Institutions: Lending Institutions are regulated by the Indiana Department of Financial Institutions. Any questions regarding the licensing of lending institutions should be directed to the Department of Financial Institutions. You may contact the Department of Financial Institutions at 317.232. 3955. The Indiana Secretary of State, Securities Division only regulates loan brokers.
