APPLYING 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(c).
Applicants for a loan broker license must:
- Submit a properly completed application (MU1) through the Nationwide Multistate Licensing System (NMLS).
(Licensing fee is paid through NMLS and is non-refundable)
- Pay $100 [to the Securities Division (“Division”)] for each of the loan broker's Ultimate Equitable Owners (“UEO”).
- Obtain an FBI background report for each UEO, including any directors, managers and officers, through NMLS.
- Obtain a surety bond in the appropriate graduated amount based on the previous year's loan volume, in effect for a continuous period with the obligee as State of Indiana; New bond form should not have an expiration date.
- $50,000 - Less than $5 Million
- $60,000 - More than $5 Million less than $20 Million
- $75,000 - More than $20 Million
- Submit a properly completed branch application (MU3) through the NMLS for each of the loan broker's branch office(s) (the main office is not considered a branch office) located or engaging in origination activities in Indiana; and
- Have a unique properly registered principal manager for each office location, including the principal office location.
LICENSING PERIOD INFORMATION
Loan broker licensees must renew their license annually between November 1 and December 31. The license expires on December 31 of the same year it was issued unless applying for an initial application during the renewal period, if application is approved during the renewal period the license will expire December 31 of the year following issuance. All renewal applications MUST be submitted before December 31.
- ADMINISTRATIVE ORDER ON PRINCIPAL MANAGER REQUIREMENTS
- NMLS RESOURCE CENTER
- NMLS QUICK GUIDES - COMPANY
- NMLS – SURETY BONDS
- INDIANA LOAN BROKER ACT (Ind.Code §23-2-5)
- INDIANA LOAN BROKER ADMINISTRATIVE RULES (710 Ind. Admin Code §1-22-4)
FREQUENTLY ASKED QUESTIONS - LOAN BROKERS
What is an ultimate equitable owner?
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.
Under the loan broker license, who is required to complete a background check?
At initial application and every three (3) years after, each equitable owner, director, manager, officer, mortgage loan originator and principal manager must submit fingerprints for a national criminal history background check (as defined in Ind. Code §10-13-3-12) by the Federal Bureau of Investigation, for use by the commissioner.
How do I obtain background check?
The request for a background check is completed through NMLS. Click Here for more information.