Header

Info Agency Main Banner Content

Article

Loan Broker Examinations

STATEMENT CONCERNING EXAMS

Pursuant to Ind. Code §23-2-5 and 710 Ind. Admin Code §1-22-4, the Indiana Securities Division is conducting an examination of the books and records for your loan brokerage business. Ind. Code §23-2-5-11(a)(2) states "The commissioner may do the following: … Make investigations and examinations: in connection with any application for licensure under this chapter or with any license already granted; or 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."

DOCUMENT REQUIREMENTS

During the loan broker examination, consumer loan files will be reviewed for completeness. The documents named in the Loan Broker Act and Indiana Administrative Code are not exhaustive and are updated regularly.

FORMS AND DOCUMENTS

A recent review revealed an error under Section 3. Our Compensation. IC § 23-2-5-19(b) was repealed. The referenced Indiana Code has been updated to reflect IC § 23-2-5-20(a)(4). Please update your loan origination systems with the updated version of the approved Indiana Loan Broker Agreement. The new version must be used immediately.

ADDITIONAL RESOURCES

FREQUENTLY ASKED QUESTIONS - LOAN BROKER EXAMINATIONS

Will a notification be sent prior to an examination?
In most cases, the examiner will notify a loan broker of examination prior to the scheduled exam date. However, the examiner does have the authority to conduct a random examination.

How are the notifications for exams delivered?
Notification for exams are delivered, via email, to the primary company contact listed on NMLS.

How are licensees selected for examination?

Currently, licensees are selected for examination at random.