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PRINCIPAL MANAGER/LOAN ORIGINATOR RESOURCES

APPLYING AS A PRINCIPAL MANAGER

Any individual that engages in origination activities or serves as a principal manager on behalf of a licensed loan broker must be licensed with the Indiana Secretary of State, Securities Division under the Indiana Loan Broker Act (Ind.Code §23-2-5). A principal manager's license incorporates loan origination authority.

Applicants for a principal manager license must:

  • Submit a properly completed application (MU4) through the NMLS.
    (Licensing fee is paid through NMLS and is non-refundable)
  • Complete 20-hours of live, NMLS approved academic instruction.
    (Note: The Indiana Loan Broker Act requires two [2] hours of academic instruction on Indiana law prior to the applicant obtaining a license. These hours may be taken in addition to the twenty [20] hour prelicensure course, or it may be incorporated into the twenty [20] hour course if an all-inclusive Indiana course is available.)
  • Complete an additional 16-hours of NMLS approved academic instruction, of which at least 4-hours must be on the subject of ethics. See Administrative Order regarding Principal Manager Licensing.
  • Successfully pass the NMLS National Test w/UST Component.
  • Obtain an FBI background report via NMLS.
  • 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 activities or serve as a principal manager through a sponsorship request via the NMLS.

*Due to the complexities of mortgage transactions, in interpreting that requirement, the Commissioner shall consider the financial services business to include only the mortgage loan business. Therefore, only an individual who has been licensed with a state regulatory agency as a mortgage loan originator, or worked in a position where the individual would have been a registered mortgage loan originator had registration been available in three (3) of the previous five (5) years will be eligible to be licensed as a principal manager.

APPLYING AS A LOAN ORIGINATOR

Applicants for a loan originator license must:

  • Submit a properly completed application (MU4) through the NMLS.
    (Licensing fee is paid through NMLS and is non-refundable)
  • Complete 20-hours of NMLS approved academic instruction.
  • Successfully pass the NMLS National Test w/UST Component.
    Obtain an FBI background report via NMLS.
  • Show proof of employment before the individual may engage in origination activities through a sponsorship request via the NMLS.

CONTINUING EDUCATION

Principal Managers and originators are required to complete eight (8) hours of NMLS approved continuing education during each calendar year after the year in which their license was issued to maintain their license.

LICENSING PERIOD INFORMATION

Principal Managers and originators 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 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.

ADDITIONAL RESOURCES

FREQUENTLY ASKED QUESTIONS – PRINCIPAL MANAGERS & LOAN ORIGINATORS

Are loan originators required to be licensed?
Yes, loan originators working for a licensed loan broker must be licensed.

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.

May a loan originator work for multiple loan brokers?
No, an originator may not be employed by more than one loan broker at a time.

Are principal managers required to be dually licensed as loan originators?
No, principal manager authority includes loan originator authority; no individual may hold both licenses simultaneously.

If a principal manager/loan originator leaves a loan broker, must the principal manager/ loan originator notify the Division?
The originator's sponsorship on the NMLS must be terminated within 5 days of the termination of employment.

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.