Indiana Department of Financial Institutions Adopts Emergency Rule on Mortgage Lender and Originator Licensing
On December 15, the Indiana Department of Financial Institutions (DFI) adopted an emergency rule updating Title 750, Article 9 of the Indiana Administrative Code (IAC), which regulates mortgage lenders and originators. First, the amendments expanded the stated purpose of Title 750, Article 9 to conform the regulation of mortgage lending practices not only to state and federal laws, rules and regulations but also to policies and guidance from state and federal authorities. Second, non-profit organization employees who exclusively originate mortgages are exempt from state educational, testing, background or licensing standards and requirements unless otherwise required by the Consumer Financial Services Bureau. Third, the rule amended the IAC to specify that an expunged criminal conviction is not considered, for licensing purposes, a conviction resulting in an automatic denial or revocation of a mortgage lender or originator’s license; however, the DFI director may still consider the underlying crime or facts of that expungement for licensing eligibility. Fourth, the rule revised Article 9’s revocation and suspension provisions so that they are uniform with all state consumer credit laws. Finally, the rule made changes to Article 9’s pre-licensing testing, licensing qualification and renewal and regulatory reporting provisions.