2017 Indiana Code
TITLE 24. Trade Regulation
ARTICLE 4.5. UNIFORM CONSUMER CREDIT CODE
CHAPTER 3. Loans
24-4.5-3-502.1. Authority to make, take assignment of, or collect subordinate lien mortgage transactions; license required; exempt persons; registration with NMLSR; licensed mortgage loan originators; applications for licensure; director's authority to contract with NMLSR

     Sec. 502.1. (1) A person that is a:

(a) depository institution;

(b) subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or

(c) credit union service organization;

may engage in Indiana in the making of subordinate lien mortgage transactions without obtaining a license under this article.

     (2) A collection agency licensed under IC 25-11-1 or an institution regulated by the Farm Credit Administration may engage in:

(a) taking assignments of subordinate lien mortgage transactions; and

(b) undertaking the direct collection of payments from or the enforcement of rights against debtors arising from subordinate lien mortgage transactions;

in Indiana without obtaining a license under this article.

     (3) A person that does not qualify under subsection (1) or (2) shall acquire and retain a license relating to subordinate lien mortgage transactions under this chapter in order to regularly engage in Indiana in the following actions with respect to subordinate lien mortgage transactions:

(a) The making of subordinate lien mortgage loans.

(b) Taking assignments of subordinate lien mortgage loans.

(c) Undertaking the direct collection of payments from or the enforcement of rights against debtors arising from subordinate lien mortgage loans.

     (4) Each:

(a) creditor licensed by the department under this chapter to engage in subordinate lien mortgage transactions; and

(b) entity that is exempt from licensing under this article or under IC 24-4.4-1-202(b)(6)(a) and that:

(i) employs a licensed mortgage loan originator; or

(ii) sponsors under an exclusive written agreement, as permitted by IC 24-4.4-1-202(b)(6)(a), a licensed mortgage loan originator as an independent agent;

shall register with and maintain a valid unique identifier issued by the NMLSR. Each licensed mortgage loan originator must be employed by, or sponsored under an exclusive written agreement (as permitted by IC 24-4.4-1-202(b)(6)(a)) and as an independent agent, and associated with, a creditor licensed under this chapter to engage in subordinate lien mortgage transactions or an exempt entity described under subdivision (b) in the NMLSR in order to originate loans.

     (5) Applicants for a license to engage in subordinate lien mortgage transactions must apply for a license under this chapter in a form prescribed by the director. Each form:

(a) must contain content as set forth by rule, instruction, or procedure of the director; and

(b) may be changed or updated as necessary by the director to carry out the purposes of this article.

     (6) To fulfill the purposes of this article, the director may establish relationships or contracts with the NMLSR or other entities designated by the NMLSR to:

(a) collect and maintain records; and

(b) process transaction fees or other fees;

related to licensees or other persons subject to this article.

     (7) For the purpose of participating in the NMLSR, the director or the department may:

(a) waive or modify, in whole or in part, by rule, regulation, or order, any or all of the requirements of this article; and

(b) establish new requirements as reasonably necessary to participate in the NMLSR.

As added by P.L.35-2010, SEC.52. Amended by P.L.103-2014, SEC.5; P.L.186-2015, SEC.17.