§ 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

Indiana § 24-4.5-3-502.1

• Jurisdiction: Indiana
• Art. 4.5: UNIFORM CONSUMER CREDIT CODE
• Ch. 3: Loans

Text

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 mortgage license issued by the
department.
(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 mortgage license issued by the
department.
(3) A person that is not otherwise exempt under subsection (1) or
(2) shall acquire and retain a mortgage license issued by the
department 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 to engage in subordinate
lien mortgage transactions; and
(b) person that is exempt (either under this article or under IC 24-4.4-1-202(b)(8)) from licensing and that:
(i) employs a licensed mortgage loan originator; or
(ii) sponsors a licensed mortgage loan originator as permitted
by IC 24-4.4-1-202(b)(8) or by 750 IAC 9;
shall register with and maintain a valid unique identifier issued by the
NMLSR. Each licensed mortgage loan originator must be employed by,
or sponsored as permitted by IC 24-4.4-1-202(b)(8) or by 750 IAC 9,
and associated with, a licensed creditor (or an exempt person described
under subdivision (b)) that is registered with the NMLSR.
(5) Applicants for a mortgage license must apply to the department
for the license 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.

Legislative History

As added by P.L.35-2010, SEC.52. Amended by P.L.103-2014, SEC.5; P.L.186-2015, SEC.17; P.L.69-2018, SEC.19; P.L.197-2023, SEC.10.