§ 24-5-23.5-8 — Creditor's duty to provide notice concerning homeowner protection unit's contact information and borrower's right to inspect settlement statement before closing; unit to prescribe form of notice; promotion of unit's contact information; information sharing; exemption from liability for disclosing suspected violation; report to legislative council of complaints received

Indiana § 24-5-23.5-8

• Jurisdiction: Indiana
• Art. 5: CONSUMER SALES
• Ch. 23.5: Real Estate Appraisals

Text

(a) This subsection applies with respect to a
completed application for a mortgage loan that is received by a creditor
after December 31, 2009. A creditor shall, not later than three (3)
business days after receiving a completed written application for a
mortgage loan from a borrower or prospective borrower, provide to the
borrower or prospective borrower a notice, on a form prescribed by the
homeowner protection unit under subsection (b), that includes the
following:
(1) Contact information for the homeowner protection unit
established by the attorney general under IC 4-6-12, including:
(A) an electronic mail address for the homeowner protection
unit; and
(B) the toll free telephone number described in IC 4-6-12-3.5.
(2) A statement that the borrower or prospective borrower may
contact the homeowner protection unit to report:
(A) a suspected violation of section 7 of this chapter; or
(B) other information about suspected fraudulent residential
real estate transactions, as authorized by IC 4-6-12-3.5(b).
(3) A statement that the borrower in a real estate transaction that
involves the making, refinancing, or consolidation of a mortgage
loan has the right to inspect the HUD-1 or HUD-1A settlement
statement during the business day immediately preceding
settlement, as provided by the federal Real Estate Settlement
Procedures Act (12 U.S.C. 2601 et seq.), as amended.
The creditor shall provide the notice required by this subsection by
delivering it to the borrower or prospective borrower or placing it in the
United States mail to the borrower or prospective borrower within the
time prescribed by this subsection.
(b) Not later than September 1, 2009, the home owner protection
unit established by the attorney general under IC 4-6-12 shall prescribe
the form required under subsection (a) for use by creditors who receive
completed written applications for mortgage loans after December 31,
2009.
(c) The homeowner protection unit established by the attorney
general under IC 4-6-12, in cooperation with the real estate appraiser
licensure and certification board created by IC 25-34.1-8-1, shall
publicize and promote awareness of the availability of the:
(1) electronic mail address; and
(2) toll free telephone number;
described in subsection (a)(1) to accept complaints from real estate
appraisers, creditors, borrowers, potential borrowers, and other persons
concerning suspected violations of section 7 of this chapter.
(d) A creditor may share any information obtained concerning a
suspected violation of section 7 of this chapter with the homeowner
protection unit established by the attorney general under IC 4-6-12. The
homeowner protection unit may, in turn, share any information
received from a creditor under this subsection with the following:
(1) Federal, state, and local law enforcement agencies and federal
regulatory agencies in accordance with IC 4-6-12-3(a)(4).
(2) Any entity listed in IC 4-6-12-4 that may have jurisdiction
over any person who is suspected of violating section 7 of this
chapter, including any entity that may have jurisdiction over the
creditor or an agent of the creditor if the homeowner protection
unit suspects that the creditor or an agent of the creditor has
violated section 7 of this chapter. However, the homeowner
protection unit and any entity listed in IC 4-6-12-4 that receives
information under this subdivision shall treat the information,
including information concerning the identity of the complainant,
as confidential and shall exercise all necessary caution to avoid
disclosure of the information, except as otherwise permitted or
required by law.
(e) Any:
(1) real estate appraiser, creditor, borrower, potential borrower, or
other person that makes, in good faith, a voluntarily disclosure of
a suspected violation of section 7 of this chapter to the
homeowner protection unit under this section or otherwise; and
(2) director, officer, manager, employee, or agent of a person
described in subdivision (1) who makes, or requires another
person to make, a disclosure described in subdivision (1);
is not liable to any person under any law or regulation of the United
States, under any constitution, law, or regulation of any state or a
political subdivision of any state, or under any contract or other legally
enforceable agreement, including an arbitration agreement, for a
disclosure described in subdivision (1) or for failing to provide notice
of a disclosure described in subdivision (1) to any person who is the
subject of the disclosure.
(f) Beginning in 2009, the report provided by the mortgage lending
and fraud prevention task force to the legislative council under
P.L.145-2008, SECTION 35, must include the following information:
(1) The total number of complaints or reports:
(A) received by the homeowner protection unit during the most
recent state fiscal year; and
(B) concerning a suspected violation of section 7 of this
chapter.
(2) From the total number of complaints or reports reported under
subdivision (1), a breakdown of the sources of the complaints or
reports, classified according to the complainants' interest in or
relationship to the real estate transactions upon which the
complaints or reports are based.
(3) A description of any:
(A) disciplinary or enforcement actions taken; or
(B) criminal prosecutions pursued;
by the homeowner protection unit or any entity listed in IC 4-6-12-4 and having jurisdiction in the matter, as applicable, in
connection with the complaints or reports reported under
subdivision (1).
The homeowner protection unit shall make available to the mortgage
lending and fraud prevention task force any information necessary to
provide the information required under this subsection in the task
force's report to the legislative council.

Legislative History

As added by P.L.52-2009, SEC.2.