in-20250212-IR-750240372FRA: DIGEST MORTGAGE LENDERS AND ORIGINATORS

Final Rule LSA Document #24-372 DIGEST Sec. 1. The definitions in this rule section apply throughout this article: Sec. 1. (a) Except as provided in 750 IAC 9-2-5(5) and subsections (b), (h), and (i), and (j), after June 30, 2010, an individual may not regularly engage in the business of a mortgage loan originator and shall not engage in the origination of mortgage transactions on behalf of any a person who that regularly engages in serving as the prospective source of financing with respect to any a dwelling located in this state without first obtaining temporary authority to operate by the department or obtaining a mortgage loan originator license issued by the department under this article and annually maintaining the license. (b) Notwithstanding the licensing requirements under this section, an individual acting exclusively as a servicer engaging in loss mitigation efforts with respect to an existing mortgage transaction is not required to meet the education, testing, background, and licensing standards of this article unless this exclusion is denied by any guideline, rule, regulation, or interpretive letter issued by the CFPB. (c) Each licensed mortgage loan originator must shall register with and maintain a valid unique identifier issued by the NMLSR. Notwithstanding subsection (h), each Each licensed mortgage loan originator must shall be employed by an employee, as defined by 750 IAC 9-1-1(18), of either a licensed creditor or an entity exempt from licensing under IC 24-4.4 or IC 24-4.5, that which is registered with the NMLSR in order to originate loans or sponsor individuals who are engaged solely as a third party loan processor or an underwriter. (d) Applicants for a license must apply for a license under this article in a form prescribed by the director. Each form: (e) 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: (f) For the purpose purposes of participating in the NMLSR, the director may: (g) A loan processor or an underwriter who is not an employee, as defined in 750 IAC 9-1-1(18), of a person licensed or exempt from licensing under IC 24-4.4 or IC 24-4.5, except an exempt person permitted to voluntarily register under IC 24-4.4-1-202(b)(8), may not engage in residential mortgage loan originator activities as a loan processor or an underwriter unless such the person: (h) Notwithstanding the licensing requirements under this section, an individual acting exclusively as a housing counselor engaging in efforts to assist borrowers with respect to an existing mortgage transaction who is: (i) Notwithstanding the licensing requirements under this section, an individual who exclusively originates zero-interest loans as an employee of a bona fide nonprofit organization exempt from licensing under IC 24-4.4-1-202(b)(14) IC 24-4.4-1-202(b)(15) or IC 24-4.5-1-202(b)(14) is not required to meet the education, testing, background, and licensing standards of this article unless this exclusion is denied by any guidance, rule, regulation, or interpretive letter issued by the CFPB. (j) Notwithstanding the licensing requirements under this section, an individual who exclusively originates mortgage transactions as an employee of a bona fide nonprofit organization exempt from licensing under IC 24-4.4-1-202(b)(15) IC 24-4.4-1-202(b)(16) or IC 24-4.5-1-202(b)(15) is not required to meet the education, testing, background, and licensing standards and requirements of this article unless this exclusion is denied by any guidance, rule, regulation, or interpretive letter issued by the CFPB. Sec. 1.2. A person licensed under IC 24-4.4 or IC 24-4.5, or exempt from licensing under IC 24-4.4 or IC 24-4.5, except for a person voluntarily registered under IC 24-4.4-1-202(b)(8), may sponsor mortgage loan originators of the sponsoring person who are not employees, as defined by 750 IAC 9-1-1(18), to perform mortgage loan originator activities if the person does the following: