Does the state require a physical location within the state?
Yes (for mortgage broker license only).

Is there individual loan officer licensing?
Yes, any individual employed by a mortgage broker licensee to engage in origination activities must be registered by the mortgage broker licensee.

What are lenders, brokers and loan officers called?
The Indiana Code defines the terms “originator” (individual) and “loan broker” (entity).

What is the cost of a license? Surety bond? Are there net worth requirements?
Mortgage brokers are required to be licensed under the Indiana Loan Brokers Act. Originators must be registered by the employing mortgage broker licensee. Both are subject to supervision by the Indiana Securities Commissioner. Mortgage broker applicants must pay an application fee of $400 and originator applicants must pay an application fee of $100. Mortgage brokers (a "loan brokerage business") must maintain a $50,000 bond. Mortgage brokers must also designate a “principal manager” who must have 3 years experience as a loan broker or in financial services. The application fee for a principal manager is $200. Licenses and registrations must be renewed every two years.

Lenders who make consumer loans (as defined by Indiana code) must be licensed under the Indiana Uniform Consumer Credit Code (UCCC) by the Department of Financial Institutions. Consumer loans include many second mortgages, but consumer loans do not include loans primarily secured by an interest in land that are first lien mortgage transactions. An application fee of $1,000 must be submitted with the completed application. The applicant must provide financial statements showing a minimum net worth of $100,000 and liquid assets of at least $50,000. No physical presence is required in Indiana for a UCCC license.

Is there a pre-licensing education requirement? Is there a test?
Licensees and registrants are required to have at least 24 hours of pre-licensing courses related to the loan brokerage business. Only live instruction courses will be acceptable for the purpose of meeting the initial academic instruction requirement for loan brokers and originators.

Is there a CE requirement?
Yes, 12 hours of continuing education during the 24-month period immediately preceding the renewal application must be completed.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
The only licensing for lenders is under the UCCC (see the section on licensing). Otherwise a mortgage brokers license must be held to broker mortgage loans.

Are there any state specific high cost loan provisions?
The Indiana Law on Home Loan Practices became effective January 1, 2005. The law, among other things, imposes restrictions on first-lien residential mortgage loan terms and on the business practices of mortgage brokers, lenders, and investors. It also prohibits certain lending practices for all home loans as well as additional practices for high cost home loans. It defines a high-cost home loan as a home loan that meets or exceeds the following thresholds:

Annual percentage rate (APR) test

The stated APR exceeds the "benchmark rate" as defined under Home Ownership Equity Protection Act (HOEPA) and Regulation Z.

Points and fees test

The total points and fees on the home loan exceed 5 percent of the loan principal for a home loan having a loan principal of at least $40,000; or 6 percent of the loan principal for a home loan having a loan principal of less than $40,000. The dollar amounts set forth in the points and fees test are subject to change.