IN.gov - Skip Navigation

Note: This message is displayed if (1) your browser is not standards-compliant or (2) you have you disabled CSS. Read our Policies for more information.

advanced search Search

Securities Division > Resources for > Loan Brokers Loan Brokers

Applying for License as a Loan Broker

  • Any person who, in return for any consideration from any source procures, attempts to procure, or assists in procuring a loan from a third party or any other person, whether or not the person seeking the loan actually obtains the loan, is required to become licensed under the Indiana Loan Broker Act (Ind. Code 23-2-5), unless the person is not considered a loan broker under Ind. Code § 23-2-5-3(e) or qualifies for an exemption under Ind. Code § 23-2-5-19.
  • A person applying for a loan broker license must:
    • Submit a properly completed application (MU1) through the Nationwide Mortgage Licensing System.  http://www.stateregulatoryregistry.org/NMLS/  Licensing fee is paid through NMLS and is non-refundable;
    • Pay $100.00 for each of the loan broker's ultimate equitable owners plus obtain an FBI background report.  Instructions for obtaining this report can be found here:  Federal Criminal Background Report: Explanation and Instructions;
    • Obtain a surety bond in the appropriate graduated amount based on the previous year's loan volume, in effect for the full length of the licensing period (which is annual) with the obligee as State of Indiana;  New bond form should not have an expiration date.
      • $50,000   -    Less than $5 Million
      • $60,000   -    More than $5 Million less than $20 Million
      • $75,000   -    More than $20 Million
    • Submit a properly completed branch application (MU3) through the NMLS for each of the loan broker's branch office(s) (the main office is not considered a branch office) located or engaging in origination activities in Indiana; and
    • Have a properly registered principal manager for each office location, including the principal office location (See the section "Applying for Registration as a Principal Manager or an Originator" for registration requirements).  
  • Loan Broker Licensees must renew their license annually between November 1 and December 31. The license expires on December 31 of the same year it was issued unless applying for an initial application during the renewal period, if application is approved during the renewal period the license will expire December 31 of the year following issuance.

Applying for Registration as a Principal Manager or an Originator

  • Any individual that engages in origination activities or serves as a Principal Manager on behalf of a licensed loan broker must register with the Indiana Secretary of State, Securities Division under the Indiana Loan Broker Act (Ind. Code 23-2-5.
  • Applicants for registration as a Principal Manager must:
    • Submit a properly completed application (MU4) through the Nationwide Mortgage Licensing System.  http://www.stateregulatoryregistry.org/NMLS/  Licensing fee is paid through NMLS and is non-refundable;
    • Complete 24-hours live of live, approved academic instruction (see section "Approved Educational Courses for Principal Managers & Originators" for a list of approved courses) through December 31, 2009.  Beginning January 1, 2010 new appliants will need to complete 20-hours of NMLS approved academic instruction; 
    • Successfully pass the required principal manager registration examination (see section "Principal Manager/Originator Registration Examination" for more information).  Beginning January 1, 2010 new applicants will need  to complete the NMLS exams in addition to the state exam;
    • Obtain an FBI background report.  Instructions for obtaining this report can be found here:  Federal Criminal Background Report: Explanation and Instructions;
    • Show proof that the individual has satisfied the minimum three (3) year experience requirement under Ind. Code § 23-2-5-5(c)(8); and
    • Show proof of employment before the individual may engage in origination activities or serve as a principal manager.
  • Applicants for registration as an Originator must:
    • Submit a properly completed application (MU4) through the Nationwide Mortgage Licensing System.  http://www.stateregulatoryregistry.org/NMLS/  Licensing fee is paid through NMLS and is non-refundable;
    • Complete 24-hours live of approved academic instruction (see section "Approved Educational Courses for Principal Managers & Originators" for a list of approved courses) through December 31, 2009, beginning January 1, 2010 new applicants will need to complete 20-hours of NMLS approved academic instruction; 
    • Successfully pass the required originator registration examination (see section "Principal Manager/Originator Registration Examination" for more information).  Beginning January 1, 2010 new applicants will need to complete the NMLS exams in place of the state exam;  
    • Obtain an FBI background report.  Instructions for obtaining this report can be found here:  Federal Criminal Background Report: Explanation and Instructions;
    • Show proof of employment before the individual may engage in origination activities.

Continuing Education and Licensing Period Information

  • Principal Managers and Originators are required to complete six (6) hours of continuing education (8 hours NMLS approved education beginning January 1, 2010)  during each calendar year after the year in which their registration was issued to maintain their certificate of registration.
  • Principal Managers and Originators must renew their registration annually between November 1 and December 31. The registration expires on December 31 of the same year it was issued unless applying for an initial application during renewal period, if application is approved during the renewal period the registration will expire December 31 of the year following issuance.

Education, Testing and Additional Resources

Amendments

HEA 1359 required that the Securities Division and Department of Financial Institutions issue guidelines by September 1, 2008 informing lenders and loan brokers of the appropriate agency by which they will be regulated.  These guidelines can be found at Joint Guidelines for Licensing.

Exemptions

  • Effective July 1, 2009 all exemptions to the Indiana Loan Broker Act have been removed per HEA 1646.

Forms

Statutes, Rules, & Notifications

 

Additional Information:

Attention Lending Institutions: Lending Institutions are regulated by the Indiana Department of Financial Institutions. Any questions regarding the licensing of lending institutions should be directed to the Department of Financial Institutions. You may contact the Department of Financial Institutions at 317.232. 3955. The Indiana Secretary of State, Securities Division only regulates loan brokers.

Revised 11/18/09