Indiana passed a bill repealing and reenacting the Loan Brokers Act (LBA). Under the bill, loan processor companies must submit a “notice filing” to the Securities Commissioner prior to engaging in loan processing activities. The bill also requires loan processors employed by loan processing companies to be licensed as a mortgage loan originator. In addition, the bill: requires a loan broker to designate a branch manager (licensed as a principal manager or mortgage loan originator) for each branch office; prohibits a principal manager from supervising more than 5 loan broker offices (including the principal place of business); requires a loan broker to maintain a $60,000 electronic surety bond (rather than a surety bond in the amount of $50,000, $60,000 or $75,000, based on the total amount of residential mortgage loan originated by the loan broker during the previous calendar year); and mandates that a principal manager annually complete a compliance examination for each office the principal manager supervises. The remainder of the reenacted provisions under the LBA are substantially similar to the previous provisions of the LBA. The bill went into effect July 1, 2019.
See the Indiana General Assembly website for the full text of the Statutes: http://iga.in.gov/legislative/2019/bills/house/1440#document-ffec047d
