IC 24-4.4 ARTICLE 4.4. FIRST LIEN MORTGAGE LENDING
IC 24-4.4-1
Chapter 1. General Provisions and Definitions
IC 24-4.4-1-101 Short title; rules concerning licensing system for creditors and
mortgage loan originators
Sec. 101. (a) This article shall be known and may be cited as the
First Lien Mortgage Lending Act.
(b) Notwithstanding any other provision of this article or
IC 24-4.5, the department may adopt emergency rules under
IC 4-22-2-37.1, to remain effective until codified in the Indiana
Code, in order to provide for a system of licensing creditors and
mortgage loan originators that meets the requirements of the Secure
and Fair Enforcement for Mortgage Licensing Act of 2008 (H.R.
3221 Title V) and the interpretations of that Act issued by the
Secretary of Housing and Urban Development. As added by P.L.145-2008, SEC.20. Amended by P.L.182-2009(ss),
SEC.369.
IC 24-4.4-1-102 Purposes; rules of construction
Sec. 102. (1) This article shall be liberally construed and applied
to promote its underlying purposes and policies.
(2) The underlying purposes and policies of this article are:
(a) to permit and encourage the development of fair and
economically sound first lien mortgage lending practices; and
(b) to conform the regulation of first lien mortgage lending
practices to applicable state and federal laws, rules, and
regulations.
(3) A reference to a requirement imposed by this article includes
reference to a related rule of the department adopted under this
article.
(4) A reference to a federal law in this article is a reference to the
law in effect December 31, 2009. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.5.
IC 24-4.4-1-103 Unified coverage of subject matter; construction against implied
repeal
Sec. 103. This article:
(1) is a general act intended as a unified coverage of its subject
matter; and
(2) any part of this article may not be considered to be impliedly
repealed by subsequent legislation if such construction can
reasonably be avoided. As added by P.L.145-2008, SEC.20. IC 24-4.4-1-104 Severability
Sec. 104. The provisions of this article are severable, so that if:
(1) any provisions of this article; or
(2) the application of this article to any person or
circumstances;
is held invalid, the invalidity does not affect other provisions or
applications of this article that can be given effect without the invalid
provision or application. As added by P.L.145-2008, SEC.20.
IC 24-4.4-1-201 Application; nonresident debtor
Sec. 201. (1) Except as provided in subsection (2), this article
applies to a first lien mortgage transaction:
(a) that is secured by an interest in land in Indiana; and
(b) the closing for which takes place after December 31, 2008.
(2) This article does not apply to a first lien mortgage transaction
if:
(a) the debtor is not a resident of Indiana at the time the
transaction is entered into; and
(b) the laws of the debtor's state of residence require that the
transaction be made under the laws of the state of the debtor's
residence. As added by P.L.145-2008, SEC.20. Amended by P.L.1-2009,
SEC.134.
IC 24-4.4-1-202 Exempt transactions
Sec. 202. This article does not apply to the following:
(1) Extensions of credit to government or governmental
agencies or instrumentalities.
(2) A first lien mortgage transaction in which the debt is
incurred primarily for a purpose other than a personal, family,
or household purpose.
(3) An extension of credit primarily for a business, a
commercial, or an agricultural purpose.
(4) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien
mortgage transaction made:
(a) in compliance with the requirements of; and
(b) by a community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing and community development authority
established by IC 5-20-1-3.
(5) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien
mortgage transaction made by an entity that exclusively uses
funds provided by the United States Department of Housing and
Urban Development under Title 1 of the federal Housing and
Community Development Act of 1974, Public Law 93-383, as
amended (42 U.S.C. 5301 et seq.).
(6) An extension of credit originated by:
(a) a depository institution;
(b) subsidiaries that are:
(i) owned and controlled by a depository institution; and
(ii) regulated by a federal banking agency; or
(c) an institution regulated by the Farm Credit
Administration.
(7) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a credit union
service organization that is majority owned, directly or
indirectly, by one (1) or more credit unions.
(8) A first lien mortgage transaction originated by a registered
mortgage loan originator, when acting for an entity described in
subsection (6). However, a privately insured state chartered
credit union shall comply with the system of mortgage loan
originator registration developed by the Federal Financial
Institutions Examinations Council under Section 1507 of the
federal Safe and Fair Enforcement for Mortgage Licensing Act
of 2008 (SAFE).
(9) An individual who offers or negotiates terms of a mortgage
transaction with or on behalf of an immediate family member
of the individual.
(10) An individual who offers or negotiates terms of a mortgage
transaction secured by a dwelling that served as the individual's
residence.
(11) Unless the attorney is compensated by:
(a) a lender;
(b) a mortgage broker;
(c) another mortgage loan originator; or
(d) any agent of the lender, mortgage broker, or other
mortgage loan originator described in clauses (a) through
(c);
a licensed attorney who negotiates the terms of a mortgage
transaction on behalf of a client as an ancillary matter to the
attorney's representation of the client.
(12) Agencies, instrumentalities, and government owned
corporations of the United States, including United States
government sponsored enterprises. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.6.
IC 24-4.4-1-202.5 Persons also engaging in loan brokerage business; applicability of
loan broker statutes; examination by department; cooperation with
securities division
Sec. 202.5. (1) If a person licensed or required to be licensed
under this article also engages in the loan brokerage business, the
person's loan brokerage business is subject to the following sections
of the Indiana Code and any rules adopted to implement these
sections:
(a) IC 23-2-5-9.
(b) IC 23-2-5-9.1.
(c) IC 23-2-5-15.
(d) IC 23-2-5-16.
(e) IC 23-2-5-17.
(f) IC 23-2-5-18.
(g) IC 23-2-5-18.5.
(h) IC 23-2-5-20.
(i) IC 23-2-5-23, except for IC 23-2-5-23(2)(B).
(j) IC 23-2-5-24.
(2) Loan broker business transactions engaged in by persons
licensed or required to be licensed under this article are subject to
examination by the department and to the examination fees described
in IC 24-4.4-2-402(7)(c). The department may cooperate with the
securities division of the office of the secretary of state in the
department's examination of loan broker business transactions and
may use the securities division's examiners to conduct examinations. As added by P.L.35-2010, SEC.7.
IC 24-4.4-1-203
Repealed
(Repealed by P.L.35-2010, SEC.209.)
IC 24-4.4-1-204 Entities that also conduct loan broker business; regulatory
cooperation with securities commissioner
Sec. 204. In the department's examination and regulatory activities
related to licensees under this article, the department may cooperate
with the Indiana securities commissioner in the regulation of entities
that, in addition to conducting business regulated under this article,
also conduct a loan brokerage business subject to IC 23-2-5. As added by P.L.35-2010, SEC.8.
IC 24-4.4-1-301 Definitions
Sec. 301. In addition to definitions appearing in subsequent
chapters of this article, the following definitions apply throughout
this article:
(1) "Affiliate", with respect to any person subject to this article,
means a person that, directly or indirectly, through one (1) or
more intermediaries:
(a) controls;
(b) is controlled by; or
(c) is under common control with;
the person subject to this article.
(2) "Agreement" means the bargain of the parties in fact as
found in the parties' language or by implication from other
circumstances, including course of dealing or usage of trade or
course of performance.
(3) "Agricultural products" includes agricultural, horticultural,
viticultural, dairy products, livestock, wildlife, poultry, bees,
forest products, fish and shellfish, any products raised or
produced on farms, and any products processed or
manufactured from products raised or produced on farms.
(4) "Agricultural purpose" means a purpose related to the
production, harvest, exhibition, marketing, transportation,
processing, or manufacture of agricultural products by a natural
person who cultivates, plants, propagates, or nurtures the
agricultural products.
(5) "Consumer credit sale" is a sale of goods, services, or an
interest in land in which:
(a) credit is granted by a person who engages as a seller in
credit transactions of the same kind;
(b) the buyer is a person other than an organization;
(c) the goods, services, or interest in land are purchased
primarily for a personal, family, or household purpose;
(d) either the debt is payable in installments or a finance
charge is made; and
(e) with respect to a sale of goods or services, either the
amount financed does not exceed fifty thousand dollars
($50,000) or the debt is secured by personal property used or
expected to be used as the principal dwelling of the buyer.
(6) "Credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.
(7) "Creditor" means a person:
(a) that engages in the extension of first lien mortgage
transactions that are subject to a credit service charge or loan
finance charge, as applicable, or are payable by written
agreement in more than four (4) installments (not including
a down payment); and
(b) to which the obligation is initially payable, either on the
face of the note or contract, or by agreement if there is not a
note or contract.
The term does not include a person described in subsection
33(a) in a tablefunded transaction. A creditor may be an
individual, a limited liability company, a sole proprietorship, a
partnership, a trust, a joint venture, a corporation, an
unincorporated organization, or other form of entity, however
organized.
(8) "Department" refers to the members of the department of
financial institutions.
(9) "Depository institution" has the meaning set forth in the
Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes
any credit union.
(10) "Director" refers to the director of the department of
financial institutions or the director's designee.
(11) "Dwelling" means a residential structure that contains one
(1) to four (4) units, regardless of whether the structure is
attached to real property. The term includes an individual:
(a) condominium unit;
(b) cooperative unit;
(c) mobile home; or
(d) trailer;
that is used as a residence.
(12) "Employee" means an individual who is paid wages or
other compensation by an employer required under federal
income tax law to file Form W-2 on behalf of the individual.
(13) "Federal banking agencies" means the Board of Governors
of the Federal Reserve System, the Comptroller of the
Currency, the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance
Corporation.
(14) "First lien mortgage transaction" means:
(a) a loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal,
family, or household purposes and that is secured by a
mortgage, a land contract, or another equivalent consensual
security interest which constitutes a first lien on a dwelling or
residential real estate.
(15) "Immediate family member" means a spouse, child, sibling,
parent, grandparent, or grandchild. The term includes
stepparents, stepchildren, stepsiblings, and adoptive
relationships.
(16) "Individual" means a natural person.
(17) "Licensee" means a person licensed as a creditor under this
article.
(18) "Loan" includes:
(a) the creation of debt by:
(i) the creditor's payment of or agreement to pay money to
the debtor or to a third party for the account of the debtor;
or
(ii) the extension of credit by a person who engages as a
seller in credit transactions primarily secured by an
interest in land;
(b) the creation of debt by a credit to an account with the
creditor upon which the debtor is entitled to draw
immediately; and
(c) the forbearance of debt arising from a loan.
(19) "Loan brokerage business" means any activity in which a
person, in return for any consideration from any source,
procures, attempts to procure, or assists in procuring, a
mortgage transaction from a third party or any other person,
whether or not the person seeking the mortgage transaction
actually obtains the mortgage transaction.
(20) "Loan processor or underwriter" means an individual who
performs clerical or support duties as an employee at the
direction of, and subject to the supervision and instruction of,
a person licensed or exempt from licensing under this article.
For purposes of this subsection, the term "clerical or support
duties" may include, after the receipt of an application, the
following:
(a) The receipt, collection, distribution, and analysis of
information common for the processing or underwriting of
a mortgage transaction.
(b) The communication with a consumer to obtain the
information necessary for the processing or underwriting of
a loan, to the extent that the communication does not
include:
(i) offering or negotiating loan rates or terms; or
(ii) counseling consumers about mortgage transaction rates
or terms.
An individual engaging solely in loan processor or underwriter
activities shall not represent to the public, through advertising
or other means of communicating or providing information,
including the use of business cards, stationery, brochures, signs,
rate lists, or other promotional items, that the individual can or
will perform any of the activities of a mortgage loan originator.
(21) "Mortgage loan originator" means an individual who, for
compensation or gain, or in the expectation of compensation or
gain, engages in taking a mortgage transaction application or in
offering or negotiating the terms of a mortgage transaction that
either is made under this article or under IC 24-4.5 or is made
by an employee of a person licensed or exempt from licensing
under this article or under IC 24-4.5, while the employee is
engaging in the loan brokerage business. The term does not
include the following:
(a) An individual engaged solely as a loan processor or
underwriter as long as the individual works exclusively as an
employee of a person licensed or exempt from licensing
under this article.
(b) Unless the person or entity is compensated by:
(i) a creditor;
(ii) a loan broker;
(iii) another mortgage loan originator; or
(iv) any agent of a creditor, a loan broker, or another
mortgage loan originator described in items (i) through
(iii);
a person or entity that performs only real estate brokerage
activities and is licensed or registered in accordance with
applicable state law.
(c) A person solely involved in extensions of credit relating
to timeshare plans (as defined in 11 U.S.C. 101(53D)).
(22) "Mortgage servicer" means the last person to whom a
mortgagor or the mortgagor's successor in interest has been
instructed by a mortgagee to send payments on a loan secured
by a mortgage.
(23) "Mortgage transaction" means:
(a) a loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal,
family, or household purposes and that is secured by a
mortgage, a land contract, or another equivalent consensual
security interest on a dwelling or residential real estate.
(24) "Nationwide Mortgage Licensing System and Registry" or
"NMLSR" means a mortgage licensing system developed and
maintained by the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators
for the licensing and registration of creditors and mortgage loan
originators.
(25) "Nontraditional mortgage product" means any mortgage
product other than a thirty (30) year fixed rate mortgage.
(26) "Organization" means a corporation, a government or
government subdivision, an agency, a trust, an estate, a
partnership, a limited liability company, a cooperative, an
association, a joint venture, an unincorporated organization, or
any other entity, however organized.
(27) "Payable in installments", with respect to a debt or an
obligation, means that payment is required or permitted by
written agreement to be made in more than four (4) installments
not including a down payment.
(28) "Person" includes an individual or an organization.
(29) "Principal" of a mortgage transaction means the total of:
(a) the net amount paid to, receivable by, or paid or payable
for the account of the debtor; and
(b) to the extent that payment is deferred, amounts actually
paid or to be paid by the creditor for registration, certificate
of title, or license fees if not included in clause (a).
(30) "Real estate brokerage activity" means any activity that
involves offering or providing real estate brokerage services to
the public, including the following:
(a) Acting as a real estate agent or real estate broker for a
buyer, seller, lessor, or lessee of real property.
(b) Bringing together parties interested in the sale, purchase,
lease, rental, or exchange of real property.
(c) Negotiating, on behalf of any party, any part of a contract
relating to the sale, purchase, lease, rental, or exchange of
real property (other than in connection with providing
financing with respect to the sale, purchase, lease, rental, or
exchange of real property).
(d) Engaging in any activity for which a person engaged in
the activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law.
(e) Offering to engage in any activity, or act in any capacity,
described in this subsection.
(31) "Registered mortgage loan originator" means any
individual who:
(a) meets the definition of mortgage loan originator and is an
employee of:
(i) a depository institution;
(ii) a subsidiary that is owned and controlled by a
depository institution and regulated by a federal banking
agency; or
(iii) an institution regulated by the Farm Credit
Administration; and
(b) is registered with, and maintains a unique identifier
through, the NMLSR.
(32) "Residential real estate" means any real property that is
located in Indiana and on which there is located or intended to
be constructed a dwelling.
(33) "Revolving first lien mortgage transaction" means a first
lien mortgage transaction in which:
(a) the creditor permits the debtor to obtain advances from
time to time;
(b) the unpaid balances of principal, finance charges, and
other appropriate charges are debited to an account; and
(c) the debtor has the privilege of paying the balances in
installments.
(34) "Tablefunded" means a transaction in which:
(a) a person closes a first lien mortgage transaction in the
person's own name as a mortgagee with funds provided by
one (1) or more other persons; and
(b) the transaction is assigned simultaneously to the
mortgage creditor providing the funding not later than one
(1) business day after the funding of the transaction.
(35) "Unique identifier" means a number or other identifier
assigned by protocols established by the NMLSR. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.9.
IC 24-4.4 ARTICLE 4.4. FIRST LIEN MORTGAGE LENDING
IC 24-4.4-1
Chapter 1. General Provisions and Definitions
IC 24-4.4-1-101 Short title; rules concerning licensing system for creditors and
mortgage loan originators
Sec. 101. (a) This article shall be known and may be cited as the
First Lien Mortgage Lending Act.
(b) Notwithstanding any other provision of this article or
IC 24-4.5, the department may adopt emergency rules under
IC 4-22-2-37.1, to remain effective until codified in the Indiana
Code, in order to provide for a system of licensing creditors and
mortgage loan originators that meets the requirements of the Secure
and Fair Enforcement for Mortgage Licensing Act of 2008 (H.R.
3221 Title V) and the interpretations of that Act issued by the
Secretary of Housing and Urban Development. As added by P.L.145-2008, SEC.20. Amended by P.L.182-2009(ss),
SEC.369.
IC 24-4.4-1-102 Purposes; rules of construction
Sec. 102. (1) This article shall be liberally construed and applied
to promote its underlying purposes and policies.
(2) The underlying purposes and policies of this article are:
(a) to permit and encourage the development of fair and
economically sound first lien mortgage lending practices; and
(b) to conform the regulation of first lien mortgage lending
practices to applicable state and federal laws, rules, and
regulations.
(3) A reference to a requirement imposed by this article includes
reference to a related rule of the department adopted under this
article.
(4) A reference to a federal law in this article is a reference to the
law in effect December 31, 2009. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.5.
IC 24-4.4-1-103 Unified coverage of subject matter; construction against implied
repeal
Sec. 103. This article:
(1) is a general act intended as a unified coverage of its subject
matter; and
(2) any part of this article may not be considered to be impliedly
repealed by subsequent legislation if such construction can
reasonably be avoided. As added by P.L.145-2008, SEC.20. IC 24-4.4-1-104 Severability
Sec. 104. The provisions of this article are severable, so that if:
(1) any provisions of this article; or
(2) the application of this article to any person or
circumstances;
is held invalid, the invalidity does not affect other provisions or
applications of this article that can be given effect without the invalid
provision or application. As added by P.L.145-2008, SEC.20.
IC 24-4.4-1-201 Application; nonresident debtor
Sec. 201. (1) Except as provided in subsection (2), this article
applies to a first lien mortgage transaction:
(a) that is secured by an interest in land in Indiana; and
(b) the closing for which takes place after December 31, 2008.
(2) This article does not apply to a first lien mortgage transaction
if:
(a) the debtor is not a resident of Indiana at the time the
transaction is entered into; and
(b) the laws of the debtor's state of residence require that the
transaction be made under the laws of the state of the debtor's
residence. As added by P.L.145-2008, SEC.20. Amended by P.L.1-2009,
SEC.134.
IC 24-4.4-1-202 Exempt transactions
Sec. 202. This article does not apply to the following:
(1) Extensions of credit to government or governmental
agencies or instrumentalities.
(2) A first lien mortgage transaction in which the debt is
incurred primarily for a purpose other than a personal, family,
or household purpose.
(3) An extension of credit primarily for a business, a
commercial, or an agricultural purpose.
(4) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien
mortgage transaction made:
(a) in compliance with the requirements of; and
(b) by a community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing and community development authority
established by IC 5-20-1-3.
(5) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien
mortgage transaction made by an entity that exclusively uses
funds provided by the United States Department of Housing and
Urban Development under Title 1 of the federal Housing and
Community Development Act of 1974, Public Law 93-383, as
amended (42 U.S.C. 5301 et seq.).
(6) An extension of credit originated by:
(a) a depository institution;
(b) subsidiaries that are:
(i) owned and controlled by a depository institution; and
(ii) regulated by a federal banking agency; or
(c) an institution regulated by the Farm Credit
Administration.
(7) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a credit union
service organization that is majority owned, directly or
indirectly, by one (1) or more credit unions.
(8) A first lien mortgage transaction originated by a registered
mortgage loan originator, when acting for an entity described in
subsection (6). However, a privately insured state chartered
credit union shall comply with the system of mortgage loan
originator registration developed by the Federal Financial
Institutions Examinations Council under Section 1507 of the
federal Safe and Fair Enforcement for Mortgage Licensing Act
of 2008 (SAFE).
(9) An individual who offers or negotiates terms of a mortgage
transaction with or on behalf of an immediate family member
of the individual.
(10) An individual who offers or negotiates terms of a mortgage
transaction secured by a dwelling that served as the individual's
residence.
(11) Unless the attorney is compensated by:
(a) a lender;
(b) a mortgage broker;
(c) another mortgage loan originator; or
(d) any agent of the lender, mortgage broker, or other
mortgage loan originator described in clauses (a) through
(c);
a licensed attorney who negotiates the terms of a mortgage
transaction on behalf of a client as an ancillary matter to the
attorney's representation of the client.
(12) Agencies, instrumentalities, and government owned
corporations of the United States, including United States
government sponsored enterprises. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.6.
IC 24-4.4-1-202.5 Persons also engaging in loan brokerage business; applicability of
loan broker statutes; examination by department; cooperation with
securities division
Sec. 202.5. (1) If a person licensed or required to be licensed
under this article also engages in the loan brokerage business, the
person's loan brokerage business is subject to the following sections
of the Indiana Code and any rules adopted to implement these
sections:
(a) IC 23-2-5-9.
(b) IC 23-2-5-9.1.
(c) IC 23-2-5-15.
(d) IC 23-2-5-16.
(e) IC 23-2-5-17.
(f) IC 23-2-5-18.
(g) IC 23-2-5-18.5.
(h) IC 23-2-5-20.
(i) IC 23-2-5-23, except for IC 23-2-5-23(2)(B).
(j) IC 23-2-5-24.
(2) Loan broker business transactions engaged in by persons
licensed or required to be licensed under this article are subject to
examination by the department and to the examination fees described
in IC 24-4.4-2-402(7)(c). The department may cooperate with the
securities division of the office of the secretary of state in the
department's examination of loan broker business transactions and
may use the securities division's examiners to conduct examinations. As added by P.L.35-2010, SEC.7.
IC 24-4.4-1-203
Repealed
(Repealed by P.L.35-2010, SEC.209.)
IC 24-4.4-1-204 Entities that also conduct loan broker business; regulatory
cooperation with securities commissioner
Sec. 204. In the department's examination and regulatory activities
related to licensees under this article, the department may cooperate
with the Indiana securities commissioner in the regulation of entities
that, in addition to conducting business regulated under this article,
also conduct a loan brokerage business subject to IC 23-2-5. As added by P.L.35-2010, SEC.8.
IC 24-4.4-1-301 Definitions
Sec. 301. In addition to definitions appearing in subsequent
chapters of this article, the following definitions apply throughout
this article:
(1) "Affiliate", with respect to any person subject to this article,
means a person that, directly or indirectly, through one (1) or
more intermediaries:
(a) controls;
(b) is controlled by; or
(c) is under common control with;
the person subject to this article.
(2) "Agreement" means the bargain of the parties in fact as
found in the parties' language or by implication from other
circumstances, including course of dealing or usage of trade or
course of performance.
(3) "Agricultural products" includes agricultural, horticultural,
viticultural, dairy products, livestock, wildlife, poultry, bees,
forest products, fish and shellfish, any products raised or
produced on farms, and any products processed or
manufactured from products raised or produced on farms.
(4) "Agricultural purpose" means a purpose related to the
production, harvest, exhibition, marketing, transportation,
processing, or manufacture of agricultural products by a natural
person who cultivates, plants, propagates, or nurtures the
agricultural products.
(5) "Consumer credit sale" is a sale of goods, services, or an
interest in land in which:
(a) credit is granted by a person who engages as a seller in
credit transactions of the same kind;
(b) the buyer is a person other than an organization;
(c) the goods, services, or interest in land are purchased
primarily for a personal, family, or household purpose;
(d) either the debt is payable in installments or a finance
charge is made; and
(e) with respect to a sale of goods or services, either the
amount financed does not exceed fifty thousand dollars
($50,000) or the debt is secured by personal property used or
expected to be used as the principal dwelling of the buyer.
(6) "Credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.
(7) "Creditor" means a person:
(a) that engages in the extension of first lien mortgage
transactions that are subject to a credit service charge or loan
finance charge, as applicable, or are payable by written
agreement in more than four (4) installments (not including
a down payment); and
(b) to which the obligation is initially payable, either on the
face of the note or contract, or by agreement if there is not a
note or contract.
The term does not include a person described in subsection
33(a) in a tablefunded transaction. A creditor may be an
individual, a limited liability company, a sole proprietorship, a
partnership, a trust, a joint venture, a corporation, an
unincorporated organization, or other form of entity, however
organized.
(8) "Department" refers to the members of the department of
financial institutions.
(9) "Depository institution" has the meaning set forth in the
Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes
any credit union.
(10) "Director" refers to the director of the department of
financial institutions or the director's designee.
(11) "Dwelling" means a residential structure that contains one
(1) to four (4) units, regardless of whether the structure is
attached to real property. The term includes an individual:
(a) condominium unit;
(b) cooperative unit;
(c) mobile home; or
(d) trailer;
that is used as a residence.
(12) "Employee" means an individual who is paid wages or
other compensation by an employer required under federal
income tax law to file Form W-2 on behalf of the individual.
(13) "Federal banking agencies" means the Board of Governors
of the Federal Reserve System, the Comptroller of the
Currency, the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance
Corporation.
(14) "First lien mortgage transaction" means:
(a) a loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal,
family, or household purposes and that is secured by a
mortgage, a land contract, or another equivalent consensual
security interest which constitutes a first lien on a dwelling or
residential real estate.
(15) "Immediate family member" means a spouse, child, sibling,
parent, grandparent, or grandchild. The term includes
stepparents, stepchildren, stepsiblings, and adoptive
relationships.
(16) "Individual" means a natural person.
(17) "Licensee" means a person licensed as a creditor under this
article.
(18) "Loan" includes:
(a) the creation of debt by:
(i) the creditor's payment of or agreement to pay money to
the debtor or to a third party for the account of the debtor;
or
(ii) the extension of credit by a person who engages as a
seller in credit transactions primarily secured by an
interest in land;
(b) the creation of debt by a credit to an account with the
creditor upon which the debtor is entitled to draw
immediately; and
(c) the forbearance of debt arising from a loan.
(19) "Loan brokerage business" means any activity in which a
person, in return for any consideration from any source,
procures, attempts to procure, or assists in procuring, a
mortgage transaction from a third party or any other person,
whether or not the person seeking the mortgage transaction
actually obtains the mortgage transaction.
(20) "Loan processor or underwriter" means an individual who
performs clerical or support duties as an employee at the
direction of, and subject to the supervision and instruction of,
a person licensed or exempt from licensing under this article.
For purposes of this subsection, the term "clerical or support
duties" may include, after the receipt of an application, the
following:
(a) The receipt, collection, distribution, and analysis of
information common for the processing or underwriting of
a mortgage transaction.
(b) The communication with a consumer to obtain the
information necessary for the processing or underwriting of
a loan, to the extent that the communication does not
include:
(i) offering or negotiating loan rates or terms; or
(ii) counseling consumers about mortgage transaction rates
or terms.
An individual engaging solely in loan processor or underwriter
activities shall not represent to the public, through advertising
or other means of communicating or providing information,
including the use of business cards, stationery, brochures, signs,
rate lists, or other promotional items, that the individual can or
will perform any of the activities of a mortgage loan originator.
(21) "Mortgage loan originator" means an individual who, for
compensation or gain, or in the expectation of compensation or
gain, engages in taking a mortgage transaction application or in
offering or negotiating the terms of a mortgage transaction that
either is made under this article or under IC 24-4.5 or is made
by an employee of a person licensed or exempt from licensing
under this article or under IC 24-4.5, while the employee is
engaging in the loan brokerage business. The term does not
include the following:
(a) An individual engaged solely as a loan processor or
underwriter as long as the individual works exclusively as an
employee of a person licensed or exempt from licensing
under this article.
(b) Unless the person or entity is compensated by:
(i) a creditor;
(ii) a loan broker;
(iii) another mortgage loan originator; or
(iv) any agent of a creditor, a loan broker, or another
mortgage loan originator described in items (i) through
(iii);
a person or entity that performs only real estate brokerage
activities and is licensed or registered in accordance with
applicable state law.
(c) A person solely involved in extensions of credit relating
to timeshare plans (as defined in 11 U.S.C. 101(53D)).
(22) "Mortgage servicer" means the last person to whom a
mortgagor or the mortgagor's successor in interest has been
instructed by a mortgagee to send payments on a loan secured
by a mortgage.
(23) "Mortgage transaction" means:
(a) a loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal,
family, or household purposes and that is secured by a
mortgage, a land contract, or another equivalent consensual
security interest on a dwelling or residential real estate.
(24) "Nationwide Mortgage Licensing System and Registry" or
"NMLSR" means a mortgage licensing system developed and
maintained by the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators
for the licensing and registration of creditors and mortgage loan
originators.
(25) "Nontraditional mortgage product" means any mortgage
product other than a thirty (30) year fixed rate mortgage.
(26) "Organization" means a corporation, a government or
government subdivision, an agency, a trust, an estate, a
partnership, a limited liability company, a cooperative, an
association, a joint venture, an unincorporated organization, or
any other entity, however organized.
(27) "Payable in installments", with respect to a debt or an
obligation, means that payment is required or permitted by
written agreement to be made in more than four (4) installments
not including a down payment.
(28) "Person" includes an individual or an organization.
(29) "Principal" of a mortgage transaction means the total of:
(a) the net amount paid to, receivable by, or paid or payable
for the account of the debtor; and
(b) to the extent that payment is deferred, amounts actually
paid or to be paid by the creditor for registration, certificate
of title, or license fees if not included in clause (a).
(30) "Real estate brokerage activity" means any activity that
involves offering or providing real estate brokerage services to
the public, including the following:
(a) Acting as a real estate agent or real estate broker for a
buyer, seller, lessor, or lessee of real property.
(b) Bringing together parties interested in the sale, purchase,
lease, rental, or exchange of real property.
(c) Negotiating, on behalf of any party, any part of a contract
relating to the sale, purchase, lease, rental, or exchange of
real property (other than in connection with providing
financing with respect to the sale, purchase, lease, rental, or
exchange of real property).
(d) Engaging in any activity for which a person engaged in
the activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law.
(e) Offering to engage in any activity, or act in any capacity,
described in this subsection.
(31) "Registered mortgage loan originator" means any
individual who:
(a) meets the definition of mortgage loan originator and is an
employee of:
(i) a depository institution;
(ii) a subsidiary that is owned and controlled by a
depository institution and regulated by a federal banking
agency; or
(iii) an institution regulated by the Farm Credit
Administration; and
(b) is registered with, and maintains a unique identifier
through, the NMLSR.
(32) "Residential real estate" means any real property that is
located in Indiana and on which there is located or intended to
be constructed a dwelling.
(33) "Revolving first lien mortgage transaction" means a first
lien mortgage transaction in which:
(a) the creditor permits the debtor to obtain advances from
time to time;
(b) the unpaid balances of principal, finance charges, and
other appropriate charges are debited to an account; and
(c) the debtor has the privilege of paying the balances in
installments.
(34) "Tablefunded" means a transaction in which:
(a) a person closes a first lien mortgage transaction in the
person's own name as a mortgagee with funds provided by
one (1) or more other persons; and
(b) the transaction is assigned simultaneously to the
mortgage creditor providing the funding not later than one
(1) business day after the funding of the transaction.
(35) "Unique identifier" means a number or other identifier
assigned by protocols established by the NMLSR. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.9.
IC 24-4.4 ARTICLE 4.4. FIRST LIEN MORTGAGE LENDING
IC 24-4.4-1
Chapter 1. General Provisions and Definitions
IC 24-4.4-1-101 Short title; rules concerning licensing system for creditors and
mortgage loan originators
Sec. 101. (a) This article shall be known and may be cited as the
First Lien Mortgage Lending Act.
(b) Notwithstanding any other provision of this article or
IC 24-4.5, the department may adopt emergency rules under
IC 4-22-2-37.1, to remain effective until codified in the Indiana
Code, in order to provide for a system of licensing creditors and
mortgage loan originators that meets the requirements of the Secure
and Fair Enforcement for Mortgage Licensing Act of 2008 (H.R.
3221 Title V) and the interpretations of that Act issued by the
Secretary of Housing and Urban Development. As added by P.L.145-2008, SEC.20. Amended by P.L.182-2009(ss),
SEC.369.
IC 24-4.4-1-102 Purposes; rules of construction
Sec. 102. (1) This article shall be liberally construed and applied
to promote its underlying purposes and policies.
(2) The underlying purposes and policies of this article are:
(a) to permit and encourage the development of fair and
economically sound first lien mortgage lending practices; and
(b) to conform the regulation of first lien mortgage lending
practices to applicable state and federal laws, rules, and
regulations.
(3) A reference to a requirement imposed by this article includes
reference to a related rule of the department adopted under this
article.
(4) A reference to a federal law in this article is a reference to the
law in effect December 31, 2009. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.5.
IC 24-4.4-1-103 Unified coverage of subject matter; construction against implied
repeal
Sec. 103. This article:
(1) is a general act intended as a unified coverage of its subject
matter; and
(2) any part of this article may not be considered to be impliedly
repealed by subsequent legislation if such construction can
reasonably be avoided. As added by P.L.145-2008, SEC.20. IC 24-4.4-1-104 Severability
Sec. 104. The provisions of this article are severable, so that if:
(1) any provisions of this article; or
(2) the application of this article to any person or
circumstances;
is held invalid, the invalidity does not affect other provisions or
applications of this article that can be given effect without the invalid
provision or application. As added by P.L.145-2008, SEC.20.
IC 24-4.4-1-201 Application; nonresident debtor
Sec. 201. (1) Except as provided in subsection (2), this article
applies to a first lien mortgage transaction:
(a) that is secured by an interest in land in Indiana; and
(b) the closing for which takes place after December 31, 2008.
(2) This article does not apply to a first lien mortgage transaction
if:
(a) the debtor is not a resident of Indiana at the time the
transaction is entered into; and
(b) the laws of the debtor's state of residence require that the
transaction be made under the laws of the state of the debtor's
residence. As added by P.L.145-2008, SEC.20. Amended by P.L.1-2009,
SEC.134.
IC 24-4.4-1-202 Exempt transactions
Sec. 202. This article does not apply to the following:
(1) Extensions of credit to government or governmental
agencies or instrumentalities.
(2) A first lien mortgage transaction in which the debt is
incurred primarily for a purpose other than a personal, family,
or household purpose.
(3) An extension of credit primarily for a business, a
commercial, or an agricultural purpose.
(4) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien
mortgage transaction made:
(a) in compliance with the requirements of; and
(b) by a community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from;
the Indiana housing and community development authority
established by IC 5-20-1-3.
(5) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a first lien
mortgage transaction made by an entity that exclusively uses
funds provided by the United States Department of Housing and
Urban Development under Title 1 of the federal Housing and
Community Development Act of 1974, Public Law 93-383, as
amended (42 U.S.C. 5301 et seq.).
(6) An extension of credit originated by:
(a) a depository institution;
(b) subsidiaries that are:
(i) owned and controlled by a depository institution; and
(ii) regulated by a federal banking agency; or
(c) an institution regulated by the Farm Credit
Administration.
(7) Except for IC 24-4.4-2-401(2), IC 24-4.4-2-402.3,
IC 24-4.4-2-405(4), and IC 24-4.4-2-405(5), a credit union
service organization that is majority owned, directly or
indirectly, by one (1) or more credit unions.
(8) A first lien mortgage transaction originated by a registered
mortgage loan originator, when acting for an entity described in
subsection (6). However, a privately insured state chartered
credit union shall comply with the system of mortgage loan
originator registration developed by the Federal Financial
Institutions Examinations Council under Section 1507 of the
federal Safe and Fair Enforcement for Mortgage Licensing Act
of 2008 (SAFE).
(9) An individual who offers or negotiates terms of a mortgage
transaction with or on behalf of an immediate family member
of the individual.
(10) An individual who offers or negotiates terms of a mortgage
transaction secured by a dwelling that served as the individual's
residence.
(11) Unless the attorney is compensated by:
(a) a lender;
(b) a mortgage broker;
(c) another mortgage loan originator; or
(d) any agent of the lender, mortgage broker, or other
mortgage loan originator described in clauses (a) through
(c);
a licensed attorney who negotiates the terms of a mortgage
transaction on behalf of a client as an ancillary matter to the
attorney's representation of the client.
(12) Agencies, instrumentalities, and government owned
corporations of the United States, including United States
government sponsored enterprises. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.6.
IC 24-4.4-1-202.5 Persons also engaging in loan brokerage business; applicability of
loan broker statutes; examination by department; cooperation with
securities division
Sec. 202.5. (1) If a person licensed or required to be licensed
under this article also engages in the loan brokerage business, the
person's loan brokerage business is subject to the following sections
of the Indiana Code and any rules adopted to implement these
sections:
(a) IC 23-2-5-9.
(b) IC 23-2-5-9.1.
(c) IC 23-2-5-15.
(d) IC 23-2-5-16.
(e) IC 23-2-5-17.
(f) IC 23-2-5-18.
(g) IC 23-2-5-18.5.
(h) IC 23-2-5-20.
(i) IC 23-2-5-23, except for IC 23-2-5-23(2)(B).
(j) IC 23-2-5-24.
(2) Loan broker business transactions engaged in by persons
licensed or required to be licensed under this article are subject to
examination by the department and to the examination fees described
in IC 24-4.4-2-402(7)(c). The department may cooperate with the
securities division of the office of the secretary of state in the
department's examination of loan broker business transactions and
may use the securities division's examiners to conduct examinations. As added by P.L.35-2010, SEC.7.
IC 24-4.4-1-203
Repealed
(Repealed by P.L.35-2010, SEC.209.)
IC 24-4.4-1-204 Entities that also conduct loan broker business; regulatory
cooperation with securities commissioner
Sec. 204. In the department's examination and regulatory activities
related to licensees under this article, the department may cooperate
with the Indiana securities commissioner in the regulation of entities
that, in addition to conducting business regulated under this article,
also conduct a loan brokerage business subject to IC 23-2-5. As added by P.L.35-2010, SEC.8.
IC 24-4.4-1-301 Definitions
Sec. 301. In addition to definitions appearing in subsequent
chapters of this article, the following definitions apply throughout
this article:
(1) "Affiliate", with respect to any person subject to this article,
means a person that, directly or indirectly, through one (1) or
more intermediaries:
(a) controls;
(b) is controlled by; or
(c) is under common control with;
the person subject to this article.
(2) "Agreement" means the bargain of the parties in fact as
found in the parties' language or by implication from other
circumstances, including course of dealing or usage of trade or
course of performance.
(3) "Agricultural products" includes agricultural, horticultural,
viticultural, dairy products, livestock, wildlife, poultry, bees,
forest products, fish and shellfish, any products raised or
produced on farms, and any products processed or
manufactured from products raised or produced on farms.
(4) "Agricultural purpose" means a purpose related to the
production, harvest, exhibition, marketing, transportation,
processing, or manufacture of agricultural products by a natural
person who cultivates, plants, propagates, or nurtures the
agricultural products.
(5) "Consumer credit sale" is a sale of goods, services, or an
interest in land in which:
(a) credit is granted by a person who engages as a seller in
credit transactions of the same kind;
(b) the buyer is a person other than an organization;
(c) the goods, services, or interest in land are purchased
primarily for a personal, family, or household purpose;
(d) either the debt is payable in installments or a finance
charge is made; and
(e) with respect to a sale of goods or services, either the
amount financed does not exceed fifty thousand dollars
($50,000) or the debt is secured by personal property used or
expected to be used as the principal dwelling of the buyer.
(6) "Credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.
(7) "Creditor" means a person:
(a) that engages in the extension of first lien mortgage
transactions that are subject to a credit service charge or loan
finance charge, as applicable, or are payable by written
agreement in more than four (4) installments (not including
a down payment); and
(b) to which the obligation is initially payable, either on the
face of the note or contract, or by agreement if there is not a
note or contract.
The term does not include a person described in subsection
33(a) in a tablefunded transaction. A creditor may be an
individual, a limited liability company, a sole proprietorship, a
partnership, a trust, a joint venture, a corporation, an
unincorporated organization, or other form of entity, however
organized.
(8) "Department" refers to the members of the department of
financial institutions.
(9) "Depository institution" has the meaning set forth in the
Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes
any credit union.
(10) "Director" refers to the director of the department of
financial institutions or the director's designee.
(11) "Dwelling" means a residential structure that contains one
(1) to four (4) units, regardless of whether the structure is
attached to real property. The term includes an individual:
(a) condominium unit;
(b) cooperative unit;
(c) mobile home; or
(d) trailer;
that is used as a residence.
(12) "Employee" means an individual who is paid wages or
other compensation by an employer required under federal
income tax law to file Form W-2 on behalf of the individual.
(13) "Federal banking agencies" means the Board of Governors
of the Federal Reserve System, the Comptroller of the
Currency, the Office of Thrift Supervision, the National Credit
Union Administration, and the Federal Deposit Insurance
Corporation.
(14) "First lien mortgage transaction" means:
(a) a loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal,
family, or household purposes and that is secured by a
mortgage, a land contract, or another equivalent consensual
security interest which constitutes a first lien on a dwelling or
residential real estate.
(15) "Immediate family member" means a spouse, child, sibling,
parent, grandparent, or grandchild. The term includes
stepparents, stepchildren, stepsiblings, and adoptive
relationships.
(16) "Individual" means a natural person.
(17) "Licensee" means a person licensed as a creditor under this
article.
(18) "Loan" includes:
(a) the creation of debt by:
(i) the creditor's payment of or agreement to pay money to
the debtor or to a third party for the account of the debtor;
or
(ii) the extension of credit by a person who engages as a
seller in credit transactions primarily secured by an
interest in land;
(b) the creation of debt by a credit to an account with the
creditor upon which the debtor is entitled to draw
immediately; and
(c) the forbearance of debt arising from a loan.
(19) "Loan brokerage business" means any activity in which a
person, in return for any consideration from any source,
procures, attempts to procure, or assists in procuring, a
mortgage transaction from a third party or any other person,
whether or not the person seeking the mortgage transaction
actually obtains the mortgage transaction.
(20) "Loan processor or underwriter" means an individual who
performs clerical or support duties as an employee at the
direction of, and subject to the supervision and instruction of,
a person licensed or exempt from licensing under this article.
For purposes of this subsection, the term "clerical or support
duties" may include, after the receipt of an application, the
following:
(a) The receipt, collection, distribution, and analysis of
information common for the processing or underwriting of
a mortgage transaction.
(b) The communication with a consumer to obtain the
information necessary for the processing or underwriting of
a loan, to the extent that the communication does not
include:
(i) offering or negotiating loan rates or terms; or
(ii) counseling consumers about mortgage transaction rates
or terms.
An individual engaging solely in loan processor or underwriter
activities shall not represent to the public, through advertising
or other means of communicating or providing information,
including the use of business cards, stationery, brochures, signs,
rate lists, or other promotional items, that the individual can or
will perform any of the activities of a mortgage loan originator.
(21) "Mortgage loan originator" means an individual who, for
compensation or gain, or in the expectation of compensation or
gain, engages in taking a mortgage transaction application or in
offering or negotiating the terms of a mortgage transaction that
either is made under this article or under IC 24-4.5 or is made
by an employee of a person licensed or exempt from licensing
under this article or under IC 24-4.5, while the employee is
engaging in the loan brokerage business. The term does not
include the following:
(a) An individual engaged solely as a loan processor or
underwriter as long as the individual works exclusively as an
employee of a person licensed or exempt from licensing
under this article.
(b) Unless the person or entity is compensated by:
(i) a creditor;
(ii) a loan broker;
(iii) another mortgage loan originator; or
(iv) any agent of a creditor, a loan broker, or another
mortgage loan originator described in items (i) through
(iii);
a person or entity that performs only real estate brokerage
activities and is licensed or registered in accordance with
applicable state law.
(c) A person solely involved in extensions of credit relating
to timeshare plans (as defined in 11 U.S.C. 101(53D)).
(22) "Mortgage servicer" means the last person to whom a
mortgagor or the mortgagor's successor in interest has been
instructed by a mortgagee to send payments on a loan secured
by a mortgage.
(23) "Mortgage transaction" means:
(a) a loan; or
(b) a consumer credit sale;
that is or will be used by the debtor primarily for personal,
family, or household purposes and that is secured by a
mortgage, a land contract, or another equivalent consensual
security interest on a dwelling or residential real estate.
(24) "Nationwide Mortgage Licensing System and Registry" or
"NMLSR" means a mortgage licensing system developed and
maintained by the Conference of State Bank Supervisors and
the American Association of Residential Mortgage Regulators
for the licensing and registration of creditors and mortgage loan
originators.
(25) "Nontraditional mortgage product" means any mortgage
product other than a thirty (30) year fixed rate mortgage.
(26) "Organization" means a corporation, a government or
government subdivision, an agency, a trust, an estate, a
partnership, a limited liability company, a cooperative, an
association, a joint venture, an unincorporated organization, or
any other entity, however organized.
(27) "Payable in installments", with respect to a debt or an
obligation, means that payment is required or permitted by
written agreement to be made in more than four (4) installments
not including a down payment.
(28) "Person" includes an individual or an organization.
(29) "Principal" of a mortgage transaction means the total of:
(a) the net amount paid to, receivable by, or paid or payable
for the account of the debtor; and
(b) to the extent that payment is deferred, amounts actually
paid or to be paid by the creditor for registration, certificate
of title, or license fees if not included in clause (a).
(30) "Real estate brokerage activity" means any activity that
involves offering or providing real estate brokerage services to
the public, including the following:
(a) Acting as a real estate agent or real estate broker for a
buyer, seller, lessor, or lessee of real property.
(b) Bringing together parties interested in the sale, purchase,
lease, rental, or exchange of real property.
(c) Negotiating, on behalf of any party, any part of a contract
relating to the sale, purchase, lease, rental, or exchange of
real property (other than in connection with providing
financing with respect to the sale, purchase, lease, rental, or
exchange of real property).
(d) Engaging in any activity for which a person engaged in
the activity is required to be registered or licensed as a real
estate agent or real estate broker under any applicable law.
(e) Offering to engage in any activity, or act in any capacity,
described in this subsection.
(31) "Registered mortgage loan originator" means any
individual who:
(a) meets the definition of mortgage loan originator and is an
employee of:
(i) a depository institution;
(ii) a subsidiary that is owned and controlled by a
depository institution and regulated by a federal banking
agency; or
(iii) an institution regulated by the Farm Credit
Administration; and
(b) is registered with, and maintains a unique identifier
through, the NMLSR.
(32) "Residential real estate" means any real property that is
located in Indiana and on which there is located or intended to
be constructed a dwelling.
(33) "Revolving first lien mortgage transaction" means a first
lien mortgage transaction in which:
(a) the creditor permits the debtor to obtain advances from
time to time;
(b) the unpaid balances of principal, finance charges, and
other appropriate charges are debited to an account; and
(c) the debtor has the privilege of paying the balances in
installments.
(34) "Tablefunded" means a transaction in which:
(a) a person closes a first lien mortgage transaction in the
person's own name as a mortgagee with funds provided by
one (1) or more other persons; and
(b) the transaction is assigned simultaneously to the
mortgage creditor providing the funding not later than one
(1) business day after the funding of the transaction.
(35) "Unique identifier" means a number or other identifier
assigned by protocols established by the NMLSR. As added by P.L.145-2008, SEC.20. Amended by P.L.35-2010,
SEC.9.
