IC 24-5-23.5-1 "Appraisal"
Sec. 1. (a) As used in this chapter, "appraisal" means an
estimation that:
(1) represents the final opinion of the value of real property that
is the subject of a real estate transaction; and
(2) serves as the basis for the extension of credit, in the case of
a real estate transaction involving the making, refinancing, or
consolidation of a mortgage loan.
(b) The term may include any of the following:
(1) The results of an automated valuation model.
(2) A broker's price opinion.
(3) A desktop evaluation. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-2 "Appraisal company"
Sec. 2. As used in this chapter, "appraisal company" means a sole
proprietorship, firm, corporation, partnership, limited liability
company, limited liability partnership, joint venture, trust, or other
business unit or association that:
(1) performs appraisals on a regular basis for compensation
through one (1) or more owners, officers, employees, or agents;
or
(2) holds itself out to the public as performing appraisals. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-3 "Creditor"
Sec. 3. (a) As used in this chapter, "creditor" means a person:
(1) that regularly engages in Indiana in the extension of
mortgage loans 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
(2) to whom the obligation arising from a mortgage loan is
initially payable, either on the face of the note or contract, or by
agreement if there is not a note or contract.
(b) The term does not include a person described in:
(1) IC 24-9-2-6(a)(2) if the person described in
IC 24-9-2-6(a)(2) is not the person extending the credit in the
transaction; or
(2) IC 24-9-2-6(b). As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-4 "Mortgage loan"
Sec. 4. (a) As used in this chapter, "mortgage loan" means a loan
in which a mortgage, deed of trust, or land contract that constitutes
a lien is created or retained against an interest in real property in
Indiana.
(b) The term includes the following:
(1) A home loan subject to IC 24-9.
(2) A loan described in IC 24-9-1-1, to the extent allowed under
federal law.
(3) A first lien mortgage transaction (as defined in
IC 24-4.4-1-301) subject to IC 24-4.4.
(4) A consumer credit sale subject to IC 24-4.5-2 in which a
mortgage, deed of trust, or land contract that constitutes a lien
is created or retained against an interest in real property in
Indiana.
(5) A consumer credit loan subject to IC 24-4.5-3 in which a
mortgage, deed of trust, or land contract that constitutes a lien
is created or retained against an interest in real property in
Indiana.
(6) A loan in which a mortgage, deed of trust, or land contract
that constitutes a lien is created or retained against land:
(A) that is located in Indiana;
(B) upon which there is a dwelling that is not or will not be
used by the borrower primarily for personal, family, or
household purposes; and
(C) that is classified as residential for property tax purposes.
The term includes a loan that is secured by land in Indiana upon
which there is a dwelling that is purchased by or through the
borrower for investment or other business purposes. As added by P.L.52-2009, SEC.2. Amended by P.L.35-2010, SEC.88.
IC 24-5-23.5-5 "Real estate appraiser"
Sec. 5. As used in this chapter, "real estate appraiser" means a
person who prepares the appraisal for a real estate transaction in
Indiana, regardless of whether the person is licensed or certified, or
required to be licensed or certified, under the real estate appraiser
licensure and certification program established under IC 25-34.1-3-8. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-6 "Real estate transaction"
Sec. 6. As used in this chapter, "real estate transaction" means a
transaction that involves one (1) or both of the following:
(1) The sale or lease of any legal or equitable interest in real
estate located in Indiana.
(2) The making, refinancing, or consolidation of a mortgage
loan. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-7 Prohibition against corrupting or improperly influencing a real
estate appraiser or an appraisal
Sec. 7. A person shall not corrupt or improperly influence, or
attempt to corrupt or improperly influence:
(1) the independent judgment of a real estate appraiser with
respect to the value of the real estate that is the subject of a real
estate transaction; or
(2) the development, reporting, result, or review of an appraisal
prepared in connection with a real estate transaction;
through bribery, coercion, extortion, intimidation, collusion, or any
other manner. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-8 Creditor's duty to provide notice concerning homeowner
protection unit's contact information and borrower's right to
inspect settlement statement before closing; unit to prescribe form
of notice; promotion of unit's contact information; information
sharing; exemption from liability for disclosing suspected
violation; report to legislative council of complaints received
Sec. 8. (a) This subsection applies with respect to a completed
application for a mortgage loan that is received by a creditor after
December 31, 2009. A creditor shall, not later than three (3) business
days after receiving a completed written application for a mortgage
loan from a borrower or prospective borrower, provide to the
borrower or prospective borrower a notice, on a form prescribed by
the homeowner protection unit under subsection (b), that includes the
following:
(1) Contact information for the homeowner protection unit
established by the attorney general under IC 4-6-12, including:
(A) an electronic mail address for the homeowner protection
unit; and
(B) the toll free telephone number described in
IC 4-6-12-3.5.
(2) A statement that the borrower or prospective borrower may
contact the homeowner protection unit to report:
(A) a suspected violation of section 7 of this chapter; or
(B) other information about suspected fraudulent residential
real estate transactions, as authorized by IC 4-6-12-3.5(b).
(3) A statement that the borrower in a real estate transaction
that involves the making, refinancing, or consolidation of a
mortgage loan has the right to inspect the HUD-1 or HUD-1A
settlement statement during the business day immediately
preceding settlement, as provided by the federal Real Estate
Settlement Procedures Act (12 U.S.C. 2601 et seq.), as
amended.
The creditor shall provide the notice required by this subsection by
delivering it to the borrower or prospective borrower or placing it in
the United States mail to the borrower or prospective borrower
within the time prescribed by this subsection.
(b) Not later than September 1, 2009, the home owner protection
unit established by the attorney general under IC 4-6-12 shall
prescribe the form required under subsection (a) for use by creditors
who receive completed written applications for mortgage loans after
December 31, 2009.
(c) The homeowner protection unit established by the attorney
general under IC 4-6-12, in cooperation with the real estate appraiser
licensure and certification board created by IC 25-34.1-8-1, shall
publicize and promote awareness of the availability of the:
(1) electronic mail address; and
(2) toll free telephone number;
described in subsection (a)(1) to accept complaints from real estate
appraisers, creditors, borrowers, potential borrowers, and other
persons concerning suspected violations of section 7 of this chapter.
(d) A creditor may share any information obtained concerning a
suspected violation of section 7 of this chapter with the homeowner
protection unit established by the attorney general under IC 4-6-12.
The homeowner protection unit may, in turn, share any information
received from a creditor under this subsection with the following:
(1) Federal, state, and local law enforcement agencies and
federal regulatory agencies in accordance with
IC 4-6-12-3(a)(4).
(2) Any entity listed in IC 4-6-12-4 that may have jurisdiction
over any person who is suspected of violating section 7 of this
chapter, including any entity that may have jurisdiction over the
creditor or an agent of the creditor if the homeowner protection
unit suspects that the creditor or an agent of the creditor has
violated section 7 of this chapter. However, the homeowner
protection unit and any entity listed in IC 4-6-12-4 that receives
information under this subdivision shall treat the information,
including information concerning the identity of the
complainant, as confidential and shall exercise all necessary
caution to avoid disclosure of the information, except as
otherwise permitted or required by law.
(e) Any:
(1) real estate appraiser, creditor, borrower, potential borrower,
or other person that makes, in good faith, a voluntarily
disclosure of a suspected violation of section 7 of this chapter
to the homeowner protection unit under this section or
otherwise; and
(2) director, officer, manager, employee, or agent of a person
described in subdivision (1) who makes, or requires another
person to make, a disclosure described in subdivision (1);
is not liable to any person under any law or regulation of the United
States, under any constitution, law, or regulation of any state or a
political subdivision of any state, or under any contract or other
legally enforceable agreement, including an arbitration agreement,
for a disclosure described in subdivision (1) or for failing to provide
notice of a disclosure described in subdivision (1) to any person who
is the subject of the disclosure.
(f) Beginning in 2009, the report provided by the mortgage
lending and fraud prevention task force to the legislative council
under P.L.145-2008, SECTION 35, must include the following
information:
(1) The total number of complaints or reports:
(A) received by the homeowner protection unit during the
most recent state fiscal year; and
(B) concerning a suspected violation of section 7 of this
chapter.
(2) From the total number of complaints or reports reported
under subdivision (1), a breakdown of the sources of the
complaints or reports, classified according to the complainants'
interest in or relationship to the real estate transactions upon
which the complaints or reports are based.
(3) A description of any:
(A) disciplinary or enforcement actions taken; or
(B) criminal prosecutions pursued;
by the homeowner protection unit or any entity listed in
IC 4-6-12-4 and having jurisdiction in the matter, as applicable,
in connection with the complaints or reports reported under
subdivision (1).
The homeowner protection unit shall make available to the mortgage
lending and fraud prevention task force any information necessary to
provide the information required under this subsection in the task
force's report to the legislative council. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-9 Violation a Class A misdemeanor and a deceptive act; action for
injunctive relief by attorney general; civil penalty; cumulative
enforcement procedures
Sec. 9. (a) A person that knowingly or intentionally violates
section 7 of this chapter commits:
(1) a Class A misdemeanor; and
(2) an act that is:
(A) actionable by the attorney general under IC 24-5-0.5;
and
(B) subject to the penalties listed in IC 24-5-0.5.
(b) The attorney general may maintain an action in the name of
the state of Indiana to enjoin a person from violating section 7 of this
chapter. A court in which the action is brought may:
(1) issue an injunction;
(2) order the person to make restitution;
(3) order the person to reimburse the state for the attorney
general's reasonable costs of investigating and prosecuting the
violation; and
(4) impose a civil penalty of not more than ten thousand dollars
($10,000) per violation.
(c) A person that violates an injunction issued under this section
is subject to a civil penalty of not more than ten thousand dollars
($10,000) per violation. The court that issues the injunction retains
jurisdiction over a proceeding seeking the imposition of a civil
penalty under this subsection.
(d) A civil penalty imposed and collected under this section shall
be deposited in the investigative fund established by
IC 25-34.1-8-7.5.
(e) The enforcement procedures established by this section are
cumulative and an enforcement procedure available under this
section is supplemental to any other enforcement procedure available
under:
(1) this section; or
(2) any other state or federal law, rule, or regulation;
for a violation of section 7 of this chapter. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-1 "Appraisal"
Sec. 1. (a) As used in this chapter, "appraisal" means an
estimation that:
(1) represents the final opinion of the value of real property that
is the subject of a real estate transaction; and
(2) serves as the basis for the extension of credit, in the case of
a real estate transaction involving the making, refinancing, or
consolidation of a mortgage loan.
(b) The term may include any of the following:
(1) The results of an automated valuation model.
(2) A broker's price opinion.
(3) A desktop evaluation. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-2 "Appraisal company"
Sec. 2. As used in this chapter, "appraisal company" means a sole
proprietorship, firm, corporation, partnership, limited liability
company, limited liability partnership, joint venture, trust, or other
business unit or association that:
(1) performs appraisals on a regular basis for compensation
through one (1) or more owners, officers, employees, or agents;
or
(2) holds itself out to the public as performing appraisals. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-3 "Creditor"
Sec. 3. (a) As used in this chapter, "creditor" means a person:
(1) that regularly engages in Indiana in the extension of
mortgage loans 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
(2) to whom the obligation arising from a mortgage loan is
initially payable, either on the face of the note or contract, or by
agreement if there is not a note or contract.
(b) The term does not include a person described in:
(1) IC 24-9-2-6(a)(2) if the person described in
IC 24-9-2-6(a)(2) is not the person extending the credit in the
transaction; or
(2) IC 24-9-2-6(b). As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-4 "Mortgage loan"
Sec. 4. (a) As used in this chapter, "mortgage loan" means a loan
in which a mortgage, deed of trust, or land contract that constitutes
a lien is created or retained against an interest in real property in
Indiana.
(b) The term includes the following:
(1) A home loan subject to IC 24-9.
(2) A loan described in IC 24-9-1-1, to the extent allowed under
federal law.
(3) A first lien mortgage transaction (as defined in
IC 24-4.4-1-301) subject to IC 24-4.4.
(4) A consumer credit sale subject to IC 24-4.5-2 in which a
mortgage, deed of trust, or land contract that constitutes a lien
is created or retained against an interest in real property in
Indiana.
(5) A consumer credit loan subject to IC 24-4.5-3 in which a
mortgage, deed of trust, or land contract that constitutes a lien
is created or retained against an interest in real property in
Indiana.
(6) A loan in which a mortgage, deed of trust, or land contract
that constitutes a lien is created or retained against land:
(A) that is located in Indiana;
(B) upon which there is a dwelling that is not or will not be
used by the borrower primarily for personal, family, or
household purposes; and
(C) that is classified as residential for property tax purposes.
The term includes a loan that is secured by land in Indiana upon
which there is a dwelling that is purchased by or through the
borrower for investment or other business purposes. As added by P.L.52-2009, SEC.2. Amended by P.L.35-2010, SEC.88.
IC 24-5-23.5-5 "Real estate appraiser"
Sec. 5. As used in this chapter, "real estate appraiser" means a
person who prepares the appraisal for a real estate transaction in
Indiana, regardless of whether the person is licensed or certified, or
required to be licensed or certified, under the real estate appraiser
licensure and certification program established under IC 25-34.1-3-8. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-6 "Real estate transaction"
Sec. 6. As used in this chapter, "real estate transaction" means a
transaction that involves one (1) or both of the following:
(1) The sale or lease of any legal or equitable interest in real
estate located in Indiana.
(2) The making, refinancing, or consolidation of a mortgage
loan. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-7 Prohibition against corrupting or improperly influencing a real
estate appraiser or an appraisal
Sec. 7. A person shall not corrupt or improperly influence, or
attempt to corrupt or improperly influence:
(1) the independent judgment of a real estate appraiser with
respect to the value of the real estate that is the subject of a real
estate transaction; or
(2) the development, reporting, result, or review of an appraisal
prepared in connection with a real estate transaction;
through bribery, coercion, extortion, intimidation, collusion, or any
other manner. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-8 Creditor's duty to provide notice concerning homeowner
protection unit's contact information and borrower's right to
inspect settlement statement before closing; unit to prescribe form
of notice; promotion of unit's contact information; information
sharing; exemption from liability for disclosing suspected
violation; report to legislative council of complaints received
Sec. 8. (a) This subsection applies with respect to a completed
application for a mortgage loan that is received by a creditor after
December 31, 2009. A creditor shall, not later than three (3) business
days after receiving a completed written application for a mortgage
loan from a borrower or prospective borrower, provide to the
borrower or prospective borrower a notice, on a form prescribed by
the homeowner protection unit under subsection (b), that includes the
following:
(1) Contact information for the homeowner protection unit
established by the attorney general under IC 4-6-12, including:
(A) an electronic mail address for the homeowner protection
unit; and
(B) the toll free telephone number described in
IC 4-6-12-3.5.
(2) A statement that the borrower or prospective borrower may
contact the homeowner protection unit to report:
(A) a suspected violation of section 7 of this chapter; or
(B) other information about suspected fraudulent residential
real estate transactions, as authorized by IC 4-6-12-3.5(b).
(3) A statement that the borrower in a real estate transaction
that involves the making, refinancing, or consolidation of a
mortgage loan has the right to inspect the HUD-1 or HUD-1A
settlement statement during the business day immediately
preceding settlement, as provided by the federal Real Estate
Settlement Procedures Act (12 U.S.C. 2601 et seq.), as
amended.
The creditor shall provide the notice required by this subsection by
delivering it to the borrower or prospective borrower or placing it in
the United States mail to the borrower or prospective borrower
within the time prescribed by this subsection.
(b) Not later than September 1, 2009, the home owner protection
unit established by the attorney general under IC 4-6-12 shall
prescribe the form required under subsection (a) for use by creditors
who receive completed written applications for mortgage loans after
December 31, 2009.
(c) The homeowner protection unit established by the attorney
general under IC 4-6-12, in cooperation with the real estate appraiser
licensure and certification board created by IC 25-34.1-8-1, shall
publicize and promote awareness of the availability of the:
(1) electronic mail address; and
(2) toll free telephone number;
described in subsection (a)(1) to accept complaints from real estate
appraisers, creditors, borrowers, potential borrowers, and other
persons concerning suspected violations of section 7 of this chapter.
(d) A creditor may share any information obtained concerning a
suspected violation of section 7 of this chapter with the homeowner
protection unit established by the attorney general under IC 4-6-12.
The homeowner protection unit may, in turn, share any information
received from a creditor under this subsection with the following:
(1) Federal, state, and local law enforcement agencies and
federal regulatory agencies in accordance with
IC 4-6-12-3(a)(4).
(2) Any entity listed in IC 4-6-12-4 that may have jurisdiction
over any person who is suspected of violating section 7 of this
chapter, including any entity that may have jurisdiction over the
creditor or an agent of the creditor if the homeowner protection
unit suspects that the creditor or an agent of the creditor has
violated section 7 of this chapter. However, the homeowner
protection unit and any entity listed in IC 4-6-12-4 that receives
information under this subdivision shall treat the information,
including information concerning the identity of the
complainant, as confidential and shall exercise all necessary
caution to avoid disclosure of the information, except as
otherwise permitted or required by law.
(e) Any:
(1) real estate appraiser, creditor, borrower, potential borrower,
or other person that makes, in good faith, a voluntarily
disclosure of a suspected violation of section 7 of this chapter
to the homeowner protection unit under this section or
otherwise; and
(2) director, officer, manager, employee, or agent of a person
described in subdivision (1) who makes, or requires another
person to make, a disclosure described in subdivision (1);
is not liable to any person under any law or regulation of the United
States, under any constitution, law, or regulation of any state or a
political subdivision of any state, or under any contract or other
legally enforceable agreement, including an arbitration agreement,
for a disclosure described in subdivision (1) or for failing to provide
notice of a disclosure described in subdivision (1) to any person who
is the subject of the disclosure.
(f) Beginning in 2009, the report provided by the mortgage
lending and fraud prevention task force to the legislative council
under P.L.145-2008, SECTION 35, must include the following
information:
(1) The total number of complaints or reports:
(A) received by the homeowner protection unit during the
most recent state fiscal year; and
(B) concerning a suspected violation of section 7 of this
chapter.
(2) From the total number of complaints or reports reported
under subdivision (1), a breakdown of the sources of the
complaints or reports, classified according to the complainants'
interest in or relationship to the real estate transactions upon
which the complaints or reports are based.
(3) A description of any:
(A) disciplinary or enforcement actions taken; or
(B) criminal prosecutions pursued;
by the homeowner protection unit or any entity listed in
IC 4-6-12-4 and having jurisdiction in the matter, as applicable,
in connection with the complaints or reports reported under
subdivision (1).
The homeowner protection unit shall make available to the mortgage
lending and fraud prevention task force any information necessary to
provide the information required under this subsection in the task
force's report to the legislative council. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-9 Violation a Class A misdemeanor and a deceptive act; action for
injunctive relief by attorney general; civil penalty; cumulative
enforcement procedures
Sec. 9. (a) A person that knowingly or intentionally violates
section 7 of this chapter commits:
(1) a Class A misdemeanor; and
(2) an act that is:
(A) actionable by the attorney general under IC 24-5-0.5;
and
(B) subject to the penalties listed in IC 24-5-0.5.
(b) The attorney general may maintain an action in the name of
the state of Indiana to enjoin a person from violating section 7 of this
chapter. A court in which the action is brought may:
(1) issue an injunction;
(2) order the person to make restitution;
(3) order the person to reimburse the state for the attorney
general's reasonable costs of investigating and prosecuting the
violation; and
(4) impose a civil penalty of not more than ten thousand dollars
($10,000) per violation.
(c) A person that violates an injunction issued under this section
is subject to a civil penalty of not more than ten thousand dollars
($10,000) per violation. The court that issues the injunction retains
jurisdiction over a proceeding seeking the imposition of a civil
penalty under this subsection.
(d) A civil penalty imposed and collected under this section shall
be deposited in the investigative fund established by
IC 25-34.1-8-7.5.
(e) The enforcement procedures established by this section are
cumulative and an enforcement procedure available under this
section is supplemental to any other enforcement procedure available
under:
(1) this section; or
(2) any other state or federal law, rule, or regulation;
for a violation of section 7 of this chapter. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-1 "Appraisal"
Sec. 1. (a) As used in this chapter, "appraisal" means an
estimation that:
(1) represents the final opinion of the value of real property that
is the subject of a real estate transaction; and
(2) serves as the basis for the extension of credit, in the case of
a real estate transaction involving the making, refinancing, or
consolidation of a mortgage loan.
(b) The term may include any of the following:
(1) The results of an automated valuation model.
(2) A broker's price opinion.
(3) A desktop evaluation. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-2 "Appraisal company"
Sec. 2. As used in this chapter, "appraisal company" means a sole
proprietorship, firm, corporation, partnership, limited liability
company, limited liability partnership, joint venture, trust, or other
business unit or association that:
(1) performs appraisals on a regular basis for compensation
through one (1) or more owners, officers, employees, or agents;
or
(2) holds itself out to the public as performing appraisals. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-3 "Creditor"
Sec. 3. (a) As used in this chapter, "creditor" means a person:
(1) that regularly engages in Indiana in the extension of
mortgage loans 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
(2) to whom the obligation arising from a mortgage loan is
initially payable, either on the face of the note or contract, or by
agreement if there is not a note or contract.
(b) The term does not include a person described in:
(1) IC 24-9-2-6(a)(2) if the person described in
IC 24-9-2-6(a)(2) is not the person extending the credit in the
transaction; or
(2) IC 24-9-2-6(b). As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-4 "Mortgage loan"
Sec. 4. (a) As used in this chapter, "mortgage loan" means a loan
in which a mortgage, deed of trust, or land contract that constitutes
a lien is created or retained against an interest in real property in
Indiana.
(b) The term includes the following:
(1) A home loan subject to IC 24-9.
(2) A loan described in IC 24-9-1-1, to the extent allowed under
federal law.
(3) A first lien mortgage transaction (as defined in
IC 24-4.4-1-301) subject to IC 24-4.4.
(4) A consumer credit sale subject to IC 24-4.5-2 in which a
mortgage, deed of trust, or land contract that constitutes a lien
is created or retained against an interest in real property in
Indiana.
(5) A consumer credit loan subject to IC 24-4.5-3 in which a
mortgage, deed of trust, or land contract that constitutes a lien
is created or retained against an interest in real property in
Indiana.
(6) A loan in which a mortgage, deed of trust, or land contract
that constitutes a lien is created or retained against land:
(A) that is located in Indiana;
(B) upon which there is a dwelling that is not or will not be
used by the borrower primarily for personal, family, or
household purposes; and
(C) that is classified as residential for property tax purposes.
The term includes a loan that is secured by land in Indiana upon
which there is a dwelling that is purchased by or through the
borrower for investment or other business purposes. As added by P.L.52-2009, SEC.2. Amended by P.L.35-2010, SEC.88.
IC 24-5-23.5-5 "Real estate appraiser"
Sec. 5. As used in this chapter, "real estate appraiser" means a
person who prepares the appraisal for a real estate transaction in
Indiana, regardless of whether the person is licensed or certified, or
required to be licensed or certified, under the real estate appraiser
licensure and certification program established under IC 25-34.1-3-8. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-6 "Real estate transaction"
Sec. 6. As used in this chapter, "real estate transaction" means a
transaction that involves one (1) or both of the following:
(1) The sale or lease of any legal or equitable interest in real
estate located in Indiana.
(2) The making, refinancing, or consolidation of a mortgage
loan. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-7 Prohibition against corrupting or improperly influencing a real
estate appraiser or an appraisal
Sec. 7. A person shall not corrupt or improperly influence, or
attempt to corrupt or improperly influence:
(1) the independent judgment of a real estate appraiser with
respect to the value of the real estate that is the subject of a real
estate transaction; or
(2) the development, reporting, result, or review of an appraisal
prepared in connection with a real estate transaction;
through bribery, coercion, extortion, intimidation, collusion, or any
other manner. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-8 Creditor's duty to provide notice concerning homeowner
protection unit's contact information and borrower's right to
inspect settlement statement before closing; unit to prescribe form
of notice; promotion of unit's contact information; information
sharing; exemption from liability for disclosing suspected
violation; report to legislative council of complaints received
Sec. 8. (a) This subsection applies with respect to a completed
application for a mortgage loan that is received by a creditor after
December 31, 2009. A creditor shall, not later than three (3) business
days after receiving a completed written application for a mortgage
loan from a borrower or prospective borrower, provide to the
borrower or prospective borrower a notice, on a form prescribed by
the homeowner protection unit under subsection (b), that includes the
following:
(1) Contact information for the homeowner protection unit
established by the attorney general under IC 4-6-12, including:
(A) an electronic mail address for the homeowner protection
unit; and
(B) the toll free telephone number described in
IC 4-6-12-3.5.
(2) A statement that the borrower or prospective borrower may
contact the homeowner protection unit to report:
(A) a suspected violation of section 7 of this chapter; or
(B) other information about suspected fraudulent residential
real estate transactions, as authorized by IC 4-6-12-3.5(b).
(3) A statement that the borrower in a real estate transaction
that involves the making, refinancing, or consolidation of a
mortgage loan has the right to inspect the HUD-1 or HUD-1A
settlement statement during the business day immediately
preceding settlement, as provided by the federal Real Estate
Settlement Procedures Act (12 U.S.C. 2601 et seq.), as
amended.
The creditor shall provide the notice required by this subsection by
delivering it to the borrower or prospective borrower or placing it in
the United States mail to the borrower or prospective borrower
within the time prescribed by this subsection.
(b) Not later than September 1, 2009, the home owner protection
unit established by the attorney general under IC 4-6-12 shall
prescribe the form required under subsection (a) for use by creditors
who receive completed written applications for mortgage loans after
December 31, 2009.
(c) The homeowner protection unit established by the attorney
general under IC 4-6-12, in cooperation with the real estate appraiser
licensure and certification board created by IC 25-34.1-8-1, shall
publicize and promote awareness of the availability of the:
(1) electronic mail address; and
(2) toll free telephone number;
described in subsection (a)(1) to accept complaints from real estate
appraisers, creditors, borrowers, potential borrowers, and other
persons concerning suspected violations of section 7 of this chapter.
(d) A creditor may share any information obtained concerning a
suspected violation of section 7 of this chapter with the homeowner
protection unit established by the attorney general under IC 4-6-12.
The homeowner protection unit may, in turn, share any information
received from a creditor under this subsection with the following:
(1) Federal, state, and local law enforcement agencies and
federal regulatory agencies in accordance with
IC 4-6-12-3(a)(4).
(2) Any entity listed in IC 4-6-12-4 that may have jurisdiction
over any person who is suspected of violating section 7 of this
chapter, including any entity that may have jurisdiction over the
creditor or an agent of the creditor if the homeowner protection
unit suspects that the creditor or an agent of the creditor has
violated section 7 of this chapter. However, the homeowner
protection unit and any entity listed in IC 4-6-12-4 that receives
information under this subdivision shall treat the information,
including information concerning the identity of the
complainant, as confidential and shall exercise all necessary
caution to avoid disclosure of the information, except as
otherwise permitted or required by law.
(e) Any:
(1) real estate appraiser, creditor, borrower, potential borrower,
or other person that makes, in good faith, a voluntarily
disclosure of a suspected violation of section 7 of this chapter
to the homeowner protection unit under this section or
otherwise; and
(2) director, officer, manager, employee, or agent of a person
described in subdivision (1) who makes, or requires another
person to make, a disclosure described in subdivision (1);
is not liable to any person under any law or regulation of the United
States, under any constitution, law, or regulation of any state or a
political subdivision of any state, or under any contract or other
legally enforceable agreement, including an arbitration agreement,
for a disclosure described in subdivision (1) or for failing to provide
notice of a disclosure described in subdivision (1) to any person who
is the subject of the disclosure.
(f) Beginning in 2009, the report provided by the mortgage
lending and fraud prevention task force to the legislative council
under P.L.145-2008, SECTION 35, must include the following
information:
(1) The total number of complaints or reports:
(A) received by the homeowner protection unit during the
most recent state fiscal year; and
(B) concerning a suspected violation of section 7 of this
chapter.
(2) From the total number of complaints or reports reported
under subdivision (1), a breakdown of the sources of the
complaints or reports, classified according to the complainants'
interest in or relationship to the real estate transactions upon
which the complaints or reports are based.
(3) A description of any:
(A) disciplinary or enforcement actions taken; or
(B) criminal prosecutions pursued;
by the homeowner protection unit or any entity listed in
IC 4-6-12-4 and having jurisdiction in the matter, as applicable,
in connection with the complaints or reports reported under
subdivision (1).
The homeowner protection unit shall make available to the mortgage
lending and fraud prevention task force any information necessary to
provide the information required under this subsection in the task
force's report to the legislative council. As added by P.L.52-2009, SEC.2.
IC 24-5-23.5-9 Violation a Class A misdemeanor and a deceptive act; action for
injunctive relief by attorney general; civil penalty; cumulative
enforcement procedures
Sec. 9. (a) A person that knowingly or intentionally violates
section 7 of this chapter commits:
(1) a Class A misdemeanor; and
(2) an act that is:
(A) actionable by the attorney general under IC 24-5-0.5;
and
(B) subject to the penalties listed in IC 24-5-0.5.
(b) The attorney general may maintain an action in the name of
the state of Indiana to enjoin a person from violating section 7 of this
chapter. A court in which the action is brought may:
(1) issue an injunction;
(2) order the person to make restitution;
(3) order the person to reimburse the state for the attorney
general's reasonable costs of investigating and prosecuting the
violation; and
(4) impose a civil penalty of not more than ten thousand dollars
($10,000) per violation.
(c) A person that violates an injunction issued under this section
is subject to a civil penalty of not more than ten thousand dollars
($10,000) per violation. The court that issues the injunction retains
jurisdiction over a proceeding seeking the imposition of a civil
penalty under this subsection.
(d) A civil penalty imposed and collected under this section shall
be deposited in the investigative fund established by
IC 25-34.1-8-7.5.
(e) The enforcement procedures established by this section are
cumulative and an enforcement procedure available under this
section is supplemental to any other enforcement procedure available
under:
(1) this section; or
(2) any other state or federal law, rule, or regulation;
for a violation of section 7 of this chapter. As added by P.L.52-2009, SEC.2.
