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House Bill 1717


House Bill 1717

ARCHIVE (2007)

Latest Information

 

DIGEST OF HB 1717 (Updated April 29, 2007 5:04 pm - DI 101)


Regulation of loan brokers, franchises, and collection agencies. Specifies that, to the extent authorized by federal law, the homeowner protection unit in the attorney general's office shall cooperate with federal, state, and local law enforcement agencies in the investigation of violations of certain federal laws and regulations. Requires the unit to report annually to the legislative council. Exempts an enforcement officer of the securities division of the office of the secretary of state from basic training requirements for law enforcement officers. Specifies that a securities enforcement officer is a law enforcement officer for the purpose of certain statutes. Gives the securities commissioner (commissioner) the same administrative powers and remedies to regulate: (1) franchises; and (2) collection agencies; as the commissioner has to regulate securities. Provides the same appeals procedures in the laws governing: (1) franchises; and (2) collection agencies; as are available under the laws governing securities. Specifies that a person that seeks to be registered as a loan originator must: (1) apply to the commissioner for a certificate of registration; and (2) pay a $100 registration fee. Specifies that a person that seeks to be registered as a principal manager for a loan brokerage business must: (1) apply to the commissioner for a certificate of registration; and (2) pay a $200 registration fee. Requires a person applying for registration as an originator or a principal manager to pass an examination. Requires a contract for services of a loan broker to contain a specific statement. Expands the reasons for disciplinary action against a loan broker or a registrant to include: (1) regulatory actions against the licensee or registrant in Indiana or other jurisdictions; and (2) certain violations, crimes, or practices committed by the licensee or registrant. Specifies that the commissioner may by summary order deny, suspend, or revoke a license or certificate of registration before any proceeding is initiated against the licensee or registrant. Provides that the exemption from the loan broker law that applies to a correspondent of loans insured by the United States Department of Housing and Urban Development applies only if the person closes at least 25 insured loans in Indiana during each calendar year. Provides that a person claiming certain exemptions from the loan broker law must file a notice every 24 months to receive or maintain the exemption. Requires the commissioner to report to the legislative council not later than November 1, 2007, concerning the implementation of the amendments to the loan broker statute. Requires the department of financial institutions to study the feasibility of regulating loan brokers, originators, and principal managers. Establishes the interim study committee on mortgage lending practices and home loan foreclosures. Requires the committee to study various issues concerning mortgage lending practices and home loan foreclosures. Makes certain changes to the Uniform Securities Act.
Current Status:
 Law Enacted
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