Indiana § 37-2-4-24 - Authority to make, take assignment of, or collect subordinate lien mortgage transactions; license required; exempt persons; registration with NMLSR; licensed mortgage loan originators; applications for licensure; director's authority to contract with NMLSR

§ 37-2-4-24. Authority to make, take assignment of, or collect subordinate lien mortgage transactions; license required; exempt persons; registration with NMLSR; licensed mortgage loan originators; applications for licensure; director's authority to contract with NMLSR

Sec. 24. (a) A person that is a:

(1) depository institution;

(2) subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency; or

(3) credit union service organization;

may engage in Indiana in the making of subordinate lien mortgage transactions without obtaining a mortgage license issued by the department.

(b) A collection agency licensed under IC 25-11-1 or an institution regulated by the Farm Credit Administration may engage in:

(1) taking assignments of subordinate lien mortgage transactions; and

(2) undertaking the direct collection of payments from or the enforcement of rights against debtors arising from subordinate lien mortgage transactions;

in Indiana without obtaining a mortgage license issued by the department.

(c) A person that is not otherwise exempt under subsection (a) or (b) shall acquire and retain a mortgage license issued by the department in order to regularly engage in Indiana in the following actions with respect to subordinate lien mortgage transactions:

(1) The making of subordinate lien mortgage loans.

(2) Taking assignments of subordinate lien mortgage loans.

(3) Undertaking the direct collection of payments from or the enforcement of rights against debtors arising from subordinate lien mortgage loans.

(d) Each:

(1) creditor licensed by the department to engage in subordinate lien mortgage transactions; and

(2) person that is exempt (either under this article or under IC 37-1-1-6(8)) from licensing and that:

(A) employs a licensed mortgage loan originator; or

(B) sponsors a licensed mortgage loan originator as permitted by IC 37-1-1-6(8) or by 750 IAC 9;

shall register with and maintain a valid unique identifier issued by the NMLSR. Each licensed mortgage loan originator must be employed by, or sponsored as permitted by IC 37-1-1-6(8) or by 750 IAC 9, and associated with, a licensed creditor (or an exempt person described under subdivision (2)) that is registered with the NMLSR.

(e) Applicants for a mortgage license must apply to the department for the license in a form prescribed by the director. Each form:

(1) must contain content as set forth by rule, instruction, or procedure of the director; and

(2) may be changed or updated as necessary by the director to carry out the purposes of this article.

(f) To fulfill the purposes of this article, the director may establish relationships or contracts with the NMLSR or other entities designated by the NMLSR to:

(1) collect and maintain records; and

(2) process transaction fees or other fees;

related to licensees or other persons subject to this article.

(g) For the purpose of participating in the NMLSR, the director or the department may:

(1) waive or modify, in whole or in part, by rule, regulation, or order, any or all of the requirements of this article; and

(2) establish new requirements as reasonably necessary to participate in the NMLSR.

[Pre-2026 Revision Citation: 24-4.5-3-502.1.]

As added by P.L.115-2026, SEC.97.