Indiana Loan Brokers Prepare For New Legislation: Are you ready for the changes?
What is HEA 1440 and how does it affect Indiana loan brokers?
Starting July 1, 2019, Indiana Secretary of State’s House Enrolled Act No. 1440 (HEA 1440) impacts the way loan brokers conduct their business. HEA 1440 accounts for advancements in technology and current industry practices used by loan brokers. In this article, we highlight the changes in the process of getting and renewing an Indiana loan broker license brought on by this bill, which passed in office on March 26, 2019.
Changes to Indiana legislature for loan originator license regulations are happening.
What surety bond amount is needed for an Indiana loan broker license?
Prior to HEA 1440, Indiana mortgage loan originators needed a surety bond within a range between $50,000 to $75,000. The bond amount was determined by the loan originators’ loan volume for the previous year. The new bond requirement simplifies this process by requiring a flat amount of $60,000. Due to the reduced bond amount requirement, loan originators with higher loan volumes will most likely have a lower premium at renewal. Indiana loan broker license bonds (Indiana loan broker ESB) are still required to be electronically submitted to the NMLS.
