Ind. Code ch. 23-2.5-8

Ind. Code ch. 23-2.5-8
in effect

Ind. Code § 23-2.5-8-1 Loan broker contract

Sec. 1. (a) A contract for the services of a loan broker is not enforceable unless the contract is in writing and signed by each of the contracting parties. (b) At the time a contract for the services of a loan broker is signed, the loan broker shall provide the following to each party to the contract: (1) A copy of the signed contract. (2) A written disclosure of any agreement entered into by the loan broker to procure loans exclusively from one (1) lender. (c) A contract for the services of a loan broker must include the following statement: "No statement or representation by a loan broker is valid or enforceable unless the statement or representation is in writing.". (d) This section does not apply to a contract that provides for the payment of referral fees by a lender or a third party. As added by P.L.175-2019, SEC.2. Amended by P.L.158-2022, SEC.4.

Ind. Code § 23-2.5-8-2 Real estate appraiser; influence; ownership or interest

Sec. 2. (a) A licensee or a person required to be licensed under this article shall not knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of real estate offered as security for a residential mortgage loan. (b) Except as provided in subsection (c): (1) a licensee; (2) a person required to be licensed under this article; or (3) a member of the immediate family of a licensee; may not own or control a majority interest in an appraisal company. (c) This subsection applies to a person or combination of persons described in subsection (b) who own or control a majority interest in an appraisal company on June 30, 2007. The prohibition set forth in subsection (b) does not apply to a person or combination of persons described in this subsection, subject to the following: (1) The interest in the appraisal company owned or controlled by the person or combination of persons shall not be increased after June 30, 2007. (2) The interest of a licensee shall not be transferred to a member of the licensee's immediate family. (3) If the commissioner determines that any person or combination of persons described in subsection (b) has violated this chapter, the commissioner may order one (1) or more of the persons to divest their interest in the appraisal company. The commissioner may exercise the remedy provided by this subdivision in addition to, or as a substitute for, any other remedy available to the commissioner under this article. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-3 Contract rescission; consideration

Sec. 3. (a) If a transaction for which a loan broker has charged a fee is rescinded by a person under the federal Truth in Lending Act (15 U.S.C. 1601-1667e) within twenty (20) calendar days after the date on which a notice of the rescission is delivered to the creditor, the loan broker shall return to the person any consideration received by the loan broker other than bona fide third party fees. (b) For purposes of calculating the period during which a person may avoid a contract under IC 24-5-10-8 or IC 37-2-3-28, a contract with a loan broker is considered to be a sale of services that occurs on the date on which the person signs the written contract required by section 1 of this chapter. As added by P.L.175-2019, SEC.2. Amended by P.L.115-2026, SEC.20.

Ind. Code § 23-2.5-8-4 Loan broker agreement account number

Sec. 4. A loan broker agreement must be assigned an account number. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-5 Loan broker records

Sec. 5. A loan broker shall maintain the following records, or the electronic equivalent of the following: (1) A file for each borrower or prospective borrower that contains the following: (A) The name and address of the borrower or prospective borrower. (B) A copy of the signed loan broker agreement. (C) A copy of any other paper or instrument used in connection with the loan broker agreement and signed by the borrower or prospective borrower. (D) If a loan was obtained for the borrower, the name and address of the creditor. (E) If a loan is accepted by the borrower, a copy of the loan agreement. (F) The amount of the loan broker's fee paid by the borrower. If there is an unpaid balance, the status of any collection effort. (2) All: (A) receipts from or for the account of borrowers or prospective borrowers; and (B) disbursements to or for the account of borrowers or prospective borrowers; recorded so that the transactions are readily identifiable. (3) A: (A) general ledger, posted at least monthly; and (B) trial balance sheet and profit and loss statement, prepared within thirty (30) days of the date on which the commissioner requests the information. (4) A sample of: (A) all advertisements, pamphlets, circulars, letters, articles, Internet publications, or communications published: (i) in a newspaper, magazine, or periodical; or (ii) by other means of distribution; (B) scripts of any recording, radio, or video announcement; (C) any sales kits or literature; and (D) any Internet communication distributed to at least ten (10) persons; used in the solicitation of borrowers. (5) A report that: (A) lists all residential mortgage loans originated by the loan broker, including pending loans and loans that were not closed; (B) is searchable by, or organized according to, the borrower's or prospective borrower's last name; and (C) includes the following information for each residential mortgage loan listed: (i) The name and address of the borrower or prospective borrower. (ii) The name of the creditor. (iii) The name of the mortgage loan originator. (iv) The loan amount. (v) The status of the loan, including the date of closing or denial by the creditor. (vi) The interest rate for the loan. The report required by this subdivision may be prepared or produced by or through the loan broker's loan origination software or other software used by the loan broker. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-6 Loan broker record maintenance

Sec. 6. (a) The records maintained under section 5 of this chapter must be: (1) maintained for two (2) years in the office of the loan broker in which the loan was originated; and (2) separate or readily identifiable from the records of any other business that is conducted in the office of the loan broker. (b) If the office in which records must be maintained under this section is located outside Indiana, the records must be: (1) made available to the securities division at a location that is: (A) located in Indiana; and (B) accessible to the securities division; or (2) maintained electronically and made available to the securities division not later than ten (10) business days after a request by the securities division to inspect or examine the records. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-7 Loan broker ceasing to do business; records; notice to commissioner

Sec. 7. (a) A loan broker that ceases to conduct business as a loan broker or allows the loan broker license to lapse shall, before ceasing to conduct business as a loan broker, arrange for the preservation of the records specified in section 5 of this chapter for the remainder of the period specified in section 6(a)(1) of this chapter during which the loan broker ceases to conduct business as a loan broker. (b) A loan broker described in subsection (a) shall notify the commissioner of the exact address of the physical location where the books and records will be maintained during the period described in subsection (a). As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-8 Security breach of loan broker record

Sec. 8. If a breach of the security of a record: (1) maintained by a loan broker under this chapter; and (2) containing the unencrypted, unredacted personal information of a borrower or prospective borrower; occurs, the loan broker is subject to the disclosure requirements of IC 24-4.9-3, unless the loan broker is exempt from the disclosure requirements under IC 24-4.9-3-4. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-9 Licensee disposal of records

Sec. 9. A licensee may not dispose of the unencrypted, unredacted personal information of a borrower or prospective borrower without first shredding, incinerating, mutilating, erasing, or otherwise rendering the information illegible or unusable. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-10 Prospective borrower funds; requirements

Sec. 10. If a licensee or a person required to be licensed under this article possesses funds that belong to another person, including money received by or on behalf of a prospective borrower, the licensee or person required to be licensed shall: (1) upon request of the prospective borrower, account for the funds possessed for the prospective borrower; (2) follow reasonable and lawful instructions from the prospective borrower concerning the prospective borrower's funds; and (3) return the prospective borrower's unspent funds to the prospective borrower in a timely manner. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-8-11 Loan broker reports of condition

Sec. 11. (a) A loan broker shall, when required by the commissioner, submit reports of condition to the: (1) commissioner; and (2) Nationwide Multistate Licensing System. (b) A report required by this section must be in the form and contain the information required by the commissioner. As added by P.L.175-2019, SEC.2.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/23Fetched: 10/17/2026

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