Indiana Amends Mortgage Law and UCCC
Indiana recently amended provisions of its First Lien Mortgage Lending Act and its Uniform Consumer Credit Code. Among other things, the amendments allow for the voluntary registration of a company not acting as the creditor in a first lien mortgage transaction, so that it can sponsor employee licensed mortgage loan originators acting solely as third party loan processors and underwriters, under certain conditions.
Additionally, the amendments remove the specific provision allowing voluntary registration of an exempt federal savings bank so it could sponsor non-employee licensed mortgage loan originators, since the law will now more generally authorize sponsorship by licensees (and certain companies exempt from licensure) of licensed mortgage loan originators who are non-employees, under certain conditions.
The amendments also include new provisions governing state-chartered credit unions, including capital-related requirements.
The statutory amendments are effective July 1, 2023, and the Department of Financial Institutions is required to adopt emergency rules implementing them no later than June 30, 2023.