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WBK Industry News - State Regulatory Developments

Indiana Amends Provision Regarding MLO Prelicensing Education Requirements

The Indiana Department of Financial Institutions (Department) has adopted a regulation amending its prelicensing education requirements for mortgage loan originators (MLOs). The amendment is found at 750 IAC 9-3-5(g), and took effect March 1, 2016.

Prior to adopting this provision, Indiana regulations required that, in order to meet the MLO prelicensing education requirements, a person must complete at least 20 hours of education approved by the NMLSR. Additionally, the regulations required that a person formerly licensed as an MLO in Indiana, applying to be licensed again, must prove that he or she has completed all continuing education requirements for the year in which the license was last held.

With the adoption of the new regulation, Indiana requires that a person who fails to obtain a MLO license from the Department, or a federal mortgage loan registration, within 3 years from the date of initial completion of any approved prelicensing education course, or who obtained a MLO license from the Department, or a federal mortgage loan registration, but did not renew the license or federal registration for at least 3 years, must now complete at least 20 hours of education in order to obtain a MLO license.

A copy of the adopted provision is available here:
http://www.in.gov/legislative/iac/irdin.pdf?din=20160309-IR-750160090ERA.