20 N.E.3d 853
Ind. Ct. App.2014Background
- Massey applied for an Indiana MLO license in 2010, after prior criminal convictions for armed robbery and drugs/weapon offenses.
- NMLS indicated initial approval in 2010, but the Indiana DFI informed Massey the license could not be approved due to his criminal history.
- Massey pursued review; the DFI Board unanimously denied the license on character and fitness grounds, including a crime of dishonesty finding.
- ALJ upheld the DFI’s denial; Massey challenged, arguing NMLS authority and mischaracterization of convictions.
- Trial court reversed, ruling NMLS, not DFI, licenses MLOs in Indiana and that the DFI lacked authority; ordered renewal if criteria were met.
- DFI appeals, arguing it is the licensing authority under SAFE/FLML and acted within discretion in denying Massey’s license.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| MLO licensing authority | Massey | DFI | NMLS is licensing authority for state MLOs; DFI authority supported but reversed on related grounds |
| Denial on character and fitness | Massey | DFI | DFI acted within its discretion to deny based on Massey’s convictions |
Key Cases Cited
- Ackman v. Real Estate Comm’n, 766 N.E.2d 1269 (Ind. Ct. App. 2002) (court reviews agency decisions with limited scope when no brief filed)
- In re Paternity of C.R.R., 752 N.E.2d 58 (Ind. Ct. App. 2001) (cites standard for appellate deference to agency findings)
- Blair v. Emmert, 495 N.E.2d 769 (Ind. Ct. App. 1986) (defines prima facie error standard in appellate review)
- Terkosky v. Ind. Dep’t of Educ., 996 N.E.2d 832 (Ind. Ct. App. 2013) (limits on when to reverse agency actions; AOPA framework)
- Kranz v. Meyers Subdivision Prop. Owners Ass’n, 969 N.E.2d 1068 (Ind. Ct. App. 2012) (arbitrary and capricious standard applied to agency decisions)