Authority: IC 24-4.4-3-103

Affected: IC 24-4.4-1-202; IC 24-4.4-1-301; IC 24-4.5-1-301.5

Sec. 1. The definitions in this section apply throughout this article:

1. (1) "Affiliate", with respect to any person subject to this article, has the meaning set forth in IC 24-4.4-1-301(1).
2. (2) "Agreement" has the meaning set forth in IC 24-4.4-1-301(2).
3. (3) "Agricultural products" has the meaning set forth in IC 24-4.4-1-301(3).
4. (4) "Agricultural purpose" has the meaning set forth in IC 24-4.4-1-301(4).
5. (5) "American Association of Residential Mortgage Regulators" or "AARMR" means the national association of executives and employees of the various states who are charged with the responsibility for administration and regulation of residential mortgage lending, servicing, and brokering, and dedicated to the goals described at www.aarmr.org.
6. (6) "Bona fide nonprofit organization" has the meaning set forth in IC 24-4.4-1-301(37).
7. (7) "Civil court" means any court in Indiana having jurisdiction over civil cases.
8. (8) "Conference of State Bank Supervisors" or "CSBS" is the national organization composed of state bank supervisors dedicated to maintaining the state banking system and state regulation of financial services in accordance with the CSBS statement of principles described at www.csbs.org.
9. (9) "Consumer credit sale" means a sale of goods, services, or an interest in land as described in IC 24-4.4-1-301(5).
10. (10) "Consumer Financial Protection Bureau" or "CFPB" is the federal agency whose stated central mission is to make markets for consumer financial products and services work for Americans.
11. (11) "Credit" has the meaning set forth in IC 24-4.4-1-301(6).

12. (12) "Creditor" has the meaning set forth in:

    1. (A) IC 24-4.4-1-301, which is incorporated by reference, for first lien mortgage transactions; and
    2. (B) IC 24-4.5-1-301.5, which is incorporated by reference, for mortgage transactions not secured by a first lien.
13. (13) "Department" refers to the department of financial institutions.
14. (14) "Depository institution" has the meaning set forth in IC 24-4.4-1-301(9).
15. (15) "Director" has the meaning set forth in IC 24-4.4-1-301(10).
16. (16) "Dwelling" has the meaning set forth in IC 24-4.4-1-301(11).

17. (17) "Eligible mortgage loan originator applicant" means an individual who has applied for a mortgage loan originator license under this article and who is eligible to obtain temporary authority to operate in this state during the pendency of the applicant's application for mortgage lending originator licensure, for up to one hundred twenty (120) days. To be eligible for temporary authority to operate, a mortgage loan originator shall:

    1. (A) have been:

       1. (i) licensed as a mortgage loan originator in another state continuously during the past thirty (30) days; or
       2. (ii) operating as a registered mortgage loan originator for a depository institution continuously for the past three hundred sixty-five (365) days;
    2. (B) meet the criminal background check qualifications outlined in 750 IAC 9-3-3; and
    3. (C) not have been issued a license application denial, had a license revoked or suspended, or been issued a cease and desist order in any state.
18. (18) "Employee" means an individual identified in IC 24-4.4-1-301(12) or who is permitted to be sponsored by a person as set forth in section 3 of this rule [sic].
19. (19) "Expungement", with respect to a record of criminal conviction entered in this state, means that no one, including law enforcement, can be permitted access to the record even by court order. With respect to criminal convictions entered in another state, that state's definition of expungement will apply.
20. (20) "Farm Credit Administration" means the independent federal agency, authorized by the Farm Credit Act of 1971, to examine and regulate the Farm Credit System.
21. (21) "Federal banking agencies" means the agencies listed in IC 24-4.4-1-301(13).

22. (22) "Housing finance agency" means an authority that is:

    1. (A) chartered by a state to help meet the affordable housing needs of the residents of the state;
    2. (B) supervised directly or indirectly by the state government; and
    3. (C) subject to audit and review by the state in which it operates.
23. (23) "Immediate family member" means an individual listed in IC 24-4.4-1-301(15).
24. (24) "Independent contractor" means an individual who performs their duties other than at the direction of and subject to the supervision and instruction of a person licensed as a mortgage loan originator under this article.
25. (25) "Individual" has the meaning set forth in IC 24-4.4-1-301(16).
26. (26) "Land contract" means a contract for the sale of real estate in which the seller of the real estate retains legal title to the real estate until the total contract price is paid by the buyer.
27. (27) "Licensee", for purposes of this article, means a person licensed as a mortgage loan originator under this article.
28. (28) "Loan" includes the items listed in IC 24-4.4-1-301(18).
29. (29) "Loan brokerage business" has the meaning set forth in IC 24-4.4-1-301(19).

30. (30) "Loan processor or underwriter" has the meaning set forth in IC 24-4.4-1-301(20). For purposes of clarification:

    1. (A) the phrase "exempt from licensing", as used in IC 24-4.4-1-301(20), means exempt from mortgage licensing under IC 24-4.4 or IC 24-4.5; and
    2. (B) "clerical and support duties" does not include taking a residential mortgage application.

31. (31) "Mortgage loan originator", for purposes of this article, means an individual who, for compensation or gain, or in the expectation of compensation or gain, engages in taking a mortgage transaction application or in offering or negotiating the terms of a mortgage transaction made either under IC 24-4.4 or IC 24-4.5 or by an employee of a person licensed to engage in mortgage transactions, or by an employee of a person exempt from licensing under IC 24-4.4 or IC 24-4.5 while the employee is engaging in the loan brokerage business or representing to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform the activities described in this subdivision. The term does not include the following:

    1. (A) An individual engaged solely as a loan processor or an underwriter as long as the individual works exclusively as an employee of a person licensed to engage in mortgage transactions or as an employee of a person exempt from licensing under IC 24-4.4 or IC 24-4.5, except an exempt person permitted to voluntarily register under IC 24-4.4-1-202(b)(8).

    2. (B) Unless the person or entity is compensated by:

       1. (i) a creditor;
       2. (ii) a loan broker;
       3. (iii) another mortgage loan originator; or
       4. (iv) an agent of the creditor, loan broker, or other mortgage loan originator described in items (i) through (iii);
    3. a person that performs only real estate brokerage activities and is licensed or registered in accordance with applicable state law.
    4. (C) A person solely involved in extensions of credit relating to timeshare plans (as defined in 11 U.S.C. 101(53D), which is incorporated by reference).
    5. (D) An individual who is an employee of a federal, state, or local government agency or housing finance agency, and who acts as a loan originator only pursuant to their official duties as an employee of the federal, state, or local government agency or housing finance agency.
    6. (E) An individual who is an eligible mortgage loan originator applicant that is operating under temporary authority to operate prior to the individual's application having been [sic] being approved or denied.
32. (32) "Mortgage transaction" has the meaning set forth in IC 24-4.4-1-301(23).
33. (33) "Nationwide Multistate Licensing System and Registry" or "NMLSR" has the meaning set forth in IC 24-4.4-1-301(24).
34. (34) "Nontraditional mortgage product" has the meaning set forth in IC 24-4.4-1-301(25).
35. (35) "Organization" has the meaning set forth in IC 24-4.4-1-301(26).
36. (36) "Payable in installments" has the meaning set forth in IC 24-4.4-1-301(27).
37. (37) "Person" has the meaning set forth in IC 24-4.4-1-301(28).
38. (38) "Principal" has the meaning set forth in IC 24-4.4-1-301(29).
39. (39) "Real estate brokerage activity" has the meaning set forth in IC 24-4-4.1-301(30).
40. (40) "Registered mortgage loan originator" has the meaning set forth in IC 24-4.4-1-301(31).

41. (41) "Regularly engaged", for purposes of this article, means a a [sic] mortgage loan originator that:

    1. (A) engaged in the business of a mortgage loan originator on more than five (5) mortgage transactions in the previous calendar year, or who expects to engage in the business of a mortgage loan originator on more than five (5) mortgage transactions in the current calendar year; or
    2. (B) serves as the prospective source of financing on more than five (5) mortgage transactions in the previous calendar year, or who expects to serve as the prospective source of financing, or perform other phases of originations, on more than five (5) mortgage transactions in the current calendar year.
42. (42) "Residential real estate" has the meaning set forth in IC 24-4.4-1-301(32).

43. (43) "Revolving mortgage transaction", for purposes of this article, means an arrangement between a creditor and a debtor in which:

    1. (A) the creditor permits the debtor to obtain advances from time to time;
    2. (B) the unpaid balances of principal, finance charges, and other appropriate charges are debited to an account; and
    3. (C) the debtor has the privilege of paying the balances in installments.

44. (44) "State" means any of the following:

    1. (A) A state of the United States.
    2. (B) The District of Columbia.
    3. (C) A territory of the United States.
    4. (D) Puerto Rico.
    5. (E) Guam.
    6. (F) American Samoa.
    7. (G) The Virgin Islands.
    8. (H) The Commonwealth of the Northern Mariana Islands.
45. (45) "Temporary authority to operate" means the authority granted to the states by federal law through amendment to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (S.2155, Title I, 12. U.S.C. 5101 et seq.), permitting an eligible mortgage loan originator applicant to engage in mortgage transactions in this state on a temporary basis concurrently with that eligible mortgage loan originator applicant's pending application for licensure in this state, for up to one hundred twenty (120) days or upon approval of the licensing application, whichever is sooner, beginning November 24, 2019.

46. (46) "Unique identifier" means a number or other identifier that:

    1. (A) permanently identifies a loan originator;
    2. (B) is assigned by protocols established by the NMLSR and the federal banking agencies to facilitate electronic tracking of loan originators and uniform identification of, and public access to, the employment history of and the publicly adjudicated disciplinary and enforcement actions against loan originators; and
    3. (C) shall not be used for purposes other than those set forth under the federal S.A.F.E. Act.

(Department of Financial Institutions; 750 IAC 9-1-1; emergency rule filed Jul 23, 2009, 4:14 p.m.: 20090729-IR-750090577ERA; emergency rule filed Nov 16, 2009, 2:13 p.m.: 20091125-IR-750090917ERA; emergency rule filed Feb 11, 2010, 2:49 p.m.: 20100217-IR-750100102ERA; emergency rule filed Jun 24, 2010, 2:45 p.m.: 20100707-IR-750100423ERA; emergency rule filed Jan 13, 2011, 2:44 p.m.: 20110119-IR-750110043ERA; emergency rule filed Dec 15, 2011, 2:54 p.m.: 20111221-IR-750110778ERA; readopted filed Dec 1, 2015, 9:28 a.m.: 20151230-IR-750150336RFA; emergency rule filed Mar 1, 2016, 11:43 a.m.: 20160309-IR-750160090ERA; emergency rule filed Aug 20, 2019, 8:47 a.m.: 20190828-IR-750190416ERA, eff Nov 24, 2019; readopted filed Nov 3, 2021, 10:48 a.m.: 20211201-IR-750210427RFA; filed Jan 13, 2025, 9:38 a.m.: 20250212-IR-750240372FRA; readopted filed Sep 12, 2025, 11:22 a.m.; 20251001-IR-750240630RFA)