Ind. Code ch. 23-2.5-1

Ind. Code ch. 23-2.5-1
in effect

Ind. Code § 23-2.5-1-1 Application of chapter

Sec. 1. The definitions in this chapter apply throughout this article. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-2 "Appraisal company"

Sec. 2. "Appraisal company" means a business entity that: (1) performs real estate appraisals on a regular basis for compensation through one (1) or more owners, officers, employees, or agents; or (2) holds itself out to the public as performing real estate appraisals. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-3 "Bona fide third party fee"

Sec. 3. "Bona fide third party fee", with respect to a residential mortgage loan, includes any of the following: (1) Fees for real estate appraisals. However, if the residential mortgage loan is governed by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (12 U.S.C. 3331 through 3352), the fee for an appraisal performed in connection with the loan is not a bona fide third party fee unless the appraisal is performed by a person that is licensed or certified under IC 25-34.1-3-8. (2) Fees for title examination, abstract of title, title insurance, property surveys, or similar purposes. (3) Notary and credit report fees. (4) Fees for the services provided by a loan broker in procuring possible business for a creditor if the fees are paid by the creditor. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-4 "Borrower's residential mortgage loan application information"

Sec. 4. "Borrower's residential mortgage loan application information" means the: (1) address of proposed residential real property to be mortgaged; and (2) borrower's essential personal and financial information necessary for an informed credit decision to be made concerning the borrower's mortgage loan application. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-5 "Branch manager"

Sec. 5. "Branch manager" means a mortgage loan originator or individual who is: (1) licensed under this article; and (2) designated by a loan broker to supervise and oversee mortgage loan origination activities conducted at a branch office. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.1.

Ind. Code § 23-2.5-1-6 "Branch office"

Sec. 6. "Branch office" means a loan broker office other than the loan broker's principal place of business. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-7 "Branch office license"

Sec. 7. "Branch office license" means a license issued by the commissioner authorizing a loan broker to operate a branch office. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-8 "Commissioner"

Sec. 8. "Commissioner" refers to the securities commissioner appointed under IC 23-19-6-1(a). As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-9 "Depository institution"

Sec. 9. "Depository institution" has the meaning set forth in the Federal Deposit Insurance Act (12 U.S.C. 1813(c)) and includes a credit union. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-10 "Encrypted"

Sec. 10. "Encrypted", with respect to personal information, means that the personal information: (1) has been transformed through the use of an algorithmic process into a form in which there is a low probability of assigning meaning without use of a confidential process or key; or (2) is secured by another method that renders the personal information unreadable or unusable. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-11 "Immediate family"

Sec. 11. "Immediate family", with respect to an individual, refers to: (1) the individual's spouse who resides in the individual's household; and (2) any dependent child of the individual. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-12 "Licensee"

Sec. 12. "Licensee" means a person that is issued a license under this article. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-13 "Loan"

Sec. 13. "Loan" means an agreement to advance money or property in return for the promise to make payments for the money or property. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-14 "Loan broker"

Sec. 14. (a) "Loan broker" means a person who, in return for consideration from any source: (1) procures; (2) attempts to procure; or (3) assists in procuring; a residential mortgage loan from a third party, regardless of whether the person seeking the loan obtains the loan. (b) The term "loan broker" does not include: (1) a supervised financial organization (as defined in IC 26-1-4-102.5), including a bank, savings bank, trust company, savings association, or credit union; (2) another financial institution that is: (A) regulated by an agency of the United States or a state; and (B) regularly actively engaged in the business of: (i) making consumer loans that are not secured by real estate; or (ii) taking assignment of consumer sales contracts that are not secured by real estate; (3) an insurance company; (4) a person arranging financing for the sale of the person's product; or (5) a creditor that is licensed under IC 37-1-3-5. As added by P.L.175-2019, SEC.2. Amended by P.L.115-2026, SEC.19.

Ind. Code § 23-2.5-1-15 "Loan broker employee"

Sec. 15. "Loan broker employee" means an individual: (1) who is an employee of a single loan broker who is licensed under this article; (2) for whom the loan broker, in addition to providing a wage or salary: (A) pays Social Security and unemployment taxes; and (B) withholds local, state, and federal income taxes; (3) who acts at the direction of, and subject to the supervision of, the loan broker; and (4) who performs loan processing activities on behalf of the loan broker. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.3.

Ind. Code § 23-2.5-1-16 "Loan broker license"

Sec. 16. "Loan broker license" means a license issued by the commissioner authorizing a person to engage in the activities of a loan broker. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-17 "Loan broker office"

Sec. 17. "Loan broker office" means a fixed physical location: (1) at which a person holds itself out as engaging in the activities of a loan broker; (2) the address of which appears on business cards, on stationery, or in advertising in connection with the activities of a loan broker; (3) at which the person's name, advertising, promotional materials, or signage suggests that residential mortgage loans are originated, negotiated, funded, or serviced; or (4) where the person otherwise engages in conduct that suggests to the public that the activities of a loan broker may occur at the location. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-18 "Loan processing activities"

Sec. 18. (a) "Loan processing activities" means clerical or support duties performed on behalf of a loan broker with respect to residential mortgage loan origination activities performed by the loan broker. (b) The term "loan processing activities" includes the following: (1) The receipt, collection, distribution, and analysis of information commonly used in the processing of a residential mortgage loan. (2) Communicating with a borrower or potential borrower to obtain the information necessary for the processing of a residential mortgage loan, to the extent that the communication does not include: (A) offering or negotiating loan rates or terms; or (B) counseling borrowers or potential borrowers about residential mortgage loan rates or terms. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-19 "Loan processing company"

Sec. 19. "Loan processing company" means a person that: (1) performs loan processing activities for compensation; and (2) holds itself out to the public as engaging in loan processing activities. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-20 "Loan processor"

Sec. 20. "Loan processor" means an individual who performs loan processing activities for compensation on behalf of a loan processing company and is not a loan broker employee. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-21 "Mortgage loan origination activities"

Sec. 21. "Mortgage loan origination activities" means performance of any of the following activities for compensation or gain in connection with a residential mortgage loan: (1) Receiving or recording a borrower's or potential borrower's residential mortgage loan application information in any form for use in a credit decision by a creditor. (2) Offering to negotiate or negotiating terms of a residential mortgage loan. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-22 "Mortgage loan originator"

Sec. 22. (a) "Mortgage loan originator" means an individual engaged in mortgage loan origination activities. (b) The term "mortgage loan originator" does not include a person who: (1) performs purely administrative or clerical tasks on behalf of a mortgage loan originator or acts as a loan processor; (2) performs only real estate brokerage activities and is licensed in accordance with IC 25-34.1 or the applicable laws of another state, unless the person is compensated by a creditor, a loan broker, a mortgage loan originator, or an agent of a creditor, a loan broker, or a mortgage loan originator; or (3) is involved only in extensions of credit relating to time share plans (as defined in 11 U.S.C. 101(53D)). As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-23 "Mortgage loan originator license"

Sec. 23. "Mortgage loan originator license" means a license issued by the commissioner authorizing an individual to act as a mortgage loan originator on behalf of a loan broker. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-24 "Nationwide Multistate Licensing System"

Sec. 24. "Nationwide Multistate Licensing System" refers to a multistate licensing system owned and operated by the State Regulatory Registry, LLC, or by a successor or an affiliated entity, for the licensing and registration of: (1) creditors; (2) mortgage loan originators; (3) other financial services entities; and (4) employees and agents of the persons described in subdivisions (1) through (3). The term includes "NMLS" and any other name or acronym that may be assigned to the system by the State Regulatory Registry, LLC, or by a successor or an affiliated entity of the State Regulatory Registry, LLC. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-25 "Person"

Sec. 25. "Person" means an individual, a partnership, a trust, a corporation, a limited liability company, a limited liability partnership, a sole proprietorship, a joint venture, a joint stock company, or another group or entity, however organized. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-26 "Personal information"

Sec. 26. "Personal information" includes the following: (1) An individual's first and last names or first initial and last name. (2) Any of the following data elements: (A) A Social Security number. (B) A driver's license number. (C) A state identification card number. (D) A credit card number. (E) A financial account number or debit card number in combination with a security code, password, or access code that would permit access to the person's account. (3) With respect to an individual, any of the following: (A) Address. (B) Telephone number. (C) Information concerning the individual's: (i) income or other compensation; (ii) credit history; (iii) credit score; (iv) assets; (v) liabilities; or (vi) employment history. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-27 "Manager"

Sec. 27. "Manager" means an individual who has at least three (3) years of experience as a mortgage loan originator and is principally responsible for the supervision and management of the employees and business affairs of not more than five (5) loan broker offices under one (1) company. As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.4.

Ind. Code § 23-2.5-1-29 "Principal place of business"

Sec. 29. "Principal place of business" means the loan broker office designated by a loan broker or an applicant for a loan broker license as the primary or main office. If a loan broker operates only one (1) loan broker office, the loan broker office is considered to be the principal place of business of the loan broker. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-30 "Real estate appraiser"

Sec. 30. "Real estate appraiser" means a person who: (1) is licensed as a real estate broker under IC 25-34.1 and performs real estate appraisals within the scope of the person's license; (2) holds a real estate appraiser license or certificate issued under IC 25-34.1-3-8; or (3) otherwise performs real estate appraisals in Indiana. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-31 "Real estate brokerage activity"

Sec. 31. "Real estate brokerage activity" means offering or providing real estate brokerage services to the public, including the following: (1) Acting as a real estate broker for a buyer, seller, lessor, or lessee of real property. (2) Bringing together parties interested in the sale, lease, or exchange of real property. (3) Negotiating, on behalf of a party, any part of a contract concerning the sale, lease, or exchange of real property, other than in connection with obtaining or providing financing for the transaction. (4) Engaging in an activity for which the person performing the activity is required to be licensed under IC 25-34.1 or the applicable laws of another state. (5) Offering to engage in any activity, or to act in any capacity with respect to any activity, described in subdivisions (1) through (4). As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-32 "Redacted"

Sec. 32. "Redacted", with respect to personal information, means that the personal information has been altered or truncated so that not more than the last four (4) digits of: (1) a Social Security number; (2) a driver's license number; (3) a state identification number; or (4) an account number; are accessible as part of the personal information. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-33 "Registered mortgage loan originator"

Sec. 33. "Registered mortgage loan originator" means a mortgage loan originator who: (1) is an employee of: (A) a depository institution; (B) a subsidiary that is: (i) owned and controlled by a depository institution; and (ii) regulated by the federal financial institutions regulatory agencies (as defined in 12 U.S.C. 3350(6)); or (C) an institution regulated by the Farm Credit Administration; and (2) is registered with and maintains a unique identifier with the Nationwide Multistate Licensing System. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-34 "Residential mortgage loan"

Sec. 34. "Residential mortgage loan" means a loan: (1) that is or will be used primarily for personal, family, or household purposes; and (2) that is secured by a mortgage (or another equivalent consensual security interest) on: (A) a dwelling (as defined in Section 103(w) of the federal Truth in Lending Act (15 U.S.C. 1602(w)); or (B) residential real estate. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-35 "Residential real estate"

Sec. 35. "Residential real estate" means real property: (1) that is located in Indiana; and (2) upon which a dwelling is constructed or intended to be constructed. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-36 "Securities division"

Sec. 36. "Securities division" refers to the division of the office of the secretary of state described in IC 23-19-6-1(a). As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-37 "State licensed mortgage loan originator"

Sec. 37. "State licensed mortgage loan originator" means an individual who: (1) is a mortgage loan originator; (2) is not an employee of: (A) a depository institution; (B) a subsidiary that is: (i) owned and controlled by a depository institution; and (ii) regulated by the federal financial institutions regulatory agencies (as defined in 12 U.S.C. 3350(6)); or (C) an institution regulated by the Farm Credit Administration; (3) is licensed by: (A) a state; or (B) the Secretary of the United States Department of Housing and Urban Development under Section 1508 of the S.A.F.E. Mortgage Licensing Act of 2008 (Title V of P.L.110-289); and (4) is registered as a mortgage loan originator with, and maintains a unique identifier through, the Nationwide Multistate Licensing System. As added by P.L.175-2019, SEC.2. Amended by P.L.211-2019, SEC.30.

Ind. Code § 23-2.5-1-38 "Ultimate equitable owner"

Sec. 38. "Ultimate equitable owner" means a person that, directly or indirectly, owns or controls ten percent (10%) or more of the equity interest in a loan broker, regardless of whether the person owns or controls the equity interest through: (1) one (1) or more other persons; or (2) one (1) or more proxies, powers of attorney, or variances. As added by P.L.175-2019, SEC.2.

Ind. Code § 23-2.5-1-39 "Unique identifier"

Sec. 39. "Unique identifier" means a number or other identifier that: (1) permanently identifies a: (A) loan broker; (B) mortgage loan originator; or (C) branch office; and (2) is assigned by protocols established by the Nationwide Mortgage Licensing System and the federal financial institutions regulatory agencies (as defined in 12 U.S.C. 3350(6)) to facilitate the: (A) electronic tracking of; and (B) uniform identification of, and public access to: (i) the employment history of; and (ii) any publicly adjudicated disciplinary and enforcement actions against; a person described in subdivision (1). As added by P.L.175-2019, SEC.2. Amended by P.L.89-2024, SEC.6.
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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