Indiana Revises Regulations on Mortgage Loan Originator Licensing

Indiana recently issued an emergency rule, which, effective November 24, 2019, revises certain requirements pertaining to mortgage loan originators (MLOs) to incorporate changes to the federal SAFE Act related to MLO temporary authority. 

The rule makes several changes to the definitions and licensing provisions for MLOs to allow certain individuals who apply for an MLO license to obtain temporary authority to act as an MLO.  For example, it adds new definitions of “eligible mortgage loan originator applicant” and “temporary authority to operate,” and includes a new section that describes when an eligible mortgage loan originator applicant’s temporary authority to operate begins and ends.  The rule also makes various other conforming changes and administrative revisions.

It appears that the above amendments are being made to ensure that Indiana law conforms with changes made to the federal SAFE Act under the Economic Growth, Regulatory Relief, and Consumer Protection Act, which provides for granting authority to individuals on a temporary basis to act as MLOs under certain circumstances.