600+ Indiana Mortgage Brokers to Have Licenses Revoked

Indiana Secretary of State Todd Rokita has announced that a majority of Indiana’s mortgage brokerage industry has failed to comply with a phase-in period of a 2007 law and therefore will be unable to continue doing business in Indiana as of Aug. 5, 2008, unless compliance is achieved prior to that date. The Secretary of State worked with the General Assembly to pass a law requiring each licensed mortgage office doing business in the state to employ a principal manager to supervise the business affairs of the office and the staff.

A principal manager is a mortgage professional with at least three years of experience in the industry. Furthermore the 21st century business and lending practice reforms mandate that each principal manager pass a practice standards examination (principal manager assessment), based on federal regulation, Indiana statute and industry best practices.

Despite the July 1 effective date for the principal manager requirement, roughly 70 percent of Indiana’s licensed mortgage brokers are being operated by leaders who have not even attempted to take the state’s principal manager assessment. Therefore the Secretary of State’s securities division is notifying more than 600 loan broker companies that their licenses are being revoked effective Aug. 5, should the offices continue to operate on that date without a properly credentialed principal manager in place. Read more.

For more information, contact Jim Gavin, Secretary of State’s office, 317-233-8655.

New Preferred Service Provider

The Indiana Bankers Association is pleased to introduce its newest preferred service provider, BSG Financial of Louisville, Ky. The IBA recognizes BSG Financial for Re$ubmitIt^®, an electronic recovery solution for returned deposit items. This free automated service helps your commercial account holders significantly increase collections of NSF items, providing an income stream for your bank.

IBA Washington Goodwill Visit

The annual IBA Washington Goodwill Visit is scheduled for Sept. 21-23. This trip provides an opportunity for bankers to personally interact with federal policymakers and to provide input on meeting the needs of the Indiana banking community. For more information, contact Amber Van Til at the IBA, 317-387-9380.