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Many Indiana Mortgage Brokers Face License Loss

By Scott Sarvay

Many Indiana Mortgage Brokers Face License Loss

June 18, 2010 Updated Jul 7, 2008 at 2:35 PM EST INDIANAPOLIS (AP) - More than two-thirds of Indiana's mortgage brokerage companies could lose their licenses under a new state law.

Secretary of State Todd Rokita said Monday that more than 600 of the state's 950 licensed loan brokers did not meet requirements set out in a 2007 law.

Mortgage brokerage companies are not banks or credit unions that offer mortgages. Instead, brokers act as third parties that match a borrow to a lender.

A 2007 law required mortgage brokerage companies to name a principal manager by July 1, 2008. A principal manager is a leader with at least three years experience who has passed a state exam. But Rokita said most companies have not named a qualified principal manager.

Rokita said loan brokerage companies have until Aug. 5 to comply or lose their license.

(Copyright 2008 by The Associated Press. All Rights Reserved.)




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