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Will Your Mortgage Broker Lose Their License Tuesday?

By Eric Clabaugh
June 18, 2010 Updated Aug 4, 2008 at 5:15 PM EST

FORT WAYNE, IND (Indiana's NewsCenter)-Will your mortgage company lose its license Tuesday because of a new law passed in 2007?

Dozens of Indiana mortgage companies may lose their license Tuesday if they haven't completed new testing requirements set forth by state lawmakers last year.

The new law that takes effect mandates mortgage brokers have on staff at least one principal manager who has passed the testing.
But not all mortgage brokers are included in this new law.
The state currently recognizes two types of firms.
You have your standard mortgage brokers; they only close the loan in the name of the lender--- generally a bank--- that will own the rights to the mortgage.
The second kind are exempt mortgage brokers.
They actually provide the money themselves instead of involving an outside bank.
Exempt brokers *do not* have to take the test and will not lose their licenses.
The new law is designed to provide some protection for consumers.

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