INDIANAPOLIS (AP) - Almost 40 percent of Indiana's mortgage brokerages have lost their licenses for not complying with a new state law.

Yesterday was the deadline for complying with the law requiring each of Indiana's 950 brokerages to name a principal broker to oversee his company's business affairs. Each broker must have at least three years experience and have passed a state exam.

But as of noon today, 361 brokerages had failed to meet the deadline. Secretary of State Todd Rokita says another 143 brokerages have voluntarily surrendered their licenses.

Brokers act as third parties that match a borrower to a lender. Rokita says they originate about two-thirds of the home and commercial loans in Indiana. A spokesman for the secretary of state's office says the numbers of license forfeitures and revocations could change somewhat in the coming days because paperwork might still be in the mail.

The 950 mortgage brokers licensed as of July 1st did not include 360 who are exempt from the new law until next January. Those include companies that provide Veterans Administration loans and loans through other federal programs.

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

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