Indiana Administrative Code
Title 750 - DEPARTMENT OF FINANCIAL INSTITUTIONS
Article 9 - MORTGAGE LENDERS AND ORIGINATORS
Rule 1 - Definitions
Section 1-1 - Definitions
Current through March 20, 2024
Authority: IC 24-4.4-1-101
Affected: IC 24-4.4-1-301; IC 24-4.5-1-301.5
Sec. 1.
The definitions in this rule apply throughout this article:
(1) "Affiliate", with respect to any person subject to this article, means a person that, directly or indirectly, through one (1) or more intermediaries:
(2) "Agreement" means the bargain of the parties in fact as found in the parties' language or by implication from other circumstances, including course of dealing or usage of trade or course of performance.
(3) "Agricultural products" includes:
(4) "Agricultural purpose" means a purpose related to the production, harvest, exhibition, marketing, transportation, processing, or manufacture of agricultural products by a natural person who cultivates, plants, propagates, or nurtures the agricultural products.
(5) "American Association of Residential Mortgage Regulators" or "AARMR" is the national association of executives and employees of the various states who are charged with the responsibility for administration and regulation of residential mortgage lending, servicing, and brokering, and dedicated to the goals described at www.aarmr.org.
(6) "Bona fide nonprofit organization" means an organization determined by the director under criteria and pursuant to processes established by the director that meet the following criteria:
(7) "Civil court" means any court in Indiana having jurisdiction over civil cases.
(8) "Conference of State Bank Supervisors" or "CSBS" is the national organization composed of state bank supervisors dedicated to maintaining the state banking system and state regulation of financial services in accordance with the CSBS statement of principles described at www.csbs.org.
(9) "Consumer credit sale" is a sale of goods, services, or an interest in land in which:
(10) "Consumer Financial Protection Bureau" or "CFPB" is the federal agency whose stated central mission is to make markets for consumer financial products and services work for Americans.
(11) "Credit" means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.
(12) "Creditor" has the meaning set forth in:
(13) "Department" refers to the department of financial institutions.
(14) "Depository institution" has the meaning set forth in the Federal Deposit Insurance Act (12 U.S.C. 1813(c)) , which is incorporated by reference, and includes any credit union.
(15) "Director" refers to the director of the department of financial institutions or the director's designee.
(16) "Dwelling" means a residential structure that contains one (1) to four (4) units, regardless of whether the structure is attached to real property. The term includes an individual:
(17) "Eligible mortgage loan originator applicant" means an individual that has applied for a mortgage loan originator license under this article, who is eligible to obtain temporary authority to operate in this state during the pendency of said applicant's application for mortgage lending originator licensure, for up to one hundred twenty (120) days. In order to be eligible for temporary authority to operate, a mortgage loan originator, must:
(18) "Employee" means an individual:
(19) "Expungement" with respect to a record of criminal conviction entered in this state means that no one, including law enforcement, can be permitted access to the record even by court order. With respect to criminal convictions entered in another state that state's definition of expungement will apply.
(20) "Farm Credit Administration" means the independent federal agency, authorized by the Farm Credit Act of 1971, to examine and regulate the Farm Credit System.
(21) "Federal banking agencies" means the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.
(22) "Housing finance agency" means any authority that is:
(23) "Immediate family member" means:
(24) "Independent contractor" means an individual who performs his or her duties other than at the direction of and subject to the supervision and instruction of a person licensed as a mortgage loan originator under this article.
(25) "Individual" means a natural person.
(26) "Land contract" means a contract for the sale of real estate in which the seller of the real estate retains legal title to the real estate until the total contract price is paid by the buyer.
(27) "Licensee" means a person licensed as a mortgage loan originator under this article.
(28) "Loan" includes:
(29) "Loan brokerage business" means activities by which any person, in return for any consideration from any source, procures, attempts to procure, or assists in procuring a mortgage transaction from a third party or any other person, whether or not the person seeking the loan actually obtains the loan.
(30) "Loan processor or underwriter" means an individual who performs clerical or support duties as an employee at the direction of, and subject to the supervision and instruction of, a person licensed or exempt from licensing under IC 24-4.4 or IC 24-4.5. For purposes of this subdivision, "clerical or support duties":
(31) "Mortgage loan originator" means an individual who, for compensation or gain, or in the expectation of compensation or gain, engages in taking a mortgage transaction application or in offering or negotiating the terms of a mortgage transaction that is made either under IC 24-4.4 or IC 24-4.5 or is made by an employee of a person licensed to engage in mortgage transactions or by an employee of a person that is exempt from licensing under IC 24-4.4 or IC 24-4.5 while the employee is engaging in the loan brokerage business; or representing to the public, through advertising or other means of communicating or providing information (including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items), that such individual can or will perform the activities described in this subdivision. The term does not include the following:
(32) "Mortgage transaction" means a:
(33) "Nationwide Multistate Licensing System and Registry" or "NMLSR" means a multistate licensing system developed and maintained by CSBS and AARMR and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliated entity, for the licensing and registration of creditors and mortgage loan originators and other persons in the mortgage and financial services industries. The term includes any other name or acronym that may be assigned to the system by the State Regulatory Registry, LLC, or by any successor or affiliated entity.
(34) "Nontraditional mortgage product" means any mortgage product other than a thirty (30) year fixed rate mortgage.
(35) "Organization" means a corporation, a government or government subdivision, an agency, a trust, an estate, a partnership, a limited liability company, a cooperative, an association, a joint venture, an unincorporated organization, or any other entity, however organized.
(36) "Payable in installments", with respect to a debt or an obligation, means that payment is required or permitted by written agreement to be made in more than four (4) installments not including a down payment.
(37) "Person" includes an individual or an organization.
(38) "Principal" of a mortgage transaction means the total of:
(39) "Real estate brokerage activity" means any activity that involves offering or providing real estate brokerage services to the public, including the following:
(40) "Registered mortgage loan originator" means any individual who:
(41) "Regularly engaged" means a person who:
(42) "Residential real estate" means any real property, located in Indiana, upon which is constructed or intended to be constructed a dwelling.
(43) "Revolving mortgage transaction" means an arrangement between a creditor and a debtor in which:
(44) "State" means:
(45) "Temporary authority to operate" means the authority granted to the states by federal law through amendment to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (S.2155, Title I, 12. U.S.C. 5101 et seq.), permitting an eligible mortgage loan originator applicant to engage in mortgage transactions in this state on a temporary basis concurrently with that eligible mortgage loan originator applicant's pending application for licensure in this state, for up to one hundred twenty (120) days or upon approval of the licensing application, whichever is sooner, beginning November 24, 2019.
(46) "Unique identifier" means a number or other identifier that: