360 Mortgage Brokerages Don't Cut It With State

Indianapolis Star (08/06/08); Ingerson, Meagan
Indiana Secretary of State Todd Rokita gave the state's mortgage brokerage companies until Aug. 5 to comply with a year-old state law requiring that the firms' principal managers pass a competency exam and that all loan officers pass background checks and submit state registration fees. Of the state's 950 mortgage brokerages, 360 were not in compliance as of the deadline, and they are expected to lose their licenses; they also could face $10,000 fines and three-year jail terms. Of these, 79 firms reportedly had closed and 89 turned over their licenses to the state. After Rokita mailed out warning letters, competency exams were passed by more than 130 individuals.