Forestall Future Foreclosure in Indiana
Forclosure rates in the State of Indiana have been the subject of many opinions and news stories. National ranking has the state placing in the top ten most months. While it is better than the first place rank we held, the moniker is one which we would like to place elsewhere.
We have all heard the stories where greed and corruption within the industry has left entire neighborhoods facing foreclosure in Indianapolis with vacancies and lower property values. Mortgage Fraud and fraudulent loan broker practices have contributed to many of these transactions which have resulted in foreclosure.
The State of Indiana has enacted new laws and regulations regarding loan brokers.
Major provisions of House Bill 1717 include:
Requirement for the creation of a principal manager who will oversee the loan brokers at each firm. The principal manager, who must have at least three years of experience in the financial services industry, will be hired privately by each firm.
Requirement for criminal background checks on loan broker employees, owners and principal managers.
Requirement for written examinations for employees and principal managers. Currently registered employees must take the test upon license renewal.
Increased flexibility for the Indiana Securities Commissioner to revoke, deny or suspend a loan broker license for reasons including violations of loan broker-related laws in the past 10 years under the Commissioner's jurisdiction. In addition, knowingly filing false statements is now a Class C felony.
Requirements for certain exempt entities to file notices with the Securities Division every two years.
The new laws went into effect on Saturday, June 30, 2007. While the acts and laws of the State will hamper the initialzation of fraudulent practice in the mortgage industry, it is wise for the consumer to know and understand details of the loan they are qualifying and signing for.