Indiana Revises Pre-licensing Education Requirements
by: Zachary Pearlstein
The Indiana Department of Financial Institutions has recently updated the state’s pre-licensing education requirements for mortgage loan originators. The department has eliminated a prior requirement of two hours of education on the topic of state law and rules concerning residential mortgage lending. The revised provisions are effective as of April 21, 2014.
The state of Indiana’s pre-licensing education requirements for mortgage loan originators currently mandate a minimum of twenty hours of relevant education. Specifically, the regulations state that pre-licensing education must include, at a minimum, the following topics:
- 3 hours of education on federal law and regulations
- 3 hours of education on ethics, including instruction on fraud, consumer protection, and fair lending issues
- 2 hours of training related to lending standards for the nontraditional mortgage products marketplace
Previously, there was an additional requirement of at least two hours of education on the topic of state law and rules concerning residential mortgage lending. However, the revised regulations have eliminated this requirement.
All pre-licensing education courses must be reviewed and approved by the Nationwide Mortgage Licensing System and Registry (NMLSR), based on reasonable standards. In addition to reviewing the content of the course, the NMLSR is also tasked with reviewing all course providers. The regulations add that the NMLSR may approve a pre-licensing education course that is provided by the employer of the applicant, or by an entity that is affiliated by the applicant by an agency contract, or any subsidiary or affiliate of the employer or entity.
Pre-licensing education courses are not required to take any specific form. They may be offered in a traditional classroom, online, or by any other means that are approved by the NMLSR.
Lastly, the regulations state that any person who has formerly been licensed as a mortgage loan originator by the state of Indiana, who has lost and wishes to regain licensed status, must in addition to the pre-licensing requirements, prove that they have completed all of the continuing education requirements from the last year in which they were licensed by the state.
About the Author
Zachary Pearlstein, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Brandeis University and earned his Juris Doctor at Suffolk Law School. He is admitted to the Massachusetts Bar. Zachary can be reached at
zachary@bankersadvisory.com
Tags: Indiana, State Mortgage Compliance | Comments Off on Indiana Revises Pre-licensing Education Requirements
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
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