Indiana Adopts Provisions Regarding Pre-licensing Education Requirements and Amends Definition of NMLSR

• April 13, 2016
• Robert Harrison

By Robert Harrison, J.D.
The Indiana Department of Financial Institutions adopted provisions concerning pre-licensing education requirements as well as the definition of the term “Nationwide Multistate Licensing System and Registry” or “NMLSR”.  These provisions are effective immediately. 
Pre-licensing Education Requirements
The prelicensing education requirements in Indiana are governed by 750 IAC 9-3-5.  Indiana has added two provisions to the rule, one pertaining to those that fail to obtain a license and another pertaining to those that do obtain a license.  The new provisions are laid out in 750 IAC 9-3-5(g):
“A person who:

• (1) fails to obtain:
• (A) a mortgage loan origination license issued by the department; or
• (B) a federal mortgage loan registration; within three (3) years from the date of initial completion of any approved prelicensing education course; or
• (2) obtained:
• (A) a mortgage loan origination license issued by the department; or
• (B) a federal mortgage loan registration; but did not renew the license or federal registration for at least three (3) years; must complete at least twenty (20) hours of education in order to obtain a mortgage loan origination license issued by the department.”

“Nationwide Multistate Licensing System and Registry”
NMLSR now has an amended definition in Indiana, 750 IAC 9-1-1-32:
“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.”
About the Author
Robert Harrison, J.D. is a Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Boston University and earned his Juris Doctor at the Boston University School of Law. Robert is admitted to the Bar in Massachusetts. He can be reached at robert.harrison@bankersadvisory.com

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