What do I need for an Indiana mortgage loan originator license?

Step 1. Check whether you need the license, and from which agency. The DFI says a license is required to originate mortgage loans in Indiana, and that you get it from the DFI or the Secretary of State, according to the license your sponsoring employer holds. The DFI rule says that, with listed exceptions, an individual may not regularly engage in the business of a mortgage loan originator without a DFI license or temporary authority, kept annually. Among the exceptions, an individual acting exclusively as a servicer in loss mitigation is not required to meet the education, testing, background and licensing standards, unless a CFPB guideline, rule, regulation or interpretive letter denies the exclusion. We haven't confirmed the Secretary of State's hours or test rules, so the steps below follow the DFI.

Step 2. Pick a course the NMLSR approves. The DFI rule defines the NMLSR as the Nationwide Multistate Licensing System and Registry. Use the NMLS course provider list. The rule says the NMLSR approves the provider along with the course. The DFI says courses are not required to be specific to Indiana.

Step 3. Take at least twenty hours. The rule says they must include at least three hours of federal law and regulations, three of ethics and two on lending standards for the nontraditional mortgage product marketplace. Courses may be offered in a classroom, online, or by other means the NMLSR approves.

Step 4. Pass the written test. The DFI lists three options: the National and Indiana State components of the SAFE Test, the National and stand-alone UST components, or the National Test Component with Uniform State content. The rule says you do not pass unless you achieve a test score of at least seventy-five percent correct answers.