According to Ind. Code Ann. §23-2-5-9, every contract with a loan broker for services must be in writing. Pursuant to which, an approved broker agreement is published by the Indiana Securities Division of the Department of State on their website (http://www.in.gov/sos/securities/2803.htm), of which Cx3828 is a duplicate.
The agreement published by the Securities Division has been updated and, consequently, Cx3828 will be updated to match this latest version. Substantial updates that will be made include the following:
1. The last two sentences of the introductory paragraph will be extended into a new selection area, which will allow the broker to disclose whether they are considered a “Loan Broker” subject to the jurisdiction of the Securities Division, or a “First Lien Mortgage Lender” subject to the jurisdiction of the Indiana Department of Financial Institutions. The selection as to which type of entity the broker is will be triggered by a new “Indiana License Type” field in ConformX, which each client will be prompted for if they use Cx3828. If the field is not completed, “Loan Broker” will be selected by default.
2. The last paragraph of the agreement discloses to the borrower which government agency they should contact if they have complaints or questions. In the past, only the contact information of the Securities Division was listed, but now the contact information for the Department of Financial Institutions is also listed, with a checkbox for each to indicate which agency governs the broker. The appropriate checkbox will be marked based on the selection described in Item #1 above. Again, if the field is not completed, the box for the Securities Division will be marked by default.
3. A new section will be added just below the new headings which, by default, will disclose the NMLS number of each loan originator and the registration number of each principal manager who had contact with a loan applicant’s file. Other license numbers may be disclosed, but only if they are both different from the originator’s NMLS number and different from each other. Such numbers include the loan interviewer’s NMLS number, the originator’s state license number, and the loan officer’s state license number.
4. A new prompt for “Bona Fide Third Party Required Deposit Fees” will also be added in ConformX for Indiana brokers. The amount will print in the sentence: “Our required deposit which represents bona fide third party fees is $_______.” If the field is not completed, an amount of “$0.00” will print by default.
This change will take effect July 3, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
June 25, 2012