On March 18, 2022, Indiana Gov. Eric J. Holcomb signed into law HB1092, legislation which contains multiple provisions related to business association matters, license renewals, third party solicitors, and loan broker exclusivity agreements.
Beginning July 1, 2022, the loan broker contract disclosure requirement listed in Ind. Code Ann. § 23-2.5-8-1(b) now includes an additional disclosure requirement in cases where a loan broker procures loans exclusively from one (1) lender.
Ind. Code Ann. § 23-2.5-8-1(b) now reads:
(b) At the time a contract for the services of a loan broker is signed, the loan broker shall provide the following to each party to the contract:
(1) A copy of the signed contract.
(2) A written disclosure of any agreement entered into by the loan broker to procure loans exclusively from one (1) lender.
To comply with this new loan broker exclusivity disclosure requirement, a new document has been created as Cx26004 IN Loan Broker Disclosure, based on the language in Ind. Code Ann. § 23-2.5-8-1(b)(2) and the Indiana Secretary of State’s Securities Division Compliance Alert dated July 1, 2022. Since this disclosure needs to be given in conjunction with Cx3828 IN Mortgage Broker Agreement, Cx26004 IN Loan Broker Disclosure will print when:
Cx3828 IN Mortgage Broker Agreement prints
AND
Does Licensee only Broker Loans to One Lender? (40351) = Yes
Effective Date
These changes will be in effect immediately. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
DR-118507
The preceding is for informational purposes only and is not and may not be construed as legal advice. No third party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.