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Indiana Mortgage Brokers Face State Ban

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About two thirds of Indiana mortgage brokers are in danger of losing their licenses.

A recent Indiana law requires mortgage brokerages to adhere to some new standards. Agents are being subjected to criminal background checks, and firms had until July 1st for one staff member to pass a competency exam –and oversee the office.

The secretary of state says the regulations are a way to raise standards in the often murky mortgage industry. But so far, he says agents from only about three hundred of the thousand or so licensed brokerages have even tried taking the competency exam.

Warning letters have gone out industry wide – telling firms if they don’t have someone pass the test soon they’ll be stripped of their licenses. Mortgage brokers caught practicing without licenses would face heavy fines, or even jail time.

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