40% of Indiana Mortgage Brokers Lose Their Licenses
Having failed to comply with a new law aimed at "raising the standards" of the mortgage lending industry, 40% of Indiana's mortgage brokers have lost their licenses. Ouch.
The new law requires mortgage brokerages to "name a principal broker with at least three years experience who has passed a state exam and will oversee his company's business affairs." It sounds reasonable enough, but was quite a drastic change from the low entrance barrier that was previously in place in the Indiana mortgage industry.
Mike Monaco, president of the Indiana Association of Mortgage Brokers said: "Make no mistake about it, we had one of the easiest entrance barriers in the country." Furthermore, the states formerly low standards was amongst the factors which lead Indiana to consistently have one off the 10 highest foreclosure rates in the country. Monaco also said that many of the brokers who lost their licenses had likely already left the business due to the downturn of the housing industry.
Taking into account the 143 brokerages who voluntarily gave up their licenses, the total number of mortgage brokerages in the state of Indiana has been halved since July 1st.
A full list of all of the mortgage brokerages whose licenses have been revoked can be viewed here.
Comments
Indiana Mortgage Brokers
Indiana has always had larger than average foreclosure rates; it's not surprising that it was due to lower than average qualifications for becoming a mortgage broker. Their real estate licensing laws are a little more stringent, but still an easy barrier to overcome.
In my part of Indiana (NW), it seems there are a lot more boarded up windows and "For Sale" signs that have been aging in front yards for at least a year now. But this is also one of the more economically depressed areas, with industry moving out and being replaced by gambling boats and casinos.
Post new comment