n Move was part of new testing requirements
Staff and wire reports
Indiana Secretary of State Todd Rokita warned last month that mortgage loan brokers who hadn’t met new testing requirements in a 2007 law would lose their license. He followed through on that promise this week as a nearly half of the state’s mortgage brokers — more than 360 total, including five in Boone County — had their licenses pulled.
The impacted Boone County brokers include AAA Mortgage Co., Lebanon; Capital Lending Advisors, Lebanon; Jacobsen Financial, Zionsville; Miramar Mortgage & Financial Services, Lebanon; Investor’s Mortgage Services Inc., Zionsville; and IQ Financial, Zionsville.
The issue stems from a change to license testing requirements in the 2007 Indiana Loan Broker Act. The exam is called the principal manager assessment. Brokers were to have passed that test by July 1 or risk losing their licenses.
Jeff Schroeder of Miramar said that because he has tried to pass the test by the deadline, he has until Sept. 1 before his license revocation will be enforced. Secretary of State Communications Director Jim Gavin office confirmed that Miramar’s revocation will not be enforced until Sept. 1, unless Schroeder fails to pass the exam by that time.
“There are a few in that situation,” Gavin said. “They were attempting to comply.”
Calls to the other four brokers were unsuccessful.
As of noon Wednesday, 361 of Indiana’s 950 brokerages had failed to meet a Tuesday deadline for complying with a 2007 industry-backed law that requires each brokerage 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.
Another 143 brokerages have voluntarily surrendered their licenses, Indiana Secretary of State Todd Rokita said in a teleconference with reporters.
That means only about half of the 950 mortgage brokers licensed by the state on July 1 remain in business five weeks later.
The new law also requires background checks on brokers and raised their annual fees to $400 from $100, Rokita said.
Not all local brokers were negatively impacted. At least one, Aaron Byers, owner and operator of Sagamore Mortgage in Lebanon, remains in operation.
“Those of us left have had to go through rigorous standards of state and federal background checks, testing and fees,” Byers said in a written statement. He said brokers can give home buyers lower interest rates and better service than other lenders, such as banks or credit unions.
About 40 percent of the state’s brokers failed to meet Rokita’s deadline. This latest problem comes at a time when the mortgage industry is already slumping.
The low licensing standards likely were among the factors leading to Indiana consistently having one of the 10 highest foreclosure rates in the nation, Indiana Association of Mortgage Brokers President Mike Monaco said.
Rokita, however, downplayed the brokers’ standards role in Indiana’s high foreclosure rate.
“I don’t think that was a very big piece of that,” Rokita said, explaining that talks on the new law began before the subprime mortgage crisis began.
Karl Berron, chief executive officer of the Indiana Association of Realtors, said the license revocations could cause loan problems for a few prospective buyers, but he expected only minimal impact from Wednesday’s action.
“The loans are still there for folks that want them,” Berron said.
Local News
Six local mortgage brokers lose licenses
- Local News
-
-
Measles outbreak may include Boone
Two Boone County residents appear to have measles, while two Hamilton County residents — including at least one who visited the Super Bowl Village in Indianapolis on a day it was attended by about 200,000 people — have been confirmed as having the disease.
-
Skillman brings tour to county
Elected officials in Boone County are being proactive in “trying to address issues they know are coming down the road,” Lt. Gov. Becky Skillman said after meeting representatives of nine local governments.
-
County council field expands to 6
An incumbent at-large member of the Boone County Council will seek election to the board, while a sixth candidate has joined the field for the Republican Party’s nomination for the three at-large seats.
-
Stocking Up
The store is still hiring. “We are very excited to come to town,” said General Manager Jon Keller.
-
Communities evaluate success in bowl roles
While the world was focused on downtown Indianapolis in the days leading up to Super Bowl XLVI, many outlying communities — including Lebanon and Zionsville — were also playing a role, taking care of visitors, working at the event or taking in the celebration leading up to the big game.
-
Thomas takes reins of learning network
The Boone County Learning Network is looking in a new direction with a new executive director, Michele Thomas.
-
Lebanon High School graduate turns Naptown Roller Girl
Indianapolis, sometimes called “Naptown,” is known for its NFL football team, Motor Speedway, and — on a good day — its basketball team.
-
Deputy-involved accidents down over last 5 years
Accidents involving Boone County Sheriff’s Office deputies have been falling steadily since 2008, insurance agent Dan Lamar told the county commissioners Monday.
-
Zbowl winterfest
-
Referrals help food support group grow
Interest and participation in a food support group begun in November at The Caring Center in Lebanon has been boosted by referrals from other agencies.
- More Local News Headlines
-
Measles outbreak may include Boone
Man Killed in Courthouse Shootout
Video of Ga. Man Who Killed Girl Released
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
Nevada Highway Patrol, City Settle Beating Case
White House Attacks Romney on Birth Control
Homs Bombardment Continues, Global Outcry Grows
Mo. Teen Gets Life Sentence for Killing Girl, 9
Lower-hassle Screening to Be Tested at Airports
Raw Video: Dog Rescued From Icy Colo. Water
Helmet Camera Captures Calif. Fire Rescue
Worker Tells 911: Powell 'exploded the House'
Triple Win: Santorum Takes Minn., Mo., Colo.
Injured Marine Inspired by Homecoming
No Rape Charges Against Son of NYPD Commissioner
Egypt's Ruling Generals Play Risky Game With US
Former Komen Exec Defends Funding Cut
Skip the Coffee Cup and Inhale Your Caffeine Fix
Calif. Gay Marriage Ban Ruled Unconstitutional
Jury Selection for Ex-UVa Athlete Enters 2nd Day
