Title 37, CONSUMER LENDING

Sec. 47.5. "Supervised loan" means a consumer loan in which the rate of the loan finance charge exceeds twenty-five percent (25%) per year as determined according to the provisions on loan finance charge for consumer loans in IC 37-2-4-4. [Pre-2026 Revision Citation: 24-4.5-3-501…

Sec. 48. "Unique identifier" means a number or other identifier assigned by protocols established by the NMLSR. [Pre-2026 Revision Citation: 24-4.5-1-301.5(43).] As added by P.L.115-2026, SEC.97.

Sec. 5. "Average daily balance" means the sum of each of the daily balances in a billing cycle divided by the number of days in the billing cycle, and if the billing cycle is a month, the creditor may elect to treat the number of days in each billing cycle as thirty (30). [Pre-20…

Sec. 6. "Balloon payment", with respect to a mortgage transaction, means any payment that: (1) the creditor requires the debtor to make at any time during the term of the mortgage; (2) represents the entire amount of the outstanding balance with respect to the mortgage; and (3) t…

Sec. 7. "Bona fide nonprofit organization" means an organization that does the following, as determined by the director under criteria established by the director: (1) Maintains tax exempt status under Section 501(c)(3) of the Internal Revenue Code. (2) Promotes affordable housin…

Sec. 7.5. "Cash price" means the price at which the goods, services, or interest in land are offered for sale by the seller to cash buyers in the ordinary course of business, and may include: (1) applicable sales, use, and excise and documentary fees; (2) the cash price of access…

Sec. 7.7. "Civil court" means any court of Indiana having civil jurisdiction. [Pre-2026 Revision Citation: 24-4.5-6-117.] As added by P.L.115-2026, SEC.97.

Sec. 8. "Closing costs" with respect to a subordinate lien mortgage transaction includes: (1) fees or premiums for title examination, title insurance, or similar purposes, including surveys; (2) fees for preparation of a deed, settlement statement, or other documents; (3) escrows…

Sec. 9. "Conspicuous" refers to a term or clause when it is so written that a reasonable person against whom it is to operate ought to have noticed it. [Pre-2026 Revision Citation: 24-4.5-1-301.5(6).] As added by P.L.115-2026, SEC.97.

Sec. 1. Except as otherwise provided, the definitions set forth in IC 37-2-2 apply throughout this article. As added by P.L.115-2026, SEC.97.

Sec. 10. (a) "Small loan" means a loan: (1) with a principal loan amount that is at least fifty dollars ($50) and not more than five hundred fifty dollars ($550); and (2) in which the lender holds the borrower's check for a specific period, or receives the borrower's written auth…

Sec. 2. The definitions set forth in this chapter apply throughout this article. As added by P.L.115-2026, SEC.97.

Sec. 3. "Check" has the meaning set forth in IC 26-1-3.1-104. [Pre-2026 Revision Citation: 24-4.5-7-106.] As added by P.L.115-2026, SEC.97.

Sec. 4. "Consecutive small loan" means a new small loan agreement that the lender enters with the same borrower not later than seven (7) calendar days after a previous small loan made to that borrower is paid in full. [Pre-2026 Revision Citation: 24-4.5-7-108.] As added by P.L.11…

Sec. 5. "Lender" means a person that acquires and retains a license issued by the department of financial institutions under this chapter to engage in small loans. [Pre-2026 Revision Citation: 24-4.5-7-111.] As added by P.L.115-2026, SEC.97.

Sec. 6. "Monthly gross income" means the income received by the borrower in the thirty (30) day period preceding the borrower's application for a small loan under this chapter and exclusive of any income other than regular gross pay received, or as otherwise determined by the dep…

Sec. 7. "Paid in full" means the termination of a small loan through: (1) the presentment of the borrower's check for payment by the drawee bank or the exercise by the lender of an authorization to debit an account of the borrower; or (2) the return of a check to a borrower who r…

Sec. 8. "Principal" means the total of: (1) the net amount paid to, receivable by, or paid or payable from the account of the borrower; and (2) to the extent that the payment is deferred, the additional charges permitted by this chapter that are not included in subdivision (1). […

Sec. 9. "Renewal" refers to a small loan that takes the place of an existing small loan by: (1) renewing; (2) repaying; (3) refinancing; or (4) consolidating; a small loan with the proceeds of another small loan made to the same borrower by a lender. [Pre-2026 Revision Citation: …

Sec. 1. The definitions in this chapter apply throughout this article. [Pre-2026 Revision Citation: 24-5.5-2-1.] As added by P.L.115-2026, SEC.97.

Sec. 2. "Foreclosure consultant" means a person who, directly or indirectly, makes a solicitation, a representation, or an offer to a homeowner to perform, with or without compensation, any service that the person represents will: (1) prevent or postpone the initiation of a forec…

Sec. 3. "Foreclosure purchaser" means a person who purchases real property in a foreclosure proceeding. [Pre-2026 Revision Citation: 24-5.5-2-3.] As added by P.L.115-2026, SEC.97.

Sec. 4. "Foreclosure reconveyance" means a transaction involving: (1) the transfer of interest in real property by a homeowner to a person during or incident to a proposed foreclosure proceeding, either by: (A) transfer of interest from the homeowner to the person; or (B) creatio…

Sec. 5. "Formal settlement" means a face-to-face meeting with a homeowner to complete final documents incident to the: (1) sale or transfer of real property; or (2) creation of a mortgage or equitable interest in real property; conducted by a person who is not employed by or an a…

Sec. 6. "Homeowner" means a person who holds record title to residential real property as of the date on which: (1) a contract with a foreclosure consultant; or (2) a foreclosure reconveyance agreement; with respect to the residential real property is entered into. [Pre-2026 Revi…

Sec. 1. The definitions in this chapter apply throughout this article. [Pre-2026 Revision Citation: 24-9-2-1.] As added by P.L.115-2026, SEC.97.

Sec. 10. (a) Except as provided in subsection (b), "points and fees" means the total of the following: (1) Points and fees (as defined in 12 CFR 226.32(b)(1) on January 1, 2004). (2) All compensation paid directly or indirectly to a mortgage broker, including a broker that origin…

Sec. 11. "Political subdivision" means a municipality, school district, public library, local housing authority, fire protection district, public transportation corporation, local building authority, local hospital authority or corporation, local airport authority, special servic…

Sec. 12. "Rate" means the interest rate charged on a home loan, based on an annual simple interest yield. [Pre-2026 Revision Citation: 24-9-2-12.] As added by P.L.115-2026, SEC.97.

Sec. 13. "Total loan amount" means the principal of the home loan minus the points and fees that are included in the principal amount of the loan. [Pre-2026 Revision Citation: 24-9-2-13.] As added by P.L.115-2026, SEC.97.

Sec. 14. "Trigger rate" means: (1) for fixed rate home loans in which the interest rate will not vary during the term of the loan, the rate as of the date of closing; (2) for home loans in which the interest varies according to an index, the sum of the index rate as of the date o…

Sec. 2. "Benchmark rate" means the interest rate established under Section 152 of the Federal Home Ownership and Equity Protection Act of 1994 (15 U.S.C. 1602 (aa)) and the regulations adopted under that act by the Federal Reserve Board, including 12 CFR 226.32 and the Official S…

Sec. 3. "Bona fide discount points" means loan discount points that: (1) are knowingly paid by the borrower; (2) are paid for the express purpose of reducing the interest rate applicable to the loan; (3) reduce the interest rate from an interest rate that does not exceed the benc…

Sec. 4. "Borrower" means a person obligated to repay a home loan, including a coborrower, cosigner, or guarantor. [Pre-2026 Revision Citation: 24-9-2-4.] As added by P.L.115-2026, SEC.97.

Sec. 5. "Bridge loan" means temporary or short term financing with a maturity of less than eighteen (18) months that requires payments of interest only until the entire unpaid balance is due and payable. [Pre-2026 Revision Citation: 24-9-2-5.] As added by P.L.115-2026, SEC.97.…

Sec. 6. (a) "Creditor" means: (1) a person: (A) who regularly extends consumer credit that is subject to a finance charge or that is payable by written agreement in more than four (4) installments; and (B) to whom the debt arising from a home loan transaction is initially payable…

Sec. 7. (a) "Deceptive act" means: (1) an act or a practice as part of a mortgage transaction (as defined in IC 37-5-3-7(a)), or of a real estate transaction (as defined in IC 37-5-3-7(b)), in which a person at the time of the transaction knowingly or intentionally: (A) makes a m…

Sec. 8. (a) "High cost home loan" means a home loan with: (1) a trigger rate that exceeds the benchmark rate; or (2) total points and fees that exceed: (A) five percent (5%) of the loan principal for a home loan having a loan principal of at least forty thousand dollars ($40,000)…

Sec. 9. (a) "Home loan" means a loan, other than an open end credit plan, a reverse mortgage transaction, or a loan described in IC 37-5-1-1, that is secured by a mortgage or deed of trust on real estate in Indiana on which there is located or will be located a structure or struc…

Sec. 9.5. "Land contract" means a contract for the sale of real estate in which the seller of the real estate retains legal title to the real estate until the total contract price is paid by the buyer. [Pre-2026 Revision Citation: 24-9-2-9.5.] As added by P.L.115-2026, SEC.97.…

Sec. 1. (a) A creditor or mortgage servicer shall provide, in writing, an accurate payoff amount for a first lien mortgage transaction to the debtor not later than seven (7) business days (excluding legal public holidays, Saturdays, and Sundays) after the creditor or mortgage ser…

Sec. 10. (a) A mortgage license issued by the department must be renewed through the NMLSR not later than December 31 of each calendar year. The minimum standards for license renewal for a creditor include the following: (1) The creditor has continued to meet the surety bond requ…

Sec. 11. (a) The department may issue to a person licensed as a creditor to engage in first lien mortgage transactions an order to show cause why the person's license should not be revoked or suspended for a period determined by the department. (b) An order issued under subsectio…

Sec. 12. (a) If the director determines that a current or former director, an officer, or a manager of a creditor: (1) has committed a violation of a statute, a rule, a final cease and desist order, any condition imposed in writing by the director in connection with the granting …

Sec. 13. (a) A notice issued under this chapter must: (1) be in writing; (2) contain a statement of the facts constituting the alleged practice, violation, or breach; (3) state the facts alleged in support of the violation, practice, or breach; (4) state the director's intention …

Sec. 14. If the director enters into a consent to a final order under section 15 of this chapter with a creditor, a director, an officer, or a manager, the director is not required to issue and serve a notice of charges upon the creditor, director, officer, or manager under secti…