Indiana Code 23-2.5-10-1. Violations in connection with loan broker agreement
(1) Employ a device, a scheme, or an artifice to defraud.
Terms Used In Indiana Code 23-2.5-10-1
- Contract: A legal written agreement that becomes binding when signed.
- Equal Credit Opportunity Act: Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Truth in Lending Act: The Truth in Lending Act is a federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. In general, lenders must provide information on Source: OCC
(3) Engage in an act, a practice, or a course of business that operates or would operate as a fraud or deceit on a person.
(4) Collect or solicit consideration, except a bona fide third party fee, in connection with a residential mortgage loan before the loan is closed.
(5) Receive funds that the person knows were generated as a result of a fraudulent act.
(6) File or cause to be filed with a county recorder a document that the person knows:
(A) contains:
(i) a misstatement; or
(ii) an untrue statement;
of material fact; or
(B) omits a statement of a material fact that is necessary to make the statements that are made, in the light of circumstances under which they are made, not misleading.
(7) Knowingly release or disclose the unencrypted, unredacted personal information of a borrower or prospective borrower, unless the personal information is used in an activity authorized by the borrower or prospective borrower under any of the following circumstances:
(A) The personal information is:
(i) included on an application form or another form; or
(ii) transmitted as part of an application or enrollment process.
(B) The personal information is used to obtain a consumer report (as defined in IC 24-5-24-2) for an applicant for credit.
(C) The personal information is used to:
(i) establish, amend, or terminate an account, a contract, or a policy; or
(ii) confirm the accuracy of the personal information.
However, personal information allowed to be disclosed under this clause may not be printed in whole or in part on a postcard or other mailer that does not require an envelope, or in a manner that makes the personal information visible on an envelope or a mailer without the envelope or mailer being opened.
(8) Engage in reckless or negligent activity allowing the release or disclosure of the unencrypted, unredacted personal information of a borrower or prospective borrower, including an action prohibited by IC 23-2.5-8-9.
(9) Knowingly bribe, coerce, or intimidate another person to corrupt or improperly influence the independent judgment of a real estate appraiser with respect to the value of real estate offered as security for a residential mortgage loan, as prohibited by IC 23-2.5-8-2.
(10) Violate any of the following:
(A) The federal Truth in Lending Act (15 U.S.C. § 1601 et seq.).
(B) The federal Real Estate Settlement Procedures Act (12 U.S.C. § 2601 et seq.).
(C) The federal Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.).
(D) Another federal law or regulation concerning residential mortgage lending.
(11) Omit a material fact or fail to promptly correct a misstatement of material fact in an application made to the commissioner under this article.
(b) A person who commits an act described in subsection (a) is subject to disciplinary proceedings under IC 23-2.5-11.
As added by P.L.175-2019, SEC.2.