Many IN Mortgage Brokers Not Yet Legal

This could be the last full week of operations for more than 500 Indiana mortgage brokerage companies.

On July first, a law took effect that required Indiana mortgage brokers to work in an office with a principal manager who had passed a state exam. On that day, 639 of the 950 companies in the state were not in compliance with the law.

As a result, the deadline to pass the test was extended to August 5th. Since then, 85 more companies have become legal.

State Securities Commissioner Chris Naylor says many more may never need to take the test.

“Many of the companies of the 639 who didn’t attempt to take the test are likely already out of business and did not inform us that they’ve basically gone out of business,” he says.

At least 26 companies have shut down since the law took effect.