Niki Kelly reports on the imminent termination of the right of hundreds of mortgage brokers to do business in Indiana.
More than 630 mortgage broker companies could be out of business starting Aug. 6 because of a failure to pass a competency exam, Secretary of State Todd Rokita announced Monday.
A 2007 law required each mortgage broker office to have a principal manager with three year’s experience and who has passed a state test.
A mortgage broker is an independent person or company acting as a middleman between borrowers and lenders, sometimes even negotiating with lenders for the best deal a homeowner can get on a loan. Mortgage brokers often help people with credit problems who might have a harder time finding a lender.
In Indiana, 67 percent of all real estate transactions involve a mortgage broker, Rokita said.
So far 639 of 950 haven’t taken the test. However, some of that has to do with the downturn in business. The Secretary of State’s office called about 90 brokers and found about 15 of those were no longer in business.