IC 37-1-1-6 — Exempt transactions and persons
Chapter 1. General Provisions
Bills citing this section
Section text
Sec. 6. This article does not apply to the following: (1) Extensions of credit to government or governmental agencies or instrumentalities. (2) A first lien mortgage transaction in which the debt is incurred primarily for a purpose other than a personal, family, or household purpose. (3) An extension of credit primarily for a business, a commercial, or an agricultural purpose. (4) Except for IC 37-1-3-4(b), IC 37-1-3-8, IC 37-1-3-19(d), and IC 37-1-3-19(e), a first lien mortgage transaction made: (A) in compliance with the requirements of; and (B) by a community development corporation (as defined in IC 4-4-28-2) acting as a subrecipient of funds from; the Indiana housing and community development authority established by IC 5-20-1-3. (5) Except for IC 37-1-3-4(b), IC 37-1-3-8, IC 37-1-3-19(d), and IC 37-1-3-19(e), a first lien mortgage transaction made by an entity that exclusively uses funds provided by the United States Department of Housing and Urban Development under Title 1 of the federal Housing and Community Development Act of 1974, Public Law 93-383, as amended (42 U.S.C. 5301 et seq.). (6) An extension of credit originated by the following: (A) A depository institution. (B) Subsidiaries that are not licensed under this article and that are: (i) owned and controlled by a depository institution; and (ii) regulated by a federal banking agency. (C) An institution regulated by the Farm Credit Administration. (7) Except for IC 37-1-3-4(b), IC 37-1-3-8, IC 37-1-3-19(d), and IC 37-1-3-19(e), a credit union service organization that is majority owned, directly or indirectly, by one (1) or more credit unions. (8) A person that does not engage as a creditor in first lien mortgage transactions in Indiana. However, a person may voluntarily register with the department for the purpose of sponsoring employees who are licensed as mortgage loan originators under this article and 750 IAC 9-3, and who are engaged solely as third party loan processors or underwriters, if the person does the following: (A) Assumes responsibility for and reasonably supervises the activities of all licensed mortgage loan originators sponsored by the person. (B) Registers with and maintains a valid unique identifier issued by the NMLSR as required by IC 37-1-3-4(b), maintains a surety bond in accordance with IC 37-1-3-8, submits to the NMLSR reports of condition in accordance with IC 37-1-3-19(d) (subject to IC 37-1-3-9), and files financial statements with the department in accordance with IC 37-1-3-19(e). (C) Cooperates with the department, and provides access to records and documents, as required by the department in carrying out examinations of the activities of the licensed mortgage loan originators sponsored by the person, as described in IC 37-1-3-19(a). (D) Agrees to comply with all law, rules, directives, and orders in connection with the activities of the licensed mortgage loan originators sponsored by the person, as the director determines necessary to ensure compliance with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) and with Indiana law. (9) A first lien mortgage transaction originated by a registered mortgage loan originator, when acting for an entity described in subdivision (6). However, a privately insured state chartered credit union shall comply with the system of mortgage loan originator registration developed by the Federal Financial Institutions Examinations Council under Section 1507 of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE). (10) An individual who offers or negotiates terms of a mortgage transaction with or on behalf of an immediate family member of the individual. (11) An individual who offers or negotiates terms of a mortgage transaction secured by a dwelling that served as the individual's residence. (12) Unless the attorney is compensated by: (A) a lender; (B) a mortgage broker; (C) another mortgage loan originator; or (D) any agent of the lender, mortgage broker, or other mortgage loan originator described in clauses (A) through (C); a licensed attorney who negotiates the terms of a mortgage transaction on behalf of a client as an ancillary matter to the attorney's representation of the client. (13) The United States, any state or local government, or any agency or instrumentality of any governmental entity, including United States government sponsored enterprises. (14) A person in whose name a tablefunded transaction is closed. However, the exemption provided by this subdivision does not apply if: (A) the transaction: (i) is secured by a dwelling that is a mobile home, a manufactured home, or a trailer; and (ii) is not also secured by an interest in land; and (B) the person in whose name the transaction is closed sells the dwelling to the debtor through a retail installment contract or other similar transaction. (15) A bona fide nonprofit organization not operating in a commercial context, as determined by the director, if the following criteria are satisfied: (A) Subject to clause (B), the organization originates only one (1) or both of the following types of mortgage transactions: (i) Zero (0) interest first lien mortgage transactions. (ii) Zero (0) interest subordinate lien mortgage transactions. (B) The organization does not require, under the terms of the mortgage or otherwise, balloon payments with respect to the mortgage transactions described in clause (A). (C) The organization is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. (D) The organization's primary purpose is to serve the public by helping low income individuals and families build, repair, and purchase housing. (E) The organization uses only: (i) unpaid volunteers; or (ii) employees whose compensation is not based on the number or size of any mortgage transactions that the employees originate; to originate the mortgage transactions described in clause (A). (F) The organization does not charge loan origination fees in connection with the mortgage transactions described in clause (A). (16) A bona fide nonprofit organization if the following criteria are satisfied: (A) For each calendar year that the organization seeks the exemption provided by this subdivision, the organization certifies, not later than December 31 of the preceding calendar year and on a form prescribed by the director and accompanied by such documentation as required by the director, that the organization is a bona fide nonprofit organization. (B) The director determines that the organization originates only mortgage transactions that are favorable to the debtor. For purposes of this clause, a mortgage transaction is favorable to the debtor if the director determines that the terms of the mortgage transaction are consistent with terms of mortgage transactions made in a public or charitable context, rather than in a commercial context.
As added by P.L.115-2026, SEC.97.
Source: official publisher (2026 edition)