Article: MORTGAGE BROKERS FACE TEST LOAN CRISIS SPURS 'HIGHER STANDARD'

INDIANAPOLIS - More than two-thirds of Indiana's mortgage broker companies could lose their licenses for not complying with a 2007 state law intended to clean up the industry in the wake of the subprime lending and home foreclosure crisis.

The 2007 law said that each licensed mortgage loan broker had to have one principal manager, someone with three years' experience who had passed a state examination. Of 950 affected loan brokerages statewide, principal managers at 639 of them still had not taken the exam by the law's July 1 deadline, officials said.

Indiana Secretary of State Todd Rokita, whose office regulates the broker industry, said he is giving principal managers a 30-day grace ...

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