Indiana State-Specific Content (Uniform State Content)
What this domain tests
Indiana-specific content tests the state licensing framework and Indiana mortgage conduct rules, plus the Uniform State Content adopted with the SAFE exam. Expect questions on DFI, NMLS, education, renewal, and the Indiana Home Loan Practices Act.
Licensing and education
- License through NMLS with the Indiana Department of Financial Institutions (DFI).
- SAFE prelicensure education: 20 hours, including federal law, ethics, and nontraditional mortgage lending; Indiana uses the SAFE MLO test with Uniform State Content.
- Annual continuing education: 8 hours, with required categories including federal law, ethics, and nontraditional lending.
- Renewal is annual; complete CE and NMLS renewal before the December 31 deadline. Keep sponsorship, branch, and address information current.
- Company licenses carry separate bond, net-worth, and office requirements.
Indiana conduct rules
The Indiana Home Loan Practices Act, Indiana Code 24-8.5, targets high-cost home loans. It restricts or prohibits prepayment penalties, balloon payments, negative amortization, financed credit insurance, lending without regard to repayment ability, encouraging default, and unfair steering. Indiana law can be stricter than federal law.
Worked example
A proposed Indiana first-lien loan has four points and a two-year prepayment penalty. The points may push the loan into the high-cost category; if so, the prepayment penalty is prohibited and the loan must be restructured or declined. The MLO should not close it and hope federal tolerances cure it.
Traps
A federal license or another state’s license does not authorize Indiana origination. An unlicensed assistant may not take applications or negotiate terms. CE hours must match required categories, not just total hours. State high-cost rules can add prohibitions even when federal law allows the term.