< Back to Main

Case Study -- Protecting Indiana Consumers by Instituting a Loan Brokers Registration Examination Program

Client
The Office of Secretary of State is comprised of the Executive Office and three Divisions: Elections, Business Services, and Securities. The Securities Division educates Hoosiers about prudent investing and oversees Indiana's securities and loan brokerage industry. The Division protects Hoosier investors by ensuring compliance with the Indiana Loan Broker Act and Indiana Securities Act. 

Challenge
In 2007, the Indiana Secretary of State Securities Division addressed issues in the mortgage industry. With foreclosure rates on the rise across the U.S., the Division saw the need for additional protection, as did the Indiana Association of Mortgage Brokers (INAMB). Working with the INAMB and other industry groups, the Division proposed new regulatory requirements to strengthen enforcement and improve consumer protection - including a requirement that Indiana loan brokerage professionals pass an examination prior to registration as a principal manager or loan originator for a licensed loan broker in Indiana. The Indiana General Assembly passed the revisions to Indiana’s Loan Broker Act. The examination requirement took effect on July 1, 2007. To implement the examination during 2007, the Division researched organizations that could develop the examination process effectively, efficiently, and economically.

Following a competitive bid process, the Division awarded the contract to pan - A TALX Company on July 2, 2007. pan agreed to launch the new registration examinations no later than October 1, 2007. pan is well known by federal and corporate organizations for effectively delivering web-based assessments to clients. pan’s clients include the Indiana Department of Insurance, U.S. Department of Homeland Security, Transportation Security Administration, U.S. Customs and Border Protection, U.S. Postal Service and Postal Inspection Service, JC Penney, Target Stores, and the Burlington Northern Santa Fe Railroad.

Solution
pan collaborated with the Indiana Association of Mortgage Brokers (INAMB) and Alpine Testing Services (ATS) to develop and validate the examinations. As the leading lending industry representative in Indiana, the INAMB played a critical recruitment and consulting role in the exam development process. ATS, a professional test development company, provided test development consulting. This collaboration ensured that the examinations would be developed according to accepted testing standards as defined by the American Psychological Association (APA), National Council for Measurement in Education (NCME), Association of Test Publishers (ATP), and the National Organization for Competency Assurance (NOCA).

pan developed and launched the Loan Originators and Principal Managers Registration Examinations on October 1, 2007, meeting all proposed service requirements. pan delivers the exams through the pan Test Center network (more than 500 partner testing locations in the U.S. and Canada), which includes 14 conveniently located testing centers in Indiana and more than 20 in adjoining states. pan Testing Centers administer exams in a secure, proctored environment using our patented, internet testing technology - a state-of-the-art secure automated (web-based) system for the administration and delivery of professional assessment and testing instruments, pre-employment selection and assessment, and certification/licensure examinations. This web-based platform, eCLASS, provides convenient on-line exam registration, fee payment options, scheduling, and sends e-mail reminders to examination candidates. The system is accessible 24/7 to testing clients and candidates, provides real time reporting capability, and permits program monitoring, and data download capability whenever needed.

Results
The Indiana Securities Division, faced with an extremely tight timeframe to implement the new registration examination requirement, achieved its legislatively mandated goal of launching the examinations on October 1, 2007.  Indiana’s lending industry professionals are able to take their registration examinations at a convenient time and location.