- Montana Mortgage Broker License - This license is required of any company or sole proprietorship that obtains, attempts to obtain, or assists in obtaining a mortgage loan for a borrower from a lender in return for, or in anticipation of, consideration.
- Montana Mortgage Lender License - This license is required for any company or sole proprietorship that closes a residential mortgage loan, advances funds, offers to advance funds, or commits to advance funds for a mortgage loan.
- Montana Mortgage Servicer License - This license is required for any entity that engages, for compensation or gain from another or on its own behalf, in the business of receiving any scheduled periodic payment from a borrower pursuant to the terms of a residential mortgage loan, residential mortgage servicing documents, or a residential mortgage servicing contract; or meets the definition of servicer in 12 U.S.C. 2605(i)(2).
- Montana Independent Contractor Entity License - This license is required of any company or sole proprietorship that offers or engages in clerical or support duties as an independent contractor for another person. This license is a subset of the Montana Mortgage Broker License.
No license covers the activities of another. A company that is engaging in lending, brokering, and servicing in Montana requires all three licenses.
No, Montana is not a brick and mortar state. You are not required to be physically present to do business here. Mortgage licensees must be in the United States or a U.S. Territory.
Yes, the qualified individual/branch manager is required to hold an approved Montana Mortgage Loan Originator license and have three years of experience as an MLO.
Yes. Every control person, executive officer, director, general partner, and managing member of an organization must be “financially responsible” for the company applicant to obtain a license. They also must pass the same criminal background check requirements as an MLO.
For purposes of the NMLS, control persons include “any person that (i) is a general partner or executive officer, including Chief Executive, Chief Financial Officer, Chief Operations Officer, Chief Legal Officer, Chief Credit Officer, Chief Compliance Officer, Director, and individuals occupying similar positions or performing similar functions; (ii) directly or indirectly has the right to vote 10% or more of a class of a voting security or has the power to sell or direct the sale of 10% or more of a class of voting securities; or (iii) in the case of a partnership, has the right to receive upon dissolution, or has contributed, 10% or more of the capital . . .”
Under the requirements of the Federal SAFE Act, all state mortgage licensees must submit a report of condition as required by NMLS. The NMLS Mortgage Call Report (MCR) was developed by state regulators to meet this requirement.
The MCR is required to be completed by (1) all state licensed companies and (ii) companies employing state licensed mortgage loan originators (MLOs). Companies must submit at least their application and origination activity information on a quarterly basis.
If you held a state license or employed state licensed MLOs during a reporting period, you must complete the NMLS Mortgage Call Report, even if you had no origination activity during the period.
Pursuant to 32-9-121, MCA, records must be kept for a minimum of 5 years from the date of the last activity pertaining to the file.
2.59.1737, ARM requires Mortgage Brokers to disclosure a similar form as described in the rule.
Yes, a separate bond is required for the mortgage broker, lender, and servicer licenses. The amount of the required surety bond must be calculated by combining the annual loan production amounts for all persons originating residential mortgage loans and for all business locations of the mortgage broker or mortgage lender and must be in the following amount:
- $25,000 for a combined annual loan production that does not exceed $50 million a year;
- $50,000 for annual loan production of $50 million but not exceeding $100 million a year; or
- $100,000 for annual loan production of more than $100 million a year.
The amount of the required surety bond for a mortgage servicer must be calculated on the servicer's total unpaid principal balance (UPB) of residential mortgage loans as of December 31. The amount of the surety bond must be in the following amount:
- $75,000 for a UPB that does not exceed $25 million a year
- $150,000 for a UPB of more than $25 million but not exceeding $100 million a year
- $250,000 for a UPB of more than $100 million but not exceeding $500 million a year
- $350,000 for a UPB of more than $500 million a year
All bonds must be electronic through NMLS. Please do not mail us anything related to a bond.
Yes. Fines are imposed to ensure that licensees operate as specified by the Montana Mortgage Act (MMA) and the rules promulgated by the Department (the Act and Regulations). Fines provide the Department an option other than license REVOCATION OR SUSPENSION in order to ensure compliance with MMA. Those licensees who operate in a professional manner and strictly observe the provisions of the Act will probably never be fined. Those who violate the provisions of the Act or who commit prohibited acts will likely pay thousands in fines.
The Department has the discretion to conduct examinations as often as it deems necessary and for reasons it deems necessary to determine if our licensees are conducting their operations in accordance with Montana law and Department Rules. Examinations result from any number of reasons, but are often scheduled as a result of information provided to the Department from a consumer complaint, an industry insider reporting questionable operations, to determine if serious problems from a previous examination have been corrected, or other factors such as a company never having been examined before. This results in the Department prioritizing examinations to monitor our licensees to ensure that your operations are conducted in a manner that protects the contractual and property rights of the citizens of Montana. The Department aims to do a limited scope exam of a licensee within its first 18 months of licensure and then at least every 3-5 years, provided that the licensee is engaged in business in Montana.
The Montana Mortgage Servicer license allows the holder to modify loans in their own portfolio as long as they are not charging the borrower for it. A servicer may not modify loans they subservice without a mortgage lender license.
Yes. You would be required to hold the Montana Independent Contractor License or the Montana Mortgage Broker License. You would also be required to have one individual who holds the Montana Mortgage Loan Originator license and meets the requirements of a Responsible Individual or Qualified Individual, depending on the license.
No, if you are an “individual who performs clerical or support duties” as an employee at the direction of and subject to the supervision and instruction of an MLO, or a person who is exempt from licensing as an MLO under the Montana Mortgage Act