Montana Consumer Loan Licensing

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Licensing

A consumer loan license is needed to engage in business as defined in the Montana Consumer Loan Act (Section 32-5-101, MCA).

The Montana Division of Banking and Financial Institutions (Division) does all of its licensing through the Nationwide Mortgage Licensing System (NMLS).

For instructions on how to use NMLS please go to the following links on the NMLS website:

NMLS Navigation:http://mortgage.nationwidelicensingsystem.org/slr/resources/Pages/NavGuides.aspx

For help with a company account:http://mortgage.nationwidelicensingsystem.org/slr/resources/Pages/CompanyQuickGuides.aspx

For help with an individual account:

http://mortgage.nationwidelicensingsystem.org/slr/resources/Pages/IndividualQuickGuides.aspx  

Montana State Licensing Requirements:

http://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=MT

FORMS

Forms can be found on the NMLS website and the Division website.

Montana State Licensing Requirements

http://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=MT

Annual Report

Annual Report - 2017 Annual Report must be filed on or before February 15, 2018 (IMPORTANTSave form to your PC and open in Adobe Reader or Acrobat.  Form will not work properly if opened within internet browser.)

Document Samples/Fee Disclosure

Please upload into NMLS samples of any documents/contracts provided to Montana consumers. Please also type up on the company letterhead a list of fees as listed in ARM 2.59.302. Or you may use this sample form

 

Servicing Consumer Loans

In response to the Servicers of Montana Consumer Loans Memorandum that was released Feb. 23, 2016, the Montana Division offers this clarification:

1. The Montana Consumer Loan Act does not apply to the following:

        Utility providers

        Service providers (doctors, dentists, hospitals, chiropractors, etc.)

        Estates

2.    Servicers of loans originated under the Montana Consumer Act (Act) must be licensed under the Act in order to collect the loan.  If the servicer subcontracts making collection calls to a subcontractor, the subcontractor making calls does not need a license under the Act.  The servicer (the entity that receives the money) must be licensed under the Act. 

3.   The Servicers of Montana Consumer Loans Memorandum applies only to loans originated under the Montana Consumer Loan Act, not to loans originated by financial institutions (i.e. banks and credit unions). 

4.    The Montana Consumer Loan Act  does not apply to open end loans (credit cards).

NEW LEGISLATION

STATUTE

ADMINISTRATIVE RULES

NMLS TRANSITION

Montana will begin managing Consumer Loan Licenses, Deferred Deposit Lender Licenses, Escrow Business Licenses and Sales Finance Company Licenses on the NMLS beginning July 1, 2014.  Companies who hold these licenses should review the Transition Plan for complete information.

MEMORANDUMS

WOMBOLD V. ASSOCIATES FINANCIAL SERVICES COMPANY

On December 30, 2004, the Montana Supreme Court in Wombold v. Associates Financial Services Company, 2004 MT 397, 2004 Mont. LEXIS 680, held that prepaid finance charges, loan fees and discount points paid on the origination of real estate loans by Consumer Loan Licensees are prohibited by the Montana Consumer Loan Act. A copy of the case may be found on the Montana State Law Library website at http://www.lawlibrary.mt.gov/dscgi/ds.py/Get/File-37835/03-808.pdf.

Please seek the advice of competent legal counsel and structure all loans made after December 30, 2004 in accordance with this holding. If you have any questions, please contact the Division of Banking and Financial Institutions at (406) 841-2920.

ADMINISTRATIVE RULE NOTICES

MAR Notice Number Topics Addressed in Notice Date

2-59-550

Notice of Amendment and Repeal - Advertising - Standardized Forms and Procedures - Annual Reporting Form for Consumer Loan Licensees - Transition of Licenses to the NMLS

12/10/2016

2-59-550

Notice of Proposed Amendment and Repeal - Advertising - Standardized Forms and Procedures - Annual Reporting Form for Consumer Loan Licensees - Transition of Licenses to the NMLS. No Public Hearing Contemplated

10/15/2016

2-59-522

Notice of Adoption and Amendment:  Closing a Consumer Loan Business, Reimbursement of Department Costs in Bringing an Administrative Action, Credit Insurance, Examination Fees, License Surrender, and Annual Reports

12/25/2015

2-59-522

Notice of Proposed Adoption and Amendment - Closing a Consumer Loan Business - Reimbursement of Department Costs in Bringing an Administrative Action - Credit Insurance - Examination Fees - Licensure Surrender - Annual Reports. No Public Hearing Contemplated

10/16/2015

2-59-520

Notice of Adoption:  Annual Report by Consumer Loan Licensees

11/21/2014

2-59-520

Notice of Proposed Adoption:  Annual Report by Consumer Loan Licensees

09/19/2014

2-59-515

Corrected Notice of Adoption:  Transitioning existing consumer loan company licenses to the Nationwide Multistate Licensing System (NMLS) and use of the system for all future licensing

04/06/2015

2-59-515

Notice of Adoption:  Transitioning existing consumer loan company licenses to the Nationwide Multistate Licensing System (NMLS) and use of the system for all future licensing

10/09/2014

2-59-515

Notice of Adoption:  Transitioning existing consumer loan company licenses to the Nationwide Multistate Licensing System (NMLS) and use of the system for all future licensing

08/8/2014

2-59-501

Notice of Adoption and Amendment

03/17/2014

2-59-501

Notice of Public Hearing on Proposed Adoption and Amendment: Advertising, Fee Disclosures and Computation of Interest, Credit Insurance, Fees to Public Officials, Receipt Form, and Licensee Records Affecting Consumer Loan Licensees

12/26/2013

2-59-476

Notice of Adoption: Schedule of Charges for Consumer Loans

04/26/2013

2-59-476

Notice of Proposed Amendment: Schedule of Charges for Consumer Loans

03/01/2013

 

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