Montana Mortgage Loan Originators

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Licensing

The Montana mortgage loan originator license is for any residential mortgage loan originator, unless exempt under 32-9-104.

The Montana Division of Banking and Financial Institutions 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

For help with an individual account click here

*Mortgage Loan Originator Checklist*

*Authorization Form*

Forms

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

Montana State Licensing Requirements: http://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=MT

MLO Checklist

Authorization Form

Licensure Verification

To verify licensure of a financial services provider, visit the NMLS Consumer Access website.

Uniform State Test

The Montana Division of Banking and Financial Institutions has adopted the National SAFE MLO Test Component with uniform state content effective July 1, 2013. Montana is the 30th state agency that no longer requires a second state-specific test component to be taken by mortgage loan originators (MLOs) seeking licensure with their state agencies. See Uniform State Test Implementation Information.

All tests are scheduled through NMLS. Click here for more information.

Test Enrollment Quick Guide for Individuals

Test Enrollment Quick Guide for Companies

Test Content Outline

Testing Handbook

 

To schedule a test appointment, you can:

  • Login to NMLS and navigate to the Manage Test Appointments page
  • Or go to www.prometric.com/nmls
  • Or call Prometric at 1-877-671-6657

Find a Test Center:

Education

All education is scheduled through NMLS.

Master Catalog

Pre-licensure Education: All new loan originator applicants must first complete 20 hours of pre-licensure education (PE) plus 2 hours of Montana specific education before they can apply for a Montana license through NMLS.

Continuing Education: All licensed originators must take 8 hours of continuing education (CE) every year in order to have their licensed renewed for the following year. There is no MT-specific course required for CE. The SAFE Act stipulates that a state-licensed MLO “may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.” “Successive years” means two years in a row.

If you are returning to the industry, the application process for a new license requires you to satisfy any CE deficiency for the last year in which you were licensed. Only the courses listed in the Late CE Catalog (and no others), may be used to make-up past CE requirements.  

MCA 32-9-107. Prelicensing education requirements for mortgage loan originators. (1) An individual seeking a mortgage loan originator's license shall complete at least 20 hours of approved education courses, which must include at least:
     (a) 3 hours of training on federal law and regulations;
     (b) 3 hours of training in ethics, including instruction on fraud, consumer protection, and fair lending issues; and
     (c) 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.
     (2) In addition to the training required in subsection (1), the department may require by rule that applicants complete additional hours of training that are specific to Montana residential mortgage statutes and rules.
     (3) The prelicensing education courses that comply with the requirements of subsection (1) and that are approved by the NMLS for any other state must be accepted with respect to the completion of prelicensing education requirements in Montana.

MCA 32-9-118. Continuing education requirements for mortgage loan originators. (1) All mortgage loan originators shall complete and submit to the NMLS evidence of at least 8 hours of continuing education every year at the time they submit their license renewal applications. The 8 hours of continuing education must be obtained in approved education courses.
     (2) The 8 hours of education must include at least:
     (a) 3 hours of training on federal laws and regulations;
     (b) 2 hours of training in ethics, including instruction on fraud prevention, consumer protection, and fair lending issues; and
     (c) 2 hours of training related to lending standards for the nontraditional mortgage product marketplace.
     (3) A person who has successfully completed the education requirements that comply with the requirements of subsections (1) and (2) and that are approved by the NMLS for any other state must be given credit toward completion of continuing education requirements in Montana.
     (4) Except as provided in subsection (6), a licensed mortgage loan originator may receive credit for a continuing education course only in the year in which the course is taken and may not take the same approved course in the same or successive years to meet the annual requirements for continuing education.
     (5) A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of 2 hours credit for every 1 hour taught.
     (6) A licensed mortgage loan originator who subsequently becomes unlicensed shall complete the continuing education requirements for the last year in which the license was held prior to issuance of a new or renewed license. The continuing education requirements of this subsection are not subject to the provision of subsection (4) that credit may be given only in the year a course is taken.

SAFE Act

On July 30, 2008, the President of the United States signed into law the Housing and Economic Recovery Act of 2008. Title V of the Act, entitled The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Mortgage Licensing Act), recognizes and builds on states efforts to enhance consumer protection, and reduce fraud, by requiring ALL mortgage loan originators to be either state-licensed or federally registered. Under the S.A.F.E. Mortgage Licensing Act, all states must implement a Mortgage Loan Originator (MLO) licensing process that meets certain standards through the Nationwide Mortgage Licensing System & Registry (NMLS). The Act requires all MLOs seeking state-licensure, or currently holding a state license, to pass the NMLS-developed S.A.F.E. Mortgage Loan Originator Test, including both national and state components, with a score of 75% or better on each component.

SAFE ACT

Renewal

Every licensee must renew their license every year through NMLS. Failure to renew will result in termination of the license. Renewal runs from November through December. More information will be available later in the year.

Denial of License

The Division holds the right to deny the license of anyone who does not meet financial responsibility standards.

MCA 32-9-120. Denial of mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator license application or license renewal. (1) The department may not issue or renew any mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator license if any of the following facts are found during the application procedure:
     (a) the applicant has ever had a mortgage loan originator license or an equivalent license revoked in any governmental jurisdiction. A subsequent formal vacation of a revocation means that the revocation may not be considered a revocation. The department may by order vacate a revocation of a license and enter an appropriate order.
     (b) the applicant has been convicted of or pled guilty or nolo contendere to a felony in a domestic, foreign, or military court during the 7-year period preceding the date of the application for licensing or renewal or at any time preceding the date of application if the felony involved an act of fraud, dishonesty, a breach of trust, or money laundering. The pardon or expungement of a conviction is not a conviction for the purposes of this subsection (1)(b). When determining the eligibility of the applicant for licensure under subsection (1)(c) or this subsection (1)(b), the department may consider the underlying crime, facts, or circumstances of a pardoned or expunged felony conviction.
     (c) the applicant has failed to demonstrate financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the mortgage broker, mortgage lender, mortgage servicer, or mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this section;
     (d) the applicant has not provided and maintained the surety bond as required pursuant to 32-9-123;
     (e) the applicant has not completed the prelicensing education requirement described in 32-9-107;
     (f) the applicant has not passed a written test that meets the test requirements described in 32-9-110;
     (g) the applicant made a material misstatement of fact or material omission of fact in the application; or
     (h) the applicant has been found to have violated:
     (i) any rule of conduct for persons taking the mortgage loan originator national or state test under the federal Secure and Fair Enforcement for Mortgage Licensing Act; or
     (ii) the nationwide multistate licensing system industry terms of use as they pertain to enrolling, scheduling, or taking the mortgage loan originator national or state test under the Secure and Fair Enforcement for Mortgage Licensing Act.
     (2) The department may consider an application abandoned if an applicant fails to provide or respond to a request for additional information within the time period specified by the department by rule.
     (3) For purposes of subsection (1)(b), a pardoned or expunged felony conviction does not necessitate denial of the license application. The department may consider the underlying crime, facts, or circumstances of a pardoned or expunged felony conviction when determining the eligibility of an applicant for licensure under subsection (1)(b) or (1)(c). Whether a particular crime is classified as a felony must be determined by the law of the jurisdiction in which an individual is convicted.

Administrative Rule Notices

MAR Notice Number

Topics Addressed in Notice

Date

2-59-546

Notice of Adoption and Amendment - Definition of "Regularly Engage" - Renewal Fees for Mortgage Brokers, Lenders, Servicers, and Originators

10/15/2016

2-59-528

Notice of Proposed Amendment - Renewal Fees for Mortgage Brokers, Lenders, Servicers, and Originators. No Public Hearing Contemplated.

07/31/15

2-59-523

Notice of Proposed Amendment:  Recovery of the Costs in Bringing an Administrative Action; Treatment of Initial License Applications Submitted Near Year-end; and Abandonment of Initial License Applications, All Related to Mortgage Licensees

05/15/2015

2-59-521

Notice of Amendment:  Renewal Fees for Mortgage Licensees

11/7/2014

2-59-521

Notice of Proposed Amendment:  Renewal Fees for Mortgage Licensees

9/19/2014

2-59-500

Notice of Adoption, Amendment, and Repeal:  Definition of origination of a mortgage loan, certificate of bona fide not-for-profit entity, state-specific prelicensing education, and when an application is deemed abandoned, the amendment of ARM 2.59.1701, 2.59.1702, 2.59.1728, 2.59.1731, and 2.59.1743 pertaining to definitions, proof of experience, standardized forms, reinstatement of licenses, and reporting forms for mortgage servicers, and the repeal of ARM 2.59.1725, 2.59.1727, and 2.59.1749 pertaining to licensing exemptions, mortgage loan originator testing, and written exemption form

12/27/2013

2-59-500

Notice of Public Hearing on Proposed Adoption, Amendment, and Repeal:  Definition of origination of a mortgage loan, certificate of bona fide not-for-profit entity, state-specific prelicensing education, and when an application is deemed abandoned, the amendment of ARM 2.59.1701, 2.59.1702, 2.59.1728, 2.59.1731, and 2.59.1743 pertaining to definitions, proof of experience, standardized forms, reinstatement of licenses, and reporting forms for mortgage servicers, and the repeal of ARM 2.59.1725, 2.59.1727, and 2.59.1749 pertaining to licensing exemptions, mortgage loan originator testing, and written exemption form

11/01/2013

2-59-458

Corrected Notice of Adoption:  Financial Responsibility of Mortgage Loan Originators and Control Persons and Ultimate Equity Owners of Mortgage Entities

06/22/2012

2-59-458

Notice of Adoption:  Financial Responsibility of Mortgage Loan Originators and Control Persons and Ultimate Equity Owners of Mortgage Entities

01/27/2012

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