Frequently Asked Questions: Montana's Transition to NMLS
The Division of Banking and Financial Institutions recently held information sessions for mortgage broker licensees in Helena, Missoula, Kalispell and Billings. These information sessions related to the transition to using the Nationwide Mortgage Licensing System (NMLS). The following is a list of sample questions that were posed by licensees at these events.
1. I am currently licensed as a mortgage loan originator, do I have to complete applications using the Nationwide Mortgage Licensing System (NMLS)?
Yes. Amendments made to the Montana Mortgage Broker, Mortgage Lender, and Mortgage Loan Originator Licensing Act require that all licensees transition to the NMLS. You may refer to Section 32-9-105, MCA.
2. What are the deadlines for transitioning to the NMLS?
There are two transition deadlines for Montana. The first deadline is March 1, 2010 and this applies to entities and individuals who obtained their mortgage broker, lender or loan originator license from the Division on or after July 1, 2009. The second deadline is May 31, 2010 and this applies to entities and individuals who obtained their mortgage broker, lender or loan originator license from the Division before July 1, 2009.
3. I currently own and operate a licensed mortgage broker business entity. Which forms do I need to complete on the Nationwide Mortgage Licensing System (NMLS)?
Business entities must complete the MU 1 and MU 2 forms on the NMLS. The MU 1 is the entity/company application. The MU 2 must be completed by any control persons (e.g. owners, officers, directors, etc…) of the business entity. Every MU 1 must be accompanied by at least one MU 2. In addition, if business entity operates any branch offices it must also complete an MU 3 for each branch location. Each mortgage loan originator that you employ must complete the MU 4.
4. I am currently licensed as a mortgage loan originator, what form do I need to complete on the Nationwide Mortgage Licensing System (NMLS)?
All mortgage loan originators must complete the MU 4 on the NMLS. This is the mortgage loan originator application form.
5. Can I view the licensing forms/applications that must be completed on the NMLS?
Yes. The forms are available in a printable version if you want view them. The Division of Banking and Financial Institutions has modeled its own applications forms from the NMLS forms. See links to NMLS forms below.
MU 4 (Mortgage Loan Originator)
6. When should I start the transition to the NMLS?
The Division of Banking and Financial Institutions recommends that you immediately begin reviewing the information posted to the NMLS Resource Center that relates to your license transition. See links below.
7. How do I get started on the NMLS?
Business entities and mortgage loan originators should refer to the getting started guides on the NMLS Resource Center. See links below.
8. Are there any forms which summarize the requirements for the transition to the NMLS?
Yes. There are NMLS Transition checklists which have been posted to the Montana section of the NMLS Resource Center. These checklist forms provide a listing of what is required for the Montana transition to the NMLS. See link below.
9. Does the NMLS charge its own processing fees?
The NMLS charges its own system processing fees. These fees are charged in addition to the state's licensing fees. The fee for the submission of an entity application (MU1) is $100, a branch application (MU3) is $20, and a mortgage loan originator (MU4) is $30. A mortgage loan originator is also charged $30 any time that it changes its sponsorship (employing mortgage company).
10. When does the NMLS charge the processing and licensing fees?
The NMLS will not charge you any processing or licensing fees until you submit your application to any licensing jurisdictions (i.e. states in which you apply for mortgage licenses).
11. How do licensees remit their license transition fees?
All mortgage licensees must mail in the payment for their license transition to the Division. The NMLS will only collect its system processing fee during this transition. In the future all new application and license renewal fees will be collected online by the NMLS.
12. Are mortgage loan originators required to take a test?
Yes. All mortgage loan originators must pass two SAFE tests which include the National Component and State Component. The National Test is available now and must be passed prior to your NMLS transition deadline (for transition deadline see question #2 above). The State Component for Montana will not be available until late May or June and will not be required for the transition deadlines. The State Component Test for Montana will be required at a later date in 2010.
13. What resource materials are available for the SAFE National Test?
The NMLS has published an MLO Testing Handbook and National Test content outline. See links below.
14. What is the cost for taking the tests?
The cost for taking the National Test is $92 and each State Component is $69. If you fail either test you will be required to pay the same fee in order to take it again.
15. What is a passing grade on the SAFE National Test?
A passing grade on the National Test or any State Component Test is 75% and above.
16. Where can mortgage loan originators take the SAFE National and SAFE Montana tests?
All tests must be taken in person at one of the NMLS approved testing centers. You must make an appointment in advance to schedule the test. There are two approved test centers in Helena, Montana and two approved test centers in Billings, Montana. The NMLS Resorce Center provides a test center locator listing. See link below.
17. What happens if a mortgage loan originator fails a test?
Any mortgage loan originator who fails either the National Component or State Component test must wait 30 days before taking the test again. The 30-day waiting period is required by Section 32-9-110, MCA.
18. Are all mortgage loan originator licensees required to take 20-hours of NMLS approved pre-licensing education?
No. Montana mortgage loan originators licensed prior to July 1, 2009 who have completed 20 hours of Montana approved continuing education are not required to take 20 hours of pre-licensing education. Mortgage loan originators who meet this criteria will be required to complete an NMLS certification of these hours. All other mortgage loan originators must complete 20 hours of NMLS approved pre-licensing education by their transition deadline. The 20 hours of NMLS approved pre-licensing education must include a concentration of 3 hours of federal law and regulations, 3 hours on ethics, to include fraud, consumer protection, and fair lending; and 2 hours on lending standards for the nontraditional mortgage marketplace.
19. Where do I find the list of approved education providers?
All education providers and courses must be approved by the NMLS. The list of NMLS approved education providers and courses are provided on the NMLS Resource Center. See links below.
20. I am currently licensed as a mortgage loan originator. When do I have to take continuing education?
The 12 hours of annual continuing education will not be required by your NMLS Transition deadline. The continuing education will be required when you complete your first license renewal on the NMLS in late 2010. It is likely that you will need to complete the 12 hours of continuing education before December 1, 2010.
21. If I have questions about the transition process who do I contact?
If you have any technical questions that relate to navigating the NMLS or any application on the NMLS you should contact the NMLS call center at (240) 386-4444. The call center is open 9 a.m. – 7 p.m. Monday through Friday EST, and Saturday 8 a.m. – 6 p.m. EST (except the third Saturday of each month). If you have any questions about the licensing process and requirements in Montana you should contact the Division of Banking and Financial Institutions at (406) 841-2920.
22. Does the NMLS provide a licensee look-up?
Yes. The NMLS licensee look-up is now available. See link below.
