Guide to Maintaining the Montana Independent Contractor Entity License

The Montana Division of Banking and Financial Institutions (Division) is the state agency charged with regulating Independent Contractor Entities (ICE or company). Please contact us at mortgagelicensing@mt.gov if you have any questions. We also have mortgage FAQs on our website.

The following is important information regarding your license:

Authorized Business Activities

This license authorizes the following activities…

Third Party Mortgage Loan Processing
Third Party Mortgage Loan underwriting

Mortgage lending, brokering, and servicing activities are not authorized by this license. The Division issues separate licenses to companies that engage in more than one business type.

License Amendments

Amendments to the company’s NMLS record, such as change of address, legal name, or addition of direct officers, should be made in a timely manner in the NMLS. The Division does not require Advance Change Notices (ACNs). For more information about amendment requirements, please view the amendment checklist. The NMLS has an instruction guide on how to made changes to a record.

Reporting Requirements

Mortgage Call Report

ICE licensees must submit a quarterly Mortgage Call Report (MCR) through NMLS. The report must be filed within 45 days of quarter end. Failure to timely submit MCRs may result in regulatory action or fines. Read more about the MCR requirements on the NMLS website.

MCR – Financial Condition

The Standard Mortgage Call Report requires a Financial Condition (FC) component be submitted through NMLS on an annual basis, 90 days from the fiscal year end as reported on the Company (MU1) Form. Failure to timely submit MCRs may result in regulatory action or fines. Read more about the MCR requirements on the NMLS website.

License Renewal

The Montana ICE license expires annually on December 31^st, unless renewed. Licensees may renew their licenses through the NMLS between November 1^st and December 31^st. Licensees who do not complete renewal must cease business on January 1^st. Expired licensees may request license reinstatement from January 1^st through the end of February for an additional fee.

Record Keeping

Independent Contractor Entities must maintain their books, records, accounts, and copies of loan files for a minimum of five years pursuant to Mont. Code Annotated 32-9-121, MCA. The retention timeline on loan files is 5 years from the date of last activity on the file. ARM 2.59.1710 (Records to be maintained by mortgage brokers) clarifies what documents must be maintained in loan files and pipeline report. Additionally, Independent Contractor Entities must also comply with ARM 2.59.1746 (Record maintenance, storage, transfer, and destruction).

Advertising

In addition to all applicable federal regulation, Independent Contractor Entities must be aware of the advertising requirements set forth in Montana law. Mont. Code Annotated 32-9-149 (4), MCA, provides that licensees must disclose their name and NMLS unique identifier in any printed, published, e-mail, or internet advertisements. All mortgage broker websites must provide a link to their own NMLS Consumer Access webpage. Additionally, Independent Contractor Entities must familiarize themselves with ARM 2.59.1758 (False, Deceptive, or Misleading Advertising) and ARM 2.59.1759 (Internet or Electronic Advertising).

Examination

An examination is a supervisory activity conducted by a regulatory agency that reviews an institution's compliance with laws, regulations, and safety and soundness standards. Mortgage licensees who are conducting business in Montana can expect to be examined by the Division within the first two years of licensure or beginning business. The Division utilizes the State Examination System (SES) to conduct examinations. Examiners will ask for a sample of loan files, copies of advertising, financial statements, policies, and procedures.

Independent Contractor Entities must maintain a pipeline report of all applications received. They must retain their loan files for five years from the date of the last activity pertaining to the file (32-9-121 (2), MCA). If an Independent Contractor Entity’s loan files are stored in another company’s system, the Independent Contractor Entity must ensure they will have access to the files for the five-year period, even if ties with the other company are severed.

Examples of policies that should be maintained by Independent Contractor Entities include but are not limited to the following:

Advertising
BSA/Anti-Money Laundering
Disaster Recovery Plan
Loan Originator Compensation
Record Retention
Red Flags/Identity Theft Prevention Program

For more information about the examination process, please see the Montana Mortgage Examination Guide.

Complaints

The Division acts as a mediator between consumers and our regulated entities. The Division uses the Complaint Portal of the SES to process complaints and communicate with the involved entity. If the Division receives a complaint filed against your company, you will need to onboard SES to utilize that platform to submit your response to the complaint.

License Surrender

To surrender a license, please complete the steps in NMLS and submit the surrender checklist.