BANKING & FINANCIAL INSTITUTIONS

Regulating Financial Services, Protecting Montanans

MONTANA CONSUMER LOAN 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 Multistate 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

Montana State Licensing Requirements:

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

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 - The Annual Report must be filed on or before February 15 of the following year (IMPORTANT Save form to your PC and open in Adobe Reader or Acrobat. Form will not work properly if opened within internet browser.) Please read the instructions before completing the report.

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

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
  1. 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.
  2. 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).

Open-end loans are subject to the Montana Consumer Loan Act (Act), assuming they meet the definition of a consumer loan (Mont. Code Ann. § 32-5-102(2)).  As such, an open-end loan must comply with Mont. Code Ann. § 32-5-301 and 32-5-302.  Please note that credit cards issued by a bank, building and loan association, savings and loan association, trust company or credit union are exempt from the Act under Mont. Code Ann. § 32-5-103(5). If a credit card were issued by some entity other than other described in Mont. Code Ann. § 32-5-103(5), it would be subject to the Act.

Annual Report

The Annual Report must be filed on or before February 15, 2021. The report can be found on the Forms page. 

Financial Statements 

Unaudited (compiled) financial statements must be submitted in NMLS within 90 days of the entities fiscal year end. 

Secretary of State Annual Report 

All consumer loans licensees are required to register their business with the Montana Secretary of State (SOS). An Annual Report is required to keep this registration. Please visit the Montana SOS website for more details. 

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.

MAR Notice Number Topics Addressed in Notice Date
2-59-612

Notice of Amendment and Repeal pertaining to:

  • standardized forms and procedures of the NMLS for consumer loan licenses, escrow business licenses, sales finance company licenses, and deferred deposit lender licenses;
  • consumer loan license surrender;
  • definitions for mortgage licensees;
  • revocation, suspension, or surrender of mortgage licenses;
  • initial applications through NMLS for consumer loan licenses, escrow business licenses, sales finance company licenses, and deferred deposit lender licenses;
  • consumer loan license amendments and fees;
  • escrow business license amendments, surrender, and fees
  • sales finance company license amendments, surrender, and fees
  • deferred deposit lender license amendments, surrender, and fees; and
  • table funding requiring licensure for mortgage licensees.
2/11/22
2-59-612

Notice of Proposed Amendment and Repeal pertaining to:

  • standardized forms and procedures of the NMLS for consumer loan licenses, escrow business licenses, sales finance company licenses, and deferred deposit lender licenses;
  • consumer loan license surrender;
  • definitions for mortgage licensees;
  • revocation, suspension, or surrender of mortgage licenses;
  • initial applications through NMLS for consumer loan licenses, escrow business licenses, sales finance company licenses, and deferred deposit lender licenses;
  • consumer loan license amendments and fees;
  • escrow business license amendments, surrender, and fees
  • sales finance company license amendments, surrender, and fees
  • deferred deposit lender license amendments, surrender, and fees; and
  • table funding requiring licensure for mortgage licensees.
12/23/21
2-59-571 Notice of Amendment: Annual Reporting for Consumer Loan Licensees, Escrow Business Reference Updates, Mortgage Definitions, Mortgage Renewal Fees, and Escrow Funds Held by Mortgage Companies 04/28/18
2-59-571 Notice of Proposed Amendment - Annual Reporting for Consumer Loan Licensees - Escrow Business Reference Updates - Mortgage Definitions - Mortgage Renewal Fees - Escrow Funds Held by Mortgage Companies 02/24/18
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
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