BANKING & FINANCIAL INSTITUTIONS

Regulating Financial Services, Protecting Montanans

MONTANA CONSUMER LOAN LICENSING

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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 (Memo) that was released Feb. 23, 2016, the Division offers this clarification:

  1. The Montana Consumer Loan Act (Act) does not apply to the following:
    • Utility providers
    • Service providers (doctors, dentists, hospitals, chiropractors, etc.)
    • Estates
  2. Servicers of loans originated under the Act must be licensed under the Act in order to collect the loan.
  3. The Memo applies only to loans originated under the 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 15th each year. 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. 

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
The Montana Division of Banking and Financial Institutions does not provide no-action or opinion letters regarding licensing.  We ask individuals to consult with their own legal counsel to determine if a license or charter is needed. 

CONTACT US

Division of Banking & Financial Institutions

Mailing Address:
PO Box 200546
Helena MT 59620

Physical Address:
1227 11th Ave, Suite 100
Helena, MT 59601

Phone: 406-841-2920
Fax: 406-841-2930
Email: banking@mt.gov
Email: mortgagelicensing@mt.gov

RESOURCES & PARTNERS

STATE LINKS