Mortgage Loan Originator Worker Classification
Montana law requires that mortgage loan originators (MLOs) receive a W-2. The Montana Mortgage Act (32-9-116(1), MCA) provides that a mortgage loan originator may transact business for only one employing mortgage broker or one employing mortgage lender licensed in accordance with the provisions of the Act. Additionally, the term “employing” within ARM 2.59.1701(3) means the entity for whom the individual works is liable for withholding payroll taxes pursuant to Title 26 of the United States Code.The worker classification for Montana MLOs should be designated as a W2 Employee in the NMLS. The only exception would be for MLOs that are also owners of the mortgage broker and/or mortgage lender entity.
The Division of Banking and Financial Institutions (Division) will be sending out additional communications to companies sponsoring MLOs in which the worker classification has been left blank or is listed as a Non-W2 Employee. Please be advised that the Division will be rejecting sponsorship requests if the MLO’s worker classification is left blank or listed as a Non-W2 Employee.
If you have any questions, please email the Division at mortgagelicensing@mt.gov.
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