Montana Residential Mortgage Lender Licensing

http://banking.mt.gov/mortgagelender.asp

Montana

Residential Mortgage Lender Licensing

Residential mortgage lenders making loans in

Montana

are required to be licensed by the Division of Banking and Financial Institutions as of October 1, 2008. This new licensing requirement was created by the Montana Residential Mortgage Lender Licensing Act that was signed into law by Governor Brian Schweitzer on May 3, 2007 as part of House Bill 69 . Mortgage Lender Licensing Press Release

The mortgage lender entity and mortgage lender branch applications will be available online on July 14, 2008.Summary of mortgage lender licensing requirements.

Administrative Rule Notices

·                            Notice of Adoption (Adopted Effective 8/1/2008)

·                            Notice of Public Hearing on Proposed Adoption (Updated 5/8/2008)

Recent Legislation (2007 Regular Session)

·                            House Bill 69 (Effective October 1, 2008)

Forms & Instructions

·                            Montana Residential Mortgage Lender Licensing Act (print version)

·                            Summary of mortgage lender licensing requirements

·                            Mortgage Lender Entity and Branch Applications (link to online application) - Refer to "Online Application Instructions" via http://banking.mt.gov/mortgagelenderlicensing.asp

·                            Summary of mortgage lender licensing requirements

·                            Mortgage Lender Bond Form Form Revised August 20, 2008 ($50,000 for entity and $5,000 for each branch)

·                            Fingerprint Background Check Release Form

·                            Request a fingerprint card (Type Request Fingerprint Cards in Subject Line. Include the number of fingerprint cards needed and where they can be mailed)

·                            Consumer Complaint Form

Residential mortgage lenders engaged in mortgage broker activity are required to be licensed in accordance with the Montana Mortgage Broker and Loan Originator Licensing Act (Act). Mortgage broker activity includes transactions in which a person or entity provides services for a fee as an intermediary between a borrower and lender in obtaining financing for the borrower that is to be secured by a residential dwelling on real property with a loan provided by the lender. MT law also requires licensure of any mortgage lender that engages in table funding. Table funding is defined in ARM 2.59.1702 as the closing of a loan naming a mortgage broker, a mortgage broker's business entity or a loan originator as the lender on the mortgage loan note, which note is then sold within three business days of closing to another party. ARM 2.59.1708 sets forth that table funding does require mortgage broker licensure. A physical office in MT staffed by a designated manager (individual mortgage broker licensee) is required under the Act. The licensure of individual loan originators engaged in mortgage broker activity is also required under this Act. Please be advised that the Division of Banking and Financial Institutions (Division) cannot issue exemptions to licensure under the Act. Exemptions are specifically outlined under 32-9-104, MCA . The Division has determined that the co-brokering of a MT residential mortgage loan is only permitted between MT licensed mortgage broker licensees or entities otherwise exempt from the licensing requirement.

The State of MT does not regulate entities solely enagaged in the servicing of mortgage loans or the purchasing of closed mortgage loans on the secondary market. In addition, commercial mortgage lending and brokering are also not regulated in MT. Commercial mortgage transactions are subject to the usury as outlined in 31-1-107, MCA .

Questions?

Division of Banking and Financial Institutions
301 South Park, Suite 316, PO Box 200546, Helena, MT 59620
Phone: (406) 841-2920 Fax: (406) 841-2930