BANKING AND FINANCIAL INSTITUTIONS

2.59.1605 MUTUAL FUNDS Under the authority of 32-1-424(1) (b) , MCA, and subject to its restrictions, banks may invest in mutual funds whose shares represent only those United States obligations listed in ARM 2.59.1601. Shareholders must have a proportionate undivided interest in…

2.59.1606 OTHER APPROVED INVESTMENTS Certain other instruments which may have investment characteristics are approved for state-chartered banks. They are the following: banks may invest up to 100% of their capital and surplus, per accepting bank, in bankers acceptances; banks may…

2.59.1607 DEBT SECURITIES FOR DEBTS PREVIOUSLY CONTRACTED Debt securities received by a bank in good faith, in satisfaction of debts previously contracted, are not subject to the limitations of applicable sections of ARM 2.59.1601 through 2.59.1606, if the book value of such obli…

2.59.1701 DEFINITIONS For purposes of the Montana Mortgage Act and this subchapter, the following definitions apply: "Breach of trust" means: a wrongful act, use, misappropriation, or omission with respect to any property or fund that has been committed to a person in a fiduciary…

2.59.1702 PROOF OF EXPERIENCE Satisfactory proof of experience for a designated manager demonstrates three years of experience by providing: copies of W-2 or 1099 tax forms verifying employment; or verification of active licensure as a mortgage loan originator in another state th…

2.59.1703 TRANSFER OF LOAN ORIGINATOR LICENSE Transfer of an individual mortgage loan originator license from one entity to another must be approved by the department. To transfer an individual mortgage loan originator license, the individual mortgage loan originator shall reques…

2.59.1704 LICENSE RENEWAL (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-115, 32-9-116, 32-9-117, 32-9-118, 32-9-123, MCA History: NEW, 2004 MAR p. 1133, Eff. 5/7/04; AMD, 2005 MAR p. 320, Eff. 2/25/05; AMD, 2008 MAR p. 2034, Eff. 9/26/08; REP, 201…

2.59.1705 CONTINUING EDUCATION PROVIDER REQUIREMENTS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-118, MCA History: NEW, 2004 MAR p. 1133, Eff. 5/7/04; AMD, 2006 MAR p. 2104, Eff. 9/8/06; AMD, 2008 MAR p. 2034, Eff. 9/26/08; AMD, 2010 MAR p. 307,…

2.59.1706 SURETY BOND The surety bond must be issued by a surety company authorized to do business in the state of Montana. The bond, including any and all riders and endorsements executed subsequent to the effective date of the bond, must be placed on file with the NMLS. The ent…

2.59.1707 REVOCATION, SUSPENSION, OR SURRENDER OF LICENSE The department may suspend or revoke a license for a violation of the Montana Mortgage Act, this subchapter, or for any other violation of state or federal law pertaining to licensees or residential mortgage loans. A licen…

2.59.1708 TABLE FUNDING REQUIRES LICENSURE (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-102, MCA History: NEW, 2004 MAR p. 1133, Eff. 5/7/04; AMD, 2011 MAR p 2392, Eff. 11/11/11; AMD, 2017 MAR p. 1049, Eff. 7/8/17; REP, 2022 MAR p. 228, Eff. 2/12…

2.59.1709 COMPLAINT PROCESS A complaint form must be submitted in writing to the department. If the basis of the complaint relates to the Montana Mortgage Act, it will be investigated by the department. The Complaint Form dated January 23, 2020, is adopted and incorporated by ref…

2.59.1710 RECORDS TO BE MAINTAINED BY MORTGAGE BROKERS A mortgage broker shall create and retain a residential mortgage file. The residential mortgage file shall contain: a record of all cash, checks, or other monetary instruments received in connection with each mortgage loan ap…

2.59.1711 CONTINUING EDUCATION (REPEALED) Authorizing statute(s): 32-9-118, 32-9-130, MCA Implementing statute(s): 32-9-118, 32-9-130, MCA History: NEW, 2008 MAR p. 2034, Eff. 9/26/08; AMD, 2009 MAR p. 735, Eff. 5/15/09; REP, 2010 MAR p. 307, Eff. 2/12/10.

2.59.1712 DESIGNATED MANAGERS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-103, 32-9-122, MCA History: NEW, 2008 MAR p. 2034, Eff. 9/26/08; REP, 2010 MAR p. 307, Eff. 2/12/10.

2.59.1713 EXAMINATIONS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-130, MCA History: NEW, 2008 MAR p. 2034, Eff. 9/26/08; REP, 2010 MAR p. 307, Eff. 2/12/10.

2.59.1714 FAILURE TO CORRECT DEFICIENCIES In addition to all other enforcement actions allowed by Montana law, the department may suspend or revoke a license pursuant to Title 2, chapter 4, part 6, MCA, of an entity that does not correct the deficiencies found by the department a…

2.59.1715 GROUNDS FOR THE DENIAL OF AN APPLICATION (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-115, 32-9-116, 32-9-130, MCA History: NEW, 2008 MAR p. 2034, Eff. 9/26/08; REP, 2010 MAR p. 307, Eff. 2/12/10.

2.59.1716 COSTS IN BRINGING THE ADMINISTRATIVE ACTION Costs in bringing the administrative action as used in 32-9-133, MCA, include: administrative law judge charges; court reporter fees; transcription cost as provided under 2-4-614, MCA; exhibit preparation cost if the exhibit w…

2.59.1717 SCHEME TO DEFRAUD OR MISLEAD For purposes of 32-9-124, MCA, a scheme to defraud or mislead a borrower, a lender, or any other person shall include but is not limited to: misstating a borrower's income, assets, obligations, employment status, credit history, or financial…

2.59.1718 LICENSE RENEWALS FOR MORTGAGE LENDERS LICENSED AS OF JULY 1, 2009 - TEMPORARY LICENSES (REPEALED) Authorizing statute(s): 32-9-114, MCA Implementing statute(s): 32-9-102, 32-9-105, 32-9-113, 32-9-120, 32-9-123, MCA History: NEW, 2010 MAR p. 307, Eff. 2/12/10; REP, 2010 …

2.59.1719 NEW APPLICANTS FOR A MORTGAGE LOAN ORIGINATOR LICENSE - TEMPORARY LICENSES (REPEALED) Authorizing statute(s): 32-9-114, MCA Implementing statute(s): 32-9-102, 32-9-105, 32-9-120, 32-9-127, 32-9-128, MCA History: NEW, 2010 MAR p. 307, Eff. 2/12/10; REP, 2010 MAR p. 2956,…

2.59.1720 NEW APPLICANTS FOR A MORTGAGE BROKER OR MORTGAGE LENDER LICENSE - TEMPORARY LICENSES (REPEALED) Authorizing statute(s): 32-9-114, MCA Implementing statute(s): 32-9-102, 32-9-105, 32-9-113, 32-9-120, 32-9-123, 32-9-127, 32-9-128, MCA History: NEW, 2010 MAR p. 307, Eff. 2…

2.59.1721 NET WORTH REQUIREMENT FOR MORTGAGE BROKERS (REPEALED) Authorizing statute(s): 32-9-114, MCA Implementing statute(s): 32-9-123, MCA History: NEW, 2010 MAR p. 307, Eff. 2/12/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1722 UNACCEPTABLE ASSETS (REPEALED) Authorizing statute(s): 32-9-114, MCA Implementing statute(s): 32-9-123, MCA History: NEW, 2010 MAR p. 307, Eff. 2/12/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1723 PROOF OF NET WORTH (REPEALED) Authorizing statute(s): 32-9-114, MCA Implementing statute(s): 32-9-123, MCA History: NEW, 2010 MAR p. 307, Eff. 2/12/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1724 RECORDS TO BE MAINTAINED BY MORTGAGE LENDERS All licensees shall maintain and preserve financial records concerning business operations, transactions with customers, and escrow account transactions. Any books, accounts, or records required to be maintained by the depart…

2.59.1725 LICENSING EXEMPTIONS AND VOLUNTARY REGISTRATION BY EXEMPT ENTITIES WITH THE NATIONWIDE MORTGAGE LICENSING SYSTEM (NMLS) (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-104, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; AMD, 2012 MAR p.…

2.59.1726 REQUEST FOR CORRECTION OR AMENDMENT OF DEPARTMENT-GENERATED RECORD IN THE NMLS For purposes of accuracy or completeness, a person about whom the department has generated a record in the NMLS may make a written request to the department that it correct or amend the recor…

2.59.1727 MORTGAGE LOAN ORIGINATOR LICENSING EXAM RETAKES (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-110, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; AMD, 2012 MAR p. 1762, Eff. 9/7/12; REP, 2013 MAR p. 2417, Eff. 12/27/13.

2.59.1728 ADOPTION OF STANDARDIZED FORMS AND PROCEDURES OF THE NMLS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-105, 32-9-110, 32-9-112, 32-9-130, 32-9-134, MCA History: NEW, 2010 p.1480, Eff. 6/25/10; AMD, 2013 MAR p. 48, Eff. 1/18/13; AMD, 201…

2.59.1729 TRANSITION AND INITIAL LICENSE APPLICATION THROUGH NMLS – LICENSE RENEWALS – FEES (REPEALED) Authorizing statute(s): 32-9-117, 32-9-130, MCA Implementing statute(s): 32-9-117, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; REP, 2010 MAR p. 2956, Eff. 12/24/10.

2.59.1730 CONFIDENTIALITY – AGREEMENTS AND SHARING ARRANGEMENTS In addition to the trade associations specifically named in 32-9-160(3), MCA, the department may enter into agreements or sharing arrangements allowing the sharing of information and material with the following gover…

2.59.1731 REINSTATEMENT OF EXPIRED OR SUSPENDED LICENSES Upon expiration of a license under 32-9-134, MCA, due to nonrenewal by the renewal date, the licensee shall immediately cease from engaging in the activities for which the license was issued. Except as provided in (3), the …

2.59.1732 MORTGAGE CALL REPORTS (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-151, MCA History: NEW, 2010 MAR p. 1480, Eff. 6/25/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1733 EXPUNGEMENT OF FELONY RECORD An individual is ineligible for a mortgage loan originator license or license renewal, even if the record of the individual's felony conviction of the type referred to in 32-9-120, MCA, has been expunged. Ineligibility for licensure is trigg…

2.59.1734 AVAILABILITY OF EXEMPTIONS TO ENTITIES AND INDIVIDUALS The exemptions in 32-9-104, MCA, addressing entities are available and apply only to business organizations, including sole proprietorships. An individual is not an entity for purposes of 32-9-104, MCA. Authorizing …

2.59.1735 DETERMINING THE AMOUNT OF SURETY BOND FOR A NEW MORTGAGE BROKER OR MORTGAGE LENDER An entity applying for a license as a mortgage broker or mortgage lender for the first time in Montana shall submit with its application the total combined annual loan production volume f…

2.59.1736 DEADLINE FOR CONDITIONALLY LICENSED MORTGAGE LOAN ORIGINATORS TO COMPLETE THE MONTANA EXAM (REPEALED) Authorizing statute(s): 32-9-130, MCA Implementing statute(s): 32-9-114, MCA History: NEW, 2010 MAR p. 2956, Eff. 12/24/10; REP, 2012 MAR p. 1762, Eff. 9/7/12.

2.59.1737 MONTANA MORTGAGE LOAN ORIGINATION DISCLOSURE FORM Licensees shall use a form that is substantially similar to the Mortgage Loan Origination Disclosure form dated September 23, 2011, which is available on the department'swebsite at banking.mt.gov . Licenseesmay customize…

2.59.1738 RENEWAL FEES Licenses issued under Title 32, chapter 9, part 1, MCA, expire December 31. Licensees shall submit their renewal applications by December 1 of each year to ensure issuance of the license to qualified renewal applicants by January 1 of the following year. Th…

2.59.1739 APPLICATION OF FINANCIAL STANDARDS Section 32-9-120(1)(c) and 32-9-113, MCA, require mortgage loan originators, as well as ultimate equity owners and control persons of entities, to meet financial responsibility standards. These persons are referenced in ARM 2.59.1739 t…

2.59.1740 STANDARDS FOR DETERMINING FINANCIAL RESPONSIBILITY The department shall find an individual lacks the required financial responsibility if a pattern of disregard is shown regarding the management of the individual's personal financial affairs. In determining whether an i…

2.59.1741 PROCEDURES FOR DETERMINING FINANCIAL RESPONSIBILITY If an individual's credit report or response to any application disclosure question contains adverse information, the department shall: notify the individual in writing of the specific items that must be addressed; and…

2.59.1742 REVIEWING ADVERSE CREDIT HISTORY AND OTHER INFORMATION In making a determination whether an applicant has demonstrated financial responsibility, character, and general fitness, the department shall consider the following: the individual's credit history reflected in a c…

2.59.1743 REPORTING FORMS FOR MORTGAGE SERVICERS A mortgage servicer licensee shall compile and submit a report to the department 45 days after the end of each quarter. The quarter end dates are March 31, June 30, September 30, and December 31. At the servicer's election, each se…

2.59.1744 RECORDS TO BE MAINTAINED BY MORTGAGE SERVICERS A mortgage servicer shall create and retain a file for each Montana residential mortgage loan which it services. The file must contain, if applicable: the borrower (or borrowers) name(s); a copy of the original note and dee…

2.59.1745 DEADLINE FOR RENEWAL APPLICATIONS Applications for renewal of licenses may be submitted to the department through the NMLS during the annual renewal period from November 1 to December 31. The department shall process all completed renewal applications submitted to it in…

2.59.1746 RECORD MAINTENANCE, STORAGE, TRANSFER, AND DESTRUCTION Records may be maintained electronically if the storage system complies with the Fair and Accurate Credit Transactions Act of 2003 (15 USC 1681 et seq.), the Gramm-Leach-Bliley Act (15 USC 6801 et seq.), and the reg…

2.59.1747 RESPONSIBLE PARTY FOR RECORDS If a licensed entity is actively engaged in the business of residential mortgage loans, the entity's designated manager is responsible for proper retention, maintenance, safeguarding, and disposal of records for the whole entity. The design…