Montana Administrative Code

2.59.1504 OWNERSHIP CHANGE IN THE DEFERRED DEPOSIT LENDER In the event there is a change of ownership in a licensee, the owner(s) shall file with the department an application for a new license. For purposes of this rule, a change in ownership includes circumstances when 25% or m…

2.59.1505 EXAMINATION OF DEFERRED DEPOSIT LENDERS An examination of a licensee's lending operations conducted by the department to verify compliance with Title 31, chapter 1, part 7, MCA, and these rules, must consist of a comprehensive review of the records, operations, and affa…

2.59.1506 PROCEDURAL RULES FOR HEARINGS AND DISCOVERY In the case of hearings concerning the issuance, suspension, revocation, or other enforcement actions pertaining to a licensee: hearings and related discovery must be conducted under the Montana Administrative Procedure Act im…

2.59.1507 REPORTS The following must be reported to the department: any instances of theft from the deferred deposit loan business within ten days of discovery of the theft; any change in managers within ten days of each occurrence; and all officer questionnaires must be answered…

2.59.1508 SCHEDULE OF CHARGES Every licensee under the Montana Deferred Deposit Loan Act shall file with the commissioner in duplicate, at the time of filing application for such license or license renewal, a full and accurate schedule of all charges, fees, and costs as follows: …

2.59.1510 EMPLOYEES' CHARACTER AND FITNESS Licensees are responsible for conducting appropriate background checks on new employees hired after July 1, 2006. At a minimum, each licensee shall: require completion of employee criminal background questionnaire; verify and document em…

2.59.1512 ELECTRONIC DEDUCTIONS An electronic deduction for nonsufficient funds may be authorized by the borrower only on the original loan agreement. An electronic deduction for nonsufficient funds shall be separate and apart from an electronic deduction for the amount of the lo…

2.59.1513 INCOME VERIFICATION Licensees shall verify a borrower's income prior to issuing any deferred deposit loan. Verification of income shall be in a form of most recent pay stubs for employment, or other official documents for public assistance, child support, alimony, unemp…

2.59.1514 DEPARTMENT APPROVAL OF LOAN AGREEMENT FORM For purposes of 31-1-721(2), MCA, department approval of a deferred deposit loan agreement form submitted for review by a licensee or license applicant means the department has verified that the form contains the provisions req…

2.59.1515 ADOPTION OF STANDARDIZED FORMS AND PROCEDURES OF THE NMLS The NMLS Policy Guidebook datedSeptember 27, 2021, isadopted by reference and available on the NMLS website at mortgage.nationwidelicensingsystem.org/slr/common/policy/Pages/default.aspx . Except as provided in A…

2.59.1516 LICENSE RENEWALS The renewal period begins November 1. Every renewal applicant shall apply for renewal through the NMLS. Licensees shall use the NMLS renewal process to request renewal of their license. Licensees shall submit their renewal applications by December 1 of …

2.59.1517 INITIAL LICENSE APPLICATION THROUGH NMLS (REPEALED) Authorizing statute(s): 31-1-705, 31-1-710, MCA Implementing statute(s): 31-1-705, 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1518 AMENDMENTS (REPEALED) Authorizing statute(s): 31-1-710, MCA Implementing statute(s): 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1519 LICENSE SURRENDER (REPEALED) Authorizing statute(s): 31-1-710, MCA Implementing statute(s): 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1520 FEES (REPEALED) Authorizing statute(s): 31-1-705, 31-1-706, 31-1-710, MCA Implementing statute(s): 31-1-705, 31-1-706, 31-1-710, MCA History: NEW, 2014 MAR p. 2449, Eff. 10/10/14; REP, 2022 MAR p. 228, Eff. 2/12/22.

2.59.1521 REINSTATEMENT OF EXPIRED LICENSES Upon expiration of a license issued under 31-1-705, MCA, due to nonrenewal by the renewal date, the former licensee shall immediately cease from engaging in the activities for which the license was issued. The department may reinstate a…

2.59.1522 ADOPTION OF ANNUAL REPORTING FORM AND DUE DATE An entity holding a deferred deposit lender license for any period of time during a calendar year reporting period shall complete and file with the department by April 15 of the following calendar year a Deferred Deposit Le…

2.59.1601 U.S. TREASURY AND U.S. GOVERNMENT AGENCY ISSUES There is no dollar limit on a bank's investment in the following U.S. treasury securities: bonds; notes; or bills. There is no dollar limit on a bank's investment in U.S. treasury bonds and notes in the form of separate tr…

2.59.1602 OTHER APPROVED QUASI-GOVERNMENT SECURITIES Certain other securities are approved for bank investment. There is no dollar limit on a bank's investment in: general services administration (participation certificates) ; maritime administration (bonds and notes) ; and Washi…

2.59.1603 STATE, COUNTY, AND MUNICIPAL ISSUES Banks may invest, without dollar limitation, in the general obligation of any state which is part of the United States of America. Such obligations must be fully guaranteed as to the repayment of principal and interest. Evidence of su…

2.59.1604 CORPORATE BONDS Banks may invest up to 20% of their capital and surplus, per issuer, in corporate bonds. These bonds must be investment grade, i.e., rated in one of the four highest grades by a recognized national investment rating organization. Other rating services ma…

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…